Truong Hai Auto: A Powerful Economic Group

Starting business with main functions of trading and repairing cars, the company experienced a milestone in 2001 when it was named the official partner of Kia Motors Group, a leading carmaker in South Korea, to exchange technology for truck manufacturing. Hence, Truong Hai was the first private company in Vietnam to manufacture cars, with an annual output of 5,000 units. In 2003, Truong Hai started building an automobile production and assembly factory, Chu Lai - Truong Hai, on an area of 38 ha in Tam Hiep Industrial Park. The project had an initial investment capital of VND1,900 billion.

At present, Truong Hai has poured a handsome sum of money into Ky Ha Port Joint Stock Company (Quang Nam Province) to facilitate the material feeding to its factories. With its advantage together with modern equipment and technology imported from world’s leading carmakers like Germany and South Korea, Truong Hai has made a breakthrough in its business operation in particular and the Vietnamese industry in general.

Starting operations in 2004, its factories in Chu Lai Open Economic Zone with an annual initial production capacity of 25,000 units including Thaco- Kia sedans, Thaco – Foton trucks, Thaco – Kinglong buses, Thaco - Hyundai trucks. The company’s products have occupied more than 40 per cent of their market segments in Vietnam. At the start of the second quarter of 2007, Truong Hai Automobile Co. Ltd was transformed into Truong Hai Automobile Joint Stock Company (Thaco). The firm also hiked its chartered capital to VND680 billion in the year, in which many giant businesses like Sacombank, Prudential and Black Horse Fund are major shareholders. After going public, Thaco was the first in Vietnam to produce and assemble sedans. The company is also the unique to manufacture and assemble all popular automobile lines like truck, dump truck, bus and sedan. In 2007, Truong Hai Auto recorded total revenues of VND2,660 billion and sold 12,140 vehicles. It paid a dividend of 43 per cent to its shareholders in the year. 

Within 11 years dating from the incorporation, Truong Hai now has nearly 10 factories. To expand operations, the company is building its automobile supermarket chain in combination with apartment buildings and offices for lease. It also owns two container carriers valued at VND150 billion to transport components and parts for its production factories.

In 2008, amid global and national economic slowdown, Truong Hai Auto, under the excellent leadership of CEO Tran Ba Duong and the wholeheartedness of the entire workforce, is weathering all difficulties to achieve business goals set for the year. In the annual general meeting of shareholders in 2008, Truong Hai Auto decided to raise its chartered capital to nearly VND1,000 billion and focus its business operations into three major fields: production and distribution of automobiles and parts, investment in industrial infrastructure in Chu Lai, and investment for trading cars and operating offices for lease.

Thaco will invest to turn its automobile complex in Chu Lai into the first mechanical industrial complex in Vietnam, which covers an area of 1,300 ha. It will attract domestic and international capital sources for the project and will conquer the Asian market.

In August 2008, after a due survey and valuation, Jardine Cycle& Carriage  Group decided to buy 20 per cent of stake in Truong Hai Auto at US$77 million. The presence of Jardine Cycle& Carriage will consolidate the position and importance of Truong Hai Auto in the Vietnamese map of automobile industry.

For the time being, Truong Hai has become a powerful economic group with nearly 60 branches and agents across the nation. With advantages of high quality, high durability and reasonable price, Truong Hai Auto’s products are competing with other rivals on the domestic market. The firm also plans an international presence soon

Mindful that the human resource plays a decisive role in its development history, Truong Hai always pays attention to improving living standards for its employees. Apart from creating a good working environment and stable income, the firm has built houses for its employees, who, in turn, devote to the company. It also fosters working capacity for its employees by sending them to attend training courses in the country and in foreign nations. In the coming time, Truong Hai will open a technological college to provide the human resources for its establishments.

Mr Tran Ba Duong said: “The company’s workforce always works with the spirit of concentration, honesty, intelligence and confidence. They always bring the respect, integrity, wholeheartedness and convenience to customers.”

Truong Hai is also known for its pioneer in social and charity activities. Truong Hai Automobile Joint Stock Company regularly takes part in poverty reduction fund, the fund for the poor, Agent Orange victim assistance fund, builds charity houses, funds student-assistance programmes, football tournaments, and builds schools in Quang Nam Province. Quang Nam has an exemplary carmaker in building a prosper Vietnam.

In June 2007, Deputy Prime Minister Truong Vinh Trong, on the behalf of the Government and the State, conferred the third-class Labour Medal to Truong Hai Automobile Joint Stock Company and Mr Tran Ba Duong, Chairman and CEO of the company, for their contributions to the country’s development.