Vingroup JSC has signed a deal with Qualcomm and a unit of Japan’s Fujitsu to produce 5G smartphones in Vietnam, Reuters reported.

The Vsmart phones will be manufactured at its factory in the capital city of Hanoi and will be sold in the U.S. and European markets from April next year, Vingroup said in a statement.

Earlier this month, Vingroup started construction of the factory that can produce 125 million units a year.

Vingroup launched Vsmart brand in December last year, seeking to win market share from popular brands Samsung and Apple in Vietnam, which has a population of 95 million people.

The company began selling Vsmart phones in Spain in March and plans to expand into other European markets. Its phones went on sale in Myanmar last month.