THACO Factory Tour: Vietnam’s Automotive Powerhouse Revealed

In the evolving global manufacturing ecosystem, Vietnam is no longer just an alternative to China, it has become a strategic production hub in its own right. One of the strongest illustrations of this transformation is THACO Factory, a key part of THACO Industries, located in the Chu Lai – Quang Nam Economic Zone.

The Rise of THACO Factory in Vietnam’s Manufacturing Landscape

In 2024, THACO expanded its operations to over 358 hectares  by adding a 115-hectare industrial automation complex. This followed a total investment surpassing one billion dollars, confirming its status as Vietnam’s most comprehensive automotive manufacturing plant. The company also operates a high-capacity seaport at Chu Lai, capable of handling vessels up to 50,000 DWT operational in early June 2024. These investments strengthen THACO’s position as a vertically integrated industrial group combining mechanical engineering, supporting industries, and automotive component production to serve both domestic and global markets.

This strategic location in Central Vietnam also offers logistical advantages. The proximity to key highways, international shipping routes, and Chu Lai Airport enables THACO to efficiently serve domestic clients and global export destinations alike. Its presence in a dedicated economic zone further allows streamlined customs procedures and access to skilled labor, adding to its competitive edge.The company’s ability to coordinate large-scale shipments and manage global logistics networks positions it favorably among international partners who value both efficiency and supply chain transparency.

To gain an even closer look at THACO’s impressive infrastructure and operations, we invite you to watch our exclusive video tour. The footage offers rare, behind-the-scenes access to THACO’s factory floors, showcasing its advanced machinery, automation systems, and the scale of its integrated manufacturing capabilities. This immersive experience will help you better understand why THACO is becoming a trusted partner for global manufacturers seeking long-term value in Vietnam.

What Makes THACO a Preferred Partner for Global OEMs

The THACO factory is far more than a traditional assembly site. It represents a high-tech manufacturing ecosystem that empowers international partners to accelerate development cycles, uphold quality standards, and localize production within Southeast Asia.

One of the factory’s core strengths lies in its in-house R&D Center. THACO’s compliance with internationally recognized certifications—such as ISO 9001, IATF 16949, ISO 14001, ISO 45001, and ECE R43 —underscores its credibility with top-tier OEMs including KIA, Mazda, Toyota, Ford, and Peugeot. Beyond compliance, the factory maintains rigorous quality control through advanced systems that inspect weld points, conduct flammability testing, evaluate material durability, and verify component performance through structural analysis.

Moreover, THACO’s engineering and R&D teams often work closely with international clients to co-develop products suited for local and export markets. This collaborative engagement model fosters long-term partnerships and aligns THACO’s capabilities with evolving industry standards.

Factory Capabilities at Scale: From Plastic Injection to 3D Tempered Glass

A closer look inside THACO Industries provides a clear view of one of Vietnam’s most advanced and well-organized manufacturing setups. Rather than focusing on a single production stream, THACO has developed a multi-sector manufacturing model that supports a broad array of automotive and mechanical processes.

THACO operates large-scale production of plastic components, metal parts, trailers, and automotive systems. In 2024 alone, the company produced over 91,000 vehicles for the domestic market, holding more than 32% of market share. Additionally, more than 1,100 vehicles were exported, contributing to export revenue of approximately 12,6 million USD. THACO also generated over 128 million USD in exports from mechanical and supporting industries and contributed nearly 936 million USD to Vietnam’s state budget.

The factory continues to invest in automation and smart manufacturing tools to further boost capacity and precision. Facilities are equipped with robotic welding arms, CNC machining centers, and 3D glass tempering systems that demonstrate THACO’s commitment to staying ahead in Industry 4.0 transformation.

Each manufacturing division functions independently but is deeply connected to the company’s centralized quality and production management systems. From plastic injection to 3D tempered glass and robotic welding, every unit reflects a commitment to scale, specialization, and innovation. These divisions collaborate through an integrated management framework that supports both customization and scalability, ensuring the company can respond quickly to diverse client needs.

Strategic Value for Foreign Buyers Seeking China-Plus-One

As global supply chains restructure, THACO offers foreign manufacturers a resilient, future-ready platform that combines technological depth with geographic advantage. What sets this plant apart isn’t just its size, but its alignment with long-term objectives of companies seeking sustainable operations in Asia.

But THACO isn’t alone. Vietnam hosts several world-class manufacturing hubs established post-2024:

• Samsung Display Vietnam (Bắc Ninh) is investing $1.8 billion in a new OLED plant, raising total investment in Việt Nam to $8.3 billion.
• Amkor Technology launched its advanced semiconductor packaging facility in Bắc Ninh in late 2024, part of a $1.6 billion investment, with operations starting in Q3 2024.
• Foxconn (Shunsin) is building an integrated circuit board plant in Bắc Giang, with a planned capacity of 4.5 million units annually, set to open in 2026.
  

These investments demonstrate Vietnam’s shift from a “China + 1” option to a strategic supply chain destination. With cutting-edge electronics, automotive, and high-tech infrastructure emerging rapidly, the country is proving its value for OEM investors.

At THACO, vertical integration minimizes dependency on third-party suppliers. This reduces risks associated with long lead times and quality inconsistency. Digital systems such as ERP, MES, and SCADA allow clients to track production in real time and maintain strict compliance with international standards. These capabilities are especially important for buyers who require traceability, flexibility, and fast turnaround times.

Moreover, THACO continues to invest in human capital and advanced methodologies. In 2024, it rolled out workforce training programs and deployed AI-driven quality inspection systems. These initiatives aim to meet the growing demands of OEM clients who require not only production volume but also engineering flexibility and close collaboration in product development.

Vietnam’s progress in the global manufacturing value chain is no longer theoretical. It is visible, measurable, and accelerating. At the heart of this movement is THACO Factory, a manufacturing platform that exemplifies scale, precision, and global readiness. Its approach to innovation, sustainability, and vertical integration provides companies with not only reliable production output but also opportunities to transform their supply chain strategies.

By combining robust infrastructure with digital intelligence and engineering expertise, THACO enables partners to meet stringent market demands while adapting to future industry shifts. In addition, THACO’s focus on long-term client alignment and ESG principles demonstrates a maturity that appeals to multinational corporations seeking both economic and ethical value in their sourcing decisions. This convergence of operational efficiency, international compliance, and strategic foresight positions THACO as a trusted pillar of Vietnam’s industrial future.

For organizations looking to diversify production, reduce overreliance on China, and secure high-quality supply in a cost-effective region, THACO presents a compelling opportunity. More than just a supplier, it is a strategic asset capable of delivering innovation, volume, and partnership.