Vietnamese conglomerate Geleximco, China’s Chery Auto sign $800 mln auto factory deal

Viet · Nov 4, 2023

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.