Chinese automaker Chery will open its largest factory in Southeast Asia in Vietnam this year, with a total investment of up to USD 800 million at full capacity of 200,000 cars annually.
The company aims to become the third biggest car brand in Vietnam over the next five years, betting on its European bestsellers in one of Southeast Asia’s fastest-growing electric vehicle markets, its executives told Nikkei Asia.
Chery’s overseas brand Omoda and Jaecoo will launch 16 new models in Vietnam this year, ranging from vehicles running solely on gasoline to hybrid cars and EVs, targeting a minimum of 10,000 units sold. The aim is to increase sales over the years as Chery starts production at a local factory in northern Hung Yen province, an emerging hotspot for foreign direct investment, from mid-2026.
“Our Vietnam investment and production capacity are the biggest among ASEAN countries. We are building a completely new factory here,” said Simon Liu, general director of Chery’s operations in Vietnam for the Omoda and Jaecoo models.
“When we come to Vietnam, we have so many options. We decided to take Omoda and Jaecoo here because we have more confidence in the quality, design, and technology of this brand,” Liu said in an interview with Nikkei Asia. “It is booming in European markets.”
Currently, Chery imports all its cars for the Vietnamese market. It has factories in Thailand, Malaysia, and Indonesia, all of which drive on the left side of the road. The vehicles produced in Vietnam will be sold domestically and in other nations that drive on the right in Southeast Asia, and potentially in Europe.
“I want to sell all of the cars locally, but it depends on the Vietnamese economic development,” Liu added.
The factory will start with a production of 30,000–60,000 cars annually next year and could scale up to 200,000 vehicles by 2030, depending on demand.
The Vietnamese car market has been heating up over the past few years, primarily driven by a push toward EVs from local producer VinFast and strong economic growth in the nation of 100 million people. Omoda and Jaecoo entered Vietnam in 2024, while other Chinese brands BYD and Geely are also present.
Geely plans to build a factory in Vietnam, but it is unclear whether the plant will proceed, given the company’s global policy of pausing factory investments. BYD also paused its factory plan in Vietnam, according to media reports.
Liu said Omoda and Jaecoo’s advantage lies in its long range, which can reach up to 1,500 kilometers, its safety standards, and its extensive one-million-kilometer guarantee. He also emphasized the building of trust among domestic consumers.
“When I come here, I know Chinese brands are not trusted too much by customers or the media,” Liu said. “So, we must keep our promises.”
Currently, Omoda and Jaecoo’s two models are offered at VND 729–879 million (USD 27,700–33,400). Toyota cars have a wider price range, offered between VND 405 million (USD 15,389) and VND 4.6 billion (USD 174,787). Similarly, VinFast passenger cars are listed between VND 302 million (USD 11,475) and VND 1.7 billion (USD 64,595).
Chery has a clear corporate vision for Vietnam: to become the top Chinese car brand by 2026 and the third bestselling brand overall by 2030. Currently, Vietnamese EV maker VinFast is the market leader with Japan’s global carmaking giant Toyota in second.
VinFast sold nearly 150,000 EVs in Vietnam in the first 11 months of 2025, and Toyota sold around 65,000 gasoline-powered and hybrid cars during the same period.
The top two sellers dwarf the 10,000-unit target set by Omoda and Jaecoo, but Chery said it is laying the foundation for future growth.
Its dealership network will nearly double this year to 75, from 40 in 2025, said Nguyen Dang Quang, deputy general director of sales at Omoda and Jaecoo Vietnam, in the same interview.
The Chinese company will also develop charging stations across the country, piggybacking on its Vietnamese partner Geleximco’s ecosystem at bank branches, residential and office buildings, hotels and golf courses, Quang said.
Geleximco operates in the industrial production, real estate, banking and hospitality fields. Its founder, Vu Van Tien, entered a joint venture with Honda to produce motorcycle parts in 1996.
Separately, Omoda and Jaecoo Vietnam also seek partnerships with charge point operators and cooperation with other automakers to share the charging station infrastructure.
“We have an open mindset. Our charging stations are not limited to only Omoda and Jaecoo cars. They are for the society,” said Quang, who worked at VinFast for six years before moving to Chery. Previously, he worked at Jaguar Land Rover, Mercedes-Benz and Truong Hai Auto, the dealership for Mazda and Kia cars.
Saying that competitors are “our friends,” Quang added, “We have to say thanks to VinFast because they are the first ones who educate customers how to use an EV.”
VinFast has the most extensive charging network in Vietnam, exclusive to its own brands. It is unclear whether BYD and Geely are sharing their charging facilities with others.
While China’s investments in Vietnam have been rising strongly over the past few years, the Southeast Asian nation has become increasingly selective in granting investment approvals, favoring projects that hire more domestic workers or help develop the local supply chain.
Liu said he expects the Vietnamese factory to improve the local supply chain’s capability over time.
“The supply chain depends on OEMs,” he said, referring to original equipment manufacturers. “We must build the factory there first. The supply chain will be manufactured locally, reducing our costs and increasing the cooperation with the local supply chain.”
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.