Exploring “Made in Vietnam” 5G smartphone factory

More than one year since VinSmart inaugurated its electronic equipment complex in the Hoa Lac Hi-Tech Park (Thach That district, Hanoi), it has become one of the biggest smartphone manufacturing and testing factories in Vietnam. VinSmart, a subsidiary of conglomerate Vingroup, is now among three with a domestic market share of over 15 percent. VinSmart launched its first four Vsmart smartphones in December 2018 after it acquired the patents for them from Spanish technology firm BQ, in which it owns a 51 percent stake. The company has launched 12 phones and five smart TVs and expanded its markets to Myanmar and Russia. (Photo: VietnamPlus)

The factory covers an area of nearly 14.8 hectares and has a total capacity of 125 million devices per year. A VinSmart representative said the localization rate in the company’s phones would increase to 60 percent, and VinSmart expects to grab a 30 percent market share by the end of this year. The company has been launching many new models with special promotions. For example, late last year Vsmart Live was sold at discounts of up to 50 percent to gain market share. Mobile phone distributors said VinSmart has been gradually increasing its market share. According to The Gioi Di Dong, Vsmart ranked third in terms of sales in the below-4 million VND segment due to its attractive prices. (Photo: VietnamPlus)

In the first phase, total production area is 45,200m2 with a capacity of 23 million products per year. Vingroup established VinSmart company with chartered capital of 3 trillion VND (around 132 million USD) and its market capitalisation stands at approximately 16 billion USD at present, according to the firm. The phone manufacturer will operate in two major fields: manufacturing electronic equipment and conducting research, experiment and application of artificial intelligence (AI), automation and new-general materials. It commits to progressive creativity and innovation in organising an integrated technology ecosystem, in order to bring a modern and better life for Vietnamese and global citizens. (Photo: VietnamPlus)

The factory strictly adheres to international standards for electronics and telecommunications manufacturing plants. The production environment is fully controlled in terms of temperature, humidity, electrostatic discharge control and air quality. VinSmart said the company has determined 5G as its strategic project with the hope that Vietnamese consumers will get early access to the most advanced technologies in the world. VinSmart’s technology is developed through the close cooperation with the world’s largest technology firms such as Qualcomm, Google, ArcSoft and DxO to include the most advanced technologies in the smart device field. On product design, VinSmart cooperates with a number of designers and ODMs (original design manufacturers). (Photo: VietnamPlus)

The factory also has an independent testing zone with separate storehouses, production lines and laboratories, among others. The VinSmart factory covers an area of 15.2ha in the Hoa Lac Hi-Tech Park. The first phase of the construction was completed in August 2019, with a production capacity of 23 million phones per year. The second phase was finished in October with a capacity of 34 million units per year. In early 2020, the plant was believed to reach its final capacity of 125 million units. In addition to telephones, VinSmart will invest in building factories to produce smart and Internet of Things products such as smart TVs. (Photo: VietnamPlus)

In the factory, thousands of interconnected robots are responsible for the assembly and production, minimising labour force and errors. VinSmart launched its first four Vsmart smartphones in December 2018 after it acquired the patents for them from Spanish technology firm BQ, in which it owns a 51 percent stake. The technology arm of Vingroup has launched 12 phones and five smart TVs and expanded its markets to Myanmar and Russia. In July, the first Vietnamese smartphone supporting 5G was successfully developed by VinSmart, in cooperation with US chipmaker Qualcomm. The model, known as the Vsmart Aris 5G, features the mid-tier Snapdragon 765 chipset, making it an upper mid-range device. (Photo: VietnamPlus)

The robotic arms will replace humans to ensure precision. Engineers supervise the work during the process. VinSmart’s technology is developed through the close cooperation with the world’s largest technology firms such as Qualcomm, Google, ArcSoft and DxO to include the most advanced technologies in the smart device field. On product design, VinSmart cooperates with a number of designers and ODMs (original design manufacturers). The factory boasts a capacity 25-fold larger than an existing one in the northern port city of Hai Phong, in a bid to meet domestic and international demand. It strictly adheres to international standards for electronics and telecommunications manufacturing plants. The production environment is fully controlled for temperature, humidity, electrostatic discharge control and air quality. (Photo: VietnamPlus)

Before being brought to the market, Vsmart phones will have to pass hundreds of tests to check their durability in specialised lab systems. Vsmart phones now account for 16.7 percent of the Vietnamese smartphone market just 15 months since they were launched. The information was published by global market research firm GfK, which noted that Vsmart smartphones dominated the popular phone segment, priced from 1-3 million VND (42-127 USD). The Vsmart Joy 3 phone achieved breakthrough growth with record sales of 12,000 phones within the first 14 hours of its launch. Vsmart products have some of the best features in their price range. Strong performance, camera, battery capacity and fast charging are outstanding in the segment, and VinSmart also offers a wide range of customer services. (Photo: VietnamPlus)

One of the notable traits of the production line is a number of robots which automatically adjust parameters of the products such as waves and wireless network on par with the system. The first phase of the construction was completed in August 2019, with a production capacity of 23 million phones per year and the second phase was completed two months later with a capacity of 34 million units per year. The plant was said to reach its final capacity of 125 million units in early 2020. The factory strictly adheres to international standards for electronics and telecommunications manufacturing plants. The production environment is fully controlled for temperature, humidity, electrostatic discharge control and air quality. (Photo: VietnamPlus)

