Chery Automobile Co., Ltd., a Chinese car manufacturer, through its subsidiaries Omoda & Jaecoo, has formed a joint venture with Vietnamese conglomerate Geleximco to establish a manufacturing facility in Thai Binh Province.
The agreement between the Chinese company and its Vietnamese counterpart, signed on Thursday, outlines the construction of the plant in three phases, with a total investment of US$800 million.
Construction is slated to begin in the third quarter, with the initial phase anticipated to be completed by early 2026.
Upon the completion of the first phase, the plant will have a production capacity of 50,000 vehicles, which is expected to expand to 200,000 once fully operational.
Prior to the plant’s operation, Omoda & Jaecoo cars will be imported from Indonesia.
The Omoda C5 and E5 models are scheduled to launch in Vietnam in the third quarter of this year, followed by the Jaecoo 7 and 7 PHEV in the fourth quarter.
Chery Automobile, a state-owned auto manufacturer founded in 1997 in Anhui province, exported 937,148 vehicles last year, maintaining its position as the country’s top car exporter for the 21st consecutive year.
Chery first entered the Vietnamese market in 2009 with its QQ3 model, produced domestically through a partnership with Vietnam Motors Corporation. However, it struggled to gain as much popularity as its competitors from Japan and South Korea.
In October last year, the company introduced three models under the Omoda and Jaecoo brands in Hanoi, including the Omoda S5 sedan, Omoda C5, and Jaecoo 7 crossovers.