Chinese carmaker conglomerate Geely has signed a new strategic partnership agreement with Tasco, a Vietnamese transportation and automotive investment company, earlier this week. As part of the agreement, the companies will be establishing a new assembly plant at the Thai Binh Province with a designed capacity of 75,000 vehicles per year in the first phase.
The total investment for the project is estimated to be around USD168 million (approx RM696 million), with Geely contributing 36%. Production in Vietnam is expected to begin in 2026 with Geely and Lynk & Co brands, although the companies may expand to other brands under the Geely Umbrella in the future.
The vehicles produced in the plant will serve the Vietnamese domestic market, as well as other left-hand drive markets in the region which Vietnam has free trade agreements with.
Aside from the assembly plant, Geely will also invest in building out the local supply chain in Vietnam, while also establishing a Southeast Asian automotive research and development centre there. Additionally, the companies (through Tasco Auto) also signed a distributorship agreement for Geely-branded vehicles in the country.
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Speaking at the event, Thai Binh Provincial Party Committee Secretary, Ngo Dong Hai said: “The strategic cooperation between Tasco and Geely in Thai Binh comes at a very opportune time. The Vietnamese automobile market is full of potential, with a car ownership rate of about 63 vehicles per 1,000 people compared to over 300 vehicles in Thailand.
“The market is expected to grow at an average annual rate of 14%-16% by 2030, with total car consumption reaching 1 to 1.1 million units, and by 2045, this is projected to increase to 4.5 to 4.7 million vehicles. Over the past 10 years, the growth rate of Vietnam’s automobile market has been among the highest in the world,” Hai added.
Geely, of course, isn’t the only Chinese manufacturer that has looked at an expansion in Vietnam. Recently, BYD and Chery have also reportedly been eyeing the country for production, and we are certain to be seeing more in the coming years.
The partnership is the latest in Geely’s major exports push, specifically into the Southeast Asian market. Recently, the Chinese carmaker also committed to a RM32 billion investment into the Automotive High Tech Valley (AHTV) project in Tanjung Malim, with the intention of setting up the group’s right-hand drive (RHD) hub in the region.
Geely Group’s export sales in the first eight months of 2024 grew by nearly 70%, reaching 280,000 vehicles, while overall sales has also grown by 33% to 1.31 million units. The group aims to sell two million vehicles this year, excluding Volvo cars.
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