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Thaco to export buses to the Philippines

Released at: 17:00, 30/12/2019

Thaco to export buses to the Philippines

Photo source from Thaco

Thaco holds handover ceremony at Thaco Chu Lai - Quang Nam IP for export of buses to the Philippines and auto parts and components to South Korea and Japan.

by Minh Do

The Truong Hai Automobile JSC (Thaco) held a handover ceremony for the export of Vietnamese-branded Thaco buses to the Philippines and auto parts and components to South Korea and Japan on December 28 at the Thaco Chu Lai - Quang Nam Industrial Park.

Thaco will export 15 Thaco buses to its partner Autodelt in the Philippines and signed a plan to export 200 more to the country in 2020.

On May 16, Thaco exported sample buses to the Philippines for testing, which were well received by its Filipino client. These were a completely new model designed by the Thaco Bus R&D Center, with a localization rate of over 45 per cent and an engine meeting Euro 5 emission standards on fuel economy and environmental friendliness.

The exterior of the vehicles (including the body, chassis, mechanical components, and composite components) and the interior (lighting systems, seats, wiring, glass, and plastic components) were designed and manufactured at Chu Lai, increasing the localization rate and technology rate and ensuring the buses meet international quality standards.

The export of the Thaco buses to the Philippines confirms that their quality not only meets the needs of domestic customers but also satisfies the requirements of customers in the Philippines and ASEAN countries, paving the way for the export of vehicles originating from Vietnam in order to take advantage of free trade agreements and increasing the possibility of regional and global integration by Vietnam’s automobile manufacturing and assembly industry.

“This is a very important milestone in the realization of the Vietnam Automobile Industry Development Strategy and affirms the capacity and ability of enterprises to implement the export strategy following the government’s direction in the context of domestic automobile manufacturers and assemblers facing fierce competition with a rising wave of CBU [completely-built-unit] motor cars, especially from ASEAN countries,” Minister of Industry and Trade Tran Tuan Anh said at the ceremony.

Thaco’s automobile exports are also very important in the context of Vietnam’s global economic integration, contributing to balancing the country’s trade position.

“This is a sustainable and ambitious step for one of the largest economic groups in the country, demonstrating the vitality and capacity of enterprises in systems administration, technological capacity, and market access,” Minister Tuan Anh said in acknowledging and praising Thaco’s efforts. “We will put together a strong Vietnamese brand development plan and gain a worthy position on the global market map.”

Thaco has increased the localization rate of its buses to over 60 per cent, trucks to 40 per cent, and passenger cars to 25 per cent on average, of which some cars reach over 40 per cent and meet the RVC (Regional Value Content) price criteria to enjoy preferential import tax rates of zero per cent under the ASEAN Trade in Goods Agreement (ATIGA).

Thaco has also exported spare parts and components to ASEAN and other countries in the world. In 2019, it exported 186 cars, including 21 buses (to the Philippines, Thailand, and Singapore), 33 trucks (to Cambodia), 121 passenger cars (to Myanmar and Thailand), and eleven semi-trailers (to the US).

In December, a model bus was exported to Singapore, and on December 24 it exported 120 Kia Cerato passenger cars to Myanmar.

According to its 2020 plan, Thaco will export 1,026 cars of all types, including Kia Cerato passenger cars to Myanmar and Kia Sedona passenger cars (sold in overseas markets as the Kia Grand Carnival) to Thailand and Myanmar. As for spare parts and components, export value in 2019 will reach $14.3 million and the plan targets $21 million in 2020.

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