Vingroup acquires 51% in Spanish hardware firm BQ to make smartphones

Vingroup, the Vietnam-based $14.2-billion conglomerate, has acquired 51 per cent stake in Spanish consumer electronics devices maker BQ to produce its new line of smartphones.

The Vsmart-branded phones will be introduced on Friday, only six months after the business giant announced the establishment of its VinSmart subsidiary. Vingroup and BQ will  jointly develop a plant in northern Vietnam, which will manufacture both VSmart and BQ devices.

BQ said in a statement that VinSmart had licensed two of BQ’s models to sell under the VSmart brand.

The manufacturing facility has an initial capacity of 5 million phones a year, according to a Vingroup statement.

The Hanoi-based group also has partnership with global tech companies such as Qualcomm and Google to keep up with new technologies in smartphone manufacturing.

“The completion and launch of our four editions of smartphones in less than six months has demonstrated our commitment to participating in the industrial and technology sector. We hope Vsmart, along with VinFast-branded cars, will contribute to the development of Vietnam’s industrial sector,” said Nguyen Viet Quang, vice chairman and CEO of Vingroup.

Following the launch of smartphones, VinSmart plans to make IoT and AI-enabled devices.

Headquartered in Spain, BQ has offices in China, Germany and Russia. The hardware firm produces smartphones, tablets and robotic and 3D devices. In 2014, BQ was reported to have received an investment that values it at 200 million euros ($226.5 million).

Vingroup, originally a property developer, has been aggressively expanding its business to car-making (under the VinFast unit), education, healthcare (including hospitals and pharmaceutical retail) and technology.

Last week, it announced that the big data research centre under the VinTech subsidiary will invest $4.5 billion in a genomic project, aiming at the diagnosis and early treatment of certain diseases. Vingroup said this was the largest project of its kind in Southeast Asia.

In addition to the big data research facility, VinTech has also established a hi-tech research institute and plans a $300 million venture capital fund.

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