Manufacturing News 15/04/2024, 03:52

Geleximco cooperates with a Chinese corporation to build an $800 million automobile factory

On the morning of April 4, Geleximco Group and car brand Omoda & Jaecoo (China) officially signed a joint venture contract in Hanoi. The two sides will build a factory in Vietnam with a capacity of 200,000 vehicles/year, to produce Omoda & Jaecoo-branded models.

Geleximco cooperates with a Chinese corporation to build an $800 million automobile factory

This is also the first Chinese new energy vehicle that has entered Vietnam to build a factory. Geleximco and Omoda & Jaecoo joint venture is expected to make a factory in the Thai Binh province. The construction of the factory is carried out in 3 stages, and the total investment capital is estimated at more than $800 million. The first phase is expected to be completed in Q1 2026.

During the construction of the factory, Omoda & Jaecoo will approach the Vietnamese market by importing whole cars, expected to be released to the market at the end of 2024. The smart crossover pure electric model Suv Omoda E5 and the technology cross-country model Jaecoo 7 Phev will be the first product to be launched.

After the COP 26 conference, the Government of Vietnam directed the development of a series of projects, plans, and policies to encourage the development of electric motorized and combustion vehicles with fuel of natural origin, including a mechanism to encourage vehicles such as Geleximco and Omoda & Jaecoo joint ventures to develop.

Leaders of the Ministry of Industry and Trade said that the construction of factories to produce and assemble electric cars and combustion engines with clean energy is the very right direction, in line with Vietnam's guidelines, mechanisms policies, etc. Investing in Vietnam, the joint venture not only exploits the market of 100 million people in the country but also has the opportunity to exploit the market of 5 billion consumers from countries in the new generation free trade agreements of which Vietnam is a member.

On the Chinese car brand side, by 2024, the global cumulative sales volume of the Omoda & Jaecoo brand has exceeded 160,000 units. The first pure electric model named Omoda E5, has been recognized by senior leaders of the Governments of Indonesia, Malaysia, Thailand, Turkey, and Spain.

THANHNIEN/ TRANSLATOR: NGỌC ÁNH
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