Vingroup, the largest listed company in Vietnam, prepared for a surge in overseas demand for smartphones by breaking ground on a second factory in Hanoi.

The company said the plant will open in August, initially with capacity to produce 23 million handsets per year, with a peak potential output of 125 million units expected to be reached in early 2020.

This is more than 25-times the number Vingroup can produce in its current factory: CEO Nguyen Viet Quang said in a statement the company is expanding after receiving numerous orders “from major partners from Europe and America”.

In addition to handsets, the company said it will invest in factories to produce connected products including smart TVs and IoT devices. It also approached makers of chipsets and components to an effort to gain control of the supply chain.

With costs rising in China and the threat of a protracted trade war with the US, many international handset vendors shifted production to Vietnam.

Samsung and LG Electronics both make smartphones in the country for the global market, with the former reducing its reliance on facilities in China.

LG reportedly plans to halt mobile phone manufacturing in its home market and shift production to an existing plant in Vietnam.