Vietnam-China joint venture to build $800 mln automobile factory

By Tri Duc
Thu, April 4, 2024 | 5:02 pm GMT+7

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.

Executives of Geleximco and Omoda & Jaecoo sign a joint venture agreement in Hanoi,  April 4, 2024. Photo courtesy of Dai Bieu Nhan Dan (People's Representatives) newspaper.

Executives of Geleximco and Omoda & Jaecoo sign a joint venture agreement in Hanoi, April 4, 2024. Photo courtesy of Dai Bieu Nhan Dan (People's Representatives) newspaper.

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.

Comments (0)
  • Read More
New Vietnam-China int'l road transport route opens

New Vietnam-China int'l road transport route opens

Convoys carrying electronic components, fresh vegetables, and daily necessities departed simultaneously from Nanning in south China's Guangxi Zhuang Autonomous Region and Kunming in southwest China's Yunnan province on Wednesday morning, heading for Hanoi, the capital of Vietnam.

Southeast Asia - Thu, May 15, 2025 | 10:34 pm GMT+7

Indonesia’s rice reserve set to hit record 4 mln tons

Indonesia’s rice reserve set to hit record 4 mln tons

Indonesia’s rice reserves are on track to surpass 4 million tons, setting an all-time high after reaching a new record of 3.7 million tons in mid-May.

Southeast Asia - Thu, May 15, 2025 | 10:24 pm GMT+7

China's giant Huadian Group eyes enlarging renewable energy portfolio in Vietnam

China's giant Huadian Group eyes enlarging renewable energy portfolio in Vietnam

Huadian Group, a wholly state-owned company of China, is keen to further invest in Vietnam’s renewable energy sector.

Energy - Thu, May 15, 2025 | 9:40 pm GMT+7

Vietnam’s macroeconomic indicators 'broadly positive': Dragon Capital

Vietnam’s macroeconomic indicators 'broadly positive': Dragon Capital

Vietnam's macroeconomic indicators remained broadly positive, with both trade and FDI attraction performing well in the first four months of the year, write Dragon Capital analysts.

Economy - Thu, May 15, 2025 | 5:47 pm GMT+7

'How many new jobs created’ should be new KPI for local governments: VCCI leader

'How many new jobs created’ should be new KPI for local governments: VCCI leader

With a shift in thinking about the role of the private sector, local governments may soon prioritize creation of new jobs and businesses over traditional growth metrics, according to Dau Anh Tuan, deputy secretary-general of the Vietnam Chamber of Commerce and Industry (VCCI).

Economy - Thu, May 15, 2025 | 5:23 pm GMT+7

Herbalife’s Vietnam earnings hit $75.4 mln in Q1, exceed China tally

Herbalife’s Vietnam earnings hit $75.4 mln in Q1, exceed China tally

Herbalife, a global multi-level marketing corporation selling dietary supplements, recorded $75.4 million in net sales in Vietnam in the first quarter of 2025, according to the firm’s report.

Companies - Thu, May 15, 2025 | 5:01 pm GMT+7

Japan’s Nitto Denko to quadruple northern Vietnam plant's production capacity

Japan’s Nitto Denko to quadruple northern Vietnam plant's production capacity

Nitto Vietnam, a subsidiary of Japan’s multi-sector corporation Nitto Denko, has decided to raise the investment in its Hung Yen province-based plant by $28 million to $160 million.

Investing - Thu, May 15, 2025 | 3:58 pm GMT+7

UAE Embassy, VAFIE to jointly strengthen Vietnam-UAE business connections

UAE Embassy, VAFIE to jointly strengthen Vietnam-UAE business connections

The Embassy of the United Arab Emirates (UAE) in Hanoi and the Vietnam's Association of Foreign Invested Enterprises (VAFIE) on Wednesday agreed to jointly deploy specific measures to lift trade and investment ties between the two countries.

Companies - Thu, May 15, 2025 | 2:37 pm GMT+7

Turbulent times of Vietnam's food giant Kido

Turbulent times of Vietnam's food giant Kido

Profits of Kido Group, a leading food company in Vietnam, have been lower than its leaders' expectations in the past few years, with its real estate investment and divestment from Kido Foods not being smooth sailing.

Companies - Thu, May 15, 2025 | 2:27 pm GMT+7

Impact of US tariffs on Vietnam’s textile, clothing and footwear sector

Impact of US tariffs on Vietnam’s textile, clothing and footwear sector

The adjustments in the U.S. tariffs are poised to reshape Vietnam’s textile, clothing and footwear industry, prompting businesses to reassess their strategies and operations, write Assoc. Prof. Rajkishore Nayak and Corinna Joyce from the Fashion Enterprise program at RMIT University Vietnam.

Consulting - Thu, May 15, 2025 | 8:17 am GMT+7

Malaysia-EU FTA expected to promote ASEAN-EU ties

Malaysia-EU FTA expected to promote ASEAN-EU ties

The EU is placing high expectations on the Free Trade Agreement (FTA) with Malaysia as a central pillar in its strategy to strengthen relations with the Association of Southeast Asian Nations (ASEAN) amid escalating global uncertainties.

Southeast Asia - Wed, May 14, 2025 | 10:17 pm GMT+7

Malaysia works hard to expand semiconductor ecosystem

Malaysia works hard to expand semiconductor ecosystem

Malaysia needs to broaden its manufacturing ecosystem beyond assembly lines and semiconductors to fully capitalize on foreign investments, towards becoming a more complete manufacturing hub.

Southeast Asia - Wed, May 14, 2025 | 10:14 pm GMT+7

Vietnam's Phu Quoc airport to undergo major upgrade ahead of APEC 2027

Vietnam's Phu Quoc airport to undergo major upgrade ahead of APEC 2027

Phu Quoc International Airport in the southern province of Kien Giang will be expanded and upgraded to support local economic development, while ensuring transport infrastructure for hosting the 2027 APEC Economic Leaders' Week.

Travel - Wed, May 14, 2025 | 9:57 pm GMT+7

Banks cut staff, transaction branches amid accelerating digital transformation

Banks cut staff, transaction branches amid accelerating digital transformation

A series of banks have announced plans to cut staff and transaction offices, setting off a wave of job losses in the banking industry that has been considered one of the hottest professions in recent years.

Companies - Wed, May 14, 2025 | 9:51 pm GMT+7

Malaysia’s maritime sector struggling due to new US tariff policy: expert

Malaysia’s maritime sector struggling due to new US tariff policy: expert

Malaysia’s maritime sector, particularly seaport transportation, faces mounting pressure from the U.S.’s tariff policy.

Southeast Asia - Wed, May 14, 2025 | 9:40 pm GMT+7

VinSpeed registers $60.24 bln investment for Vietnam's high-speed transnational railway

VinSpeed registers $60.24 bln investment for Vietnam's high-speed transnational railway

VinSpeed High-Speed Rail Investment and Development JSC, a subsidiary of private conglomerate Vingroup, on Wednesday announced its registration to invest in Vietnam’s North-South high-speed railway project.

Companies - Wed, May 14, 2025 | 9:24 pm GMT+7