Vingroup to close VinSmart electronics unit to focus on EVs

Vingroup to close VinSmart electronics unit to focus on EVs

Labourers work at an assembly line to produce ventilators amid the spread of the coronavirus disease at Vsmart factory of Vingroup outside Hanoi on Aug 3, 2020. (Reuters photo)
Labourers work at an assembly line to produce ventilators amid the spread of the coronavirus disease at Vsmart factory of Vingroup outside Hanoi on Aug 3, 2020. (Reuters photo)

Vingroup JSC is shuttering its electronics devices unit VinSmart just months after exporting smartphones to the United States as it ramps up production of electric vehicles.

The closure of VinSmart is to “mobilise all resources” for developing of VinFast - Vingroup’s carmaker unit, according to a statement on Sunday.

“This is a strategic step towards the aim of making VinFast one of the world’s leading firms in electric and smart vehicles,” Vingroup said.

The move comes as Vingroup weighs a US initial public offering for its VinFast auto unit that could raise about $2 billion. Vingroup has also said it is considering raising funds through a special purpose acquisition company, or SPAC.

VinSmart, which had said it expects to ship as many as 2 million smartphones to the US in 2020, was founded in 2018. It produced other devices including smart TVs. VinSmart will switch to provide smart solutions for vehicles and homes, and will focus on developing in-car infotainment for VinFast, according to the statement. It will also continue current research on smart city, smart homes and related IoT devices.

VinFast, founded by billionaire Pham Nhat Vuong, began delivering gasoline-powered autos to Vietnamese consumers with BMW-licensed engines in 2019. The carmaker plans a rollout of electric cars in Vietnam later this year. The startup aims to deliver its first electric vehicles to the US, Canada and Europe next year and is looking to open a factory in the US.

Vuong, who said in late 2019 he would back the company’s US ambitions with $2 billion of his own fortune, has been refocusing his company, abandoning plans for an airline and divesting its grocery stores and agriculture businesses.

Do you like the content of this article?
COMMENT (3)
TRENDING

Economy will grow faster in Q3 as investment, tourism return: Arkhom

Thailand's economic growth is expected to accelerate in the third quarter after a weaker-than-expected second quarter as public investment spending increases along with a recovery in tourism, the finance minister said on Wednesday.

21:35

Indian smuggler arrested at Suvarnabhumi airport with fox, pythons

An Indian man has been arrested at Thailand's main airport attempting to smuggle out a menagerie of live creatures including a white desert fox and a raccoon, officials said Wednesday.

21:25

Investment pledges slump in H1 as foreign projects wane

Investment applications in Thailand dropped by 42% in the first half of 2022 compared to the same period last year, official data showed on Wednesday, led by a sharp fall in foreign projects as the global economy slowed.

21:17