Vietnamese conglomerate Geleximco and Omoda & Jaecoo Automobile, a subsidiary of Chinese state-owned automaker Chery Automobile, will jointly build an $800-million automobile factory in Vietnam's northern province of Thai Binh.
The two sides agreed Thursday to set up a joint venture for a plant that can produce 200,000 vehicles a year, under Omoda & Jaecoo brand.
The $220-million first phase of the three-phase project is scheduled to be completed in the first quarter of 2026, at which stage it will have an annual output of 50,000 units.
The second, $200 million phase will increase the plant’s annual output to 100,000 vehicles in the 2031-2033 period. The final $380 million phase is envisaged to increase annual production to 200,000 units in the 2034-2035 period.
This will be the first time that a Chinese new-energy vehicle producer will build a factory in Vietnam. During construction, Omoda & Jaecoo will enter the Vietnamese market by bringing in completely built-up vehicles.
Speaking at the signing ceremony, Minister of Industry and Trade Nguyen Hong Dien noted that the production and assembly of electric vehicles (EV) and hybrid vehicles had become a global trend. It would help Vietnam achieve carbon neutrality by 2030, he added.
By investing in Vietnam, businesses can not only approach a big market with 100 million people but also a larger one of five billion people, thanks to Vietnam’s participation in various free trade agreements, Dien added.
Geleximco CEO and chairman Vu Van Tien said the cooperation was testament to the growing partnership between Vietnam and China. He said the joint venture aimed to export its vehicles thanks to many free trade agreements that Vietnam has signed, he added.