China’s Chery to set up assembly plant in Vietnam

China’s Chery to set up assembly plant in Vietnam

Chery has signed an agreement with a Vietnamese company to assemble and sell vehicles in the ASEAN country, the Chinese car company revealed, although no further details were furnished.

The Vietnam plant will become Chery’s 17th CKD plant outside of China, but they won’t be the first Chinese carmaker setting up shop in the fast growing country – Great Wall Motor and Chongqing Lifan Industry (Group) Co already have CKD plants in Vietnam.

Global giants Toyota, Ford and GM, as well as Suzuki, already assemble vehicles in Vietnam, which has a population of 90 million people and a per capita GDP of $1,200, according to Chery.

Chery has been rather active, and fast growing. The Anhui-based state owned company saw strong export performance in 2011, and their next target is Europe. Back home, it recently struck a US$2.8 billion deal to build both Jaguar and Land Rover vehicles in China, for the Chinese market.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • VoidDance on May 23, 2012 at 3:05 pm

    Wow, our NAP works really well. First Thailand, then Indonesia and now Vietnam are benefiting from it.

    Well done! Keep up the good work, Gomen.

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    • What part in NAP that hinder manufacturer to built here?….all country u mention have pop of more than 60 million

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      • VoidDance on May 23, 2012 at 6:17 pm

        Well then, by your logic, we Malaysian should reproduce more. It will help the sales of cars.

        Another good news then. Lets multiply and buy more cars!

        Like or Dislike: Thumb up 0 Thumb down 0
      • cheaper labour maybe

        Like or Dislike: Thumb up 0 Thumb down 0
        • Ya, cheaper labour cost, cheaper land, etc. Its logic bro. Even if u yourself want to branch out internationally (imagine u r having a big manufacturing business la) of course you would choose a country that gives u lower cost to run your factory.

          Like or Dislike: Thumb up 0 Thumb down 0
    • by following ur logic, singapore’s COE must be really great also. tell me how much assembly plant are there in singapore? kahkahkah.

      Like or Dislike: Thumb up 0 Thumb down 0
      • Pooodah.lah u…don’t compare w Spore, we r not in the same league as that country…Our currency with Spore is MYR2.40 to SGD1.00…when we split w Spore many eons ago…the rate ws MYR0.90 to SGD1.00.

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        • forex has nothing to do with manufacturers deciding to setup assembly plant. sorry lah.

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  • Car Driver on May 23, 2012 at 3:32 pm

    Why they did not use Alado factory in Malaysia?….

    Like or Dislike: Thumb up 0 Thumb down 0
  • tikus on May 23, 2012 at 4:14 pm

    What to Malaysia???

    Like or Dislike: Thumb up 0 Thumb down 0
  • They are only 12 years in production. Younger than our P1 and P2. And they are already become fast growing automotive manufacturer. What went wrong with us?

    Like or Dislike: Thumb up 0 Thumb down 0
    • Money n market size…

      Like or Dislike: Thumb up 0 Thumb down 0
      • blackgalaxy on May 23, 2012 at 11:08 pm

        maybe we can add…corruption, stupid politic attitude and too much greed.

        Like or Dislike: Thumb up 0 Thumb down 0
      • Why not compare to Hyundai…..Korea is a small market but now its top 5 in the world…where is proton?…masih main di kampung…with tongkat…

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  • Unknown on May 23, 2012 at 11:51 pm

    Probably they’re entering this market and making cars there due to which Vietnam’s driving side is on the left which is similar to China which is the origin of Chery, so the tech transfer to the factory in Vietnam will not cost much I assume.
    If they’re still interested in producing RHD cars then probably the cost is lower there, obviously lower than in Malaysia or even Thailand.
    With the implement of the minimum wage soon, obviously Chery will try to avoid Malaysia.
    Market size there is probably will be big due to the fact that Vietnam’s population is close to 90 million as stated in the article.
    How many of you want more and more and factory in Malaysia, want more pollution is it?
    Better off with financial centre or businesses that doesn’t pollute the environment, Lynas also dont want, then don’t you think car plant wont give out a little bit radiation or pollution?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Urrobota on May 24, 2012 at 7:54 am

    What’s wrong with us? Nothing is really wrong…
    Intel is moving their plant there as well…imagine paying RM 2,200 for a Malaysian to do the job in Pg or a Vietnamese plant with USD 100 per month wages.

    ?

    Like or Dislike: Thumb up 0 Thumb down 0
  • abdul123 on May 24, 2012 at 12:46 pm

    Dr M , the father of Thailand, then Indonesia and now Vietnam car industry.

    Like or Dislike: Thumb up 0 Thumb down 0
  • shahrul on May 24, 2012 at 2:36 pm

    Wow! why Chery looks beautiful now? :P
    Are they still using Suzuki technology. I lost track. No, I never paid attention :P

    Like or Dislike: Thumb up 0 Thumb down 0
  • shawal on May 24, 2012 at 9:34 pm

    whoah! a far cry from the horrendous QQ

    Like or Dislike: Thumb up 0 Thumb down 0
 

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