In a move that signals the burgeoning electric vehicle (EV) market in Vietnam, automaker Chery has inked a landmark joint venture agreement with local company Geleximco, marking its entry as the first Chinese EV maker to establish a manufacturing plant in the country. The $800 million plant, set to be located in the coastal province of Thai Binh, is poised to significantly bolster Vietnam’s EV production capacity.
The joint venture, which will see the establishment of a manufacturing plant, aims to produce 200,000 electric vehicles annually. This strategic partnership underscores Chery’s commitment to the Vietnamese market and signifies a major step towards bolstering the country’s EV infrastructure.
According to the Vietnamese trade ministry, the first phase of construction is slated for completion in the first quarter of 2026, with production of Chery’s OMODA and JAECOO electric models commencing thereafter. This development not only signifies a major investment in Vietnam’s automotive sector but also heralds the arrival of cutting-edge EV technology to the region.
In addition to the manufacturing plant, Chery is set to introduce two electric models into the Vietnamese market by the end of this year, further solidifying its position as a key player in the country’s EV landscape. This move aligns with Chery’s global expansion strategy, as the company also explores opportunities in Europe, including the potential establishment of a plant in Italy.
Chery’s entry into Vietnam comes at a time when the EV market in the country is witnessing rapid growth, with increasing demand for sustainable transportation solutions. The Chinese automaker’s decision to invest in Vietnam reflects the country’s attractiveness as a manufacturing hub and signals the beginning of a new era in Vietnam’s automotive industry.
While Chery takes the lead in establishing its presence in Vietnam, other major players, such as China’s BYD, have also expressed interest in setting up EV factories in the country. However, recent reports suggest that BYD’s plans may be subject to delay, highlighting the competitive landscape of Vietnam’s EV market.
As Vietnam continues to position itself as a key player in the global EV market, partnerships like the one between Chery and Geleximco are expected to drive innovation and propel the country towards a sustainable future. With Chery’s investment, Vietnam is set to emerge as a significant player in the electric vehicle revolution, paving the way for a greener and more sustainable automotive industry.
(Source: Bangkok Post | Times Live | Reuters)
