Thaco (Truong Hai Auto Company) has planned to join the value chain of the global automotive industry since 2003. It focuses on localization and export of auto and spare parts.
Production center in Chu Lai
As a result, Thaco’s vehicles accounts for 30% market share and leading sales in Vietnam market with the highest localization rate (from 17% to 62 %).
Chu Lai Open Economic Zone (OEZ) was established in Quang Nam province in 2003. Thaco started its construction of a truck and bus factory with an annual capacity of 25,000 vehicles. The factory covers an area of 38 hectares with a total capital of 2,800 billion VND. At the same time, a training center and a marine shipping company were established by Thaco.
Then, with the technology transfer from Hyundai Group - Kia Motors (Korea), Thaco - Kia passenger car factory with a capacity of 30,000 vehicles per year, covering an area of 20 hectares with a total investment of 3,500 billion VND was put into operation. Thaco becomes the pioneer investor in Chu Lai. It also becomes the largest-scale company in Vietnam to manufacture and assemble a full range of trucks, buses, and passenger cars.
Thaco has entered the second largest investment period in Chu Lai with key projects such as a specialized bus factory with a capacity of 5,000 vehicles/year, Thaco branded buses with 70% of market share in Vietnam, Thaco Mobihome sleeper bus - a popular means of long-distance service in Vietnam, Mazda passenger car factory with technology from Japan’s Mazda Motor Corporation, a mechanical complex with a capacity of 300,000 products/year, a cluster of auto spare parts production factories.
Thaco is building a deep-water port with an expanded wharf length of 790m, capable of receiving ships of 50,000 tons. Once completed, the upgraded project will enable it to diversify cargo sources and ship sizes, increasing loading and unloading capacity, increasing cargo throughput, increasing sources for international and domestic maritime routes, reducing expenses for businesses, developing logistics services and attracting investment to Chu Lai OEZ.
Up to now, Thaco Chu Lai Industrial Park has covered an area of more than 1,200 hectares with a total investment of more than 80,500 billion VND (equivalent to 3.5 billion USD). It consists of auto and mechanical engineering factories, an urban area, an agro-forestry industrial park, ports, logistics areas.
Export product diversification and market expansion
To further participate in the global value chain, Thaco becomes an original equipment manufacturer (OEM). THACO also promotes cooperating with other automotive manufacturers and distributors to receive technology transfer, increasing production capacity; fostering research and development activities, quickly developing and diversifying products, especially exported products according to customers' specific requirements.
Being an OEM, Thaco has manufactured and supplied components to increase localization rates for assembled products in Vietnam such as Kia (Korea), Mazda (Japan), Peugeot (France) and Mitsubishi Fuso.
In addition, Thaco has become an OEM supplier (level 1 and level 2) and exported products such as composite components, tweezers, bumpers, seat covers, fuel tanks, etc. to partners Independence, Daewon, Shin Myung, Cellmech, SMT, JMK, Fori (Korea); NAZA, C.N.A (Malaysia); Youngsan (Russia); TIP Composite, Hanaoka (Japan) ...
Currently, Thaco is producing and supplying OEM components for automobile, motorbike and electric bicycle factories in Vietnam and FDI enterprises as well as expanding its markets to Ecuador, Portugal, India, Germany, Australia, America, Poland ...