MAI THANH HOÀNG LONG

NGUYỄN TRẦN THANH TRÚC

NHAN MINH KHÁNH NHÓM 10
PHAN NHƯ HOÀNG LINH

MÃ QUẢNG TRẤN
Truong Hai Automobile
Joint Stock Company
COMPANY INFORMATION
 COMPANY
INFORMATION
Founded in 1997
One of the pioneers of Vietnam in the
automobile industry.
 Main activities of the company: main
products: family cars, light trucks and buses
COMPANY Producing cars for brands: KIA, Mazda in the
INFORMATION main factory located in Chu Lai Economic.

Investing in new building supporting industrial factories in the

direction of automation Cooperating with the form of joint
ventures, partnerships, and technology transfer from partners.
 COMPANY
INFORMATION
Participating in the supply chain of OEM
components for automobile manufacturers
and assemblers.
ENVIROMENT
 60 economy system contribute
16 FTA Free Trade Agreement
90% of the world GDP
 ENVIROMENT

From the three largest economic centers in the

9/10 partners world are North America, Western Europe and East
Asia
MARKET ENTRY STRATEGY
1997-2007, Truong Hai was just a small
business specializing in repairing and MARKET
assembling light trucks ENTRY
STRATEGY

With the accession to the WTO, Vietnam

gradually opened the domestic auto market
for imported cars
Building the largest modern and largest- MARKET
scale production and assembling complex ENTRY
in Vietnam STRATEGY
Localization of raw materials, components
and spare parts, step by step self-sufficient
production (currently more than 40%)
 MARKET ENTRY STRATEGY
The production scale is constantly increasing, the output capacity for
products has exceeded the domestic demand

Calling partners to invest capital, take advantage of technology and

management experience.

Building a system of warehouses and facilities in countries in the

region to prepare for the plan to develop international markets.
→ Thaco seized the opportunity, cooperate with
world-famous automobile manufacturers

joint venture and association with foreign partners

THACO associate with suppliers of Kia Motors

In terms of export ways
 In terms of export ways

 Based on region differences and quality control from its partners

 In terms of export ways

Intensified
 based on market
region differences
research continuously
and qualitysurveyed
control from
and its
expanded
partners
 In terms of export ways

intensified
 based
Especially
on market
in
region
ASEAN,
differences
research
Eastern
continuously
Asia,
and quality
Western
surveyed
control
Asia, from
America,
and its
expanded
partners
Australia
2021 Exported a mass number of cars, buses, and spare parts
 exported a mass number of cars, buses, and spare parts
The first shipment of 870 semi-trailers was exported to the US
2021
market under an agreement with PITTS Enterprises
BENEFITS OF ENTERING
 Accession of Vietnam to the
WTO

BENEFITS OF ENTERING
 Accession of Vietnam to the
WTO

Proactively moves towards a

global strategy

BENEFITS OF ENTERING
Proactively moves ->”Widening the road" to
towards a global cooperate with major foreign
strategy auto brands
 Learn and Adapt
advanced modern
production technologies

BENEFITS OF ENTERING
 Wet on wetLatest
Painting technology
Laser Welding Tech

Learn and Adapt

advanced modern
production technologies

Meeting the
Automatic paint diverse
supply system requirements of
colours
 LatestAssemble
Laser Using
Welding
Robots Tech

Learn and Adapt

Assemble Using Robots

80% Automated
 Learn and Adapt
advanced modern Foreign Investment
production technologies

BENEFITS OF ENTERING
 Foreign Investment

25% of Share
receive
Support
modern
from
management
foreign capital
level

Foreign Investment
Receive
support
modern
from foreign
management
capitallevel

Foreign Investment
FACTORS LEAD TO SUCCESS
  Opportunity right in Vietnam

Millions of dollars each

year to import spare
parts and accessories
  Opportunity right in Vietnam

Causes
millions ofproduction
dollars eachcosts to
yearbeto10-20 perspare
import cent higher
partsthan
andinaccessories
other countries
  Opportunity right in Vietnam

causes
millions ofproduction
dollars eachcosts to
Reduces the rate of use of
yearbeto10-20 perspare
import cent higher
local parts to low levels
partsthan
andinaccessories
other countries
  Opportunity right in Vietnam

causes
millions ofproduction
dollars eachcosts to
Reduces the rate of use of
yearbeto10-20 perspare
import cent higher
local parts to low levels
partsthan
andinaccessories
other countries
What did THACO do
Localize manufacturing and maximize efficiency

Using locally produced parts will save quite a lot of

production costs

Decided to cooperate and support local manufacturers

 Multifunctional
Localize manufacturing model
and maximize efficiency

60% 40% 25%

 Decreasing import needs ⇒ Reduce costs.

 A one-stop shop is a business or
office that offers multiple services or
products to customers

Multifunctional
model
  Take on large orders from
foreign enterprises

Multifunctional
model

 -> Helped secure many large orders from

foreign direct investment enterprises
What can other learn ?
 Utilise your advantages

Knowing they have

advantages in the labor
market
 Utilise your advantages

THACO
Knowinglocalizes
they have their
advantages
parts to reduce
in theshipping,
labor
tax andmarket
other fees.
 Vietnam political
Be Proactive environment
improves
Vietnam political
Learn all the latest
environment
Be Proactive
technology
improves
 Associate with
Vietnam political
learn allautomobile
Large the latest
environment
Be Proactive
technology
brands from
improves
around the global