Vietnam Vingroup may produce batteries and parts for Foxconn electric vehicles

Vietnam's Vingroup said it was in talks with Taiwan's iPhone assembler Foxconn to produce batteries and other parts for Foxconn electric vehicles, according to foreign media reports. At present, both companies are trying to develop the automobile industry.

This cooperation will open up new areas for Vingroup and Foxconn. Vingroup, a real estate group, is looking to produce self-driving cars. Foxconn is the world's largest contract manufacturer of consumer electronics and a major supplier to Apple.

"the company has received a proposal from Foxconn, but no specific agreement has been reached between the two sides," a Vingroup spokesman said on March 22. If the partnership is reached, Vingroup will also focus on developing electric vehicle batteries and components for Foxconn electric vehicles. Our two companies have not yet made any decision on the joint production of electric vehicles. "

Foxconn declined to comment. Foxconn has previously said that electric cars could become a bigger business for Foxconn than consumer electronics as cars become more dependent on computer chips.

Vingroup, founded by Vietnam's first billionaire, currently makes fuel cars through the group's company VinFast, and Vinfast sold 29485 cars in Vietnam in 2020.

In February, Vingroup said it had obtained a California road test license to start testing self-driving electric cars in the area. In January, the company announced plans to sell battery-powered cars in the United States, Canada and Europe by 2022. In Vietnam, the company plans to launch its first VinFast electric car later this year.

In fact, long before the negotiations with Vingroup, Vingroup had already transferred some production from China to Vietnam. The company said in 2020 that it would invest an additional $270 million in the Southeast Asian country.

Foxconn makes auto parts in Vietnam and plans to invest another $700m in the region in 2021. Foxconn had offered to buy VinFast's electric car production line, but the latter preferred to retain the business and promote its environmentally friendly car brand, according to sources.

Vingroup is keen to expand overseas to prove that local brands can also win over discerning foreign consumers. The group started as real estate, but has since moved into more than a dozen industries, from tourism and health care to mobile phones and motorcycles.