Business

Tasco and Geely launch joint venture for car assembly plant in Vietnam

By Giang Son September 24, 2024 | 01:14 PM GMT+7

This agreement marks a significant step forward in the collaboration between two major automotive companies from Vietnam and China.

Tasco Corporation and Geely Auto Group have entered into a joint venture to establish a car assembly plant in the Tien Hai Industrial Park, Thai Binh province, with a total investment of $168 million.

Under the agreement, Tasco will hold a 64 per cent stake in the project, while Geely Auto, one of the world’s leading automakers, will contribute 36 per cent.

The plant, expected to begin construction in early 2025, will have an annual production capacity of 75,000 vehicles, creating 1,000 direct jobs and 7,000 indirect positions. The first vehicles are anticipated to be delivered by early 2026.

The venture will initially focus on assembling vehicles under the Lynk & Co and Geely Auto brands, with future plans for expanding production to other brands. Geely will provide technical expertise, while Tasco will oversee product distribution in Vietnam, where it currently handles 15 different car brands, including Lynk & Co.

Tasco's partnership with Geely follows its announcement to collaborate with a leading European automaker, aiming to capitalize on Vietnam's growing automotive market.

“Vietnam, with a population of nearly 100 million and rising demand for vehicles, presents significant growth potential,” said Ngo Dong Hai, Party Secretary of Thai Binh province, during the signing ceremony.

Hai emphasized the local government’s commitment to facilitating the project, highlighting the potential economic boost for the region, including increased tax revenue and job creation. He also affirmed that Thai Binh would provide support to ensure the project meets its deadlines.

Tasco and Geely signed agreement with Thai Binh provincial authorities to set up the car assembly plant. Photo: Tasco

In addition to the assembly plant, Tasco and Geely plan to develop a supply chain for automotive components and invest in a research and development center focused on Southeast Asia.

The companies are also exploring the establishment of a technical university for automotive engineering and the production of smartphones specialized for vehicle connectivity.

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