Dear THACO employees,

Despite lingering economic challenges and low consumption persisting from 2023, projections for 2024 anticipate slight growth in the latter half of the year. As THACO enters the second year of the multi-industry strategy and 5-Year Plan (2023-2027), THACO and Sub-holdings endeavor to execute our 2024 production and business plans in accordance with the following strategic objectives:

1. THACO AUTO: For 2024, is committed to strategic investments in retail network, expanding its presence through various dealer models, including multi-brand passenger car showroom complexes, integrated passenger car showroom complexes and commercial centers, and THACO Truck & Bus showrooms at 17 new locations. Additionally, the company is undertaking a comprehensive upgrade of the management system adhering to the approved structure and organizational chart. 

Product development and launch anticipates release of 9 passenger car models, 13 truck models, and 6 bus models all bearing the THACO brand. Additionally, the company is committed to significant investments in expanding its R&D Center with the latest equipment, ensuring it remains at the forefront of technological advancements in the automotive production sector.

The company will strategically develop the repair and parts service business to become one of the company's main revenue streams, while piloting a used car business venture.

In 2024, THACO AUTO expects sales of 95,400 vehicles of all types, comprising 76,200 passenger cars and 19,200 trucks and buses, acquiring a 38% market share in Vietnam, while exporting over 1,600 vehicles, generating consolidated revenue of VND68,400 billion. Total investment capital will exceed VND2,100 billion. By year-end 2024, THACO AUTO will employ a total of 14,986 full-time staff. During the year, the company prioritizes recruitment of leadership and management personnel for core operations, while also undertaking comprehensive skills training and productivity improvement programs within its after-sales service at showrooms and dealerships.

2. THACO INDUSTRIES: Throughout 2024, pursues the expansion strategy by commissioning new factory facilities in Chu Lai, comprising a premium passenger car glass plant, an auto chassis & body part plant, and a passenger car interior complex. The company also undertakes significant upgrades to existing factories to enhance productivity, efficiency, and product quality, continues to assess the feasibility of establishing spare parts plants in Northern Vietnam and a Mechanics and Supporting Industries center in southern Vietnam.

The firm maintains its commitment to product innovation and development by launching a new R&D Center equipped with cutting-edge technology to address the export demands for advanced machinery, equipment, and components in terms of both type and quality.

Establish and operate a subsidiary trading company in the United States to serve the North American market (encompassing the United States, Canada, and Mexico). Additionally, establish and manage two representative offices in Europe and Australia, facilitating support for existing customers and furthering market development.

In 2024, THACO INDUSTRIES expects to achieve consolidated revenue of VND13,000 billion, with export revenue reaching $250 million. Total investment capital amounts to VND2,100 billion. The company will recruit 980 new employees, including 321 engineers specifically for its R&D Center. This expansion results in a total workforce of 8,620 employees by the end of 2024.

3. THACO AGRI: Throughout 2024, continues to refine its large-scale integrated/circular organic agricultural complexes, aiming for consistent and high-quality output. This strategic development includes the operation of one complex in Vietnam's Central Highlands, two in Cambodia, and one in Laos.

Fruit farming: THACO AGRI adheres to planting schedules for bananas and other fruit trees, while implementing innovative industrial care and harvesting methods. This strategic expansion results in an intensive banana farming area exceeding 11,600 hectares by the end of 2024. Additionally, the total area dedicated to fruit trees integrated with cattle farming reaches 7,100 hectares.

Livestock: As of 2024 year-end, THACO AGRI's total cattle herd will surpass 151,500 heads, comprising 104,500 breeding cows and 47,000 beef cattle. Similarly, the pig herd reaches 136,600 heads, including 20,000 breeding pigs. The company will achieve an animal feed production of 120,000 tons. THACO AGRI also continues commitment to high-value freshwater fish farming projects, including the construction of fish hatcheries and facilities for mass meat fish production.

