China’s Yadea begins construction of electric bike factory in Vietnam’s north

The Chinese-invested Vietnam Yadea Electric Motorcycle Company Limited recently kicked off construction of a $100 million factory in northern Bac Giang province.

The factory, Yadea’s second in Bac Giang, is located at the Tan Hung Industrial Park. Construction of its first plant, at the Quang Chau Industrial Park, began in 2019 and reached a milestone last August after churning out 100,000 products.

This latest facility, on 23.2 ha, is set to enter into operations in 2025, with an annual capacity of 2 million units; quadruple that of the Quang Chau factory. Utilizing robotics and automated production line technology, the factory is set to employ 3,000 people.

Yadea’s expansion in Vietnam follows the country’s commitment to net-zero emissions by 2050 and the goal of all road traffic being electric-powered.

Bac Giang attracted FDI of $3.02 billion in 2023, up 148.3 per cent year-on-year, according to the Ministry of Planning and Investment. China has been its largest investment source, with $5.14 billion in 227 projects, followed by South Korea with $2.1 billion in 300 projects, according to provincial data.

In addition to Chinese, Indian, Japanese, and Thai experts involved in manufacturing vehicles, it is also planning to establish a research and development (R&D) team of 100-300 people at the new factory, mainly Vietnamese. Its smart and high-end electric two-wheelers match the tastes of Vietnamese and Southeast Asian riders.