Joint Venture Between CTCP Tasco and Geely Auto Group: CTCP Tasco (stock code: HUT) and Geely Auto Group (Geely) have signed a joint venture agreement to assemble and distribute automobiles in Vietnam. They have also signed a tripartite strategic cooperation agreement with the management of the Economic Zone and Industrial Parks in Thai Binh Province.
Specifically, the joint venture between Tasco and Geely for automobile assembly is a CKD project (Completely Knocked Down: domestic assembly with imported components). The factory has a designed capacity of 75,000 units/year in phase 1, with a land area of 30 hectares, serving domestic demand and especially exports 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 the Geely Group will contribute 36%. According to the plan, the joint venture will initially assemble Lynk & Co and Geely Auto brands, and may expand to assemble other 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.
Representatives of Tasco, Geely, and the Management of Thai Binh Industrial Zones signing the cooperation agreement.
In parallel with the CKD project, Tasco Auto, a subsidiary of Tasco, has also officially distributed the Geely Auto brand, following the distribution of premium brands such as Volvo, Lynk & Co, and Zeekr.
Besides the automobile assembly factory, Tasco and Geely will also cooperate to call for other investors to complete the supply chain of components and invest in the construction of an R&D center for the Southeast Asian region. The two sides will also establish a university for automotive technical training and invest in the production of smartphones specialized for car-to-human connections in the Tien Hai Economic Zone, Thai Binh Province.
Founded in 1986, Geely has become one of the top 10 automobile manufacturers in the world. The company is also the first Chinese automobile manufacturer to reach the 10 million user milestone, with a total of over 16 million customers in more than 80 countries and territories. Geely is also the first Asian automobile manufacturer to become a member of the International Automotive Task Force (IATF) in 2021.
Notably, the Geely Group is the parent company of Volvo Cars and the largest shareholder of Mercedes-Benz. Geely has also invested in global brands such as Aston Martin, Lotus, and Polestar.
In the past 10 years, Geely has invested more than 140 billion yuan ($20 billion) in automotive technology research and development. The group has established research and design centers worldwide in Sweden, the UK, Italy, and China, with more than 30,000 R&D and design personnel and nearly 32,000 innovation patents.
From January to August this year, Geely Auto sold 1.31 million vehicles, up 33% from the same period last year. Geely’s export sales in the first eight months of 2024 grew by nearly 70%, reaching 280,000 units.
As of September 2024, Geely has successfully launched 30 low-orbit satellites to Earth’s orbit, covering 90% of the globe with 24/7 communication services. According to the plan, this number will increase to 72 satellites by the end of 2025, and the group aims to develop a network of 6,000 satellites to provide global mobile communication services and broadband signal coverage.
The World’s Top 10 Automobile Manufacturer Joint Venture for Assembly and Distribution in Vietnam: Thai Binh Receives Good News
The total investment for the automobile manufacturing and assembly joint venture project in Thai Binh province is estimated at approximately $168 million.
