27/07/2021 09:01 GMT+7 Email Print Like 0

THACO, a leading automaker

After more than 20 years of development, Truong Hai Auto Corporation (THACO) has been a leading enterprise of automotive manufacturing and assembling of brand name automobiles, with the highest rate of use of locally produced parts in Vietnam. 
THACO wants to be one of the top multi-disciplinary corporations in Southeast Asia and has developed sustainably in the context of global integration and Industry 4.0.

Regarding auto manufacturing, THACO now is on the largest scale with the leading market share and high sales in the domestic market. In the first two months of 2021, THACO’s market share reached 40.3%. It is the only enterprise which produces and distributes all auto products of trucks, buses, passenger cars, and special-purpose vehicles from mid-range to luxury.


The corporation is implementing its strategy to join in the global value chain with international auto brand names manufactured in Chu Lai as well as collaborating with other automakers and distributors, transferring technology, developing a support industry and increasing the rate of use of locally produced parts.

Assembling line for cars. Photo: THACO's files


Assembling a cab for a truck. Photo: Thanh Hoa/VNP


Welding line for trucks. Photo: THACO's files

Using a robot to assemble a swing. Photo: Thanh Hoa/VNP

Kia Seltos, a new product of THACO. Photo: THACO's files

In 2003, THACO provided capital for Chu Lai Open Economic Zone. Covering 1,200ha, the corporation has invested about 300ha with a total capital of 3.5 billion US dollars, including an agricultural and forestry industrial park, the expansion of Thaco-Chu Lai Mechanical Automotive industrial park, the new wharf at Chu Lai-Truong Hai port and residential quarters for the workers.

THACO Chu Lai Mechanical Automotive industrial park is the largest center of automotive industry and logistics and one of the top tiers of its type in the ASEAN bloc. THACO Chu Lai is known on the lists of auto assembling enterprises for famous international brand names with significant rate of use of locally made parts such as 17-25% for passenger cars, 35-45% for trucks and over 60% for buses. Several models of THACO passenger cars have achieved a local parts use rate of over 40 %, meeting the regional value content (RVC) criterion and enjoying the zero tax rate when exporting to ASEAN countries following ATIGA.

THACO now runs 7 plants in auto manufacturing and assembling, such as the THACO-Kia factory, THACO-Mazda factory, THACO bus manufacturing plant and THACO special vehicles manufacturing limited company. The plants manufacture all of the products, including passenger cars by Kia, Mazda, Peugeot, buses, trucks and special-purpose vehicles with international and THACO brand names.

The car manufacturer also exports its products to ASEAN member countries and other nations around the world. THACO shipped over 1,400 products in 2020, including Kia Grand Carnival cars to Thailand, Kia Cerato and Kia Soluto cars to Myanmar, semi-trailers to the US, Japan, Myanmar and Thailand, as well as trucks to Cambodia.

In 2021, THACO continues to promote exports of cars, trucks, buses and semi-trailers to available markets in Thailand, Myanmar, the Philippines, the US and Japan, and expand its markets to ASEAN member countries.

THACO also has been known as a leading manufacturer and exporter of spare parts and components in Vietnam. In spite of the COVID-19 influence over the global economy, the spare parts and components exports of THACO still reached 17 million US dollars in 2020, up 25% compared with 2019. The major exports include car bumpers, passenger car wiring kits, leaf springs, and seat covers for passenger cars to markets of South Korea, Japan, Malaysia, Italy and Russia.

With strategic projects and strong steps, THACO expects to continue taking the domestic auto market share and promoting exports in spite of difficulties caused by COVID-19.

 
By Thanh Hoa - Translated by Nguyen Tuoi