Vietnamese conglomerate Vingroup began construction of its second smart phone plant, VinSmart, with an annual capacity of 125 million phones at the Hoa Lac Hi-tech Park in Hanoi’s Thach That district on June 10.

The capacity of this plant is 25 times higher than the current capacity of the same plant which was put into operation for one year at the Dinh Vu Economic Zone in Hai Phong.

The plant covers an area of 15.2ha which is scheduled to complete its first phase in August 2019 to produce 23 million phones per year. The capacity will be increased to 34 million phones per year in October 2019 and 125 million phones per year in 2020.

Vingroup Vice Chairman and General Director Nguyen Viet Quang said that since the inauguration of the first VinSmart plant in Hai Phong, the company has received many phone processing orders from large partners in Europe and America. Thus, VinSmart decided to invest in building the same kind of plant with higher capacity to meet domestic and international demands.

With state-of-the-art and automated production lines according to European technology standards, Vingroup expects to continue developing the ecosystem of smart phone products to meet the domestic demand and exports, Quang said.

Quang noted that VinSmart will invest in building factories producing other smart electronic products such as Internet of Things (IoT), SmartHome, SmartTV, and others.