Billionaire Tran Ba ​​Duong sends another letter, denying rumors of foreign shareholder capital for high-speed railway

Chairman Tran Ba ​​Duong affirmed financial transparency, committed to long-term development, maintained the policy of not listing shares, and officially confirmed the investment proposal for the North-South high-speed railway project.

Mr. Tran Ba ​​Duong - Chairman of the Board of Directors of Truong Hai Group Joint Stock Company ( THACO ) - speaking at a conference - Photo: TL

Following the letter sent on May 30, Mr. Tran Ba ​​Duong - Chairman of the Board of Directors of THACO on June 4 - sent another letter to shareholders, partners and all employees to clarify issues of public concern.

THACO denies Jardine Matheson funding high-speed rail project

Regarding the information that Jardine Matheson Group, a strategic shareholder holding 26.6% of capital, will provide capital support for the North-South high-speed railway project, Mr. Duong affirmed that THACO has never announced any information about Jardine Matheson's commitment to provide capital support for the project.

The letter also said that THACO's investment proposal is independent, based on financial capacity and long-term vision, and is not related to the funding commitment of any foreign shareholder.

"Regarding Jardine Matheson Group, I have made it clear in my previous letter. I would like to reiterate that Jardine Matheson Group - a multinational corporation founded in 1832 in the UK - is a strategic shareholder that has accompanied THACO for more than 17 years, owning 26.6% of capital. Up to this point, THACO has not provided any information about Jardine Matheson's commitment to support the North-South high-speed railway project.

Regarding the proposal to participate in the high-speed railway project on the North-South axis, in addition to the important reasons in the previous letter, I would also like to add that it demonstrates a sense of responsibility with the hope that the Government will have the optimal solution (public investment, private enterprises as general contractors; private investment or other combined solutions).

In the case of private investment, it is necessary to select a capable enterprise with the best conditions and criteria,... to participate in proposing to the competent authority to meet the highest goal of this national key project" - Mr. Tran Ba ​​Duong stated in the letter.

THACO officially confirmed its investment proposal for the North-South high-speed railway project with a total capital of about 67 billion USD. Accordingly, THACO proposed to establish a company for the project, holding at least 51% of the capital, and self-arranging 20% ​​of the investment capital, equivalent to 312,000 billion VND, of which THACO itself committed to guarantee 159,120 billion VND, more than 6.26 billion USD.

The remaining 80% of capital will be mobilized from domestic and foreign credit institutions, with the Government providing guarantees and interest rate support for 30 years. THACO divides the project into two construction phases over 7 years, associated with TOD urban development around the stations.

In particular, THACO commits to hand over the entire project to the State in case of serving national defense and security, demonstrating responsibility beyond corporate interests.

Aim to increase profits 5 times by 2027

According to Mr. Duong, in the period of 2024-2027, THACO's consolidated profit after tax is expected to increase nearly 5 times, from 3,228 billion VND in 2024 to 16,089 billion VND in 2027. This data has been audited by the international company EY (Ernst & Young).

From 2027 onwards, the group's average annual profit is expected to remain above VND15,000 billion, about USD577 million.

In which, THACO AUTO continues to be the main pillar, contributing 4,410 billion VND in 2024 and expected to reach 6,558 billion VND in 2027.

THADICO (Dai Quang Minh) accelerated from 242 billion VND in 2024, expected to reach 4,545 billion VND in 2027 thanks to legal solutions at Sala urban area.

Meanwhile, THACO AGRI is recovering strongly after taking over the agricultural system from HAGL, from a profit of 3 billion VND in 2024 to 2,631 billion VND in 2027.

According to Mr. Tran Ba ​​Duong, the supporting industry (THACO INDUSTRIES), logistics (THILOGI) and trade and services (THISO) sectors all have stable growth, affirming the multi-industry model with systematic investment and transparent financial control.

One of the contents of the letter from THACO Chairman Tran Ba ​​Duong sent to shareholders, partners and all employees, to clarify issues of public concern.

Why is THACO steadfast in its "unlisted" strategy?

A notable highlight is that THACO continues to affirm that it has no plans to list its shares. According to Mr. Tran Ba ​​Duong, this is a strategic decision to maintain flexibility in operations and long-term vision.

However, THACO's financial system has been audited annually by Big 4 companies since 2007, ensuring transparency.

"Not listed but still attracting large resources, being transparent and developing effectively, that is the unique path that THACO is persistently pursuing" - Mr. Duong emphasized.

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Source: https://tuoitre.vn/ti-phu-tran-ba-duong-gui-tiep-thu-bac-tin-don-von-co-dong-ngoai-cho-duong-sat-toc-do-cao-20250604205832848.htm