Vietnam currently has over 7,000 mechanical manufacturers and 5,000 manufacturers in supporting industries. However, due to the limitation of capital, technology, and human resources, most manufacturers only produce or process in one or a few stages. Customers have to connect with many partners to obtain a complete product, making the supply chain complicated, inefficient, time-consuming, and costly.

To resolve this problem, THACO INDUSTRIES has initiated a strategy combining large-scale mechanics production and supporting industries development through seamless investment, products and services diversification, and especially the launching of the one-stop model.

With this model, THACO INDUSTRIES brings optimal solution to customers and plays a leading role in the whole production chain, creating opportunities for small and medium enterprises to participate in the corporation’s production chain.

Maximising potential

With nearly 20 years of experience in developing the production of mechanics and supporting industries, THACO INDUSTRIES has the advantages of modern technological lines and a closed production process, meeting international standards. In addition, it has excellent resources to invest in expanding its scale, improving productivity, and developing various products to satisfy different needs.

This is the foundation for the corporation to forge ahead with the one-stop model, providing a synchronous and comprehensive service package for R&D, production lines, machinery and equipment, manufacturing and processing on a large scale.

This model covers diverse sectors, such as the automotive, industry, agriculture, forestry, mining, and construction, meeting domestic and export market standards. It's comparable to a ‘food court’ with a full flow of ‘dishes’ which can fully meet customers' diverse demands.

According to Do Minh Tam – THACO INDUSTRIES president, along with the global supply chain shift, buyers’ demand for a ‘turnkey’ model is constantly increasing.

To meet the diverse needs of customers, THACO INDUSTRIES is developing a comprehensive value chain, ranging from product research and development, to processing, manufacturing, installation as well as maintenance.

The corporation has continuously received rising orders from FDI businesses, including for injection molds, mechanical components, painting, and assembly. With this method, customers have no need to contact many different suppliers.

Customers now pay a lot of attention to three factors: quality, price, and delivery time. For the one-stop model to bring optimal solution, THACO INDUSTRIES continues investing in technologies, upgrading surface treatment lines, mold manufacturing and processing lines, and other advanced manufacturing equipment.

In addition, the corporation constantly updates specialised software for R&D activities and material testing; speeding up the roadmap to digitising management, monitoring the entire production process, and strictly control quality at each stage.

In late December, THACO INDUSTRIES inaugurated the largest mechanical centre in Vietnam at THACO Chu Lai Industrial Park in Quang Nam province in Vietnam’s central region which provides a wide assortment of materials, including steel billets, non-ferrous metals, and molds.

The new facility will also provide mechanical processing and surface treatment services on a large-scale, manufacturing products such as semi-trailers, heavy steel structures, and specialised equipment for various industries.

Simultaneously, the corporation began constructing a major R&D centre buoyed with modern equipment and software with over 1,000 highly-skilled experts and engineers. The centre has the function of researching and developing products to satisfy market demands and customers' unique needs, and providing many services such as material experiment and product testing.

The two centres will help THACO INDUSTRIES increasing its competitive advantages and promoting effectively the one-stop model.

Strengthening cooperation

Through the one-stop model, THACO INDUSTRIES also creates multiple opportunities for small and medium-sized enterprises to participate in the production chain as its mainstay through five methods: businesses exporting and processing products; businesses conducting R&D, with THACO INDUSTRIES manufacturing and processing all or part of products; businesses having output markets, where the corporation will cover R&D, produce, process and supply of products; enterprises cooperating to invest in building plants; and THACO INDUSTRIES supporting consulting, upgrading management, training personnel, applying management tools and providing industrial solutions for mechanisation, automation, and product supply.

THACO INDUSTRIES has studied for investment in two large-scale mechanics and supporting industry IPs in the north and the south to meet ever-increasing domestic and export demand. On November 26, THACO and Binh Duong People's Committee signed an MoU on the construction of a mechanics and supporting industry IP with investment value touching more than $1 billion. The total investment value of THACO INDUSTRIES going forward will amount to $1.5 billion.

Do Minh Tam said, “We hope the one-stop model matches the trend of mechanics and supporting industries shifting supply chains, joining the global value chain, and creating conditions for SMEs to participate in the production chain, creating a network of regional industrial linkages.”