Japan’s Mitsui becomes strategic shareholder of Vietnam car dealer Tasco Auto

Mitsui, the leading Japanese trading and investment group, with a global presence in more than 60 countries, has officially become a strategic shareholder of Tasco Auto, announces Tasco JSC, Vietnam’s leading construction and engineering firm.

Tasco has finalized an agreement with Mitsui & Co., Ltd. (Mitsui) that designates Mitsui as the strategic shareholder of Tasco Auto, a subsidiary of Tasco, thereby strengthening Mitsui’s collaboration with Tasco Auto on the upcoming strategic plans. The initial investment was disbursed on July 31, 2024.

The partnership between Tasco and Mitsui at Tasco Auto is considered a significant milestone that enables Tasco to realize its strategic objectives. Through this partnership, Tasco Auto will have the exposure to world-class operational and management standards, and to the worldwide network of its partner.

Furthermore, Mitsui brings advanced technological solutions and its valued consultancy to enhance efficiency, improve governance structure, and streamline operation. Through this partnership, the collaboration will help Tasco to capture the growth potential of the industry and continue to pursue its long-term strategy. For Mitsui, this presents an opportunity to tap in a rapidly growing market of 100 million people.

Inspired to be the first choice for automotive services and smart transport infrastructure in Vietnam, Tasco Auto is a strategic pillar in that vision, synergizing with other units within Tasco to provide a comprehensive lifetime service for vehicles and owners.

While expanding its network of 90 showrooms with 14 car brands such as Volvo, Lynk&Co, Toyota, Ford, Mitsubishi, Nissan (23%) and others – holding the largest market share in Vietnam (13.3% in 2023) – Tasco has recently demonstrated a strong commitment to upstream integration with a CKD (Complete Knock-Down) assembly project. This project is scheduled to commence in 2024 in partnership with a top 10 global automotive manufacturer to deliver the passenger vehicles by 2025.

Mitsui is a global trading and investment company with a presence in more than 60 countries and a diverse business portfolio covering a wide range of industries. The automotive and transportation sectors are key investment areas for Mitsui, with investments in over 100 companies across 26 countries. In this, Mitsui has developed profound expertise by deeply engaging in the supply chain and developing next-generation mobility solutions.

Within this framework, the strategic partnership between Tasco and Mitsui is driven by a shared vision of capturing strong long-term growth opportunities in the automotive sector. This partnership brings together Tasco's leading advantages in automotive services in Vietnam with Mitsui's international experience, extensive network, and robust global capabilities. This combination will maximize the strengths of both parties to develop and expand business operations, enhancing overall efficiency.

In the future, this partnership will unlock remarkable opportunities to enhance innovation in business models, increase profit margins, and create greater value for shareholders of both entities.

About Mitsui & Co:

Mitsui & Co. is a global trading and investment company with a presence in more than 60 countries and a diverse business portfolio covering a wide range of industries.

The company identifies, develops, and grows its businesses in partnership with a global network of trusted partners including world leading companies, combining its geographic and cross-industry strengths to create long-term sustainable value for its stakeholders.

Mitsui has set three key strategic initiatives for its current Medium-term Management Plan: supporting industries to grow and evolve with stable supplies of resources and materials, and providing infrastructure; promoting a global transition to low-carbon and renewable energy; and empowering people to lead healthy lives through the delivery of quality healthcare and access to good nutrition.

Visit https://www.mitsui.com/jp/en/ for more information.

About Tasco Auto:

Tasco Auto is a subsidiary of Tasco, a leading provider of automotive distribution and smart transportation infrastructure in Vietnam with over 50 years of history. As a top automotive distributor in Vietnam, Tasco Auto holds approximately 13.3% of the automotive market share. It partners with 14 major car brands through a network of 90 showrooms stretching from North to South, including prominent brands such as Toyota (21%), Ford (28%), Mitsubishi (19%), Nissan (23%), and premium brand Volvo (100%), contribute to propel Volvo become one of the top three most preferred luxury car brands in Vietnam within a short timeframe.

In the transport infrastructure sector, Tasco, through its subsidiary VETC, the leading and pioneer of electronic toll collection (ETC) in Vietnam, commands a 70% market share with the network of 120 toll stations and 669 toll lanes on key transportation routes, serving 3.5 million vehicle owners and processing an average of 1.2 to 1.5 million vehicle passes daily.

Aiming to complete the comprehensive lifetime service chain for vehicles, Tasco has invested in and wholly owns Tasco Insurance, focusing on motor vehicle insurance. Within a year of market entry, it has quickly ascended to the top 10 largest motor vehicle insurance providers by recent sales figures and owns the used car trading platform Carpla.

Additionally, Tasco also invested in high-end, unique resorts in Vietnam, including Six Senses Ninh Van Bay and Ana Mandara Da Lat.