Logo of Phnom Penh Post newspaper Phnom Penh Post - VN’s Thaco to become holding company as it diversifies operations

VN’s Thaco to become holding company as it diversifies operations

Content image - Phnom Penh Post
People board a bus manufactured by Thaco at Ho Chi Minh City’s Eastern Terminal. HOANG HAI/VIETNAM NEWS AGENCY/VIET NAM NEWS

VN’s Thaco to become holding company as it diversifies operations

Vietnam's Truong Hai Auto Corporation (Thaco) is set to become Thaco Group, a holding company with stakes in five member companies operating in a wide range of sectors, after shareholders approved the proposal at its annual general meeting held in Ho Chi Minh City recently.

One corporation is in machinery and automobile production, two in agriculture and forestry, transport infrastructure, industrial parks and urban areas and two others in commerce and logistics.

Thaco chairman Tran Ba Duong said the automobile corporation would manufacture a range of vehicles including passenger cars, buses, trucks, and specialised vehicles in a range of price segments and have a presence in the entire value chain from research and development and manufacturing to distribution and retail.

In the mechanical engineering industry, it would focus on agriculture, construction and industrial equipment engineering to support its main business areas, he said.

In agriculture and forestry, he said after Thaco and Hoang Anh Gia Lai (HAGL) Group announced a strategic partnership last August, Thaco set up Thadi Indochina Agriculture Processing and Distribution JSC with a charter capital of 2.1 trillion dong ($89.7 million), with Thaco owning a 70 per cent stake, to invest in fruit trees, cereals, forestry, agricultural materials and animal husbandry.

Trees for Cambodia

In March this year Thadi signed a strategic agreement with Hoang Anh Gia Lai Agricultural Company, a subsidiary of HAGL, to grow fruit trees in Vietnam, Laos and Cambodia, export fruits to affluent markets and offer import-export and logistics services.

Thadi will develop farms in Cambodia to grow fruit trees, using appropriate machinery and technologies to ensure the fruits meet quality standards in developed markets.

Thaco will also invest in a research and development centre for seeds, agricultural materials, bio-technology, organic cultivation, harvesting, preservation and processing techniques, develop experimental farms, set up a fruit processing plant at the Chu Lai Agro-Forestry Industrial Park, and export fresh fruits to China, South Korea, Japan, the Middle East and the EU.

In construction, Thaco plans to develop transport infrastructure under public-private-partnerships and invest in environment-friendly industrial parks.

In 2019-21 Thaco will develop new urban areas in major cities and trade centres that combine car showrooms, office space for rent, hotels, and high-class apartments.

In the commercial sector, Duong said the firm’s commercial business activities would be based on its system of trade centres combined with car showrooms, under the “One stop, multiple services” model including a car showroom on the ground floor, supermarkets, food courts, retail stores, entertainment centres, convention centres, and others.

Thaco is expected to launch its Socar Sala commercial centre in Ho Chi Minh City’s District 2 in the fourth quarter of this year. It will have a supermarket, a food court, a convention centre, entertainment facilities, and cinemas.
He said Thaco would develop logistics into a business line not only to serve its main business sectors including auto and agriculture logistics such as transporting fruits by specialised refrigerated vehicles and trading logistics but also offer logistics services to external customers.

It will develop Chu Lai port into a logistics hub of the central and Central Highlands regions with services such as port, maritime shipping, trucking, warehouses, and cold storages and exploit goods transport opportunities from Korea, Japan and China to Chu Lai.

It continues to develop the port so that it can handle 50,000DWT vessels, upgrade infrastructure and enhance the use of information technology in managing its logistics services.

At the annual general meeting, Thaco announced targets of consolidated net profit of more than 6.2 trillion dong this year on revenues of more than 79.7 trillion dong, a year-on-year increase of three per cent and 17 per cent.

In the first quarter it reported over 14.8 trillion dong in revenues and 964 billion dong in profits.

The annual general meeting also voted in an 11-member board of directors for 2019-21. VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • ‘Potential shield’ for virus hangs in balance

    The World Health Organisation (WHO) suspended trials of the drug that US president Donald Trump has promoted as a coronavirus defence, fuelling concerns about his handling of the pandemic that has killed nearly 100,000 US citizens. Trump has led the push for hydroxychloroquine as a potential

  • Gov’t rolls out stimulus to keep businesses afloat

    The government has introduced the fourth round of stimulus measures aimed at ensuring economic and social stability during the outbreak of the Covid-19 disease. The move, which was announced on Tuesday, is designed to help businesses, factories and enterprises to stay afloat while reducing the

  • E-cigarette back in spotlight amid virus pandemic

    The Ministry of Health’s Department of Communicable Disease (DCD) department has released a video about the effects of smoking, while the NGO Cambodia Movement for Health (CMH) warned against the use of electronic cigarettes or vape. The short video clip that was posted on

  • Por Sen Chey woman murdered

    Por Sen Chey district police are searching for a suspect who robbed and killed a woman in a rented room in Samraong Kraom commune in Phnom Penh at 6:30pm on Monday. Deputy district police chief Chea Sovann told The Post on Tuesday that the victim,

  • Police chief: remove all roadblocks

    National Police chief Neth Savoeun warned Phnom Penh and provincial police chiefs to remove all roadblocks, saying that traffic police officials in some provinces had tightened traffic law implementation against guidelines. In a leaked voice message which was shared on social media on Tuesday, Savoeun

  • Man held for violating daughter and niece

    Kandal Anti-Human Trafficking and Juvenile Protection Department officers sent a man to the provincial court on Tuesday after arresting him the day before for allegedly molesting his daughter and niece in Sa’ang district. Department chief Ros Savin said the 30-year-old construction worker was questioned