Tasco and Geely Auto Group have entered into a joint venture to assemble and distribute automobiles in Vietnam, and have also signed a tripartite strategic cooperation agreement with the Management Board of Economic Zones and Industrial Parks of Thai Binh Province.
Specifically, the automobile assembly joint venture between Tasco and Geely is a CKD project (Completely Knocked Down: domestic assembly with imported components) with a designed capacity of 75,000 units/year in phase 1, covering an area of 30 hectares. It will serve both the domestic market and especially export to countries with free trade agreements with Vietnam. The total investment capital of the project is expected to be approximately $168 million, in which Tasco will contribute 64% and Geely Group will contribute 36%.
Representatives of Tasco and Geely Auto Group signed a joint venture agreement to assemble and distribute automobiles in Vietnam.
According to the plan, the joint venture will initially assemble Lynk & Co and Geely Auto brands, and may expand to assemble other automobile brands in the future. The factory is expected to be constructed in the first half of 2025 and deliver the first cars to customers in early 2026. In parallel with the project, Tasco Ato announced that it will officially distribute the Geely Auto brand.
At the event, Tasco and Geely also signed a strategic cooperation agreement with the Management Board of Economic Zones and Industrial Parks of Thai Binh Province.
In addition to the automobile assembly plant, Tasco and Geely will also cooperate to call for other investors to complete the supply chain of components, invest in the construction of an R&D center for the automobile industry in Southeast Asia, establish a university for automobile technical training, and invest in the production of smartphones specialized for automobile-to-human connection in Tien Hai Economic Zone, Thai Binh Province.
An industrial park in Thai Binh.
With Thai Binh’s great advantages in economic development and investment attraction, such as preferential policies from the government, convenient transportation, proximity to seaports, etc., the cooperation plans of Tasco – Geely and Thai Binh Province will bring great potential for local economic growth, as well as sustainable and comprehensive development for the two enterprises.
Speaking at the event, Mr. Ngo Dong Hai – Member of the Central Committee of the Party – Secretary of Thai Binh Provincial Party Committee, assessed that the strategic cooperation between Tasco and Geely in Thai Binh is very timely.
The Vietnamese automobile market is full of potential, with the car ownership rate per 1,000 people in Vietnam currently reaching about 63 cars compared to more than 300 cars in Thailand. The average market growth rate is expected to reach 14%-16%/year by 2030, with a total consumption of 1 – 1.1 million cars. By 2045, it is expected to reach 4.5 – 4.7 million cars.
In the past 10 years, the growth rate of the Vietnamese automobile market has been one of the highest in the world. Many important policies from the government to develop the automobile industry are being built and will be soon approved to promote production and increase the localization rate.
“We always give our full support, considering the implementation of this cooperation as a commitment of the whole province, and will do everything possible to ensure the success of the strategic signing between the two corporations, as expressed in the memorandum of understanding that has been signed. I hope that the tripartite cooperation will be successful in the long run ahead,” emphasized Mr. Ngo Dong Hai.
Geely’s modern factory.
Senior leaders of the Geely Group shared that this strategic cooperation project is an important milestone in the globalization process of Geely Auto Group.
“Together, we will build an ecosystem of automobile research, production, supply, and services in Thai Binh, forming a concentration of automobile industry, research and development, and human resource export oriented to ASEAN and other regions with advantages,” the representative of the Group shared.
Established in 1986, Geely has become one of the top 10 largest automobile manufacturers in the world and the first Chinese automobile manufacturer to reach the 10 million user milestone, with a total of more than 16 million customers in more than 80 countries and territories. From January to August this year, Geely Auto sold 1.31 million vehicles, up 33% over the same period last year, far exceeding the 3.3% growth rate of the Chinese automobile industry. Especially, Geely’s export sales in the first eight months of 2024 grew by nearly 70%, reaching 280,000 units, showing the international market’s favor for Geely automobile brands.
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