Industrialized agricultural production: By the end of 2024, the infrastructure for the industrial plant clusters within the agricultural complexes will be completed, enabling the operational launch of key factories including an agricultural equipment and machinery plant, a packaging plant, and a plastic materials plant. Construction of additional facilities, as outlined in the proposed plan, will also commence during the year to get ready for operations in 2025.

The company continues to research to construct a new-generation breeding center which applies advanced technology and agricultural mechanical engineering.

In 2024, THACO AGRI's consolidated revenue is estimated to reach VND6,600 billion, of which export revenue is $190 million. Total investment capital is projected to be VND5,800 billion. The firm will recruit 12,600 new employees. By the end of the year, the total number of THACO AGRI employees will be 34,300 employees.

4. THADICO (DAI QUANG MINH): has the role to invest and develop transportation infrastructure projects, industrial parks, urban areas and complex real estates, and to provide construction project management expertise for THACO and Sub-holdings.

In 2024, THADICO continues to complete the infrastructure of 3 specialized industrial parks in the provinces of Chu Lai (Quang Nam) and Thai Binh, and conduct research to evaluate potential investment opportunities in industrial parks within Binh Duong province, complete and hand over the Chu Lai port's terminal expansion project, and undertake dredging activities to improve the navigability of the existing Ky Ha channel. The firm will also carry out investment paperwork for the development of Cua Lo channel in Chu Lai. In complex real estate’s development, THADICO plans to finalize the Truong Chinh - Phan Huy Ich THISO Mall project, and upgrade the Thiso Yangon Complex in Myanmar. The company will start the construction of 12 projects, with 2 in Northern Vietnam and 10 in the South to align THISO's plan to expand its commercial center chain between 2024 and 2027. For multi-brand automobile complexes, THADICO will complete and hand over 3 projects in Hue, Da Lat and Tien Giang. Construction of 6 new multi-brand complexes will commence in 2024, with 2 in northern Vietnam and 4 in the South, and 28 existing car showrooms will undergo upgrades. THADICO will continue to implement 36 ongoing projects on THACO's existing land holdings.

For the year 2024, THADICO projects significant investments totaling VND3,085 billion. The company also plans to bolster its workforce by recruiting 306 new employees, bringing the total number to 2,645 by the end of the year.

5. THISO: owns, sells and manages real estate operations based on the "One destination - Multiple utilities, services" model, including THISO Complex (large-scale), THISO Center (medium-scale); THISO Mall (mid-range and high-end). The company also manages THISO Retail (Emart Vietnam) specializing in retail business and other types of commerce & services through partnership, joint ventures and wholly-owned business.

In 2024, THISO continues to put into operation phase 2 of the THISO Mall Truong Chinh - Phan Huy Ich, complete and open the Tay Ho Tay - the first THISO Mall in Hanoi, another in Bien Hoa (Dong Nai province) and the 4th THISO Mall in Ho Chi Minh City by early 2025.

THISO's consolidated revenue in 2024 is expected at VND5,880 billion. The company's investment capital reaches VND9,469 billion. The company will recruit 414 new employees, increasing its total full-time workforce to 3,060 by year-end.

6. THILOGI spearheads the development of Chu Lai port into an international logistics hub by establishing a comprehensive network connecting Quang Nam, Vietnam's central hub, with surrounding regions - the Central Highlands, southern Laos, northern Cambodia, and both southern and northern Vietnam. By optimizing logistics costs in Chu Lai, THILOGI aims to achieve cost parity with the more established northern and southern regions.

In 2024, THILOGI will complete and put into operation a 50,000-ton terminal with modern equipment to improve container loading capacity, meanwhile selecting transportation vehicles tailored to specific route to minimize costs. The company will build its new Head Office, with a planned investment expenditure in 2024 of nearly VND1,000 billion.

In 2024, the company projects to handle more than 20,100 counter-trade containers of fruit and agricultural supplies, shipping more than 46,600 containers within Vietnam and 56,600 containers on international routes. Total cargo volume through Chu Lai port is estimated to reach 5 million tons, an increase of 62% compared to 2023.

