The Vietnamese automotive market is witnessing a significant turning point as Thaco, a leading Vietnamese automotive company, strengthens its strategic partnership with Kia – the renowned South Korean car brand. Recently, Thaco announced plans to open a new manufacturing plant in Quảng Nam province, with the aim not only to meet domestic demand but also to export electric vehicles to international markets. This marks a major milestone, reaffirming Thaco’s ambition to expand the “Made in Vietnam” brand globally, while embracing the growing electric vehicle trend that is dominating the world.
New factory in Quang Nam: a step forward in electric vehicle production
Thaco’s new factory will be located in the Thaco Chu Lai Industrial Zone in Quảng Nam, one of Vietnam’s largest automotive manufacturing hubs. With a vast area and advanced technology from Kia, this new plant is expected to elevate Thaco’s production capacity to a new level. While the facility will continue to focus on traditional vehicles, it is also designed for the production of electric vehicles – a type of transport that is rapidly becoming an inevitable trend in the global automotive industry.
According to Thaco, the new plant will integrate advanced automated production lines, from car body welding, painting, to assembly. Notably, the electric vehicle production technology will be directly transferred from Kia, ensuring that the products meet international quality standards. This will not only help Thaco optimize production costs but also set the stage for competing with major brands in the export market.
Thaco – Kia partnership: a sustainable history and future vision
The partnership between Thaco and Kia began in 2007 when Thaco became the official production and distribution partner for Kia vehicles in Vietnam. Over nearly two decades, this collaboration has yielded significant achievements. From popular models like the Kia Morning and Cerato to premium lines such as the Kia Sorento and Carnival, Thaco-produced vehicles have been well received by Vietnamese consumers due to their stable quality and competitive pricing.
Now, with the new factory in Quảng Nam, Thaco and Kia are aiming for a larger goal: electric vehicle exports. Prior to this, Thaco has made its mark by successfully exporting Kia Cerato cars to Myanmar, Kia Grand Carnival to Thailand, and more recently, Kia New Carnival parts to India. Expanding into electric vehicles is not only a strategic move to stay ahead of the trend but also reflects both parties’ commitment to developing sustainable transportation solutions.
Electric vehicles – the future of the automotive industry and an opportunity for Vietnam
Electric vehicles are gradually replacing traditional fuel-powered cars due to their superior environmental and performance benefits. Global giants like Tesla, BYD, and Kia are ramping up production of electric vehicles to meet the rising demand. In Vietnam, the electric vehicle market, though still in its early stages, shows great potential, especially as the government offers various incentives such as tax reductions and free registration for electric cars.
With its new factory, Thaco is targeting not only the domestic electric vehicle market but also plans to export to ASEAN countries and beyond. This is entirely feasible given Thaco’s experience in exporting cars to demanding markets such as Japan, South Korea, and the Middle East. The support from Kia in technology and design will serve as a springboard for Thaco to compete in the global electric vehicle segment.
Thaco’s ambition to take the Vietnamese Brand Global
Opening a new factory in Quảng Nam is not only a story for Thaco and Kia but also a proud moment for the Vietnamese automotive industry. As domestic brands like VinFast are striving to conquer international markets, Thaco shows that it is not lagging behind, with a clear strategy and substantial investment. The new factory will not only create thousands of jobs for the local workforce but also elevate Vietnam’s position on the global automotive manufacturing map. Thaco plans to launch its first electric vehicle models from this plant by the end of 2025 or early 2026. This will be the moment when both Vietnamese and international consumers will witness the strength of the collaboration between Thaco and Kia.
