Geely to proceed with factory investment despite global expansion freeze
Xehay.vn, 12 June '25
Geely's recent global announcement to suspend all new factory construction projects, citing concerns over excess capacity in the automotive industry, has not affected its investment plan in Vietnam.
Geely Chairman Li Shufu previously stated that the group would temporarily halt global expansion efforts due to increasing overcapacity in the automotive sectors of China and other major markets.
Vietnam remains part of Geely's operational plans through a joint venture with local company Tasco. The agreement, signed in September 2024, outlines the construction of a completely knocked down (CKD) assembly plant in Thai Binh province with an initial annual capacity of 75,000 vehicles.
The project has a total estimated investment of approximately US$ 168 million, with Tasco holding a 64% stake and Geely the remaining 36%.
Construction is scheduled to begin in 2025, with initial vehicle production planned for early 2026. The plant will assemble Lynk & Co and Geely-branded vehicles, with the possibility of incorporating other Geely Group brands later.
Tasco has made changes to its business operations within the automotive sector. In 2024, it reported consolidated revenue of VND 30,249 billion (US$ 1.17 billion), a 175% increase over the previous year.
Post-tax profit rose by 441% to VND 305 billion. This performance is largely attributed to its core business, including operations under the Tasco Auto network.
By the end of 2024, Tasco Auto had sales accounting for 13.7% of the domestic market, according to data from the Vietnam Automobile Manufacturers' Association (VAMA). Its dealership network expanded from 106 to 126 locations.
The company has also entered the Volvo distribution business and formed official partnerships with brands such as Lynk & Co, Zeekr, and Geely. It currently distributes 16 international automotive brands in Vietnam.
In 2025, Tasco plans to implement a localisation strategy by assembling CKD vehicles for both the domestic market and export to countries with which Vietnam has free trade agreements (FTAs). This is intended to utilise Vietnam's geographic position and trade policies for regional operations.
While the global automotive sector continues to face structural challenges, Geely's decision to proceed with its investment plan in Vietnam indicates that the market remains part of its ongoing business strategy.
