However, the capacity of enterprises is still limited, the output is low, and the products do not meet the quality standards. To develop commensurate with its role and potential, Vietnam’s supporting industry needs pioneering enterprises to play a leading role.
One of the bright spots in the development of supporting industries can be mentioned as THACO AUTO group (belonging to THACO Group). After nearly 20 years of investment, this enterprise has created a positive transformation for itself and the country’s supporting industries, both increasing the domestic production value and localization rate, while promoting export spare parts.
Supplier and exporter
In Vietnam, every year businesses have to spend billions of dollars to import components, making domestic production costs 10-20% higher than in the region. low chemistry. Therefore, many businesses tend to look for suppliers strong enough to actively source components and increase domestic production according to the Government’s policy.
From the reality of automobile manufacturing and assembly activities, especially the requirement for component sources, nearly 20 years ago, THACO AUTO built a large-scale supporting industry development strategy, investing in an Industrial Park. Vietnam’s largest spare parts manufacturer in Quang Nam, aiming at dual goals: increasing the localization rate, exporting automobiles and spare parts. This is the right direction to develop supporting industries on a large scale, to meet domestic and export needs, and to attract businesses to invest in manufacturing auto parts, mechanics and many other fields. other. This explains why THACO AUTO was successful with two “reverse waves” of auto exports in the context of many businesses turning to imports; at the same time exporting spare parts. A series of products and accessories of the enterprise have been exported to Korea, Japan, Malaysia, Italy, Russia, Cambodia, Turkey, Kazakhstan… Especially, in 2021, THACO AUTO has implemented many projects. export to new markets such as USA, Canada, Australia.
In addition, the enterprise has entered into joint ventures and associations with domestic and foreign manufacturers with appropriate technology to create products that meet international standards; OEM parts production and supply. With this approach, THACO AUTO is both a supplier and an exporter.
To supply products for FDI enterprises and compete with foreign supporting enterprises, products must have good quality and good price. Therefore, investment in technology is very important. This is also the top priority solution for THACO AUTO. Particularly in 2021, the enterprise has invested in new technologies with a total value of more than 300 billion VND, including upgrading plastic injection molding technology, blowing plastic with injection molding machines from 100 to 2000 tons, blowing machines from 2500ml and 10 – 30l, invested in SMC closed mold heat forming technology, 400 tons hydraulic press…; at the same time building a production system on a digitized platform.
Expanding domestic and export markets
The investment in the development of supporting industries has brought certain successes when up to now, THACO AUTO has been proactive in manufacturing and assembling cars, increasing the localization rate (cars manufactured by the company in Vietnam). currently has a localization rate of 20 – 60%, the highest in Vietnam today); at the same time creating a premise to develop fields such as mechanics, agriculture and other industries. The investment process of THACO AUTO has contributed to increasing the value of domestic production, gradually reducing the trade deficit, and balancing the trade balance.
The strategy of developing Vietnam’s automobile industry with the goal of serving the domestic market and exporting to the region is gradually being realized. As an automobile manufacturing and assembly partner of international brands, THACO AUTO fully understands the requirements and manufacturing process of components according to global standards, on that basis, builds a localization roadmap in accordance with the requirements of the global standard. car manufacturers standards. THACO AUTO has supplied components (glasses for trucks, buses, bumpers, tweezers, floor tappi, ceiling panels, paint for motorcycle plastic components …) in the form of OEM for many car and motorbike manufacturers in Vietnam. . It is expected that in 2021, THACO AUTO’s domestic sales of spare parts and accessories will increase 3 times compared to 2020.
In 2021, THACO AUTO aims to increase the export revenue of spare parts and components to USD 25 million; at the same time, expanding the range and exporting more new products such as bus glass, truck ventilation panels, mezzanine trucks, CNG tank covers… to Korea, Australia, and Laos.