“Tasco and Geely: A Strategic Automotive Partnership in Vietnam”

This marks an important milestone, further solidifying the relationship between Geely and Tasco, as they work towards realizing Geely’s plan to expand its presence in Southeast Asia and Tasco’s aspiration to move upstream in the automotive industry. The signed contracts and agreements include: (1) a joint venture contract for automobile manufacturing and assembly between Tasco and Geely, (2) a contract authorizing Tasco to distribute the Geely Auto brand in Vietnam, and (3) a tripartite strategic cooperation agreement between Tasco, Geely, and the Management Board of the Economic Zone and Industrial Parks in Thai Binh Province.

Specifically, the automobile manufacturing and assembly joint venture between Tasco and Geely is a CKD (Completely Knocked Down) project, with a designed capacity of 75,000 units per year in phase 1, occupying an area of 30 hectares. The project serves both the domestic market and, more importantly, targets exports to countries with free trade agreements with Vietnam. The total investment for the project is expected to be approximately $168 million, with Tasco contributing 64% and the Geely Group investing 36%. According to the plan, the joint venture will initially assemble Lynk & Co and Geely Auto models, with the potential to expand to other brands in the future. Construction of the factory is expected to commence in the first half of 2025, and the first cars are slated to be delivered to customers in early 2026.

In parallel with the CKD project, Tasco Auto – a subsidiary of Tasco – has officially become a distributor of the Geely Auto brand. Geely Auto is a popular brand of the Geely Group, offering high-quality vehicles at reasonable prices. In 2023, Geely surpassed its sales target by delivering more than 1.68 million vehicles, and in the first eight months of this year, it has achieved sales of 1.31 million units (including Zeekr and Ruilan), representing a 33% increase compared to the same period last year. The company is on track to reach its target of 2 million vehicles for 2024 (excluding Volvo sales). Following the successful collaboration in distributing premium brands such as Volvo, Lynk & Co, and Zeekr, the authorization to distribute the Geely Auto brand in the Vietnamese market enables Tasco Auto to complete its product range, offering diverse choices to customers. It also underscores Tasco’s commitment to providing Vietnamese consumers with high-quality automobiles from leading global brands.

Notably, during the event, Tasco and Geely signed a tripartite strategic cooperation agreement with the Management Board of the Economic Zone and Industrial Parks in Thai Binh Province. Witnessed by the highest-ranking local leaders, the three parties signed the agreement, which pertains to projects that have been, are being, and will be implemented in Thai Binh Province. In addition to the automobile manufacturing and assembly factory, Tasco and Geely will also collaborate to attract other investors to complete the supply chain of components and parts, invest in the establishment of an R&D center for the automotive industry in Southeast Asia, found a university for automotive technical training, and invest in the production of smartphones dedicated to connecting vehicles with people in the Tien Hai Economic Zone, Thai Binh Province. With its significant advantages in economic development and investment attraction, including government incentives, convenient transportation, and proximity to seaports, the cooperation plans of Tasco – Geely and Thai Binh Province hold great potential for local economic growth, as well as the sustainable and comprehensive development of the two enterprises.

Speaking at the event, Mr. Ngo Dong Hai – Member of the Central Committee of the Communist Party of Vietnam, and Secretary of the Provincial Party Committee of Thai Binh, remarked: “The strategic cooperation between Tasco and Geely in Thai Binh is very timely. The Vietnamese automobile market is full of potential, with a current car ownership rate of about 63 per 1,000 people compared to over 300 in Thailand. The average market growth rate is expected to reach 14%-16% per year until 2030, with a total car consumption of 1-1.1 million units. By 2045, it is projected to reach 4.5-4.7 million units. In the past decade, Vietnam’s automobile market growth rate has been among the highest in the world. The government is in the process of formulating and will soon approve important policies to develop the automotive industry, promote production, and increase localization. We fully support this cooperation and consider it a commitment of the entire province. We will do our best to ensure the success of the strategic partnership between the two corporations, as reflected in the signed memorandum of understanding. I hope that this tripartite cooperation will achieve success in the long run.”

A senior leader of the Geely Group shared: “This strategic cooperation project is a significant milestone in the globalization process of Geely Auto Group. Today, we also had the opportunity to work and exchange ideas with Deputy Prime Minister Tran Hong Ha and Mr. Ngo Dong Hai, Member of the Central Committee of the Communist Party of Vietnam and Secretary of the Provincial Party Committee of Thai Binh. We are delighted to receive their full support for the cooperation between the two groups and the investment project in Thai Binh Province. With strong backing from the Government, the Party Committee, and the People’s Committee of Thai Binh Province, we will work closely with the Tasco Group to invest in the construction of a CKD assembly plant in the Tien Hai Economic and Industrial Zone, Thai Binh Province. Together, we will build an ecosystem for automotive research, production, supply, and services in Thai Binh, creating a hub for the automotive industry, research, and human resource development, with a focus on exports to ASEAN and other advantageous regions.”

Mr. Vu Dinh Do, Chairman of the Board of Directors of Tasco, shared: “The joint venture between Tasco and Geely marks a significant step forward, not only in the automotive industry but also in the development of smart transportation infrastructure, connected and automated technologies in Vietnam. We believe that this collaboration will contribute to enhancing the quality of life through the development of smart and connected transportation, while also facilitating technology transfer, high-quality human resource training, and boosting exports. It is also an opportunity for Tasco to learn from Geely’s successful strategies and apply them to offer modern, safe, and environmentally friendly products to consumers. We want to emphasize our commitment to choosing the path of international cooperation and knowledge sharing to sustainably realize our vision and specific missions, contributing to Vietnam’s position on the global technology and automotive industry map.”

Geely Auto Group, one of the top 10 largest automobile manufacturers in the world, is expanding its presence in Southeast Asia.

Founded in 1986, Geely has become one of the top 10 largest automobile manufacturers in the world and the first Chinese automobile manufacturer to reach the 10 million user milestone, serving over 16 million customers in more than 80 countries and territories. Geely is also the first Asian automobile manufacturer to become a member of the International Automotive Task Force (IATF) in 2021. Notably, the Geely Group is the parent company of the world’s safest car brand, Volvo, and the largest shareholder of the 120-year-old brand, Mercedes-Benz. Additionally, Geely has invested in a range of prestigious global brands, including Aston Martin, Lotus, Polestar, and a joint venture with Mercedes-Benz for the Smart brand.

In 2024, the Geely Group, with over 140,000 employees in more than 40 countries, ranked 185th on the Fortune Global 500 list, climbing 40 places compared to 2023. This is the 13th consecutive year that Geely has been included in this prestigious ranking.

Over the past decade, Geely has invested more than 140 billion CNY (20 billion USD) in automotive technology research and development. The group has established global research and design centers in Sweden, the UK, Italy, and China, employing over 30,000 R&D and design personnel and holding nearly 32,000 innovative patents.

From January to August this year, Geely Auto achieved sales of 1.31 million units, a 33% increase compared to the same period last year, significantly outpacing the 3.3% growth rate of the Chinese automotive industry. Notably, Geely’s export sales in the first eight months of 2024 grew by nearly 70%, reaching 280,000 units, reflecting the international market’s appreciation for Geely’s automotive brands.

As of September 2024, Geely has successfully launched 30 low-orbit satellites, covering 90% of the Earth’s surface with 24/7 communication services. According to plans, this number will increase to 72 satellites by the end of 2025, and the company aims to develop a network of 6,000 satellites to provide global mobile communication services and broadband signals.

TH (Tuoitrethudo)