Shanghai (ZXZC)- Recently, Great Wall Motor ("GWM") announced that it has signed a memorandum of understanding with Vietnam's Thanh An Group to establish a CKD (Completely Knocked Down) assembly partnership in the country, according to a post on GWM's WeChat account. The deal aims to localize GWM vehicle production in Vietnam, with the first cars expected to roll off the assembly line by the end of 2025.

Photo credit: GWM

GWM had already laid the groundwork for its entry into the Vietnamese market. In early 2023, the company signed a partnership agreement with local dealers to begin operations in Vietnam. By August of the same year, GWM officially launched its GWM brand in Hanoi, introducing the globally oriented Haval H6 HEV model and celebrating the grand opening of the first GWM dealership in Vietnam.

GWM's strategic presence in Southeast Asia has steadily grown, starting in Thailand and expanding into markets like Malaysia, Laos, Brunei, and Vietnam. In January 2024, GWM also signed a CKD cooperation agreement with Malaysia's EP Manufacturing Berhad ("EPMB"), marking its first CKD project in the ASEAN region. Additionally, GWM has built an assembly plant in Indonesia, which is set to begin operations in the second half of the year.

With the new Vietnam plant on the horizon, GWM is further strengthening its production and sales network across Southeast Asia.

Notably, GWM is not the only Chinese automaker eyeing Vietnam. Since the beginning of the year, other Chinese brands such as Chery and BYD have also been making moves in the Vietnamese market. Chery's subsidiary Omoda & Jaecoo signed a joint venture agreement in April with Vietnam's Geleximco Group to establish a car manufacturing plant in Thai Binh province. The $800 million project is expected to produce 200,000 vehicles annually, with the first phase scheduled for completion in the first quarter of 2026.

In July this year, BYD opened its first stores in Vietnam, and by October, it plans to expand its product lineup to six models, including the compact crossover ATTO 3. BYD aims to grow its dealer network in the country to around 100 stores by 2026.