The smartphone market has lost another player: following LG, the Vietnamese manufacturer VinSmart announced the closure of its mobile division.
As it steps up development of electric cars, Vingroup JSC is shuttering its electronics products unit VinSmart, only months after exporting smartphones to the United States.
According to a statement released on Sunday, the closure of VinSmart is to “mobilize all resources” for the development of VinFast, Vingroup’s car manufacturer company.
Vingroup said, “This is a strategic step towards the aim of making VinFast one of the world’s leading firms in electric and smart vehicles,”.
The change comes as Vingroup considers a $2 billion initial public offering in the United States for its VinFast auto unit. Vingroup has also stated that it is contemplating forming a special purpose acquisition firm, or SPAC, to raise funds.
Vingroup is said to be considering a $2 billion IPO of VinFast in the United States.
VinSmart was founded in 2018 and has stated that it plans to ship up to 2 million smartphones to the United States in 2020. It also made other devices, such as smart TVs. According to the announcement, VinSmart will concentrate on improving in-car infotainment for VinFast and will turn to providing smart applications for cars and residences. It will also begin to work on smart cities, smart houses, and other IoT products.
In 2019, billionaire Pham Nhat Vuong’s VinFast started selling gasoline-powered vehicles to Vietnamese customers with BMW-licensed engines. Later this year, the automaker expects to introduce electric cars in Vietnam.
The company plans to sell its first electric cars to the United States, Canada, and Europe next year, as well as build a plant in the United States.
Vuong has been refocusing his operation, dropping proposals for an airline and divesting its grocery stores and agriculture companies, after saying in late 2019 that he will back the company’s U.S. aspirations with $2 billion of his own fortune.
The company VinGroup, which owns the brand VinSmart, decided to focus on creating “smart” cars. And the closure of the mobile division was called “a strategic step towards making VinFast (the electric car division) one of the world’s leading companies in the field of electric cars and smart cars.”
By the way, the founder of VinGroup is the Vietnamese billionaire Pham Nyat Vayong. Few people know, but it was he who created the brand of instant noodles “Mivina”.