Business

Auto producer Thaco makes heavy investment in agriculture

By Minh Thu April 26, 2019 | 08:00 AM GMT+7

Thaco continues to increase investment in agriculture as part of its strategy to diversify beyond automobile assembly.

Thaco exported first containers of banana to China.

Truong Hai Auto Corporation (Thaco) will up the ante on investment this year as it is fast expanding into agriculture and property sectors.

The country's biggest automobile producer announced in a recent annual shareholder meeting that it will spend around $656 million on investment this year, or 43 per cent increase against last year.

Thaco will triple investment in agriculture compared to last year to reach $315 million this year.

Thaco has signed a deal to purchase 20,000 hectares of land from Hoang Anh Gia Lai Agricultural Company and recently established a subsidiary specialized in agriculture and animal husbandry.

Thaco chairman Tran Ba Duong said the company would continue positioning mechanical engineering and automobile production as its key business in the multidisciplinary plan.

Accordingly, Thaco will invest $190 million in mechanics and automobile production this year, an increase of 9 per cent against last year.

Thaco, which is assembling Mazda and Peugeot cars in central province of Quang Nam, will build major automobile spare parts manufacturing factories, including engine factories in order to increase localization rates for vehicles.

Thaco last year sold more than 97,000 cars and it aims to bring the number to 110,000 this year.

Duong said the company would develop other strategic sectors, including transport infrastructure, industrial parks, agriculture and forestry, logistics, trading and services.

Thaco vice chairman Nguyen Hung Minh revealed the company had earned nearly $648 million in revenue and $42 million in consolidated after-tax profit in the first quarter of 2019.

Thaco set a target of $3.5 billion in revenue and $271 million in consolidated after-tax profit this year, an increase of 17 per cent and 3 per cent year-on-year respectively.

The annual shareholders meeting voted two new members to the company’s board of directors

Among them, Lee Yong-bum, head of foreign direct Investment of Techcombank, will be in charge of managing finance, accounting, credit and relations with banks.

The other new nominee is Stephen Patrick Gore, chief financial officer of Jardine Cycle & Carriage Limited who will take responsibility for assessing, managing risks in financial operations and investment. 

New alliance pushes ESG standards for Vietnamese businesses

New alliance pushes ESG standards for Vietnamese businesses

Business -  1 day

A new partnership between EY and the Vietnam-Singapore Board Forum (VSBF) is set to strengthen ESG capabilities for Vietnamese businesses, helping shape more sustainable business models.

US giant backs Vietnam’s bid to lead ASEAN gas trade

US giant backs Vietnam’s bid to lead ASEAN gas trade

Business -  2 week

With strategic deals and strong policy alignment from the Vietnamese government, Excelerate Energy aims to anchor Vietnam’s LNG ambitions in the region.

Frasers Property, SPX Express sign deal for largest sorting centre in Southeast Asia

Frasers Property, SPX Express sign deal for largest sorting centre in Southeast Asia

Business -  2 week

Scheduled for completion in 2027, the logistics facility will be the first of its kind in Vietnam significantly boosting parcel processing capacity up to 7 million parcels daily.

Gamuda Land secures VND3,750 billion loan for Eaton Park project

Gamuda Land secures VND3,750 billion loan for Eaton Park project

Business -  4 week

Gamuda Land will use the loan to invest in a luxury real estate project in Ho Chi Minh City.

WHA Group accelerates industrial park investment in Vietnam amid tariff tensions

WHA Group accelerates industrial park investment in Vietnam amid tariff tensions

Business -  1 month

Amid global economic volatility, WHA Group has rapidly rolled out multiple expansion projects in Vietnam, signaling its strategic focus on the country.

Hai Phong Port unveils new deep-water terminals to meet growing trade demand

Hai Phong Port unveils new deep-water terminals to meet growing trade demand

Business -  1 month

Hai Phong Port JSC. has inaugurated international container terminals No. 3 and 4 at Lach Huyen, raising its throughput capacity to 3.5 million TEUs per year.