Geely plans to build cars in Vietnam

HANOI: Geely Auto is planning to assemble vehicles in Vietnam as part of a series of commitments worth nearly $170 million to expand production in the Southeast Asian country.

The Chinese auto brand will build a plant in Vietnam capable of producing 75,000 cars annually in a joint venture with Hanoi-based Tasco Joint Stock Company, Geely said in a statement Tuesday.

The automaker will also invest in building out the local supply chain and establish an automotive research and development center.

The total investment in the project is likely to be around $168 million, of which Geely will contribute 36% with the rest coming from Tasco, the statement said.

Geely’s CEO Gan Jiayue had previously outlined plans to build an assembly plant during a meeting with Vietnam’s Deputy Prime Minister Tran Hong Ha in Hanoi Monday, according to state broadcaster Voice of Vietnam.

The commitments come soon after Chinese officials urged automakers to export more so-called knock-down kits to their overseas plants, which means producing key parts of a vehicle in China and then sending them for final assembly in their destination market.

Vietnam has attracted a string of pledges from Chinese automakers including Chery Automobile Co. and BYD Co. to invest more in vehicle production in the country.