Phones that have passed the robotic system tests go to the next stage. Those with errors will go to the inspection division. With market share growth of 260 percent from the beginning of this year and 16.7 percent of the smartphone market share after only 15 months, VinSmart was heading in the right direction, said Tran Minh Trung, deputy general director of VinSmart Research and Manufacture JSC. The company’s goal is to continue optimising the products to improve quality while catching up with new trends faster along with more competitive prices so that Vietnamese phones not only meet the domestic market but also reach the world market, he added. (Photo: VietnamPlus)

Vsmart phones will be recognised under the international Acceptance Quality Limit (AQL) standard issued by the International Organisation for Standardisation (ISO), is defined as the “quality level that is the worst tolerable”. It represents the maximum number of defective units, beyond which a batch is rejected. Vsmart products have some of the best features in their price range. Strong performance, camera, battery capacity and fast charging are outstanding in the segment, and VinSmart also offers a wide range of customer services. In April, the phones accounted for 16.7 percent of the Vietnamese smartphone market just 15 months since they were launched. (Photo: VietnamPlus)

One of the tests is for durability of the physical keyboard through robots, which is performed for 200,000 times. Only if the keyboard functions as normal after all the tests, the product is allowed to go on sales. The Vsmart Joy 3 phone achieved breakthrough growth with record sales of 12,000 phones within the first 14 hours of its launch. The phone, (2GB and 3GB RAM versions) was in the top three best-selling products in the 2-3 million VND segment at the end of last year, accounting for 13.3 percent of market share. Vsmart products have some of the best features in their price range. (Photo: VietnamPlus)

VinSmart products include smart phones with an estimated capacity of 23 million products per year; Internet of Things (IoT) devices; smart home; civil electronic equipment; electronic equipment and components for cars and motorcycles; molds and batteries for electronic devices. VinSmart launched its first four Vsmart smartphones in December 2018 after it acquired the patents for them from Spanish technology firm BQ. The phone manufacturer has launched 12 phones and five smart TVs and expanded its market to Myanmar and Russia. Its goal is to continue optimising products to improve quality while catching up with new trends faster along with more competitive prices so that Vietnamese phones not only meet the domestic market but also reach the world market. (Photo: VietnamPlus)

Currently, VinSmart is cooperating with Qualcomm, an American public multinational corporation headquartered in the US, to research and develop Vsmart Aris 5G V742 mobile phones. It creates intellectual property, semiconductors, software, and services related to wireless technology. Qualcomm Vietnam Company Limited launched a new research and development (R&D) facility in Hanoi in June. It was also the company’s first R&D facility in Southeast Asia. The new office aims to address requests from partner companies as well as government agencies. As a leader in wireless technology, Qualcomm has worked in the Vietnamese mobile ecosystem for years. The company established its first office in Hanoi in 2003 and another in HCM City in 2014.(Photo: VietnamPlus)

The US is also VinSmart’s target market in 2021. Aris and Aris Pro are the key products in the company’s strategy to conquer the US market. In an interview granted to VietnamPlus’ correspondent, a representative of VinSmart Research and Manufacture JSC, said that with market share growth of 260 percent from the beginning of this year and 16.7 percent of the smartphone market share after only 15 months, VinSmart was heading in the right direction. The company’s goal is to continue optimising its products to improve quality while catching up with new trends faster along with more competitive prices so that Vietnamese phones not only meet the domestic market but also reach the world market. (Photo: VietnamPlus)

Launched in July, the Vsmart Aris 5G uses Sub-6 GHz frequencies, providing better coverage but lower speeds than mmWave. It features the mid-tier Snapdragon 765 chipset, making it an upper mid-range device. The smart phone also features a security chip known as Quantis QRNG, developed by the Swiss company IDQ with quantum technology to provide better security for data stored on the phone, especially personal financial and health-related data. In the future, the company plans to release new phones that support both Sub-6 and mmWave frequencies. Vsmart phones now account for 16.7 percent of the Vietnamese smartphone market just 15 months since they were launched by VinSmart. (Photo: VietnamPlus)

All Vsmart Aris 5G, the first Made-in-Vietnam 5G-enabled smartphone, are produced at the electronic equipment factory in the Hoa Lac Hi-tech Park. The park, the first and largest of its kind in Vietnam, covers a total area of approximately 1,600 hectares on the outskirts of Hanoi. It was founded under the Ministry of Science and Technology. It is home to 90 projects which have a combined registered investment of over 85.8 trillion VND (nearly 3.7 billion USD). Three major projects, worth nearly 7 trillion VND (296 million USD), have landed in the park this year. Core hi-tech fields in the park include information and technology, communications, electronics, biology, new materials and energy. (Photo: VietnamPlus)

In a seminar held in October, Thieu Phuong Nam, Country Director of Qualcomm Technologies in Vietnam, Laos and Cambodia, affirmed that VinSmart’s first 5G-enabled smartphone produced in Vietnam is evidence of Vingroup’s capacity to research and develop 5G terminal devices, making it ready for the transformation of the telecoms infrastructure in the country. This creates confidence that Vietnam can be on par with global peers on 5G technology in the future, and is good evidence for Vietnam’s acceleration in the fourth Industrial Revolution. In June, Qualcomm opened its first research and development facility in Southeast Asia in Ha Noi, aiming to develop wireless technologies and internet of things (IoT) technology and provide testing services to local manufacturing partners. (Photo: VietnamPlus)