Vietnam PM asks conglomerate Thaco to make high-speed train carriages

Prime Minister Pham Minh Chinh has asked private multi-sector corporation Thaco to engage in research, technology transfer and production of high-speed train carriages, with a long-term goal of advancing to production of locomotives.

Chinh made the suggestion during his Saturday visit to some key economic facilities and large enterprises in the central province of Quang Nam, including the Chu Lai Open Economic Zone, Chu Lai seaport, Chu Lai airport, and factories operated by Thaco Group and HS Hyosung.

The Prime Minister praised Thaco’s achievements over the past two years. These include higher-quality products, increased localization, more competitive pricing, greater digitalization and automation, more job creation, and significant contributions to the national budget.

"The company has also made strides in social responsibility, focusing on research and development, innovation, and industrialization," he noted.

Chinh asked Thaco to continue leading in innovation, driving growth, and embracing sustainable development. He urged the company to focus on digital transformation, green development, and contributing to the creative economy.

Regarding Thaco's requests, the prime minister directed the Ministry of Transport to expedite necessary procedures for the firm's investment in the Cua Lo route project, which will enable 50,000-ton ships to access Chu Lai port.

Thaco Group, located in the Chu Lai Open Economic Zone, is one of Vietnam’s largest private enterprises. The company operates in a variety of sectors, including automotive manufacturing, agriculture, mechanical engineering, supporting industries, construction investment, trade services, and logistics, "all embracing industrial governance principles that emphasize integration and synergy".

In the automotive sector, Thaco sold over 91,000 vehicles in the Vietnamese market in 2024, capturing more than 32% of the market share. The company exported over 1,100 units in the year, reaping more than $12.6 million in revenue.

In 2025, Thaco plans to put its new automobile research and development (R&D) center into operation, focusing on product innovation.

The company aimed to sell more than 100,000 vehicles in the Vietnamese market in 2025, with a strong emphasis on high-value products, to gain a revenue of VND80,847 billion ($3.19 billion). It seeks to export over 4,000 units for a revenue of more than $35 million.

Company chairman Tran Ba Duong pledged to continue building a multi-sector industrial ecosystem at Thaco's Chu Lai complex in Quang Nam, emphasizing industrial governance and sustainable, modern, smart and green development.

In 2024, Thaco's agricultural segment generated a consolidated revenue of VND2,000 billion ($79 million), and the figure in 2025 is forecast to exceed VND8,340 billion ($329.5 million). The mechanical manufacturing and supporting industries generated more than VND10,700 billion ($422.75 million) last year. Exports earned $128 million.

Thaco’s total contribution to the state budget in 2024 surpassed VND23,700 billion ($936.38 million), of which over VND19,300 billion ($762.5 million) came to Quang Nam province. The company provided employment to more than 60,000 workers, with 15,000 employed in Quang Nam.

Thaco recently inaugurated a new 50,000-ton container port at Chu Lai International Port, a project valued at VND1,590 billion ($62.8 million), alongside several new factories within the Chu Lai Open Economic Zone.

Removing obstacles for HS Hyosung

On the same day, the Prime Minister visited HS Hyosung's factory in Thang Binh district, Quang Nam.

HS Hyosung is a multi-sector corporation and one of the 30 largest economic groups in South Korea. The company leads in the research, development and production of advanced materials, including automobile tire fibers, high-tech fibers, and carbon fibers. It also specializes in luxury car segment customer service, global logistics, AI research, and big data centers, among other areas.

HS Hyosung began its investment in Quang Nam in 2018, committing to the establishment of an industrial complex worth $1.34 billion. To date, the company has operated two projects focused on curtain fabric and airbag fabric production, with total investment capital of $452 million. Thesư projects generate an annual revenue of approximately $200 million, with expectations to grow to $250 million by 2025.

Currently, HS Hyosung employs over 1,000 direct workers, with an average monthly income ranging from VND10 million ($395) to VND12 million ($474), in addition to thousands of indirect workers.

The group plans to invest in a furniture factory in Quang Nam in 2025, which will supply car interior products and commercial carpets. The $110 million factory is scheduled to begin operations in the second quarter of 2026.

Chinh congratulated HS Hyosung on its achievements in business operations in Quang Nam, noting that the company is progressing well in Vietnam. He called on the province to provide optimal support for the company to continue its operations as committed.

Chinh also encouraged HS Hyosung to share recommendations with the government and ministries to help remove institutional obstacles, in line with the spirit of promoting decentralization and delegation of power.

Regarding HS Hyosung’s proposals, the Prime Minister directed the Ministry of Natural Resources and Environment to remove obstacles in the environmental area and the Ministry of Labor to fix the regulations related to licensing foreign workers and experts.