Geely plans to build a car assembly plant in Vietnam with a total investment of about $168 million

Chinese automaker Geely Auto plans to assemble cars in Vietnam as part of a series of investment commitments worth nearly $170 million to expand production in the country.

Geely Auto said in a statement Tuesday that it will build a Joint venture with Hanoi-based Tasco Joint Stock Company to produce 75,000 vehicles a year in Vietnam. Geely Auto will also invest in building a local supply chain and establish an automotive research and development center.

The total investment in the project is likely to be about $168 million, of which Geely will contribute 36% and the rest from Tasco, Bloomberg reported, citing the announcement.

According to state broadcaster Voice of Vietnam, Geely Auto chief executive Gan Jiayue outlined plans to build the assembly plant during a meeting with Vietnamese Deputy Prime Minister Tran Hong Ha in Hanoi on Monday.