Spanish smartphone maker BQ partnered with Vietnamese conglomerate Vingroup, with reports that a full acquisition of the devices company may be in the pipeline.
El Economista stated negotiations between Mundo Reader, the company behind BQ, and Vingroup are at a “very advanced stage”. The companies already have a relationship in place for the Vietnam market, which was established earlier this year.
BQ is licensing two of its smartphones for sale and distribution under the VSmart brand. It has also been working with Vingroup on a manufacturing plant in the country, with an agreement also including the transfer of some IP and knowledge from BQ.
This site, which will be able to produce 20,000 units per day, is intended to produce both VSmart products for the domestic market and BQ products for other markets. The investment was tagged at €30 million.
It was reported earlier this year that Vingroup was looking to enter Vietnam’s smartphone market, with advisers appointed to look at technology and production acquisitions. At the time, it was noted that local manufacturers had failed to gain traction in the face of competition from overseas rivals.
The conglomerate, which is active in markets including construction, tourism and healthcare, said it is looking to serve its home market using products “with a European quality criterion and an international vision”, leading to the BQ alliance.Subscribe to our daily newsletter Back