As a leading enterprise in the northern province of Thai Nguyen, Thai Hung Trading JSC has amassed a large area of land and set up strong relationships within the locality.
Acquiring stakes in a series of businesses
Thai Nguyen is considered the "cradle" of Vietnam's metallurgical industry, proven by the growth of many famous steel brands in the locality. Thai Hung plays a particularly important role with annual sales accounting for about 13% of Vietnam's steel market.
Thai Hung's predecessor was Thai Hung Metal Services Private Enterprise, established in 1993 in Thai Nguyen province. It was initially just a small metal service store founded by the couple of Nguyen Thi Cai and Nguyen Quoc Thai.
In the following years, Thai Hung expanded its operational scale, developing multi-industry production and business, and opening branches and representative offices in localities such as Hanoi, Quang Ninh and Hai Duong.
In 2009, Thai Hung bought shares in companies divested by the state, including B.C.H JSC, registered on the Unlisted Public Companies Market (UPCoM) as BCA, Cao Bac Trading JSC, Thai Hung Steel Formwork Co., Ltd. (formerly known as Viet Phuong Steel Formwork Co., Ltd.), Thai Nguyen Book Distribution JSC (acquired in February 2011), and Thai Nguyen Forest Products JSC (acquired in August 2011).
In 2015, Thai Hung organized its AGM and elected a board of directors for the 2015-2020 term. Nguyen Thi Cai and Nguyen Quoc Thai handed over most of the company's leadership positions to the next generation. Nguyen Van Tuan assumed the position of chairman and Nguyen Thi Vinh served as CEO. In February 2022, the company's charter capital reached VND1.5 trillion ($60.82 million under the current exchange rate).
Born in 1972, Vinh is also known as chairwoman of the Female Entrepreneurs Association of Thai Nguyen province. Last year, she was honored as one of 10 "Outstanding Thai Nguyen Citizens" in the field of labor, production and business.
Under the reign of Vinh, Thai Hung continued to acquire stakes in other steel companies.
In June 2016, when Song Da Corporation divested capital from Vietnam-Italy Steel JSC (Visco), listed on the HoSE as VIS, Thai Hung picked up VIS shares to become the controlling parent company. However, Thai Hung's "fate" with Visco did not last long.
About one year later, Visco welcomed Kyoei Steel from Japan as a strategic partner. Since then, Kyoei Steel has gradually increased its ownership ratio in Visco and currently holds 73.81% of its charter capital. Meanwhile, Thai Hung has reduced its stake to 20%.
At the end of February 2017, Thai Hung became a major shareholder in Thai Nguyen Iron and Steel JSC (Tisco), listed on the HoSE as TIS, by buying 14.1 million TIS shares (5%). A few months later, it scooped up more TIS shares, increasing its ownership ratio to 20% of Tisco's charter capital. This ratio remains the same now following unsuccessful moves to divest capital at Tisco.
In June 2020, Tisco and Thai Hung respectively held 6.8% and 56.5% of the charter capital of NatSteelVina Co., Ltd. - an iron and steel producer in Thai Nguyen province.
This ecosystem also includes Cao Duong Phat JSC - a legal entity that Thai Hung spent VND56.1 billion ($2.28 million) to acquire from its member company, Thai Nguyen Book Distribution JSC (STH); IMUS Development Investment JSC – a company with Nguyen Thuong Nguyen, son of Nguyen Quoc Thai, as director; and Eco Valley Edu - an enterprise operating in the fields of design consulting, supervision consulting, and real estate operation and management. At the time of its establishment, Eco Valley Edu had a charter capital of VND65 billion ($2.64 million), with Nguyen Thi Vinh contributing 75%.
Entering real estate game
After a quarter of a century of engagement in the main business of construction steel, Thai Hung officially invested in the real estate field with the 35-hectare Crown Villas urban area project in Thai Nguyen province.
The Crown Villas urban area is located in a prime location on Cach Mang Thang 8 (August Revolution) street, right at the "gateway" to Thai Nguyen town. This golden plot originally belonged to Gia Sang Steel JSC, but in July 2016, Thai Hung won an auction to buy Gia Sang Steel’s assets for nearly VND57 billion ($2.31 million), including a steel rolling mill.
Initially, Thai Hung pledged to resume operations of the mill. However, in June 2017, it closed the factory, claiming it was ineffective. At the same time, Thai Hung asked the People's Committee of Thai Nguyen province for a license to implement a real estate project on the golden land plot where the mill was based.
In October 2018, the provincial People's Committee officially allowed Thai Hung to change the use of nearly 21.4 hectares of land at the mill site to build the Thai Hung Eco City new urban area (commercially named Crown Villas) without an auction.
Crown Villas has a total investment of VND2.1 trillion ($85.15 million), divided into four sub-areas: Iris, Hermes, Helios and Poseidon with many amenities, notably the system of Iris kindergarten - primary school - secondary school - high school.
Through its member businesses, Thai Hung owns a significant amount of land.
A typical example is Thai Nguyen Book Distribution JSC (UPCoM: STH), formerly Thai Nguyen Book Distribution Company, a wholly state-owned company equitized in 2003, with a charter capital of VND1.2 billion ($48,656). In 2008, the company increased its capital to VND2 billion ($81,000), and in 2010 the state divested all capital from the firm, and STH officially joined the Thai Hung ecosystem.
At that time, STH had a charter capital of only VND2 billion with its main business of selling books, newspapers and stationery, and was inefficient. However its attractiveness came from its ownership of many bookstores located in prime locations in Thai Nguyen, including 65 Hoang Van Thu street.
At this land lot, in August 2022, STH announced a plan to build the Thai Hung Complex Tower with a total investment of more than VND265 billion ($10.75 million). This project was positioned as a multi-functional building, including amenities such as offices for rent, luxury accommodation, and event space.
Another business is Thai Nguyen Forest Products JSC, which was acquired by Thai Hung in August 2011. Registered for plywood production, it is better known as the investor of the HTD City Thai Nguyen project, covering an area of over 18,000 square meters.
In addition, the Thai Hung ecosystem includes Minh Duc Group Investment Joint Stock Company – the investor of the 44.69-hectare Ha Chau 2 Industrial Cluster. Minh Duc Group was set up in February 2021 with a charter capital of VND160 billion ($6.49 million) as of April 11, 2023. Currently, the CEO and legal representative of this enterprise is Nguyen Duy Luan – deputy CEO of Thai Hung.
Among the businesses in which Thai Hung holds stakes, Thai Nguyen Iron and Steel JSC (TIS) is the most notable with 2023 net revenue of VND9.53 trillion ($386.42 million). However, it suffered a net loss of nearly VND180 billion ($7.3 million).
B.C.H JSC (BCA), thanks to the sudden profit when merging with its subsidiary Tuyen Quang Iron and Steel Company Limited (TQIS), reported a net profit of nearly VND398 billion ($16.14 million) in 2023, from a loss of VND74 billion ($3 million) in 2022.
Meanwhile, Thai Nguyen Book Distribution JSC (STH) recorded modest business results with VND1.23 billion ($49,870) in 2023 after-tax profit.