Total consolidated revenue in 2024 is expected to reach VND3,800 billion, 40% of which is from external business activities. THILOGI plans a total investment of nearly VND1,000 billion. The company will recruit 239 new employees, bringing the total workforce to 1,605 employees by the end of 2024.

7. THACO Chu Lai marks 2024 with a significant investment and development cycle. Building upon its foundation of green, smart, sustainable, and modern industrial management, this initiative establishes a new-generation multi-industry ecosystem within Chu Lai (Quang Nam) which encompasses an Automobile Production Center, a Mechanics and Supporting Industries Center, a Logistics Center, an Agro-Forestry Production Center, a Commercial Services Center, and an Urban Area with comprehensive infrastructure to make significant contributions to the development of Quang Nam province and the broader central Vietnam region.

In 2024, THACO remains committed to the continued progress of ongoing projects in Chu Lai (Quang Nam), prioritizing strict adherence to all applicable legal procedures:

Expanded Chu Lai - Truong Hai Automobile Mechanical Industrial Park project (115 hectares): THACO has formally submitted a proposal to the Ministry of Planning and Investment for the expansion of the Automobile Mechanical Industrial Park in Chu Lai, Quang Nam province, in which the park's total area is increased by 115 hectares, bringing it to a comprehensive 358 hectares. THACO's focus for 2024 lies on diligently completing all necessary legal procedures to prioritize land compensation and clearance activities.

THACO Chu Lai Agro-Forestry Industrial Park Project (451 hectares): THACO will complete site clearance for the remaining 100 hectares of the project, complete and put into use road N2 and continue infrastructure construction across the industrial park in 2024.

Port, Logistics and Non-tariff Area (173 hectares): THACO ensures strict adherence to legal requirements and put into use infrastructure and warehouse systems, aligning operations across all elements with Chu Lai port after completing the upgrades and expansion.

Dredging activities at Ky Ha channel: In 2024, THACO intends to collaborate with Quang Nam province to explore and develop policy frameworks that would enable THACO to undertake dredging activities and assume management responsibilities for the Ky Ha channel.

Cua Lo channel and Tam Hoa port project: THACO will dedicate efforts to finalizing the comprehensive planning document for the non-tariff zone which connects to Tam Hoa Port, assessing the project's economic viability and working to navigate legal procedures to obtain approvals for implementation and finalization by 2027.

Chu Lai Urban Area: THACO will conduct detailed analyses of the project's potentials. And after Quang Nam People's Committee approves the 1/2000 Zoning master plan, THACO will participate in the project bidding process in 2024.

In 2024, THACO expects to spend VND3,894 billion in investment for its Chu Lai projects. THACO's total budget contribution to Quang Nam province during the year reaches VND20,000 billion, representing a 16% increase compared to 2023. THACO Chu Lai intends to recruit 1,453 new employees this year, boosting its overall workforce to 15,385 full-time staff by the end of 2024.

8. MANAGEMENT works:

THACO has established a 2027 target to achieve three key objectives: (1) completion of a management model to oversee a large-scale, multi-industry corporation, (2) implementation of a comprehensive management platform, and (3) successful digital transformation. To achieve these goals within the next five years, THACO will prioritize "Upgrading Management" throughout the entire organizational structure, which will be executed through a three-tiered model: Level 1: THACO Headquarters, Level 2: Sub-holdings, and Level 3: Companies or Management Divisions of Subsidiaries. To ensure effective implementation, THACO will leverage professional departments categorized as Basic, Specialized, and Business-related. Having transitioned from an automobile manufacturing corporation, THACO is now in its second year as a holding company. This strategic shift saw the organization move beyond direct involvement in production to focus on capital and investment management. Currently, THACO operates through six Sub-holdings, each specializing in a large-scale industry. The key management work of THACO and Sub-holdings in 2024 is as follows:

THACO will maintain its commitment to standardized management practices, fostering "integration and complementarity" between its Sub-holdings. This strategic emphasis aims to cultivate a collaborative ecosystem that maximizes business efficiency for THACO, its customers, and the broader economy.

