Tasco is planning to initially assemble Lynk & Co models, then expand to other Geely brands. Construction of the factory is expected to begin early next year, and the first cars will be delivered in 2026 - Photo: Geely
What is the "fate" of Geely car assembly plant in Thai Binh ?
According to international newspapers at the 2025 Chongqing Auto Show, Geely's chairman and founder, Li Shufu, said the company decided to stop all plans to build new factories around the world .
According to him, the decision was made in the context of the global auto industry, especially in China, being caught up in fierce price competition, causing profit margins to be eroded.
The move immediately raised many questions related to the joint venture project between Geely and Tasco in Vietnam, causing a stir among many businesses in the automobile sector in Vietnam.
Previously, Geely signed a cooperation agreement with Tasco to build an automobile assembly plant in Thai Binh, with a total investment of about 168 million USD, with a phase 1 capacity of 75,000 vehicles/year.
According to the plan, the factory will start construction in 2025 and deliver the first cars in 2026. However, after the new statement from Geely, the future of the project is still unclear.
On June 10, Tuoi Tre Online contacted Tasco. However, Tasco has yet to give an official response about the impact of Geely's decision.
Tasco is "steered" by businessman Vu Dinh Do, becoming one of the businesses that are promoting the automobile business and other fields.
In 2024, Tasco Auto, a member unit of Tasco, sold more than 40,500 vehicles, accounting for 13.7% of the domestic market share. The company also expanded its showroom system to 126 points and became the official distributor for a series of global brands such as Volvo, Lynk & Co, Zeekr and most recently Geely.
According to the 2025 plan, Tasco aims to promote the localization strategy through the CKD assembly project, aiming to export to countries that have FTAs with Vietnam.
Geely is now China’s second-largest automaker, with global sales of more than 3.3 million vehicles in 2024, up 22% year-on-year. While it has decided to stop expanding its factories, it is restructuring its system, merging brands such as Volvo, Zeekr and Lynk & Co to increase flexibility and operational efficiency.
According to businesses in the automobile sector, Geely's suspension of new factory openings is a strategic move in the context of the automobile industry going through a major adjustment cycle. However, this also makes many markets, including Vietnam, wait for a clearer answer about the future of cooperation projects.
Tasco: The future of the next 20 years is Chinese cars
However, at the 2025 shareholders' meeting, Mr. Vu Dinh Do - Chairman of Tasco - shared the reason for choosing Geely because this was a carefully calculated step, based on major movements in the global automobile industry.
Mr. Do commented that if we look back at the history of the automobile industry, 50 years ago was the period of Japan's rise, 20 years ago was the rise of Korea.
In the next 20 years, Tasco believes that China will be the country that leads the global auto industry, thanks to its increasingly clear competitive advantages in technology, production scale and supply chain.
"We did not choose China randomly, but chose the most international partner among Chinese enterprises, with global capacity, a diverse product portfolio, and presence in many large markets," Mr. Do emphasized.
According to him, the Vietnamese automobile market is becoming one of the most competitive arenas in the world. This is where many major car manufacturers from Japan, Korea, and China converge, making the race more fierce and unpredictable than ever.
However, Tasco still maintains selling Chinese cars. On the stock market, Tasco's stock (HUT) fluctuates, continuously going down, making many shareholders frustrated.
In fact, users are still hesitant to choose to buy Chinese cars in the Vietnamese market, when there are many familiar choices such as VinFast , Hyundai, Toyota, Honda, Ford...
Source: https://tuoitre.vn/tasco-cho-doi-quyet-dinh-cua-geely-ve-nha-may-lap-rap-o-to-20250610174502103.htm
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