THACO INDUSTRIES: Leading Vietnam’s Mechanical Engineering

Alongside strong investment and expanded production capacity, THACO INDUSTRIES (sub-holding of THACO) is building an ecosystem of mechanical engineering and supporting industries with the goal of becoming a regional “nucleus” of industrial linkage, contributing to added value creation and driving growth for Vietnam’s industry.

From originally focusing only on machining and manufacturing mechanical parts and auto components, THACO INDUSTRIES has now become a leading corporation in Vietnam’s mechanical engineering and supporting industries, steadily affirming its position in both domestic and international markets.

A Leader in Mechanical Engineering and Supporting Industries

Located in Chu Lai (Quang Nam), THACO INDUSTRIES operates under a large-scale, specialized industrial park model that includes: an R&D Center, a Mechanical Complex, and 20 manufacturing plants for specialized equipment and auto parts, with a total investment of over USD 850 million, covering 320 hectares and employing nearly 8,000 staff.

THACO INDUSTRIES implements its production and business strategy in mechanical engineering and supporting industries along the value chain: Product R&D – Manufacturing – Installation – Operational Transfer – Maintenance; through partnerships, joint ventures, and in-house production. On this basis, the corporation has developed its “All-in-one” model, offering customers comprehensive and turnkey solutions in R&D, production lines, machinery, equipment, and products across diverse sectors, such as: automotive, industrial, agriculture, construction, civil, trade, and services.

This integrated approach highlights the strength of THACO INDUSTRIES, demonstrating its capability to meet requirements for diverse technologies and end-to-end services. Instead of outsourcing individual parts as before, most customers now commission complete products, which helps reduce logistics costs and optimize time.

Starting as an OEM processing provider, THACO INDUSTRIES gradually mastered technology, refined its processes, and developed production techniques in line with international standards. The corporation now also designs and manufactures high-tech finished products that meet the demands of domestic and global customers.

Currently, THACO INDUSTRIES focuses on six main product groups:

• Automotive parts and components
• Semi-trailers and semi-trailer components
• Specialized equipment
• Mechanical processing
• Materials and components for industrial and civil applications
• Steel structures and MEP systems

The corporation has become a strategic partner of automotive brands such as Kia, Mazda, Peugeot, Toyota, and Hyundai. Many of its products are exported to over 15 countries, including North America, the EU, Australia, and ASEAN, affirming the strength and global presence of a Vietnamese brand in the international supply chain.

To create added value and enhance competitiveness, THACO INDUSTRIES invests in product R&D by training and developing its team of R&D engineers, applying specialized software in design, capturing market trends, and launching high-quality products under the THACO INDUSTRIES brand. At the same time, the corporation continues expanding in scale, investing in modern machinery, and transferring new technologies to achieve breakthroughs in product quality and services.

From 2024 – 2025, THACO INDUSTRIES will continue upgrading its existing plant while commissioning new facilities at Chu Lai, including: a Premium Automotive Glass Plant, an Automotive Chassis and Body Parts Plant, and a Passenger Car Interior Complex. In parallel, the corporation will establish and operate a sales company in North America (covering the US, Canada, and Mexico), along with two representative offices in Europe and Australia.

Towards Sustainable Development

Amid global economic integration, Vietnam’s industry has many opportunities to enter the international arena as export markets continue to expand. However, this also presents challenges for sustainable development – a key driver of long-term corporate growth, especially as Vietnam has committed to net-zero greenhouse gas emissions by 2050.

THACO INDUSTRIES identifies sustainable development as the guiding principle in its production and business. Manufacturing operations at its plants comply with the ISO 14001:2015 environmental management system and applicable environmental laws. The corporation prioritizes a range of green and clean production measures, such as: using recycled, eco-friendly raw materials; installing variable-frequency drive (VFD) air compressors that save over 40% of electricity consumption; maintaining 30%–40% green coverage within the industrial park; sorting and treating waste at source; and building and operating a wastewater treatment system in accordance with QCVN 40:2011/BTNMT (National Technical Regulation on Industrial Wastewater).

Alongside projects in Chu Lai, THACO INDUSTRIES is conducting feasibility studies for component manufacturing plants in Northern Vietnam and for a Mechanical Engineering & Supporting-Industry Center in Southern Vietnam. This extensive investment network will create opportunities for enterprises to join a supply chain in which the corporation plays a pivotal role; progressively realizing the goal of becoming a key link in advancing the mechanical engineering industry in Quang Nam, the Central region, and nationwide. In doing so, THACO INDUSTRIES is shaping a sustainable ecosystem for mechanical engineering and supporting industries, contributing to added value and growth momentum for Vietnam’s industrial sector.

Built on 20 years of investment and development, THACO INDUSTRIES has made steady progress to become a pioneering enterprise that establishes foundational value for Vietnam’s industry—bringing Vietnamese products further on the global stage and affirming their position in the world’s economic and trade landscape.