VinSmart, a subsidiary of the conglomerate Vingroup, will stop developing its business unit of televisions (TVs) and smartphones with the brand name of Vsmart for the Vietnamese market.
| VinSmart's factory in Hoa Lac Industrial Park, Hanoi. Photo: Vingroup |
The business unit no longer brings breakthrough or create differentiated value for users, according to Nguyen Viet Quang, Vice President and General Director of VinGroup.
“Developing smart cars, smart homes and smart cities will bring more benefits and better experiences for Vietnamese consumers,” said Quang.
The tech maker will switch to developing smart features for vehicles and homes. With nearly 150 infotainment features, Vingroup-invested VinFast cars are expected to have different utilities, creating a competitive advantage in the global auto market, according to the company.
VinSmart will research, design and manufacture electronic components, electric battery cells, complete electric battery systems and electric motors of all kinds, in order to increase localization rates and ensure supply for the car maker VinFast.
VinSmart continues to research on smart cities, smart homes and related Internet of Things devices.
The company released its last smartphone, Star 5, in March. In February, it exported three models to the US market. The 5G-enabled smartphones are sold at the wireless carrier AT&T retail systems under a contract wherein the Vietnamese company will produce two million units for the US wireless carrier.
Earlier this year, Vingroup failed to reach a deal with the South Korean manufacturer LG Electronics to purchase its smartphone business.
A report conducted by the market research firm GfK in March showed the market share of Vsmart in Vietnam was 8.2%, ranking 6th. Samsung, Oppo and Apple led the smartphone market.
In the TV segment, the tech company developed two high-end and mid-range product lines.
