Vietnam giant Geleximco, China partners to build $400 mln auto part plant

Vietnamese conglomerate Geleximco Group and Chinese partners will jointly build a $400 million auto part factory in the northern province of Thai Binh.

Geleximco and its partners, including one subsidiary of state-owned GoldenSun based in Guangzhou, signed an agreement for the move on Tuesday. The project is set to cover 200 hectares and employ 2,000-3,000 people.

The project is scheduled to begin construction in 2026 and enter operation in October 2027.

Speaking at the event, Geleximco chairman Vu Van Tien said the firm aims to develop Thai Binh into the biggest automobile hub in the northern region. The collaboration is a symbol of Vietnam-China growing partnership, he added.

Prior to this cooperation, Geleximco had already partnered up with Chinese giant Chery to manufacture and distribute automobiles under Omodo&Jaecoo brand.

In April 2024, Geleximco and Omoda & Jaecoo Automobile, a subsidiary of Chery Automobile, signed an agreement to set up a joint venture for a plant that can produce 200,000 vehicles a year, under Omoda & Jaecoo brand.

In October 2024, Chery Automobile received an investment registration license to pour $800 million into Thai Binh province.

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.