THACO accompanies Quang Nam in realizing the Provincial Planning

tran-ba-duong(2).jpg — Mr. Tran Ba Duong - Chairman of THACO Board of Directors delivered a speech at the Conference announcing the Quang Nam Provincial Planning for the period 2021 - 2030, with a vision to 2050. Photo: HQ

Early formation of logistics center

Recalling the journey of more than 20 years since THACO set foot in Quang Nam, Mr. Tran Ba Duong said that it was a chance for a very small enterprise to be invited by the provincial leaders to invest in 2003. And Chu Lai Open Economic Zone at that time was a project filled with the aspiration to escape poverty of Quang Nam.

In the period 2003-2020, THACO invested in infrastructure, focusing on developing production, starting with automobile assembly and manufacturing spare parts. Then, gradually increasing automation and developing logistics. More than a decade ago, this was a field that was still lacking in the Central region.

Entering the period of international economic integration, when the country opened its vision to 2018, the tax rate of completely built-up cars from ASEAN countries to Vietnam was 0, creating a new breakthrough opportunity. THACO established its role and position as a driving force of Quang Nam in particular and a number of domestic industries and fields in automotive mechanics, mechanical engineering, and supporting industries in general.

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We have invested heavily in port infrastructure. However, we have realized that logistics costs in Quang Nam are still 20% higher than in the other two parts of the country. To solve this key problem, we have imported components for production, assembly, and then export. It is worth mentioning that our export goods are still lacking. Meanwhile, to maintain logistics, we must have daily container shipments.
Mr. Tran Ba Duong - Chairman of THACO Board of Directors

THACO invests in large-scale cultivation in Laos, Cambodia and the Central Highlands provinces, which can reach 1,000 tons of fresh fruit per day for export by the end of 2024.

To solve the shortage of exported goods, THACO has participated in developing large-scale cultivation models in Laos, Cambodia and the Central Highlands provinces. Currently, THACO has completed the production process, growing tropical fruit trees such as mango, grapefruit, durian and especially specializing in banana and pineapple. With an organic foundation, concentrated production associated with mechanization and industrial management, agricultural value chains have been formed. Thanks to that, by the end of this year, THACO will have 1,000 tons of fresh fruit per day for export. And by 2025, the group will reach the target of 2,000 tons/day. Thus, on average, there will be about 100-200 containers exported per day.

“We are studying the planning of Quang Nam province, especially the orientation to open Cua Lo route, with a total investment of about 6,500 billion VND. This is a project that we will participate in bidding under the PPP form. Along with that, we will study and participate in developing the road traffic system, focusing on express routes, investing under the BOT form to promote the route from Southern Laos, Northern Cambodia and the Central Highlands to Chu Lai” - Mr. Tran Ba Duong said.

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In May 2024, THACO will complete investment and construction of a port for 50,000-ton ships.
Mr. Tran Ba Duong - Chairman of THACO Board of Directors

According to Mr. Duong, the planning of Quang Nam province to form a logistics center by 2030 is very feasible, especially when Cua Lo route is invested and completed soon. At that time, large cargo ships will dock easily, solving logistics costs. And when these costs are low, investors will come to Quang Nam and create development conditions for small businesses.

[VIDEO] - Prime Minister Pham Minh Chinh visits Chu Lai port in 2022:

What will THACO do in the planning project of Quang Nam province?

Regarding the development of the group in Quang Nam, Mr. Duong said that in the automobile industry, THACO is still leading the market with a market share of about 35-38%. Currently, THACO's strategy is to combine with foreign brands, increase localization to build the market in the ASEAN region. In the future, when infrastructure and economy develop and have an upward trend, the program of "popularizing" automobiles will be implemented. That will be an opportunity for a regional automobile industry center to be formed.

[VIDEO] - Automotive mechanics is THACO's strength:

In the supporting industry sector, THACO has 1 mechanical processing and manufacturing complex and 22 supporting industrial factories. With the current large number of orders, the group is planning to build 7 new factories.

“When we first invested in this field, we initially set an export revenue target of $1,000 for mechanical engineering. Up to now, our export of machinery, equipment and mechanical components has reached $350 million, which is many times more,” said Mr. Duong.

THACO conducts large-scale agricultural production in Laos. Photo: THACO

Sharing about the construction of a center for medicinal herbs and deep processing of agriculture and forestry, Mr. Duong said that agricultural products produced in Southern Laos, Cambodia and the Central Highlands will be processed on site. Chu Lai will be the place to refine the products.

Mr. Tran Ba Duong. Photo: AN
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With the trend of fabric products having 20% of plant content, or functional foods and medicines originating from medicinal herbs, the development opportunities are not only for Ngoc Linh ginseng or Tra My cinnamon but also for other medicinal herb growing areas. At that time, high-value production chains will be formed, opening up opportunities for people to participate.
Mr. Tran Ba Duong - Chairman of THACO Board of Directors

Contribute to the realization of planning

Over the past 20 years, THACO has made an important contribution to the success of Chu Lai Open Economic Zone. And the Conference to announce the Quang Nam Province Planning for the period 2021 - 2030, with a vision to 2050, continues to be a new milestone. The Group is honored to be the leader in the journey to the future of Quang Nam Province.

“The planning states that by 2030, a national multi-purpose mechanical and automotive center will be formed, developing the supporting industry associated with logistics services. But we are determined to form this center by 2027 according to the group’s 5-year strategy (2022-2027). That is, it will be 3 years earlier than the province’s target,” said Mr. Duong.

According to Mr. Duong, there have been many seminars jointly organized by the Provincial People's Committee and THACO to invite businesses to invest in industrial sectors. However, due to many different factors, businesses are still not interested. In order to effectively implement the province's strategy for the supporting industry, THACO hopes for the participation of businesses so that they will no longer be "alone" in the journey ahead. Thereby, building a strong business community, contributing to the development of Quang Nam and the Central region.

Deputy Prime Minister Tran Luu Quang and his delegation visited the production workshop of the Mechanical Center - THACO Industries. Photo: D.N — Deputy Prime Minister Tran Luu Quang and his delegation visited the production workshop of the Mechanical Center - THACO Industries. Photo: AN

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“For a business that has dedicated its entire life to the development of a locality, a region, and many key industries and sectors of the country, that is something I am very happy about. This motivates us to continue to participate and accompany Quang Nam in realizing the plan.
Mr. Tran Ba Duong - Chairman of THACO Board of Directors

[VIDEO] - Mr. Tran Ba Duong - Chairman of THACO Board of Directors spoke at the conference announcing the planning of Quang Nam province:

At the end of his speech, Mr. Tran Ba Duong - Chairman of the Board of Directors of THACO expressed his gratitude to the provincial leaders over the years for creating favorable conditions for the group to invest, develop and succeed as it is today. At the same time, he affirmed that the Quang Nam Provincial Planning for the period 2021 - 2030, with a vision to 2050, will be an important premise for the enterprise to continue to develop. In the near future, THACO will have a working session with the provincial leaders to discuss in more detail its role in the provincial planning project.

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