Thaco enlarges charter capital by one-third ahead of Vingroup’s exit from high-speed rail bid

Vietnamese conglomerate Thaco Group has increased its charter capital by a third, just one day before rival Vingroup announced its withdrawal from the planned North-South high-speed railway project.

According to updated corporate filings released on Wednesday, Thaco raised its charter capital to nearly VND40.52 trillion ($1.54 billion) from VND30.39 trillion ($1.16 billion), via a stock dividend distribution at a 3:1 ratio.

Following the capital increase, domestic private investors continue to hold a controlling 73% stake, while foreign investors own the remaining 27% across 106 legal entities.

Singapore-listed Jardine Cycle & Carriage (JC&C) remains Thaco’s largest foreign shareholder with a 26.7% stake, while the rest are mainly individual investors linked to South Korea holding small minority positions.

Thaco is among the groups that have submitted proposals to engage in Vietnam’s flagship North–South high-speed rail project.

In its proposal, the group estimated total investment at $61.35 billion, with about 20%, or $12.27 billion, funded by its own capital. The remaining more than $49 billion would be financed through domestic and international loans, for which Thaco has sought government guarantees and interest support over a 30-year period.

Thaco’s founder and chairman Tran Ba Duong has said he and his family could reduce their combined ownership in Thaco to 51% through capital hikes and share sales to mobilize funding for the railway project.

Earlier this month, Thaco inked a strategic cooperation agreement with South Korea’s Hyundai Rotem to localize the production of locomotives and carriages for urban metro and high-speed railway projects.

Accordingly, Hyundai Rotem will transfer core technologies and support Thaco in manufacturing locomotives and carriages for urban metro and high-speed railway projects under a Vietnamese brand.

Thaco plans to develop a rail industrial complex on a 786-hectare site within its automotive and supporting industries zone in Binh Chi ward, Ho Chi Minh City. The complex will include rolling stock production lines, a closed-loop test track, and one of Vietnam’s largest rail maintenance hubs.

On Thursday, Vingroup (HoSE: VIC) said it had pulled its bid for the North–South high-speed rail line to reallocate resources to other large infrastructure projects.

The conglomerate said it would continue investing in other high-speed rail routes, including Ho Chi Minh City-Can Gio and Hanoi-Ha Long, with total planned investment of about VND202 trillion ($7.68 billion).

The same day, VinSpeed, Vingroup’s rail-focused subsidiary, raised its charter capital to VND45 trillion ($1.71 billion) from VND33 trillion ($1.26 billion).