General Motors has agreed to move its Vietnamese operation to VinFast Trading and Production LLC and distribute Chevrolet vehicles through the local automaker, in a move that could assist drive up its modest sales in the country.
The U.S. automaker will move full ownership of its Hanoi factory to VinFast for the Vietnamese company to produce small cars under a GM global license from 2019, the companies stated, without revealing a value for the deal.
As part of the deal, VinFast, a unit of Vietnam’s biggest private conglomerate – Vingroup JSC VIC.HM, is going to be the exclusive distributor of the Chevrolet in Vietnam.
“The GM-VinFast strategic partnership will best position the Chevrolet brand and dealer network for long-term development in Vietnam by leveraging GM’s worldwide scale and expertise, married with VinFast’s domestic strength and insight,” stated Barry Engle, executive vice president and president of GM International.
The transfer, which consists GM’s Hanoi plant, dealer network and employee base, is anticipated to be conducted by the end of 2018, the companies stated.