Vietnamese conglomerate Truong Hai Group JSC (THACO) announced the establishment of its subsidiary THACO INDUSTRIES, with a total investment of more than US$550 million, which is expected to perfect the ecosystem of developing the mechanical industry in Vietnam.
| Welding workshop at Mechanical Center, THACO. Photos: THACO |
Located in an area of 120 ha in Vietnam's central province of Quang Nam, THACO INDUSTRIES manufactures a wide range of machines used in automotive, industry, agriculture, construction, and other sectors.
It specializes in providing automotive components and exports, coupled with the localization product strategy to gradually participate in global value chains and develop supporting industries in Vietnam.
The newly-established company will employ more than 6,000 people and includes subsidiaries and units: R&D Center, Material Supply Center, Mechanical Manufacturing Center, and Supporting Industries Manufacturing Center.
THACO INDUSTRIES has become a strategic partner of Kia, Mazda, Peugeot, Toyota, Hyundai, Isuzu, PITTS, Daewon, Cellmech, GAC, Doosan Vina, Makitech, TTI, and JMK, among others.
Vietnam has more than 7,000 mechanical and another 5,000 supporting industrial enterprises, but they only handle the assembly phase due to their limited capital, technology, and human resources. THACO INDUSTRIES will support small and medium-sized enterprises to join the global value chain.
| A groundbreaking ceremony of an R&D center. |
Earlier this month, THACO INDUSTRIES opened a mechanical center, the largest in Vietnam, and began constructing an R&D center in the Chu Lai Open Economic Zone, Quang Nam.
The mechanical center has an investment of more than US$100 million and an area of 20 hectares. In addition, the company has also initiated the construction of an R&D center, scheduled to start in August 2023, which will employ more than 1,000 experts and engineers.
In the Chu Lai Open Economic Zone, the company continues to modernize and expand existing factories and invest in new manufacturing projects, including complexes for passenger car interiors, passenger car glass, components, and products for export; casting and hot stamping lines; and other high-tech production.
Speaking at the ceremony, Chairman of the Quang Nam provincial People's Committee Le Tri Thanh said that mechanical engineering is a key industry and the basis of countries' driving force.
He added that the province is coordinating with THACO Group to develop a pilot project to encourage cluster-based mechanical and supporting industries production in Chu Lai Open Economic Zone.
"The formation of this ecosystem would help the mechanical industry breakthrough, create a network of intra-industry and regional linkages, and participate deeply in the global value chain. It would become a center of the diversified mechanical and automotive industry in Quang Nam," Thanh said.
The group will invest in industrial parks specialized in mechanical engineering and supporting industries in the southern and northern localities. It plans to conduct an investment study for the Mechanical and Supporting Industry Industrial Park in the southern province of Binh Duong. The industrial park is expected to begin construction in October 2023.
In 2022, THACO INDUSTRIES is estimated to make revenues of VND11.5 trillion (US$480 million), including $200 million worth of exports. In 2023, it targets to earn VND20 trillion worth of revenues, up 75% on year, including $400 million from export.
