Vietnamese conglomerate Geleximco and Omoda & Jaecoo Automobile, a subsidiary of Chinese state-owned automaker Chery Automobile, signed an agreement Thursday to establish an $800-million automobile plant in Thai Binh province.
The plant, located in the northern province’s Geleximco Hung Phu IP that is under develoment, will be implemented in three phases.
The $220-million first phase (2024-2030) will see 50,000 vehicles churned out a year. The output will increase to 100,000 units a year in the $200-million second phase (2031-2033) and 200,000 units per year in the $380-million third phase (2034-2035).
The project will cover 100 hectares for automobile production and another 100 hectares for supporting industries in order to increase localization rate and serve exports.
The two sides plan to begin production in the last quarter of 2025. The autos will bear the Omoda and Jaecoo brands, a Chery representative said at the signing ceremony.
The project is expected to help boost socioeconomic growth of Thai Binh in particular and Vietnam in general, attract more investment into supporting industries and draw skilled workers to the northern province.
Chery is the second-biggest auto manufacturer in China and a leading auto exporter, Gleximco chairman Vu Van Tien said at the signing ceremony. Geleximco appreciates the cooperation with Chery, after over one year of negotiations, Tien added.
Thai Binh Chairman Nguyen Khac Than said that relevant agencies will assist both sides in processing administrative procedures related to investment certificate, site clearance, and the Hung Phu IP.
Establishment of the Hung Phu IP marks an apparent change in plans for Geleximco, which had signed an agreement last year to lease 50 hectares of land in the province’s Tien Hai Industrial Park, developed by construction materials company Viglacera, for the automobile factory.
Thai Binh’s index of industrial production (IIP) rose 6.2% from September to October, resulting in a overall 10.8% growth rate in January-October, according to provincial data. As a result, Thai Binh significantly outperformed the country’s overall industrial output growth of 0.5% in the first 10 months of this year.
Registered foreign direct investment (FDI) in Vietnam hit $25.76 billion in the year to October 20, up 14.7% year-on-year, according to the Ministry of Planning and Investment. The figure for Thai Binh was $558.9 million, 16th among all provinces and cities.