Profits decline, many businesses suffer losses

Truong Hai Group Joint Stock Company ( Thaco ), chaired by Mr. Tran Ba ​​Duong, has just announced its 2024 financial report with profits increasing compared to the previous year but still quite modest compared to its scale. In 2024, Thaco recorded a profit after tax of more than VND 3,025 billion, compared to more than VND 2,655 billion in 2023. During the period, this enterprise recorded an increase in bank loans of more than USD 1.1 billion.

Compared with the profit of more than 7,400 billion in 2022 and nearly 5,300 billion in 2021, the figure for 2024 has decreased sharply.

Over the past decade, Thaco has continued to expand into many other areas besides automobile manufacturing, assembly and trading. Thaco has invested heavily in real estate, retail, logistics, agriculture ... and is considering participating in the North-South high-speed railway project.

Thaco Auto, a member of Truong Hai Group, assembles and distributes car brands, including passenger cars (Kia, Mazda, Peugeot, BMW, MINI), trucks (Thaco Truck, Kia Frontier, Mitsubishi Fuso, Foton, Sinotruk) and buses...

The Chinese electric vehicle giant TMT Motors has also been in trouble and has been constantly restructuring over the past few years. At the end of August, TMT shares were still on the warning list. The reason is that undistributed profits up to June 30, 2025 were negative by more than VND215 billion, according to the audited semi-annual consolidated financial report. TMT shares have not been traded on margin according to the announcement of HoSE.

According to the 2025 semi-annual financial report, TMT has nearly 373 billion VND in owner's equity. With the accumulated loss as above, owner's equity is only over 167 billion VND. In the first 6 months of the year, TMT Motors continued to promote the campaign to clear inventory and pay off bank loans early.

This business has been continuously losing money since the last quarter of 2023. At its peak in 2024, the loss reached nearly 123 billion VND in the fourth quarter, after losing more than 100 billion VND in the second quarter and about 93 billion VND in the third quarter due to selling below cost price, too high financial costs, and large inventories.

The Chinese electric car giant will lose more than half of its charter capital by the end of 2024.

TMT Motors encountered difficulties when entering the electric vehicle sector, all accumulated profits of many years were wiped out. In 2023, TMT recorded a 13% decrease in revenue and a 95% decrease in profit. Losses continued into 2024. This was a setback in business operations, leading to a decline in financial health.

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Many car dealers in Vietnam are facing difficulties. Photo: TMT

The market has not improved, competition is fierce

Hang Xanh Auto Service Joint Stock Company - Haxaco (HAX) reported a loss of nearly VND11.9 billion in the second quarter of 2025 according to a separate report, compared to a profit of more than VND900 million in the same period last year.

However, according to the consolidated report, HAX still had a profit of nearly VND 10.3 billion compared to nearly VND 22 billion in the same period. In the first 6 months of 2025, the company made a profit of nearly VND 26.8 billion while in the same period last year it made a profit of more than VND 53.7 billion. Revenue also decreased from more than VND 2,160 billion to less than VND 1,988 billion.

According to HAX’s explanation, the company suffered losses in the second quarter due to the lack of signs of improvement in the auto market, which was dominated by a general downward trend and fierce competition in the high-end segment. In addition, increased interest expenses and operating costs affected business results.

Haxaco is known as a Mercedes car dealer in Vietnam, recently expanding its operations to distribute mid-range cars of the MG brand (from the UK, owned by SAIC - China).

However, according to Haxaco's assessment, competition in the automobile industry in Vietnam is extremely fierce and complicated, with the presence of many automobile brands from all over the world, from popular to high-end cars, as well as the appearance of new car lines such as electric cars. This creates a diverse market of choices for consumers but at the same time poses great challenges for automobile businesses, including Haxaco.

Tasco Auto JSC - the unit that announced its investment in owning the largest automobile distribution network in Vietnam with 16 car brands and is selling Geely and Lynk & Co (China) brand cars and the only official distributor of Volvo cars in Vietnam, also recorded a more difficult business situation than before.

City Auto JSC (code CTF) - the leading distributor of the Ford brand in Vietnam - has also recorded declining business results over the past years. In the first 6 months of 2025, CTF reported a consolidated profit after tax of nearly 4.1 billion VND, a sharp decrease compared to nearly 9.3 billion VND in the same period last year.

After-tax profit in the first 6 months of 2025 of Truong Long Engineering and Automobile Joint Stock Company (HTL) also decreased by more than 36%, down to VND 8.4 billion.

This shows that although the Vietnamese automobile market is still full of potential in the "automotive" phase, only businesses with enough potential and strategy can survive in the current fierce competition.

The auto giant reports increased profits, but Mr. Tran Ba ​​Duong has not returned to the list of USD billionaires . Truong Hai Group Corporation (Thaco) announced its 2024 financial report with profits increasing compared to the previous year but still quite modest compared to its scale. Chairman Tran Ba ​​Duong has not returned to the Forbes list.

Source: https://vietnamnet.vn/cuoc-chien-khoc-liet-tren-thi-truong-o-to-loi-nhuan-tu-buon-xe-ngay-cang-mong-2444344.html