HANOI -- Vietnam's largest conglomerate, Vingroup, starts production in August at a new smartphone factory that will lift its annual capacity to 125 million units by early next year -- about 25 times the current level.
The factory here will produce the company's Vsmart brand phones and provide contract manufacturing services to U.S. and European businesses, local media reported.
The move continues the rapid expansion by Vingroup, which began selling its own smartphones only in December of last year. It is a latecomer to a Vietnamese market where South Korea's Samsung Electronics holds a roughly 40% share.
Vingroup is following a low-price strategy at home and in foreign markets where it has gained a foothold, including Myanmar and Spain.
The company's move into Spain follows a partnership with Spanish phone maker BQ. The two operate a factory in the northern Vietnamese city of Haiphong that has an annual capacity of 5 million units.
Growth in contract manufacturing orders from foreign companies appears to have prompted Vingroup's decision to build a new plant.
The company has not disclosed investment figures for the new factory, which is located in the Hoa Lac Hi-Tech Park in the western part of Hanoi.