Chery Bets $800M on Vietnam with Largest ASEAN Factory, Challenging VinFast and Toyota

An $800 million bet is about to be placed on Vietnam's auto market. Chinese automaker Chery has announced it will open its largest factory in Southeast Asia in Vietnam by mid-2026. The move positions Chery for a head-on collision with local champion VinFast and long-time market leader Toyota.

Aiming for Top 3 by 2030

At full capacity, the new facility is slated to produce 200,000 cars annually, making it Chery's biggest production hub in the ASEAN region. The company has set an ambitious goal: to become one of Vietnam's top three auto brands by 2030. This is a direct challenge to the current market, which is largely dominated by Japanese brands and the fast-growing local EV maker, VinFast.

Vietnam as a Strategic ASEAN Hub

This massive investment isn't just about conquering Vietnam's domestic market. Industry analysts believe Chery plans to use Vietnam as a strategic production and export base for the entire ASEAN bloc. The move is part of a broader trend, with other Chinese automakers like BYD also aggressively expanding their manufacturing footprint in countries like Thailand and Indonesia. Competition among global auto brands in the region is set to intensify.