The two companies established their joint venture factory in the Vietnamese northern port city of Hai Phong, with an aim to produce lithium-ion battery packs for VinFast's electric scooters that are being made now and electric cars to be produced in the future, the South Korean battery maker said in a statement.

The plan comes as VinFast, a unit of Vietnam's largest conglomerate Vingroup JSC, aims to become the country's first domestic car manufacturer and targets to produce 250,000 cars per year. Vingroup has earmarked $3.5 billion(2.7 billion pounds) for its overall car manufacturing project.

Part of the joint-venture plans include providing premium products that meet international standards and supplying lithium-ion battery cells for electric devices and other products belonging to Vingroup, the statement added.

(Reporting by Jane Chung; Editing by Jacqueline Wong)