Vingroup takes over GM’s Hanoi factory – VinFast becomes sole distributor for Chevrolet cars in Vietnam

Vingroup takes over GM’s Hanoi factory – VinFast becomes sole distributor for Chevrolet cars in Vietnam

General Motors (GM) has announced that it will transfer its Vietnamese operations to VinFast Trading and Production, a unit of Vietnam’s biggest private conglomerate, Vingroup JSC. VinFast has also been appointed as the exclusive distributor of Chevrolet cars in Vietnam, and the move could help drive up sales in the country, according to Reuters.

Beginning 2019, VinFast will produce small cars at its plant in Hanoi under the GM license. The plant was previously used for assembling Chevrolet parts imported from South Korea, but will soon be optimised for producing VinFast cars, whereas Chevy cars will be imported. The deal will also include GM’s dealer network and employee base, although the transfer is expected to be conducted by end-2018, the companies said in a joint statement. The value of the deal between GM and Vingroup remains unknown.

GM International boss Barry Eagle said “the GM-VinFast strategic partnership will best position the Chevrolet brand and dealer network for long-term growth in Vietnam by leveraging GM’s global scale and expertise, married with VinFast’s domestic strength and insight.”

With this agreement, GM’s Hanoi plant will become VinFast’s second car factory since it was established in 2017. VinFast is currently building a factory complex in Hai Phong at a cost of US$3.5 billion (RM14.1 billion).

On the business end, the move could prove to be profitable for Vingroup, seeing as there is an increase in car ownership and demand, as well as the recent tax cut for cars imported from ASEAN countries. VinFast hopes to be the top car manufacturer in ASEAN, making 500,000 cars per annum by year 2025. Among its planned vehicles include a sedan and SUV, with Italian design house Pininfarina being responsible for both of them.

Expect the first model to debut by September 2019, although VinFast is looking to launch a small car, an electric car and electric bus by end-2019 – there are also plans for pure electric motorcycles. “Our vision is to build an automobile manufacturing eco-system that will include assembly plants, local automotive suppliers and dealers, and a string of supporting industries,” said VinFast CEO, Jim DeLuca.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Matthew H Tong

An ardent believer that fun cars need not be fast and fast cars may not always be fun. Matt advocates the purity and simplicity of manually swapping cogs while coping in silence of its impending doom. Matt's not hot. Never hot.

 

Comments

  • This strategic partnership will best position the Chevrolet brand and dealer network for long-term growth in Vietnam by leveraging GM’s global scale and expertise. Not unlike the same proven strategy forged by the all conquering coalition, Daihatsu-Toyota-P2.

    Like or Dislike: Thumb up 6 Thumb down 4
    • Ahmadjr on Jul 06, 2018 at 8:59 pm

      This vinfast is far from successful yet. Asean love japan cars so much even european, american and korean cars barely made break even except for luxury segment. But vinfast surely can dominate vietnam’s market in the near future

      Like or Dislike: Thumb up 4 Thumb down 1
      • 4G63T DSM on Jul 08, 2018 at 10:08 pm

        You certainly not seen what the Vietnamese are driving. You are trying to describe ASEAN tastes with only a Malaysian perspective.

        Kia, Hyundai and Chevy are top sellers in Vietnam, the first 2 being most popular Grab driver cars with the Kia Morning (Picanto), i10 Hatch and Grand i10 Sedan, and the Chevy Spark being the most popular.

        Mazda sells cheaper and than Honda and Toyota, with Toyota having an advantage with the popular Fortuner (ladder frame SUV) and Inova (Taxi fleet) and Camrys.

        European premium brands also sell well. There are more new Peugeots in Saigon and Hanoi than that are in KL.

        The real funny part that despite a reduction on import taxes (and thus more foreign competition), VinFast still sees its position to be strong…unlike those here that still screams for protection.

        With import taxes being reduced, it would be a good time for Perodua to expand into Vietnam. They could really use a car that can go in under the 300-400K dong segment a position held by the Morning, i10 and Spark. There was some talk of the Axia going there for 220-250K. Which if it did, would be the cheapest new car in the market.

        Like or Dislike: Thumb up 3 Thumb down 0
  • Same L0rr on Jul 08, 2018 at 4:10 pm

    Gearbox ok?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Semi-Value (Member) on Jul 09, 2018 at 3:40 pm

    GM really screwed up big time in Asia

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required