China's Geely to build $168 million automobile facility with Tasco in Thai Binh

During the event on September 23, both parties also signed a three-party agreement on strategic cooperation with the Thai Binh Economic Zones Management Board, and a distribution agreement for the Geely Auto brand.

The deal aims to strengthen the relationship between Geely and Tasco, progressively realising Geely’s market expansion plans in Southeast Asia and Tasco’s goal of advancing upstream in the automotive industry.

Specifically, the joint venture for car assembly has a capacity of 75,000 vehicles per year. This will serve the domestic market and, importantly, exports to countries Vietnam has signed free trade agreements with.

The total investment for the project is estimated at $168 million, with Tasco contributing 64 per cent of the capital. Initially, the joint venture will assemble vehicles under the Lynk & Co and Geely Auto brands, with the potential to expand to other brands in the future. The plant is expected to break ground in the first half of 2025, with the first vehicles delivered to customers in early 2026.

Tasco and Geely will also collaborate to attract other investors to complete the supply chain for components and spare parts, invest in the construction of an automotive research and development centre for Southeast Asia, establish a university for automotive technical training, and invest in the production of smartphones specifically designed for vehicle-human connectivity in Tien Hai Economic Zone.

Tasco Auto will also become the distributor of the Geely Auto brand. Geely Auto is a popular mainstream automobile brand known for high-quality vehicles available at reasonable prices. In the first eight months of 2024, Geely achieved sales of 1.31 million units (including Zeekr and Ruilan), marking a 33 per cent increase compared to the same period last year, whilst aiming for 2 million units in 2024 (excluding Volvo sales).

Following the success of distributing premium brands such as Volvo, Lynk & Co, and Zeekr, Tasco has been authorised to distribute the mainstream Geely Auto brand in Vietnam. This helps complete the product range and diversify options for customers, while affirming Tasco’s commitment to providing quality vehicles from top global brands.

Vu Dinh Do, chairman of Tasco's Board of Directors, shared, “The joint venture between Tasco and Geely marks a significant step forward not only in the automotive manufacturing sector but also in opening opportunities for the development of smart transportation infrastructure, applying connectivity and automation technology in Vietnam. We believe that this collaboration will enhance quality of life by developing smart and connected transportation, while also facilitating the transfer of advanced technology, training a high-quality workforce, and boosting exports. It is also an opportunity for Tasco to learn from Geely’s experience and adopt successful strategies, delivering modern, safe, and environmentally friendly products to consumers.”

Founded in 1986, Geely has grown to become one of the top 10 largest automobile manufacturers in the world, and the first Chinese car manufacturer to reach 10 million users, with over 16 million customers across more than 80 countries and territories.

Geely invests heavily in research and development, especially in electric vehicles and autonomous driving. The group has established research and design centres globally in Sweden, the United Kingdom, Italy, and China, with over 30,000 personnel, and holding nearly 32,000 innovative patents. Geely operates world-class vehicle and powertrain manufacturing plants in China and has expanded its global sales and service network to more than 4,000 branches.

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