China’s Geely has announced a global halt on new factory projects casting doubt on its planned US$168 million car assembly joint venture with Vietnam’s Tasco in Thai Binh, Tuoi Tre has reported→view source.
Key details:
- Factory freeze: At the 2025 Chongqing Auto Show, Geely’s chairman announced a suspension of all new factory builds globally due to intense price competition eroding profit margins, especially in China.
- Vietnam impact: The Thai Binh factory, with an expected annual capacity of 75,000 units, is part of Tasco’s CKD localisation strategy aimed at exports under FTAs. It was originally set to break ground in 2025 and deliver vehicles by 2026.
- Tasco’s position: The firm has not issued an official response as yet.
- Market concerns: Investors seem anxious, with Tasco’s stock (HUT) sliding on the Ho Chi Minh City Stock Exchange.
Geely’s factory pause may delay or derail one of Vietnam’s most high-profile auto joint ventures, affecting localisation, employment, and FDI expectations.
It also highlights the volatility and pressure within the global automotive industry, particularly the intensifying price war driven by overcapacity and shrinking margins—conditions that are now look to be spilling over into emerging markets like Vietnam.
See also: Vietnam Automotive Industry: Growth, Imports & Outlook