On the afternoon of September 23 in Hanoi, Tasco and Geely signed three significant contracts and agreements, including: the joint venture agreement for automobile assembly between Tasco and Geely; the contract authorizing Tasco to distribute the Geely Auto brand in Vietnam; and a strategic cooperation agreement between Tasco, Geely, and the Management Board of the Economic Zones and Industrial Parks of Thai Binh Province.

Industry experts believe this move reflects Tasco Auto's ambition to become a major player in Vietnam’s automotive industry. Currently, the company holds distribution rights for several brands, including Geely, Lynk & Co, Zeekr, and Volvo.

According to the plan, the Tasco-Geely joint venture factory will be built in Thai Binh Province, under the CKD (Completely Knocked Down) format, assembling vehicles domestically using imported components. The factory will span 30 hectares, with a designed capacity of 75,000 vehicles per year in its first phase, and a total investment of approximately 168 million USD (over 4.1 trillion VND).

The joint venture’s factory is scheduled to break ground in the first half of 2025, with the first vehicle expected to roll off the production line in early 2026. Once operational, the venture will assemble vehicles from Lynk & Co and Geely Auto, with the potential to expand assembly to other brands in the future.

In addition to meeting domestic demand, the factory will export vehicles to countries with free trade agreements with Vietnam.

Experts suggest this move could help Geely-branded vehicles avoid import taxes when distributed in international markets, rather than exporting directly from China.

In addition to the assembly plant, Tasco and Geely plan to attract other investors to complete the supply chain for spare parts, establish an R&D center for Southeast Asia, and develop a university specializing in automotive engineering. They also aim to invest in smart phone production to enhance human-vehicle connectivity in the Tien Hai Economic Zone, Thai Binh Province.

Following in Chery's footsteps

Earlier, in early April, Geleximco Group and Omoda & Jaecoo Automobile Company signed a joint venture contract to invest in an automobile manufacturing plant at the Hung Phu Industrial Park in Tien Hai District, valued at over 800 million USD.

The construction of this plant will take place in three phases, with phase one expected to be completed by Q1 2026. During the plant's construction, Omoda & Jaecoo will enter the Vietnamese market by importing fully built units, with plans to launch in late 2024.