Two international vehicle manufacturers, Geely Auto and Škoda Auto officially land on Vietnamese shores. Geely’s entry is into the Vietnamese market with the Coolray SUV as its pilot entry. Meanwhile, Škoda Auto established their own facilities in the Quang Ninh province.
GEELY IN THE MARKET
Geely Automobile International Corporation (GAIC), or Geely, officially debuted int he Vietnamese market last March 21. Their debut was commemorated with a launch event held in Hanoi.
“Our expansion into Vietnam represents a strategic cornerstone of Geely’s global vision. We’re introducing a diverse product portfolio while building robust local operations to deliver mobility solutions that truly address the unique needs of Vietnamese customers. Through local manufacturing investment and supply chain collaboration, we aim to contribute to Vietnam’s automotive sector, fostering mutual growth and prosperity,” said GAIC Vice President Evin Ye.
Geely intends to release a line of 9 models in the following year. The line-up includes both internal combustion engine (ICE) and low-emission vehicles such as plug-in hybrids and battery-powered cars.
In September last year, the Chinese auto group built an assembly facility in the country’s Thai Binh province. GAIC partnered with local distributor Tasco Group to construct its 30-hectare plant. The plant set to start production in the latter half of 2026. The facility has an expected production capacity of 75,000 vehicles per year.
SCOOT OVER FOR ŠKODA
Aside from Geely’s entry into Vietnam’s vehicle market, the country recently welcomed Škoda Auto’s new plant last month. The Czech automaker partnered with Vietnam’s own Thanh Cong Group to construct their facilities in the country. Vietnamese Prime Minister Pham Minh Chinh welcomed the Czech manufacturer last March 27 at the company’s reception event in Hanoi. The Prime Minister previously made a state visited to Czechia in last January. There, he discussed a partnership with Škoda to forward Vietnam’s local auto industry.
Not only is Škoda’s investment a significant step into developing Vietnam’s local manufacturing and technology industries, but supportive of Vietnam and the Czech Republic’s strategic partnership. Vietnam hopes that the collaboration will push the country’s auto industry towards sustainability, while Škoda Auto chose Vietnam for its advantageous position in the region.
“Opening this new assembly line marks a milestone in our expansion into the rapidly growing Vietnamese market,” said Škoda CEO Klaus Zellmer at the reception event.
The facilities are in a 36.5-hectare area in the Quang Ninh province with an annual production capacity of 120,000 units. The location, near the Haiphong Port, is key to Škoda’s overall performance. According to the Investment Monitor, the overall construction of the assembly plant amounted to AUD 795 million. The Free Press Journal reported that the new Škoda plant already began production last March 26 and is set to assemble the Slavia and Kusha models.
“The new manufacturing facilities fully reflect Škoda’s high manufacturing benchmarks,” said Andreas Dick, a Škoda Auto board member. “This ensures the swift delivery of CKD kits from our logistics hub in Pune, India, while also strengthening the synergies that are vital to Škoda’s success in Vietnam and the wider region,” Dick explained further.
With the partnership in mind, PM Chinh asked the Czech car maker to “diversify its product range, including railcars, commercial vehicles, and machinery for small and medium-sized enterprises.” The Vietnamese government hopes that Škoda’s presence will encourage partnerships between local Vietnamese organisations and the Czech car maker. Such partnerships would strengthen both Škoda and Vietnam’s positions in the auto supply chain in Southeast Asia.
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