Geely Auto plans to build an assembly plant in Vietnam. The Chinese automaker plans to expand production in Vietnam through its investment.
The Chinese automaker announced it is forming a joint venture with Vietnam’s Tasco Joint Stock Company. Geely Auto plans to build a plant capable of assembling 75,000 vehicles a year. It will also expand its local supply chain in Vietnam. In addition, Geely talked about establishing an automotive research and development center in the Southeast (SE) Asian country.
The joint venture’s goals are estimated to bring $168 million worth of investments into Vietnam. The China-based automaker will contribute 36% of the total investment, while the rest will come from the Hanoi-based company.
According to state broadcaster Voice of Vietnam, On Monday, September 23, Geely’s Chief Executive Officer (CEO) Gan Jiayue outlined plans for an assembly plant with Vietnam’s Deputy Prime Minister Tran Hong Ha.
Earlier this month, news broke that Geely was reportedly considering local production in Europe. However, Geely’s recent announcement about investments in Vietnam aligns more with the Chinese government’s advice.
In July, China’s Ministry of Commerce mentioned risks in building car manufacturing factories in Europe and Thailand. The Ministry advised Chinese automakers to use overseas factories as final assembly facilities and export knock-down components from China.
Despite the Ministry of Commerce’s advice, Chinese automakers are exploring opportunities in Europe. The European Commission has proposed tariffs on China-made electric vehicle (EV) imports, making some Chinese automakers, like Geely and BYD, seek investment opportunities in Europe.
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