THACO has always been known as a leading Automobile enterprise in Vietnam for many years. However, with the development stratery of turning THACO into a multi-industry corporation, in addition to Automobile and Mechanics as mainstays, THACO chose high-tech agriculture to invest and develop. This is one of the strategic decisions that have significant impact on Vietnam’s economy.

Since the beginning of agricultural project, the phrase “THACO do agriculture” is gradually becoming familiar. Currently, the facility system, brand identity, human resources serving for the aim of high-tech agriculture development are being improved.

THACO Thai Binh agricultural industrial park

THACO’s strategy

“THACO do agriculture” is a long story. Back to 2016, in a seminar, THACO’s Charman, Mr. Tran Ba Duong shared about his relationship with agriculture. Accordingly, with the desire to bring the country’s agriculture to a further development, THACO received support when deciding to invest thousands of billion VND in high-tech agricultural projects.

In 2017, THACO initially actualized the path of agricultural development, with the first step is connecting with Loc Troi Rice production company. On April 8, 2017, at the Conference on Agriculture Investment and Development in Thai Binh, THACO – Loc Troi signed a memo of agricultural investment with the Provincial People’s Committee. Simultaneously, the project of Agricultural industrialization and operation of a closed chain of production, harvesting, processing, transportation and distribution was started. Accompanied by large-scale items with total investment of about 7.800 billions dong is the construction of agricultural industrial park (about 310 hectares); construction of port and specialized transportation system by waterway; construction of farm system (large field) with the area in phase 1 of 340 hectares.

Not stopping there, in 2017, THACO continue to cooperate with LS Mtron, a Korean corporation which is strong in agricultural machinery production. The reached agreement created conditions for THACO to receive technology from LS Mtron to build factories to produce machinery, farming equipments,… used in agriculture with localization rate of 50% and exclusive distribution in Vietnam under brand THACO.

Domestic seaport

After 2018, THACO determined its development strategy is to become “The TOP multi-industry corporation in ASEAN”. Besides automobiles and mechanics as the mainstays, agriculture is officially a part of THACO’s new development strategy. The group emphasized the nature “Mechanization of all stages in agricultural production value chain: from farming to harvesting, transportation, storage, processing and distribution”, which means THACO determined to develop high-tech agricultural development.

Agricultural machinery production

On Feb 21, 2018, the largest agricultural production factory in Vietnam was inaugurated at Thaco Chu Lai Industrial Park (Quang Nam). The project is located in the area of 12.500 m2 with total investment of 500 billions dong. At the first stage, the plant had a capacity of 2.000 tractors/year, 3.000 sets of farming equipment and 1.000 combine harvesters. The key export markets in the future are Laos, Cambodia, Philippines, Myanmar, Indonesia and markets in the business system of LS Mtron parner (Korea).

Strategic cooperation with Hoang Anh Gia Lai

In August 2018, THACO continued the process of expanding the agricultural production field by cooperating with Hoang Anh Gia Lai. At that time, most of the public considered that this predestined relationship was only in terms of helping Hoang Anh Gia Lai overcome financial difficulties. In fact, according to many economic experts, this combination that has opened up two great opportunities for THACO: advantage to expand production through agriculture and simultaneously increasing its presence in foreign markets. On August 8, 2018, the signing ceremony of strategic cooperation between the two sides took place. After that, THACO has advanced capital of over 10,500 billion VND to help Hoang Anh Gia Lai Agrico of HAGL to restructure debt and convert part of rubber and oil palm area to fruit trees; plan farms and apply synchronous mechanization solutions.

On THACO’s side, THACO continues to improve facility system to serve agriculture. On March 18, 2019, THACO established THADI Agriculture Farming, Processing and Distribution Joint Stock Company specializing in investment, production and business in the field of agro- forestry including: Agricultural research and development; sample farms and experimental breeding areas; organic biological agriculture material production; fruit processing factory; exporting and distributing high-grade fruits to foreign markets. On March 24, 2019. THACO kicked off the construction of 451 hectares Agro-Forestry industrial park with total investment capital for infrastructure of 8.118 billion dong. Including fruit processing factory with design capacity of 500.000 tonnes/year, total investment of over 2.400 billion dong; phase 1 will be put into operation since June, 2020 with capacity of 200.000 tonnes/year.

Dragon fruit farm

Besides the processing plant, the Agro-Forestry Industrial Park also possesses a research center on seeds, agricultural materials, organic and biotechnology, farming, caring, harvesting, preservation and processing techniques. Experimental farms produce in the direction of industry, apply mechanization and digital management in the spirit of the 4th industrial revolution for fruit trees such as pomelo, jackfruit, mango and high-valued forest trees which are suitable for the soil and climate of the central region. Besides, there are experimental breeding areas; organic agricultural supplies production; concentrated specialized cold storage area for fruit; fruit processing factories to consume products... This facility system was consulted, designed and supported by big names in the field of agricultural production & processing equipment such as Riekermann Group, GEA Group of Germany, Bertuzzi of Italy and Asia-Pacific food industry application Center.

Banana havesting line

Also on March 24, 2019, the first fruit shipment of THADI was exported to foreign market with the grace of the Prime Minister and THACO leadership: 30 containers of banana were exported from Chu Lai Port to Quingdao (China) with the value of more than half a million USD. These were the first results that THACO achieved on the agricultural race , all of them contrubuted to the development of Vietnam’s agriculture in direction of modernization and high technology.

THACO continues to carry out following tasks in the coming time:

Organizing large-scale agricultural production, specializing in trees group, combining a variety of trees and livestock to form an organic ecosystem, ensuring clean products with high quality, high productivity and simultaneously, output are each other’s input in the value chain to ensure the highest efficiency.

Investing in contruction of Fruit experimental center which research & develop plant variety, technology and farming techniques to transfer to farmers and sell products in order to develop fruit planting areas in Central and Central Highlands, Southeast provinces.

Silo

We invest in processing fresh fruit to products such as fruit powder & concentrate, at the same time invite investors to process bakery products, ice cream, fruit juice,… in order to form an intergated production model with the cheapest price and richest variety of products, ensuring competitivenes in the global intergration.

Agricultural machinery

Developing agricultural human resources for all stages in value chain such as: technology and cultivation, caring, mechanization, production and processing,…in cooperation with experienced partners all around the world to transfer technology and appoint experts to work abroad, simultaneously cooperate with universities and colleges to increasingly train and recruit engineers, technique staffs, associate in training of agricultural workers with industrial thinking and knowledge in order to gradually meet the production needs of THACO and the agricultural industry in Vietnam.