Geely Auto Group and Tasco Joint Stock Company have announced plans to begin construction of an automobile manufacturing and assembly plant in the Tiền Hải Economic Zone, Thái Bình Province, in the first half of 2025. The facility is expected to produce its first vehicles by early 2026.
The partnership involves forming a joint venture for automobile assembly and distribution in Vietnam. Covering 30 hectares, the factory will have an initial annual capacity of 75,000 vehicles, with a total investment of $168 million. Tasco will hold a 64% stake in the venture, while Geely Auto will control 36%.
Tasco Auto, a subsidiary of Tasco, has been appointed the official distributor for Geely vehicles in Vietnam. The first model to be launched is the Geely Coolray, a compact SUV equipped with a 1.5L turbocharged engine delivering 177 horsepower and advanced safety features. The Coolray, which has gained popularity in the Philippines and Russia, is positioned to compete strongly in Vietnam’s growing automotive market. An initial shipment of 200 Coolray units from Malaysia has already arrived, with launch events planned in the coming months.
In addition to meeting domestic demand, the joint venture aims to export vehicles to markets with free trade agreements (FTAs) with Vietnam. Analysts view this initiative as part of a broader trend of global automakers expanding into Southeast Asia, capitalising on the region’s economic growth and favourable trade policies.
Geely and Tasco plan to invest beyond manufacturing and distribution by developing local supply chains, establishing research and development centres, and implementing workforce training programs. These initiatives aim to strengthen Vietnam’s automotive industry while generating significant employment opportunities.
Geely Auto, a leading Chinese automotive brand with stakes in Volvo and Lotus, is known for its focus on advanced technologies and sustainable transportation solutions, including electric and hybrid vehicles. Its entry into Vietnam underscores the company’s strategy to expand its global footprint and position Vietnam as a key manufacturing hub in Southeast Asia.
Tasco, a Vietnamese corporation with interests in infrastructure, transportation, and real estate, has been increasingly focusing on the automotive sector. The partnership with Geely marks a strategic move to tap into Vietnam’s burgeoning middle class and growing demand for high-quality vehicles.
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