According to media reports, Truong Hai Group, a Vietnamese company founded by business tycoon Tran Ba Duong, is considering bringing in an investor for its automotive division, Thaco Auto, in a deal that could value the division at around $5 billion.
Sources familiar with the matter revealed that Truong Hai Group is in talks with a financial advisor to explore the possibility of selling a minority stake in Thaco Auto, following interest from regional financial investors and corporations.
One source disclosed that Truong Hai Group might sell approximately 20% of Thaco Auto's shares. The deliberations are reportedly ongoing, and no decision has been made yet. Another source stated that the funds raised could be used to finance the group's real estate projects.
According to Thaco Auto's official website, the company manufactures and sells various brands of motor vehicles, including passenger cars and motorcycles, ranging from Kia and BMW to its own brand of buses under the Truong Hai brand. The company has over 400 showrooms and service centers nationwide in Vietnam, as well as seven factories.
Truong Hai Group is also a developer of residential and commercial real estate, with projects including Sala City, a city project spanning over 1 million square meters in Ho Chi Minh City. Truong Hai Group and Thaco Auto did not immediately respond to requests for comments.
With nearly 100 million people, Vietnam's automotive industry is still dominated by foreign manufacturers such as Toyota and Honda. However, with government support, local brands like VinFast and Thaco Auto are rapidly growing.
Truong Hai Group was established in 1997 in Dong Nai province near Ho Chi Minh City. According to its website, the group's predecessor was Truong Hai Auto, which started as a used car trader and repairer. The company expanded to become a conglomerate with six business sectors, including automotive, agriculture, construction, and logistics.
