Chery plans $800m Vietnam factory

Chery plans to build its largest factory in Southeast Asia in Vietnam by mid-2026, Nikkei reported on Wednesday.

The total investment for the plant could reach up to $800 million. Initially, the plant will have an annual capacity of 30,000 to 60,000 vehicles, with the potential to increase production to 200,000 vehicles depending on market demand.

The models produced at the plant will primarily supply the Vietnamese market and other left-hand drive countries, with future exports to Europe.

Currently, all vehicles Chery sells in Vietnam are imported. While the company operates right-hand drive factories in Thailand, Malaysia and Indonesia, the Vietnam facility will be its first localized production base for left-hand drive markets.

Chery's overseas brands Omoda and Jaecoo will launch 16 new models in Vietnam in 2026, covering internal combustion engine, hybrid and pure electric ones, with an annual sales target exceeding 10,000 units.

Simon Liu, general manager of Omoda and Jaecoo's Vietnam division, said the Vietnam plant will be Chery's largest investment in terms of scale and production capacity among ASEAN countries. The company is building a brand-new, modern factory.

Chery chose to introduce the Omoda and Jaecoo brands because of their strong performance in the European market, as well as their quality, design and technological advantages, Liu said.

Chery aims to become the top-selling Chinese carmaker in Vietnam by 2026 and rank among the country's top three overall automakers by 2030. VinFast currently holds the top spot, followed by Toyota.