THACO will pursue the restructuring of legal entities into distinct units with segregated capital sources and all production and business activities related to their specific area of operation. Notably, the focus will shift towards investment and legal management, particularly in the engagement with international markets.

The company will implement and monitor production and business plans across monthly, quarterly, annual, and five-year timeframes, ensuring alignment with established strategic objectives.

THACO prioritizes aligning the workforce with its philosophy, culture, and industrial management methods, global integration trends while preserving the unique characteristics of each Sub-holding. To ensure consistency and effectiveness, all human resource policies will adhere to THACO's established framework and practices.

THACO adheres to a rigorous and standardized recruitment process guided by clearly defined selection criteria and competency standards. This ensures that all new hires, totaling 14,746 for 2024, fully meet the specific needs of our management and production teams. Notably, 14,685 of these recruits will join Sub-holdings, while 61 will join THACO Headquarters, raising its total employee count to 301. THACO anticipates a total workforce of 65,520 by year-end. THACO is also committed to cultivating "excellent" leaders. This initiative leverages strategic planning, comprehensive training programs, and well-defined transfer strategies, all aligned with current production and business demands.

THACO will undertake a phased consolidation of its management apparatus at all levels tailored to align with the evolving needs of the organization, as defined by its current structure, organizational chart, and business objectives.

All management and operational activities will adhere to established functions, responsibilities, regulations, and processes.

THACO is committed to achieving comprehensive digital transformation by 2027. To realize this objective, the organization will embark on a strategic journey guided by a business-aligned roadmap developed in 2024. While recognizing the immediate need to address pressing issues through individual digital applications, THACO will simultaneously embark on long-term platform development in collaboration with expert consultants and partners.

The company will continuously enhance the implementation of its KPI-based Performance Management Program across both the holding company and Sub-holdings. This enhanced program will adopt a more comprehensive, methodical, and data-driven approach to strengthen alignment with THACO's strategic goals, drive operational efficiency, motivate employee development, enhance compensation fairness, cultivate a culture of innovation, and boost labor productivity.

THACO will continue implementing its Cultural Project across the holding company and its Sub-holdings tailored to the specific contexts of each industry, compiling and disseminating a comprehensive Code of Conduct, promoting exemplary leadership, and cultivating a "Civil - Convenient" work environment. THACO actively fosters internal cultural and physical activities for employees and implements social responsibility initiatives through regular programs that support those in need and contribute positively to the wider community. The company also establishes framework of regulations and hierarchical protocols to ensure effective communication both internally and externally across all Sub-holdings, invests in and manages a centralized Information Management Center to streamline communication operations and support Sub-holdings in their activities.

Regarding ADMINISTRATIVE work: THACO will implement a centralized administrative management system to optimize costs and resources, ensuring the efficient allocation and utilization of administrative assets and equipment, enhance employee well-being by providing administrative support to improve the living standards of low-income workers at agricultural complexes and THISO Retail (Emart Vietnam) units.

Dear THACO staff members!

While 2024 presents economic difficulties and consequent challenges in production and business, it also offers unique opportunities to accelerate the implementation of THACO's management improvement and upgrade program, with a particular emphasis on human resources development. I call upon THACO leaders at all levels to prioritize human resource initiatives with a spirit of "strictness in love," fostering the talent and dedication of our workforce to grow alongside THACO's own development. Furthermore, I urge every THACO employee to uphold the values of contribution and dedication, not only to THACO, but also to the wider economy and social community. By maintaining a positive and proactive attitude, and relentlessly pursuing self-improvement in management and professional skills, we can collectively enable THACO to overcome all challenges and achieve sustainable growth for the organization and each individual within it.