THACO: challenges and opportunities

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(QNO) - Truong Hai Auto Corporation (Thaco) is ready for integration with the determination to become a diversified industrial corporation at the ASEAN regional level.

Work atmosphere in Thaco
Work atmosphere in Thaco

Increasing Thaco's output

Thaco's stable workforce was considered its success in 2017. Although the corporation has to compete fiercely with ASEAN countries in 2018 because the import tax on cars from ASEAN is 0%, there is a good signal for Vietnamese auto industry in general and for Thaco in particular. 2018 is the beginning year of a new cycle of Vietnamese automotive industry development. Not importing complete units as other world famous car manufacturers, Thaco goes on its production and assembly of cars home. It is both a challenge and an opportunity for Thaco confirm its trade name, a Vietnamese trade name of cars.

As being planned, Thaco will produce and assemble 123,800 cars, up 39% against 2017 (31,500 trucks; 5500 buses and mini buses; 86800 cars of Kia, Mazda, Peugeot brands). With a diversity of brands and models, Thaco wants to satisfy the choice of its customers. It is predicted that the number of cars consuming in 2018 will increase by 30% over 2017 (about 270,000 units). Besides domestic market, Thaco is planned to expand its market abroad.

Multidisciplinary Industrial Corporation

Thaco stated that 2018 is the beginning year of a new development strategy. Thaco officially becomes a Vietnamese multidisciplinary industrial corporation at the ASEAN regional level. Vehicle production and sales are major. Thaco is determined to reach a localization rate of 40%, invest in its retail system along the main streets of the cities and provinces all over the country. Its system of distribution and showroom is planned under each brand. Moreover, the plant of agricultural machinery under technological transfer from LS Mtron Group was put into operation on February 21, 2018. Another project, Thaco Mazda factory with a capacity of 100,000 units per year will be inaugurated in March 2018. This project is expected to help reduce the cost and raise the localization rate.

In addition, a series of new plants of manufacturing and assembling trucks, vans, minibuses will come into operation in 2018. At the same time, Thaco also upgrades the Thaco-Kia factory; expands Tam Hiep Industrial Park and Chu Lai - Truong Hai Automotive Mechanical Industrial Zone; build a two-story traffic junction at the intersection of National Highway No1, North-South railway and the main road to Chu Lai Open Economic Zone; implement the 1st phase of the urban area and residential quarter for workers in Tam Hiep commune; build one more wharf that can receive 50,000-ton ships and open a direct sea route Chu Lai - Japan, turning Chu Lai seaport into the largest container port in Central Vietnam.

Therefore, it can be said that ASEAN integration 2018 is both a challenge and an opportunity. Thaco believes in its capacity of turning challenges into opportunities.