Geleximco and Chinese firms to build $400 million vehicle parts factory in Thai Binh

The signing ceremony took place at the headquarters of Thai Binh People's Committee on February 25.

Geleximco's strategic partners for this initiative are Nguyen Tin Industrial Investment Co., Ltd. and Bach Tan Technology Co., Ltd., key players in China's vehicle and vehicle parts industry.

The parties will set up a joint venture company supplying parts for car factories in Vietnam. The first phase will focus on implementing commercial activities and studying the option of building a factory in Thai Binh province.

Under the plan, the initiative requires an area of over 200 hectares. The auto parts factory is slated to be constructed in 2026 and put into operation in October 2027. The venture will create employment for 2,000 to 3,000 people.

Nguyen Tin Industrial Investment Co., Ltd. is a subsidiary of GoldenSun Group–a wholly state-owned enterprise under the government of Liunan District, Liuzhou City, Guangxi Province, China. The company is cooperating with large enterprises such as SAIC-GM-Wuling, LiuGong Group, and China Railway Construction Corporation across various projects related to urban infrastructure, real estate, industrial parks, automobiles, AI, and others. In 2024, the company supplied parts for 2.4 million cars manufactured in Liuzhou.

Meanwhile, Bach Tan Technology Co., Ltd. is mainly involved in the commercial process of industrial products, including the production, processing, and fabrication of aluminum products. The company has developed a large network of partners and is one of the suppliers of high-quality industrial products in the region.

In April 2024, Geleximco Group and China's Chery International also signed an agreement to set up a joint venture to build a vehicle factory in Thai Binh, marking the Vietnamese company's venture into the vehicle industry.

Having a total capacity of 200,000 units per year, the factory will produce OMODA and JAECOO car models. The construction will be carried out in three phases, with a total investment estimated at more than $800 million. Once put into operation in 2026, the factory will reach an initial output of up to 50,000 vehicles per year.

Chinese EV maker Chery has received an investment registration certificate for a joint venture with Geleximco Group in Thai Binh province.

China Yuchai International Limited (NYSE: CYD) through its main operating subsidiary in China, Guangxi Yuchai Machinery Company Limited (Yuchai), announced on February 20 that Yuchai had entered into a comprehensive strategic cooperation agreement with Kim Long Motor Hue, a subsidiary of Vietnam's FUTA Group.

Chinese carmakers are beefing up their operation in Vietnam with plans to build manufacturing factories.