Telecom groups to set up industrial production bases

Viettel and VNPT (Vietnam Posts and Telecommunications Group) plan to set up industrial production bases and turn these into a business pillar.

In 2015, when the mobile market and internet boomed, VNPT and Viettel announced that industrial production would become a key business. They planned to make terminal devices for their network and export products later.

Manufacturing equipment remains difficult for many local technology firms. But, this is the aspiration of those who want to master technology.

Viettel and VMC

Viettel has recently launched Viettel Manufacturing Corporation (VMC), marking its strategic shift, which aims to join the global value chain deeply. VMC operates in the field of electronics manufacturing and precision engineering, making optoelectronic and integrated devices. It also operates in the field of new technology such as composite, surface treatment, robot manufacturing, wind power, and oil and gas. 

The goal set for VMC is becoming the core of the high-tech national defense industrial complex and joining the global supply chain.

VMC targets high-tech products in the fields of mechanical engineering, electronics, simulation models, radar, automatic control and fiber optic cables. 

It also manufactures equipment and software systems for telecommunications network infrastructure; and Internet of Things (IoT) smart devices attached to 5G networks and precision mechanical products meeting demand for domestic and export markets. 

It also plans to join the global supply chain in hi-tech mechanics and electronics in the fields of aerospace, transport and telecommunications.

VMC currently has workshops covering an area of 26 hectares and 1,300 workers with modern production lines, such as the SMT (surface mount technology) line with a capacity of 1 million devices an hour; high-tech precision mechanical equipment systems; and fiber optic cable systems. 

In the near future, the precision mechanical engineering workshop on an area of 10 hectares will be set up in Hanoi’s Hoa Lac Hi-tech Park, which will accelerate research, manufacture and integration of Viettel’s hi-tech precision engineering products.

VNPT’s moves

After network digitization and international cooperation expansion in the late 1990s, VNPT started many industrial production factories. Its industrial production clusters in Yen Vien (Hanoi) became a bright spot of the industry with cable and telecom equipment manufacturing factories.

The industrial production division developed strongly, but it was alone in the market and responsible for the sales outlet of the products.

After its restructuring in 2015, VNPT affirmed that the industrial production division is part of VNPT’s competitiveness, and that this will be a pillar in the group’s development strategy. 

At that time, VNPT produced set top boxes, optical modems, Wi-Fi modems and smartphones, and made 100 percent of terminals for the VNPT network.

VNPT then stated it would turn VNPT Technology into the core division. The Ministry of Information and Communications was excited about the goal set by VNPT and believed that VNPT Technology would become a general corporation to master technological equipment and provide hi-tech products to not only VNPT but also for the domestic and export markets.

Though it is not a general corporation, VNPT Technology - with qualified staff - is a key unit of VNPT in the fields of technology, industry, post and telecommunications.

“VNPT Technology targets products for the telecommunications market, businesses and individuals, such as 5G technology, IoT, fixed broadband, wireless broadband and digital transformation,” said VNPT Technology Deputy CEO Nguyen Viet Bang.

To date, VNPT Technology has provided 12 million products to the market, 100 percent of terminals for VNPT network, and satisfied 60 percent of demand for DVB-T2 top set boxes that serve the TV digitization project. Its products are present in 11 countries. 

Besides VNPT and Viettel, Vingroup once had an ambitious plan to make industrial products such as 5G devices, smartphones and TVs. However, it recently announced that it would instead aim to manufacture electric cars.