VinGroup shuts down smartphones and TVs manufacturing, to focus in EV tech
Vietnam’s largest private conglomerate, Vingroup, has officially announced that its VinSmart unit, established nearly three years ago in June 2018 and introduced 19 smartphone models and 5 TV models to the market, will stop manufacturing smartphones and televisions, focusing its energies instead on producing equipment, specifically “infotainment” features for its automobile unit VinFast cars to make them more competitive in the global market. Its factories will continue manufacturing TVs and mobiles till the end of the products’ life cycles to meet market demands. Afterward, parts of the production system facilities will be utilised for producing components for partners and the rest will be expanded or adjusted for creating its own new products.
VinSmart will also focus on researching, designing, and manufacturing electric motor engines, electronic components, batteries cells and complete batteries systems for electric vehicles, contributing to enhancing the localisation ratio of its products, and ensuring high-quality supply for VinFast. This development comes a month after VinFast’s reported plans for a US initial public offering (IPO) that could value the car unit at about $60 billion. Following the closure of its smart and TV manufacturing operations, VinSmart will also continue to push research on devices for smart cities, smart homes, related IoT devices.
“The industry of mobile phones and TV production is no longer able to bring significant breakthroughs and create distinctive values for customers. Meanwhile, the development of smart cars, smart homes and even smart cities, etc. will bring many outstanding benefits and extraordinary experiences to all mankind. Therefore, we are determined to spearhead with all our resources into this new direction,” said Nguyen Viet Quang, Vice Chairman and General Director of Vingroup.
To date, Vingroup has withdrawn from the retail, agriculture and aviation sectors, giving the top priority to automobiles. In April, Vingroup was seeking to raise $500 million through its inaugural issue of international bonds this year to pay loans and pump up the capital of its subsidiaries. The group is looking to raise 7 trillion VND ($303.6 million) through domestic bonds this year to fuel automobile and smartphone units
Sources of information include VNExpress.
