Truong Hai Automobile company increased its charter capital by more than US$548 million

Specifically, this company will use nearly VND3,000 billion (US$132 million) in equity surplus and VND9,450 billion (US$416 miilion) in after-tax profit to raise capital in the form of bonus to existing shareholders at a 3:1 ratio.

The implementation period is expected in the fourth quarter of 2017 because it denpends on the licensing process of the State Security Commission of Vietnam. 

After being raised, Truong Hai's chartered capital will be VND16,580 billion (US$730 million) of which, 60 per cent is held by Tran Oanh company founded by Truong Hai's Chairman Tran Ba Duong, 6,7 per cent is owned directly by Duong and 5.15 per cent is held by Vien Dieu Hoa.

In addition, the Hong Kong-based Jardine Matheson Group holds about 25 per cent of Truong Hai's shares over the past several years through its Singapore subsidiary.

According to the Truong Hai's financial report, in the first six months of 2017, this company has VND16,295 billion (more than US$717 million) of atfer tax profit. In addition to capital rasing plan, this company also submitted a plan of 20 per cent added payment to shareholders. Over the past few years, Truong Hai's high profitability allowed this company to continuously pay a dividend of 30%.

In the first half of this year, Truong Hai, the Vietnam's largest automobile manufacturer and distributor, posted sales of VND25.5 trillion (US$1.12 billion), down 33 per cent compared with the same period last year.

The continuous decline in car prices in the first half of 2017 was the cause of Truong Hai's profit decline. The lower car price is used to increase the competitiveness of Truong Hai company under pressure from imported cars which will no longer be subjected to high tax as before from 2018.