Thaco has recently released its 2024 financial report, showing profit growth over the previous year, but still modest considering its scale. 

In 2024, Thaco recorded post-tax profit of over VND3,025 billion, compared to VND2,655 billion in 2023. During the same period, the company’s bank loans increased by over $1.1 billion.

Compared with the VND7,400 billion profit in 2022 and nearly VND5,300 billion in 2021, the 2024 figure marked a significant decline.

Over the past decade, Thaco has expanded beyond auto manufacturing, assembly and sales into real estate, retail, logistics, and agriculture, and is now considering the North-South high-speed railway project.

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

TMT Motors, the distributor of Chinese EVs, has also faced major challenges and undergone restructuring in recent years. As of late August, TMT shares remained under warning status. The reason was that as of June 30, 2025, undistributed earnings were minus VND215 billion, according to the reviewed semi-annual consolidated financial report. TMT shares were not eligible for margin trading as per a notice by the HCMC Stock Exchange (HOSE).

According to the 2025 semi-annual financial report, TMT had charter capital of nearly VND373 billion. With the accumulated losses, stockholder equity was reduced to just over VND167 billion. In the first half of the year, TMT Motors continued aggressively clearing inventory and prepaying bank loans.

This company has been reporting losses since Q4 2023. In the fourth quarter 2024, it posted a loss of nearly VND123 billion, following losses of over VND100 billion in Q2 and about VND93 billion in Q3, due to selling below cost, high financial expenses, and a large inventory.

The Chinese EV seller had lost more than half its charter capital by the end of 2024.

TMT Motors encountered setbacks after shifting to electric vehicles, wiping out years of accumulated profit. In 2023, TMT’s revenue dropped 13 percent and profit fell by 95 percent. Losses continued into 2024, marking a downturn in operations and weakening financial health.

Market stagnant, competition intensifies

Hang Xanh Car Services JSC (Haxaco - HAX) reported a standalone loss of nearly VND11.9 billion in Q2 2025, compared to a profit of over VND900 million in the same period last year.

However, in its consolidated report, HAX still recorded a profit of nearly VND10.3 billion, down from nearly VND22 billion year-over-year. In the first six months of 2025, HAX earned nearly VND26.8 billion in profit, compared to more than VND53.7 billion in the same period last year. Revenue also declined from over VND2,160 billion to below VND1,988 billion.

It explained that the losses in Q2 were due to a stagnant auto market, which was dominated by the general downward trend, and fierce competition in the high-end segment. Additionally, rising interest and operating costs impacted the business’ performance.

Haxaco, known as a big Mercedes-Benz dealer in Vietnam, has recently expanded to distribute mid-range MG vehicles (originally from the UK, now owned by SAIC - China).

However, according to Haxaco, the Vietnamese auto industry is currently undergoing fierce and complex competition, with the presence of many brands from all over the world, covering both affordable and luxury segments, as well as the rise of new vehicle types like EVs. This has created a diverse market for consumers, but it also presents major challenges for auto businesses, including Haxaco.

Tasco Auto JSC, which claims to operate the largest auto distribution network in Vietnam with 16 brands including Geely and Lynk & Co (China) and the exclusive official distributor of Volvo in Vietnam, has also seen business performance decline.

City Auto JSC (CTF), a leading Ford distributor in Vietnam, has experienced declining business results for several years. In the first half of 2025, CTF posted a consolidated post-tax profit of nearly VND4.1 billion, a sharp drop from nearly VND9.3 billion in the same period last year.

Truong Long Engineering and Auto JSC (HTL) reported post-tax profit of only VND8.4 billion in the first half of 2025, down more than 36 percent.

The figures show that while the Vietnamese auto market still holds potential during its “motorization phase,” only companies with strong capabilities and sound strategies can survive the current period of intense competition.

Manh Ha