Vietnam-China joint venture breaks ground on $319 mln auto plant in northern Vietnam

Vietnamese conglomerate Geleximco Group and China’s Chery Automobile on Thursday held a groundbreaking ceremony for their GEL-O&J automobile plant in Hung Yen province.

Located in the Hung Phu Industrial Park in the former Thai Binh province (now part of Hung Yen province after their merger in July), the project spans 38.1 hectares with a total investment of $319 million. It will be developed in two phases from 2025 to 2029.

The facility is among the largest and most advanced automobile manufacturing projects in Vietnam, and notably, the first Chinese car assembly plant in the country.

Once completed, the factory will have a designed capacity of 120,000 vehicles per year, featuring key workshops for welding, painting, assembly, plastic component production, a logistics center, an expert zone, and a European-standard test track.

The plant is designed under the “Green Factory - Smart Factory” model - an advanced concept currently implemented by Chery globally. It will maximize natural energy use, reuse rainwater, recycle wastewater, and incorporate eco-friendly materials.

The production line will be equipped with automated technologies and a smart management system to enhance energy efficiency and reduce emissions.

The facility will also serve as the main new energy vehicles (NEV) production base for Omoda & Jaecoo Automobile, a subsidiary of Chery Automobile.

Omoda & Jaecoo Vietnam currently distributes SUV models such as Omoda C5, Jaecoo J7, and Jaecoo J7 PHEV (SHS).

A provincial official emphasized that Hung Yen province prioritizes high-tech, environmentally friendly industrial projects consistent with its sustainable development goals.

The local government pledged full support for the investors, from infrastructure and administrative procedures to construction facilitation, ensuring the project’s timely, safe, and efficient implementation.

A representative from Omoda & Jaecoo Vietnam said the construction of the Hung Yen plant marks a strategic step in the brand’s global expansion plan. The company is committed to long-term investment, strict compliance with environmental regulations, and the adoption of intelligent, highly automated production lines.

When fully operational, the plant is expected to create thousands of direct and indirect jobs across the supply chain. The establishment of the GEL-O&J automobile plant represents a milestone in industrial cooperation between Vietnam and China in high technology and underscores Vietnam’s rising role in the global automobile manufacturing network.

Chery Automobile is currently China’s fifth-largest automaker, producing both gasoline-powered and electric vehicles. From January through September, the company exported 1 million vehicles and it aims to sell about 3 million units by the end of this year.