Vietnam to house Chery’s largest car factory in Southeast Asia
Chinese car manufacturer Chery is set to build a factory worth AUD 1.2 billion in Vietnam, making it the brand’s largest facility in Southeast Asia.
A NEW FACILITY
By mid-2026, Chery will no longer have to import their vehicles to Vietnam. The brand is investing almost AUD 1.2 billion into a factory in the Thai Binh province. This move makes Chery the first Chinese car maker to establish a factory in Vietnam.
Chery and its sub-brands Jaecoo and Omoda entered a joint venture agreement with local Vietnamese company, Geleximco to build the new plant on April 2024. The first phase of the facility’s construction will be finished by Q1 of 2026.
This upcoming facility will become Chery’s largest in Southeast Asia and its most expensive investment. With an initial capacity of 30,000 to 60,000 vehicles per year, the facility will be able to ramp up production to 200,000 vehicles per year.
“Our Vietnam investment and production capacity are the biggest among ASEAN countries. We are building a completely new factory here,” general manager of Omoda and Jaecoo Vietnam, Simon Liu, told Nikkei Asia.
So far, all of Chery’s factories in the region produce right-hand drive (RHD) vehicles. Its next factory in Vietnam will be its first localised facility to produce left-hand drive (LHD) vehicles.
EXPANDING IN VIETNAM
Chery’s Omoda and Jaecoo brands are set to launch a line-up of 16 models in Vietnam this year. The line-up includes a mix of internal combustion engine (ICE) vehicles, electric vehicles (EVs), and hybrids.
According to Liu, Omoda and Jaecoo’s unique selling point will be their vehicles’ long driving range. These vehicles can reportedly drive up to 1,500 km. Chery also has a unique “one-million-kilometre guarantee” or 10-year warranty on the vehicle engine. He stressed that it was important for Chery to build consumer trust by “keep[ing] [its] promises” as Vietnamese customers are still wary of Chinese car brands.
According to an article by China Daily, Chery’s goals for Vietnam include an annual sales target of more than 10,000 units and to become the country’s best-selling Chinese brand in 2026. By 2030, Chery aims to place itself in Vietnam’s top three best-selling car brands by 2030.
“When we come to Vietnam, we have so many options. We decided to take Omoda and Jaecoo here because we have more confidence in the quality, design, and technology of this brand,” Liu explained. “It is booming in European markets.”
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