The Geely Auto headquarters in Hangzhou, China. — Photo courtesy of Geely.

HÀ NỘI — Geely Auto Group and Tasco Joint Stock Company plan to start construction of an automobile manufacturing and assembly plant in the Tiền Hải Economic Zone, Thái Bình Province, in the first half of 2025, aiming to roll out the first vehicles by early 2026.

Under the cooperation agreement, the two parties will establish a joint venture for automobile assembly and distribution in Việt Nam. The factory, spanning 30 hectares, will have an initial designed capacity of 75,000 vehicles per year. The total investment is estimated at US$168 million, with Tasco holding a 64 per cent stake and Geely Auto holding 36 per cent.

Alongside the construction of the manufacturing facility, Tasco Auto, a subsidiary of Tasco, will officially distribute Geely Auto vehicles in Việt Nam. The first model introduced to the market will be the Geely Coolray, a compact SUV that has seen success in the Philippines and Russia. Equipped with a 1.5L turbocharged engine delivering 177 horsepower and advanced safety features, the Coolray is positioned as a competitive offering in the Vietnamese market. An initial shipment of 200 Coolray units from Malaysia has already arrived in Việt Nam, ready for launch events.

In addition to catering to domestic demand, the joint venture aims to export vehicles to markets with free trade agreements (FTAs) with Việt Nam. Industry analysts believe this move reflects a broader trend of global car manufacturers expanding into Southeast Asia, leveraging the region's growth potential and favourable trade policies.

Beyond manufacturing and distribution, Geely and Tasco plan to invest in local supply chains, R&D centres, and workforce training programmes. These initiatives are expected to bolster Việt Nam’s automotive industry while creating significant employment opportunities.

Geely Auto, one of China’s leading automotive brands, has established itself as a global player with ownership stakes in renowned names such as Volvo and Lotus. The company has consistently invested in advanced technologies, including electric and hybrid vehicles, aligning with global trends towards sustainable transportation. Geely’s entry into Việt Nam represents not only an expansion of its market presence but also a step towards establishing the country as a regional manufacturing hub.

Meanwhile, Tasco, a diversified corporation in Việt Nam with expertise in infrastructure, transportation, and real estate, has been increasingly focusing on the automotive sector. With Tasco Auto playing a pivotal role in vehicle distribution and after-sales services, the partnership with Geely marks a strategic move to capitalise on Việt Nam's rapidly growing middle class and rising demand for quality vehicles. — VNS