BUSINESS

Chinese Firms Shift Gears in Vietnam — From Factory Floors to Storefronts

Published: Sep. 4, 2025 4:53 a.m. GMT+8

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Vehicles travel on the Hanoi–Bac Giang Expressway near the Quang Chau Industrial Park in Bac Giang Province, Vietnam, on April 7, 2025. Photo: VCG

(Hanoi, Vietnam) — On Hanoi’s Cat Linh–Ha Dong metro line, passengers raise their smartphones to capture the changing scenery as the train glides above Vietnam’s capital. The 13.5-kilometer elevated railway — built by China Railway Sixth Group Co. Ltd. — is Vietnam’s first urban rapid transit system and has carried some 35 million passengers since opening in late 2021.

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Vietnam’s population surpassed 100 million in 2024, with per capita GDP at $4,717 and the middle class projected to reach 56 million by 2030.
Chinese firms are increasing their presence in Vietnam’s consumer, infrastructure, and EV sectors, though they face challenges in localization and competition from strong local players like VinFast (18% auto market share in 2024).
Major recent projects include a $7.7 billion Chinese-backed rail project and new Chinese-Vietnamese electric vehicle joint ventures launched in 2024.

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Who’s Who

China Railway Sixth Group Co. Ltd.: China Railway Sixth Group Co. Ltd. is a Chinese company responsible for the construction of Vietnam's first urban rapid transit system, the 13.5-kilometer elevated Cat Linh–Ha Dong metro line in Hanoi. This project has transported approximately 35 million passengers since its opening in late 2021. The metro line, however, faced five years of delays during its construction due to land acquisition challenges and subcontractor issues.

Mixue Bingcheng: Mixue Bingcheng is a Chinese bubble tea brand. Since entering the Vietnamese market in 2018, it has rapidly expanded, opening over 1,300 stores nationwide. Its red-and-white logos are a common sight in Vietnam, highlighting the brand's significant presence as a Chinese consumer company in the emerging Vietnamese market.

WOWbuy: Zheng Dong, the founder of the brand consultancy WOWbuy, is based in Ho Chi Minh City. He notes that Chinese companies frequently make "one-sided assumptions" when entering Southeast Asia, often mistakenly believing that localization only requires translation and underpricing competitors. He emphasizes the significant differences in consumer preferences between Vietnam and China, using laundry detergent as an example.

VinFast: VinFast, the electric vehicle division of Vietnam's Vingroup, held an 18% share of the Vietnamese auto market in 2024. This performance allowed VinFast to surpass established Japanese, American, and Korean brands within the market.

Geely Auto: Geely Auto, a Chinese automaker, has entered the Vietnamese market. In September 2024, it formed a $168 million joint venture with local firm Tasco. This partnership aims to build a factory in Thai Binh province to produce Geely and Lynk & Co. models, with an initial annual production target of 75,000 vehicles by early 2026.

Tasco: According to the article, "Tasco" is a local Vietnamese firm that entered a $168 million joint venture with Geely Auto in September 2024. This partnership aims to construct a factory in Thai Binh province to produce Geely and Lynk & Co. models, with an initial goal of 75,000 vehicles annually and deliveries anticipated by early 2026.

Great Wall Motor: Great Wall Motor is mentioned as having an agreement with Vietnam's Thanh An Group to begin vehicle production by the end of 2025. This move aligns with the growing interest of Chinese EV manufacturers in Vietnam's market, spurred by the country's push towards carbon neutrality and the phasing out of fuel-powered vehicles.

Thanh An Group: Thanh An Group is a Vietnamese company that signed a cooperation agreement with Great Wall Motor in September 2024. The partnership plans to commence production by the end of 2025. This collaboration highlights the growing interconnectedness of Chinese and Vietnamese businesses in Vietnam's emerging market.

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What Happened When

1990s：: An influx of cheap Chinese motorcycles entered Vietnam, affecting the motorcycle market.

2018：: Mixue Bingcheng entered the Vietnamese market.

Late 2021：: Hanoi’s Cat Linh–Ha Dong metro line opened to the public.

2024：: Vietnam’s per capita GDP reached $4,717, and VinFast held an 18% share of the auto market.

2024：: Vietnam introduced measures to gradually phase out fuel-powered vehicles in major cities.

September 2024：: Geely Auto signed a $168 million joint venture with Tasco to build a factory in Thai Binh province.

September 2024：: Great Wall Motor signed a cooperation agreement with Vietnam’s Thanh An Group, with plans to start production by the end of 2025.