Dear leaders, shareholders, partners, customers and THACO employees,

As the New Year is approaching, on behalf of Truong Hai Group Corporation (THACO), I would like to send you and your family best wishes for a peaceful, happy and successful New Year in 2023.

2022 was the year THACO marked our 25th anniversary (1997 - 2022). From a small private enterprise, THACO has now become a multi-industry corporation thanks to the national innovations and the right policies of the Party and State, the support of local authorities, the effective cooperation of partners, the trust of customers and the committed efforts of all staff members. With our dedication, THACO is committed to practice integrity, transparency and wholeheartedness in our activities to be the forever-trusted brand of Vietnamese people.

THACO is having 6 sub-holdings operating in 6 key business areas of Vietnam, including Automotive, Agriculture, Mechanics & Supporting Industry, Investment & Construction, Commerce & Services, and Logistics which are complementary and highly integrated.

In Automotive: THACO manufactures and trades different types of vehicles, i.e. trucks, buses, passenger cars from all market segments from mainstream to luxury, and of international brands and THACO brand, aiming to meet customer personal demands in Vietnam and exporting markets. In Vietnam, the production and business activities are organized throughout the value chain: Product Research & Development - Production - Distribution - Retail & After-sales Service.

In 2022, THACO AUTO continued to lead the domestic market with a 38% market share and nearly 111,440 vehicles sold. In 2023, THACO AUTO plans to sell 120,000 vehicles, expands its retail dealerships in the forms of showroom cluster, passenger car showroom complex and Truck and Bus Center combined with commercial service facilities. The corporation also cooperates with partners to receive technology transfer and manufacture electric vehicles of international brands and THACO brand, providing smart transportation solutions to developing green and sustainable economies.

In Mechanics and Supporting Industries: From the conception goal to increase the local contents on THACO-made automobiles, THACO INDUSTRIES has become one of THACO's main corporations. At the end of 2022, THACO announce the establishment of THACO INDUSTRIES, inaugurated a leading Mechanical Center in Vietnam and started to construct the R&D Center. To meet the increasing market demands, THACO INDUSTRIES continues its investments in new factories, upgrade new technologies, boost R&D and digitization, diversify products, and take actions to increase the local contents and supply mechanical products for the domestic and exporting markets. Specifically, 15 new plants will be built in future time, adding up to a total of 36 supporting industries plants in combination with the mechanical complex to together turn into a mechanics and supporting industries center in central Vietnam. Based on the successful model in Quang Nam, THACO INDUSTRIES will continue its new-generation mechanical industrial parks in northern and southern regions. Once completed, the close support and connection in the three regions will help to optimize the efficiency throughout the value chain, cut transporting costs, improve competitiveness, and create new business opportunities.

In 2022, THACO INDUSTRIES earned more than VND11,500 billion in revenues, including more than $200 million from exports. In 2023, revenues are expected to reach more than VND20,000 billion (a 75% increase over 2022) and exports will double compared to 2022.

In Agriculture Production: based on the large-scale industrial management resources and experience from auto and mechanical manufacturing, along with the large areas of land from Hoang Anh Gia Lai, THACO has been investing heavily in large-scale organic agricultural production with the helps of industrial management methods throughout the value chain, applying mechanization, biotechnology and digitalization in appropriate roadmaps, trying to form an integrated and cyclical ecosystem, including: fruit trees (bananas, pineapples, mangos,...), livestock (cattle, pig, fish), supplying fresh and processed products locally and globally. We are also investing in the Agro-Forestry Industrial Park in Chu Lai which focuses on the production of fruits and forest products and rice production in Thai Binh. We are determined in following our long-term strategy to take the lead in forming a more efficient and sustainable agricultural production model, thereby enhancing the Vietnamese agricultural sector. 

In Investment & Construction: THACO has basically completed the resources and management capacity in investing and developing transport infrastructure, urban centers and industrial parks. In Thu Thiem urban area, the 4 main roads have been basically completed. Thu Thiem 2 Bridge and a part of Sala City have been put into use. In 2022, THADICO completed and operated THISO SALA CENTER Complex. In addition, THADICO also implemented other complexes and commercial real estate projects to serve the commercial service, auto retail and agricultural business of THACO.

In Commerce & Services: THACO owns, leases, manages and operates various types of commercial real estates, including Commercial Centers, Hypermarkets combined with other commercial services based on the model "One destination - Multiple utilities and services". In 2022, THISO opened Emart Sala hypermarket, Thiskyhall Convention Center and Thiso Mall Sala. In 2023, THISO will put into operation a commercial center-hypermarket in Phan Huy Ich and continue investments in other commercial complexes in Hanoi, Dong Nai, Binh Duong provinces in 2023–24. THISO has plans to open 21 commercial complexes within the next 5 years, aiming to become the No.1 commercial service corporation in Vietnam which brings comprehensive service experiences to customers and turn Thiso Retail – Emart Vietnam into the leading hypermarket brand in Vietnam.

In Logistics: Chu Lai Port has so far opened direct shipping routes to major ports in Japan, South Korea, China, and domestically, a route from Ho Chi Minh City - Chu Lai - Hai Phong. THILOGI continues to invest in new channels and terminals to receive ships from 5 to 10 thousand tons and increase port capacity, developing Chu Lai Port into an international container transshipment gateway with connections to the Central Highlands, Laos, Cambodia, southern and northern regions. In 2022, the goods throughput reached 3.7 million tons, an increase of nearly 24% compared to 2021. In 2023, THILOGI plans to reach 4.7 million tons of throughputs, an increase of 29% compared to 2021.

In 2022, THACO paid more than VND33,7500 billion to the national budget, and donated more than VND130 billion to community activities. Especially, during the Covid-19 outbreaks in the past two years, THACO succeeded to develop and manufacture medical vehicles to help alleviate the pandemic impacts and donated a total of over VND1,100 billion to the cause.

On behalf of the Board of Directors, Board of Management and THACO employees, I would like to send my gratitude to our leaders, shareholders, partners, customers, and media agencies for your trust and constant support for THACO during the past time.

On the occasion of the Lunar New Year, I wish you good health to join THACO in making contributions to the national economic development. I hope all staff members would nourish the best enthusiasm to complete the 2023 goals as planned.

Yours truly,

THACO Chairman

Tran Ba Duong