China’s Great Wall Motor wheels into Vietnam market

Great Wall Motor (GWM), a major private automobile manufacturer in China, said Friday that it plans to officially enter the Vietnamese market in August.

Reviewing a meeting in Beijing on June 28 with Vietnamese Prime Minister Pham Minh Chinh, GWM said the first model to be launched in Vietnam would be the HAVAL H6 HEV, a hybrid electric vehicle.

By the end of the year, GWM aims to deploy eight sales networks in Vietnam, the firm had said at the meeting on the sidelines of the China-Vietnam Economic and Trade Cooperation Forum, held during PM Chinh’s China visit during June 25-28.

Initially, the automobile maker will import completely-built vehicles from its factory in Thailand to Vietnam. It will establish a plant in Vietnam in 2025 to assemble new energy vehicles, including hybrid electric vehicles (HEV), electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV).

The company pledged to stimulate supporting industries with development of local parts and components.

With this move, GWM expands its presence in Southeast Asia, adding to normal operations in Thailand, Laos, Brunei, the Philippines and Cambodia. Apart from Vietnam, it is eying market forays into Singapore and Indonesia this year.

GWM emphasized that Vietnam was an important step in its ASEAN strategy, happening as it did amidst the 10th anniversary of the Belt and Road Initiative (BRI) and the 20th anniversary of China's accession to the Treaty of Amity and Cooperation in Southeast Asia.

PM Chinh had urged GWM to bring a series of industry-leading new energy technologies and models as also produce autos in Vietnam. He hoped that the company would continuously deepen investment and cooperation in Vietnam, deepen China-Vietnam automobile industry cooperation, and promote development of Vietnam's new energy automobile industry.

More and more Chinese cars

Chinese automobile businesses have been flocking to Vietnam of late.

In May, Vietnam’s TMT Motors debuted its first mini electric vehicle (EV) under Chinese brand Wuling HongGuang. The vehicle was manufactured at the company’s factory in Hung Yen province in the north. The factory is designed for an ]annual capacity of 30,000 units in the first phase and 60,000 in the second.

Wuling HongGuang MiniEV was the best-selling mini electric vehicle in the world in 2020-2022, according to London-headquartered automotive market researcher Jato Dynamics.

Also in May, BYD, dubbed China’s Tesla, said it would expand its investment in Vietnam by manufacturing EVs in the country for the domestic market and other Southeast Asian countries. BYD chairman Wang Chuanfu announced the expansion plan in a meeting with Vietnam’s Deputy Prime Minister Tran Hong Ha.

The planned business expansion would include establishing a supply chain in Vietnam, focusing on support industries for EV production to diversify its supply chain network, Wang said.

In February, Chinese automobile firm Haima signed an agreement with local sales platform Carvivu to distribute gasoline vehicles Haima SUV 8S and Haima MPV 7X as well as electric vehicle Haima 7X-E in Vietnam. Haima had previously sold its Haima2, Haima3, Haima7 and Haima Preema vehicles in Vietnam in 2011, but withdrew later after a weak performance.