The shortage of raw materials due to the COVID-19 pandemic has disrupted supply chains, raised logistics costs and lengthened transportation time, making many businesses to face difficulties in production.
However, Truong Hai Auto Corporation (THACO) is one of the few businesses that have not been severely affected by the pandemic thanks to its self-sufficiency of components from its subsidiary THACO Plastic Components Manufacturing Company.
According to THACO, with the development of the auto industry, car manufacturers tend to look for suppliers of components which are strong enough to increase the localization rate, in which plastic components are one of the “key cards” to promote the development of the domestic spare parts industry, accounting for 30-50 percent.
In order to actively supply plastic components to increase the localization rate, the THACO Plastic Components Manufacturing Company was put into operation in 2018. As most automotive plastic enterprises mainly produce simple components or only process a few stages, the company has built a value chain from research, product development, mold processing to production and supply.
Notably, in the production of plastic components, mold plays a very important role. As the company has a mold factory, it has taken the initiative in making molds for the production of spare parts in accordance with specific requirements of customers.
Thanks to technology mastery and production activeness, the company has contributed to increasing the localisation rate for THACO AUTO’s vehicle lines, and participated in the supply chain of plastic components for major automobile and motorbike manufacturers, thus helping to increase the domestic production content and localization rate, meeting the criteria of Regional Value Content (RVC).
From experience and technology background in manufacturing automotive plastic components, the company has developed a variety of plastic products, serving many industries such as household appliances, electricity – electronics, and mechanics.
2021 marks the first year that the company’s non-automotive plastic products are supplied abroad. Many products such as door lock covers, stadium seats and plastic bottles have been exported to the U.S., Australia, and Canada.
Currently, the company is entering into joint ventures with major partners to gradually join the global plastic supply chains, and also promoting cooperation with foreign direct investment enterprises to develop the domestic market, and expand exports to the E.U., the U.S., Australia and Japan.