Vietnam’s Geleximco Group and China’s Chery Group have officially started construction of the GEL-O&J automobile manufacturing plant in Hung Yen Province. With a total investment of USD 319 million, the two-phase project is expected to become a major automotive production hub in the region.
Geleximco Group and Chery Group have formally launched construction of the GEL-O&J automobile manufacturing plant at Hung Phu Industrial Park in Hung Yen Province, signaling a major step in Viet Nam’s automotive industrialization strategy.
The $319 million project will be developed across two phases - 2025-2026 and 2027-2029, spanning 38 hectares. Phase 1 is targeted for completion by June 2026, aligning with commitments made to Prime Minister Pham Minh Chinh.
Strategic industrial positioning
The facility will be located within Hung Phu Industrial Park, a 200-hectare development backed by Geleximco Hung Phu Industrial Park Joint Stock Company. Groundbreaking for the broader industrial park took place earlier this year, with planners positioning it as a green, smart, and environmentally sustainable automotive manufacturing hub.
The project reinforces Viet Nam’s ambition to attract high-value manufacturing investments, particularly in advanced automotive assembly and component ecosystems. By integrating production, logistics, and testing infrastructure within a single industrial cluster, the development is expected to enhance supply chain efficiency and localization.
Production capacity and infrastructure
According to Hu Chun, General Director overseeing Eastern European and Asia-Pacific markets at Chery Group, the plant has been designed for an annual output of 120,000 vehicles. The facility will incorporate core automotive workshops, including:
- Welding
- Painting
- Final assembly
- Plastic component manufacturing
- Integrated logistics centre
- Dedicated experts’ residential area
- European-standard vehicle testing track
The inclusion of a European-standard test track suggests an export-oriented quality framework, potentially positioning Viet Nam as a manufacturing base for both domestic consumption and regional markets.
Economic and employment impact
Upon full commissioning, the plant is projected to generate thousands of direct and indirect jobs through its supplier and ancillary network. The investment is expected to catalyze supporting industries such as auto components, logistics services, industrial automation, and technical training.
For Chery, the facility represents its first automobile assembly plant in Viet Nam, marking a strategic expansion into Southeast Asia amid intensifying competition among global automakers to diversify production footprints.
Industry implications
The GEL-O&J project underscores growing China-Viet Nam industrial collaboration in high-value manufacturing sectors. As Southeast Asia emerges as a key automotive growth corridor, the establishment of large-scale assembly plants, backed by integrated industrial parks, could reshape regional production dynamics and deepen cross-border supply chain integration over the next decade.
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