Chinese automaker Chery to set up 0 million car factory in Vietnam – 04/04/2024

Chinese automaker Chery to set up $800 million car factory in Vietnam – 04/04/2024

Vietnam’s Ministry of Commerce announced Thursday that carmaker Chery has signed a joint venture agreement with a local company to set up an $800 million factory, becoming the first Chinese company to make residential vehicles in Vietnam.

The manufacturing plant, to be jointly established by Chery’s Omoda&Jaecoo unit and Vietnamese company Geleximco, will be located in the coastal province of Thai Binh, the ministry said in a press release following the signing ceremony.

With a capacity of 200,000 vehicles per year, the plant will produce Chery’s OMODA and JAECOO electric models. The first phase of construction is expected to be completed in the first quarter of 2026, the press release added.

At the same time, Chery, which also sells cars in Europe and has a factory in Italy, will import two electric models in Vietnam to be put into service by the end of the year, the ministry announced.

China’s BYD, the world’s largest electric car maker, has also wanted to set up a factory in Vietnam, although Reuters reported last week that it may slow the pace of its project.