Establishment and Development

Milstones before Truong Hai’s establishment

After graduation from Ho Chi Minh Polytechnic University, with the Degree of dynamic mechanical engineer, Mr.Tran Ba Duong (the company’s founder) worked as a technical specialist and workshop supervisor at Dong Nai Traffic Mechnical Factory. With these convenient working conditions, he collected and promoted his ability of passion for automobiles. Since then, he has always been in pursuit of the dream of building his own company to satisfy the passion. After a couple of years, he decided to quit the job and opened an auto repair garage at Bien Hoa II industrial zone in Dong Nai province.

During the time running the garage, the dream inside him seemed to be wakened when all necessary factors such as capability, experience, potential, intellectual and mental resources were collected enough, together with the Sixth Party Congress which brought about a new foundation for comprehensive and powerful development of economy, politics and culture, especially with economic changes which offered more active rights for producers in production and business. After this new policy coming into effect, the economy of the country made significant progress. Realizing these changes in conjunction with his own path, Mr.Tran Ba Duong established his own company named Truong Hai Auto Company.

Establishment of Truong Hai Auto Company

On April 29, 1997, after the registration procedure as required, Dong Nai provincial People’s Committee granted the company establishment license No.003433/GP-TLDN-02, named TRUONG HAI AUTO COMPANY LIMITED and on May 17, 1997, Dong Nai’s Deparment of Planning and Investment issued business license for the company No.054148 with the charter capital of VND 800 million. In the early years of establishment, the company met with many difficulties from capital raising to management skills, limited national management and policies, outdated machineries and technology. With the initial capital of VND 800 million and 120 employees, the company mainly imported used vehicles, refurbished and provided the market, simultaneously offered spare parts and components for auto repair work.

Development stages of the company:

• The period from 1997 - 2000: Realizing the increasing competitiveness of auto companies and various market demand, Truong Hai came up with proper policies such as renting a site in Ho Chi Minh city in 1998 and another one in Ha Noi in 1999 to set up its representative offices for business transaction between the two biggest auto markets of the country. At the same time, on November 26, 1998, the company was allowed to export and import directly.

• The period from 2001 - 2003: Since 2001, implementing encouraging policies of the Government to assemble automobiles domestically, the company strategically and boldly invested to build an auto assembly plant in the form of CKD1 on an area of 4 hectares in Bien Hoa II Industrial Zone with the output of 5000 units/year. Production lines and technology were transferred by Kia Motors Corporations with total investment of VND 70 billion, producing Kia-branded light trucks and buses (Korea). In September 2001, the first product of light truck line-up were launched with the name of Truong Hai and accepted by the market with large orders.  From here, the company began to build branches and agents throughout the country, initially putting a foothold in the market with sales up to VND 1000 billion per year. Also from here, Truong Hai-branded auto products began to form in the minds of Vietnamese consumers.

In 2002: To expand the market in the provinces of Centre and Highland, the company decided to establish Central Branch in Da Nang city on January 22, 2002.

In 2003: The Prime Minister issued Decision No. 177/QD-Ttg of “Development plan of Vietnam’s auto industry in 2010 - a vision to 2020”. At the same time, the Government decided to stop producing and assembling vehicles in the form of CKD1 in order to strengthen localization process. With this decision of the Government, the company’s auto factory in Bien Hoa had to suspend production for finding other industries accordingly. After conducting a survey of localities across the country, once again, the company’s Board of Management came up with new strategy and policy with the determination to pursue auto industry. The company bravely invested in Chu Lai which used to be a fierce battlefield in the national wars. In the middle of vast sandy area of about 38 hectares, Truong Hai spent VND 600 billion on building a modern assembly and production factory named CHU LAI – TRUONG HAI in Chu Lai open economic zone, Nui Thanh District, Quang Nam Province.

• The period of 2004 – 2008: In late 2004, the Company completed construction and put into operation Chu Lai – Truong Hai auto assembly and production factory with products of trucks and buses. Especially the factory had an ED-coated paint line and the test road belonging to the most modern ones in Vietnam’s auto industry today.

To strengthen timely transportation of materials and equipment imported from abroad to manufacture and assemble vehicles as fast and actively as possible, the company leaders decided to establish Chu Lai – Truong Hai marine transport company with two ships: Truong Hai Star I and Truong Hai Star II with total payload of 10.000 tons.

In 2005: Aiming to increase localization rate, the company cooperated with business partners in Chu Lai industrial zone to open plants including: candy plant, auto chair plant and electromechanical plant.

In 2007: The country was increasingly growing; transport system was more and more developed and expanded; resident’s living standard was improved with huge demand for travel. Therefore, the company decided to invest VND 650 billion to open an assembly and production factory of Kia passenger cars at Chu Lai open industrial zone on an area of 30 hectares.

In April 2007: The company transferred from Limited Liability Company to Joint Stock Company, named: TRUONG HAI JOINT STOCK CORPORATION with the charter capital raised up to VND 680 billion.

During this time, to assure quick delivery of products to customers, the company invested to improve dealers with totally 50 members and opened more Showrooms all over the country. Showrooms had to reach standardized requirements such as displaying area, spare parts store, large-scaled repair workshop which could satisfy repair service, maintenance, warranty and spare parts supply to customers.

In 2008: Besides investing heavily in the field of real estate, developing infrastructure for industrial parks and expanding Ky Ha port in Chu Lai open economic zone, the company also invested to build a new urban zone at Tam Phu ward, Tam Ky city, Quang Nam province with a total investment of nearly VND 600 billion.

Besides the business activities above, the company was also the leading unit in building organizations, Trade Union and Youth Union of the company. Currently, the company had a Headquarter-based Trade Union, 05 member trade unions in three areas, 01 in Chu Lai - Truong Hai Company, 01 in Thaco Kia Company with thousands of members. There is one Youth Union with more than 700 members who are operating in five branches of it.

During business activities over the past 10 years, the company has always been paid much attention by leaders of the Party to visit and work with the company such as: General Secretary Nong Duc Manh, President Tran Duc Luong, Nguyen Minh Triet, Vice President Truong My Hoa, Prime Minister Nguyen Tan Dung, Standing Committee's Secretariat Truong Tan Sang, Deputy Prime Minister Vu Khoan, Secretary of Hanoi Party Committee and many central Ministries and Departments also came to visit and work with the company.

On the occasion of the 10th anniversary of establishment, Truong Hai Auto Company was granted the Labor Medal of Third Ranking and General Director Tran Ba Duong was also honored to receive this Medal in 2007.