On September 23, 2024, Tasco Joint Stock Company and China’s Geely Group signed a joint venture contract for automobile assembly and distribution in Vietnam. This significant event further solidifies the relationship between Geely and Tasco, marking a step forward in realizing Geely’s expansion plans in Southeast Asia and Tasco’s aspiration to move upstream in the automotive industry.
The signed contracts and agreements include: a joint venture contract for automobile assembly between Tasco and Geely; a contract authorizing Tasco to distribute the Geely Auto brand in Vietnam; and a strategic cooperation agreement between Tasco, Geely, and the Management Board of Economic Zones and Industrial Parks in Thai Binh Province.
Specifically, the joint venture for automobile assembly between Tasco and Geely is a domestic assembly project with imported CKD components, designed with an annual capacity of 75,000 units in phase 1. The joint venture factory will occupy an area of 30 hectares to serve domestic demand and especially export to countries with free trade agreements with Vietnam. The total investment capital for the project is expected to be approximately $168 million, with Tasco contributing 64% and the Geely Group contributing 36%.
According to the plan, the joint venture will initially assemble vehicles under the Lynk & Co and Geely Auto brands, with the potential to expand to other brands in the future. The factory is expected to commence construction in the first half of 2025 and deliver the first vehicles to customers in early 2026.
The joint venture factory between Tasco and Geely will be located in the Economic Zone and Industrial Parks in Thai Binh Province.
In addition to the automobile assembly and production factory, Tasco and Geely will also collaborate to attract other investors to complete the supply chain of components and parts. They will invest in the establishment of an R&D center for the Southeast Asian region, an automotive technical university, and smartphone production to exclusively serve the connection between automobiles and humans in Tien Hai, Thai Binh.
Parallel to the CKD project, Tasco Auto, a subsidiary of Tasco, officially distributes the Geely Auto brand. Geely Auto is a popular automobile brand of the Geely Group, with sales of over 1.68 million vehicles in 2023. In the first eight months of 2024, Geely achieved sales of 1.31 million vehicles (including Zeekr and Ruilan), a 33% increase compared to the same period last year, targeting 2 million vehicles for the full year 2024, excluding Volvo. Geely’s export sales in the first eight months of 2024 also grew by nearly 70%, reaching 280,000 vehicles.
Tasco will distribute vehicles bearing the Geely brand in Vietnam.
Thus, Geely is the next brand of this Chinese group to distribute vehicles in the Vietnamese market, after Volvo, Lynk & Co, and Zeekr. The authorization for Tasco Auto to distribute the Geely Auto brand in Vietnam helps complete its product range and offers diverse choices for customers.
Established in 1986, Geely has become one of the top 10 largest automobile manufacturers in the world. It is also 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 the first Asian automobile manufacturer to become a member of the International Automotive Task Force (IATF) in 2021.
Notably, the Geely Group is also the parent company of Volvo Cars and the largest shareholder of the 120-year-old brand, Mercedes-Benz. Additionally, Geely has invested in various globally renowned brands, including Aston Martin, Lotus, Polestar, and the Smart car joint venture with Mercedes-Benz.
In 2024, the Geely Group, with over 140,000 employees in more than 40 countries, ranked 185th in 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.
