Despite a profit of 7,400 billion VND, Thaco has liabilities of approximately 4.4 billion USD.

VietNamNet•18/05/2023

Truong Hai Group Joint Stock Company ( Thaco ) has just announced its 2022 financial report. The company recorded after-tax profit of VND 7,420 billion, a significant increase compared to VND 5,294 billion in 2021.

After many years, Tran Ba Duong's Thaco has recorded profits exceeding 7,000 billion VND.

However, the debt-to-equity ratio increased sharply compared to the previous year, from 1.76 times at the end of 2021 to 2.16 times at the end of 2022.

At the end of last year, Thaco recorded equity capital of VND 48,445 billion.

Total liabilities amount to over 104,000 billion VND. Thaco records bond debt to equity ratio of 0.17 times. This means Thaco currently has approximately 8,200 billion VND in outstanding bond debt.

According to HNX, Thaco is currently holding bonds worth a total of VND 6,200 billion, maturing in December 2024, December 2025, and September 2026, respectively.

Profits increased sharply in 2022, helping the group's return on equity (ROE) improve from 11.3% to 15.3%.

Thaco Truong Hai Group is known as a private enterprise owned by the family of Mr. Tran Ba Duong and Ms. Vien Dieu Hoa. This enterprise is currently not a public company and is not required to disclose information.

Thaco's main business is the wholesale of automobiles and other motor vehicles. The company manufactures, distributes, and owns a retail network for passenger cars under various brands: Kia (South Korea), Mazda (Japan), Peugeot (France), BMW (Germany), etc.

Kia is a subsidiary of Hyundai but operates separately in Vietnam. Truong Hai (Thaco) holds the rights to assemble and distribute Kia vehicles. The factory, located in Chu Lai Industrial Park, Quang Nam province, has a designed capacity of approximately 50,000 vehicles per year. Kia's products in Vietnam include the Morning, Soluto, K3, Sonet, Seltos, Sorento, Carnival, etc.

Besides Kia, Thaco also assembles two other brands: Mazda and Peugeot.

Over the past decade, Thaco has expanded into many sectors, including agriculture , real estate, retail, and logistics.

In 2023, billionaire Tran Ba Duong's conglomerate continued to set ambitious goals.

In the automotive sector, Thaco expects sales to reach over 120,000 vehicles (including 96,000 passenger cars). Total revenue is projected to exceed 90,000 billion VND. In the agricultural sector, Thaco Agri will expand its banana plantations, fruit orchards, and rubber plantations to tens of thousands of hectares.

In the real estate sector, Thadico - Dai Quang Minh will accelerate the development of its existing land bank, with plans to commence dozens of commercial projects totaling trillions of VND in investment in 2023.

According to the 2023 list of the world's dollar billionaires compiled by Forbes magazine (USA) in early April 2023, Vietnam has six representatives. Vietnamese billionaires have a combined net worth of $12.6 billion, a decrease of $8.6 billion compared to 2022. However, the wealth of the family of Thaco Chairman Tran Ba Duong remains unchanged at $1.5 billion.

*Mr. Tran Ba Duong has $1.5 billion. (Chart: M. Ha)*

Thaco has invested billions of USD into HAGL Agrico, but the company's recovery has been quite slow. Previously, at the extraordinary general meeting in early 2021, Mr. Tran Ba Duong stated that his involvement with HAGL Agrico was solely to help the company overcome its difficulties and to give the country a large-scale agricultural enterprise operating under an industrial production model.

*Thaco hands over Nong Khang airport to Laos. (Photo: TC)*

Previously, Thaco had invested in Hung Vuong Seafood, but that also failed. HVG's business was struggling, and its shares were delisted from the HOSE exchange.

On May 15th, HAGL Agrico signed the handover agreement for Nong Khang Airport in Houaphan Province (Laos).

The total investment for the project was $82 million, with the funding for construction provided by a loan from Hoang Anh Gia Lai Joint Stock Company (HAGL) to the Lao government, represented by the Lao Ministry of Finance. In December 2019, the lending entity for the project changed from HAGL to HAGL International Agriculture Joint Stock Company (HAGL Agrico).

In 2021, Thaco Group took over and managed HAGL Agrico Company, and at the same time, Thaco also took over the Nong Khang airport project to continue accelerating the handover progress.

People associated with billionaire Tran Ba Duong have withdrawn all their capital from Hung Vuong, the "king of fish" company.

After billionaire Tran Ba Duong and his private company divested all their capital from Hung Vuong, a senior executive of Thaco also registered to sell the remaining HVG shares.

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