4-4-2024 (HANOI) Chinese automaker Chery has inked a joint venture deal with a local firm to establish an $800-million electric vehicle (EV) plant, announced the Vietnamese trade ministry on Thursday.
This groundbreaking venture marks the first EV manufacturing facility in Vietnam, as confirmed by the ministry.
The manufacturing plant, to be jointly launched by Chery’s affiliate Omoda & Jaecoo and the Vietnamese company Geleximco, will be situated in the coastal province of Thai Binh. Following a signing ceremony, the ministry issued a statement detailing the collaboration.
With an annual capacity of 200,000 vehicles, the factory will focus on producing Chery’s Omoda and Jaecoo electric models. The first phase of construction is slated for completion in the first quarter of 2026, according to the statement.
In the interim, Chery, which is actively retailing cars in Europe and mulling over a plant in Italy, will introduce two electric models into Vietnam by the year’s end, as outlined by the ministry.
Meanwhile, China-based BYD, the world’s largest EV manufacturer, has expressed interest in establishing a factory in Vietnam. However, a Reuters report last week suggested that the plan might be decelerating.
BYD embarked on constructing its inaugural plant in Thailand in March last year, located at the WHA Rayong 36 Industrial Estate in Rayong. The facility is projected to have an annual capacity of 150,000 vehicles, with production scheduled to commence in the third quarter of 2024.
Notably, BYD surpassed Tesla as the world’s leading EV maker in the fourth quarter of last year, although both companies have experienced a slowdown in sales thus far in the current year.
