In 2023, the Vietnamese automobile market is witnessing a boom when two Chinese automobile manufacturers break through through production cooperation with Vietnamese enterprises. These car companies have quickly attracted attention, with their global scale and reputation around the world.
Geleximco Group Joint Stock Company recently signed a principle contract to build an automobile assembly and production factory in Hung Phu industrial park, Thai Binh province. This is part of a collaboration with Omoda and Jaecoo, two sub-brands of Chery Group, China. Notably, Chery launched three car models in Vietnam, including Omoda S5, Omoda C5 and Jaecoo 7 at the end of October. This shows the company’s determination to expand its influence in the market. Vietnamese cars.
In addition, a joint venture of Chinese origin, specifically General Motors (GM) – (SAIC – WULING), has implemented an automobile production project in Vietnam. They have succeeded in manufacturing, assembling and exclusively distributing electric cars in Vietnam through TMT Motors. This is an important step in expanding the electric car market in Vietnam.
Chinese electric car manufacturer BYD is also not out of this race, with plans to expand production and assembly of electric vehicles in Vietnam this year. Haval, MG and Lynd & Co, other Chinese auto brands, are also making efforts to expand their market in Vietnam.
However, Chinese car manufacturers will face some challenges in the Vietnamese market. First of all, car consumption in Vietnam this year has decreased significantly, possibly making their business performance not as expected.
In addition, the origin of Chinese cars is still a weakness that makes Vietnamese consumers feel worried about the “Chinese car” stereotype. Chery has been present in Vietnam since 2009 through cooperation with Hoa Binh Automobile Joint Venture (VMC), but could not convince Vietnamese consumers and had to withdraw. It is important that to convince customers, Chinese car manufacturers need to ensure they have a dealer system providing repair, maintenance services and replacement parts sources nationwide, suitable to the needs of Vietnamese people. . Additionally, all product information needs to be communicated specifically to consumers to build trust.
Above all, cooperation in automobile production in Vietnam between Chinese car manufacturers and Vietnamese businesses brings opportunities to promote the Vietnamese automobile market and bring many attractive choices to consumers.
