Inside THACO Industries: Vietnam’s Automotive Manufacturing Plant Emerging as a Global Auto Components Supplier

Vietnam is steadily rising in the global manufacturing value chain, shifting from traditional low-cost assembly to technology-driven, vertically integrated production. A prime example of this transformation is THACO Industries, a key sub-holding of THACO Group, operating out of Chu Lai – Quang Nam Economic Zone in central Vietnam.

Originally known for assembling vehicles, THACO has evolved into one of the country’s most advanced auto components manufacturing companies. It is now positioning itself as a credible supplier to international OEMs by investing in R&D, high-tech machinery, and closed-loop production systems.

A Vertically Integrated Manufacturing Model Backed by Scale

THACO Industries spans a vast 320-hectare facility, developed through an investment of $1 billion USD. This site supports centralized production across multiple sectors—mechanical engineering, supporting industries, and automotive components—with each unit operating semi-independently but under a unified industrial group.

The company’s vertically integrated ecosystem enables it to manage every phase of the production lifecycle: from product design and mold creation to mechanical processing, assembly, and delivery. Facilities include a mechanical center, automotive component production lines, plastic injection molding, glass tempering for automotive glass, wiring and cable harness lines, and trailer manufacturing. This level of integration reduces dependency on subcontractors and ensures consistency across quality, lead times, and compliance requirements.

In this video, we explore THACO’s advanced production lines, in-house R&D, and OEM manufacturing capabilities—offering a rare glimpse into one of Vietnam’s most sophisticated industrial hubs.

R&D Investment and Machinery Specialization

A core pillar of THACO’s strategy is its R&D Center, which underlines the company’s ambitions to be more than a contract manufacturer. The center supports prototyping, mold development, and engineering services in alignment with international standards. These services allow for localization of designs, faster time-to-market, and customization for export markets.

On the shop floor, THACO operates twelve fiber laser cutting machines, five-face CNC milling systems, and over one hundred robotic welding arms as part of its Mechanical Center. Additional infrastructure includes a shot blasting booth, ED coating, powder coating, and a conveyor-based final assembly line.

The Automotive Component Manufacturing Plant is equally equipped with advanced tools, including stamping machines with capacities ranging from 500 to 6,300 tons, high-tonnage plastic injection machines of 3,200 and 2,000 tons, and ten automotive painting robots. One standout capability is its investment in a 3D glass tempering furnace, showing THACO’s capability in manufacturing safety-certified automotive glass.

Production Capacity and Product Diversification

THACO Industries demonstrates considerable scalability in output and product variety. Each year, the company processes 300,000 tons of steel and manufactures approximately 500,000 mechanical products. It produces 2,000 mold sets annually and up to 12 million plastic injection parts, serving both industrial and automotive sectors.

In addition, the company manufactures 30,000 semi-trailers and 800,000 vehicle body frames and components. It has a production capacity of 450,000 automotive glass sets annually, along with 60,000 car seat units and 300,000 seat covers. The plant also produces 1.5 million gear shift covers, reflecting its capacity to serve a broad range of component needs at high volumes.
>> Related article: Inside a Vietnam Mattress Factory: Enhanced Quality Through Technology

Serving Global OEMs and Multi-Sector Demand

THACO Industries has positioned itself as a trusted supplier to several high-profile OEMs. Its components are integrated into the supply chains of KIA, Mazda, Peugeot, Toyota, Ford, Hyundai, Isuzu, and Piaggio. These partnerships demonstrate THACO’s credibility and alignment with international quality and design expectations.

Beyond automotive, THACO serves a variety of industries with its mechanical parts and systems. These include agriculture, construction, furniture, electronics, and industrial plastics. The company’s export products range from chassis frames and automotive body parts to fuel tanks, trailers, seat assemblies, and structural components. Its global market presence includes North America, Japan, South Korea, Australia, and several ASEAN nations.

Digital Transformation and Global Standard Compliance

THACO has invested significantly in digital infrastructure to enhance its operational efficiency and transparency. Its deployment of ERP (Enterprise Resource Planning), MES (Manufacturing Execution System), and SCADA (Supervisory Control and Data Acquisition) platforms allows for real-time monitoring, predictive maintenance, and data integration across departments. These technologies are critical for foreign clients who demand supply chain visibility and traceability.

In terms of compliance, THACO meets a wide range of international certification standards. These include ISO 9001 for quality management, ISO 14001 for environmental management, ISO 14067 for carbon footprint control, and ISO 45001 for occupational health and safety. For the automotive sector, the company is certified under IATF 16949 and ECE R43 for automotive glass. In addition, THACO complies with REACH, RoHS, and CE marking requirements for products exported to Europe.

The company’s quality control processes are further reinforced by in-house testing systems. Equipment includes hardness testers, ultrasonic weld point inspection machines, optical emission spectrometers, and flammability test units. Other tools include tensile and compression machines, seat frame testers, and abrasion testing instruments—ensuring that each component adheres to stringent quality benchmarks before reaching the client.

>> Related article: From Factory to Market: A 2025 Guide to Furniture Quality Inspection in Vietnam

Strategic Implications for Global Sourcing

Rather than simply being a supplier with excess capacity, THACO represents a high-potential strategic partner for foreign OEMs exploring alternatives to China. Its end-to-end production model, coupled with international certifications and capacity for customization, positions it as a viable player for complex component manufacturing and product localization.

THACO’s selectiveness in choosing its clients reflects its commitment to long-term, high-quality partnerships. Rather than operating as a mass-market subcontractor, the company engages with buyers who are aligned on quality expectations, forecasting discipline, and a shared vision for growth. This approach not only ensures reliability and consistency across projects but also fosters mutual investment—laying the foundation for durable, trust-based collaboration with foreign OEMs.

Final Thought: A Future-Ready Manufacturing Platform

THACO Industries illustrates Vietnam’s emergence as a serious destination for value-added manufacturing. Its combination of infrastructure, R&D, vertical integration, and international compliance places it in a unique position to support OEMs looking for high-quality, scalable suppliers outside of traditional hubs.

As the global supply chain continues to rebalance, THACO represents a manufacturing platform capable of serving both regional and global markets. For companies interested in sourcing automotive components or building partnerships with an established automotive manufacturing plant in Southeast Asia, THACO is one of Vietnam’s most credible candidates for long-term collaboration.

Related

Source: Vietnam Insider