HANOI - Vietnam's trade ministry said on Thursday that automaker Chery had signed a joint venture agreement with a local company to set up an $800 million plant, becoming the first Chinese electric vehicle maker to set up a facility in Vietnam.

The manufacturing plant, which will be jointly established by Chery's Omoda&Jaecoo unit and Vietnamese company Geleximco, will be in the costal province of Thai Binh, the ministry said in a statement following a signing ceremony.

With a capacity of 200,000 vehicles per year, the factory will produce Chery's OMODA and JAECOO electric models. The first phase of construction is expected to be completed in the first quarter of 2026, the statement added.

In the meantime, Chery, which is also selling cars in Europe and weighing a plant in Italy, will import two electric models into Vietnam that will make their debut by the end of this year, the ministry said.

China's BYD, the world's largest EV maker, has also sought to set up a factory in Vietnam, although Reuters reported last week it may slow down the plan. REUTERS