Vietnamese and Chinese enterprises invest in over US$800 million automobile factory
VOV.VN - Geleximco and Omoda & Jaecoo joint venture will co-operate to build an automobile factory in the northern province of Thai Binh worth more than US$800 million with a capacity of producing 200,000 vehicles per year.
On April 4, Geleximco Group and international trendy new energy vehicle brand Omoda & Jaecoo, a subsidiary of Chinese automaker Chery Automobile, officially signed a joint venture contract in Hanoi amid the presence of Minister of Industry and Trade Nguyen Hong Dien.
This event not only marks an important step forward for Omoda & Jaecoo in Southeast Asia, but is also the first time that China's new energy vehicle maker have entered the Vietnamese market to build such a factory.
The project will consist of three phases, with the first phase set to be completed in the first quarter of 2026.
During the factory construction process, Omoda & Jaecoo will approach the Vietnamese market by importing complete vehicles which are expected to be launched on the market in late 2024. Moving forward, the Omoda E5 SUV smart crossover pure electric vehicle and the Jaecoo 7 PHEV technology cross-country vehicle will be the first products to debut.
Upon addressing the signing ceremony, Minister Nguyen Hong Dien emphasised that manufacturing and assembling cars powered by electric engines, as well as engines using combustion fuels of natural origin, is an inevitable trend of the world, including Vietnam which aims to achieve carbon neutrality by 2050.
Therefore, Geleximco and Omoda & Jaecoo established a joint venture to produce and assemble a line of cars with electric engines and engines making use of combustion fuel of natural origin, which is a both a positive successful trend which is consistent with Vietnam's policy mechanism.
Investing in the nation, the joint venture not only exploits the domestic market of 100 million people, but also has the opportunity to exploit the market of five billion consumers across countries enjoying new generation free trade agreements in which Vietnam is a member, Minister Dien said.
The Minister of Industry and Trade suggested that from the beginning, the joint venture needs to have a clear strategy, plan, and roadmap to exploit, process, and use raw materials on the spot to gradually reduce production costs and increase competitiveness.
It is therefore essential to be transparent about the origin of products to enjoy preferential tax mechanisms and schedules, Minister Dien said, adding that this is also the basis for businesses to deal with future trade remedy lawsuits, the he emphasized.
Also at the signing ceremony, Wu Guoquan, minister counselor of the Chinese Embassy in Vietnam, said that automobile manufacturing is an important pillar industry of the two countries' industries.
Expanding co-operation between the two sides in the automobile industry will certainly add fresh impetus to economic and trade links between the two countries and create new growth in the time ahead.
