Responses to THACO Chairman’s 2025 Message of THACO and Sub-holdings executives

1. Mr. Pham Van Tai, THACO President

Alongside business operations, governance remains a priority. In 2025, THACO and Sub-holdings will continue to focus on the governance refinement and upgrade, a core element ensuring THACO's sustainable growth. Other key areas include accelerating digital transformation and developing human resources.

THACO Headquarters is home to the Board of Directors, Executive Board, and corporate function departments. These departments include Strategy - System Governance & Digital Transformation, Human Resources, Legal, Accounting, Finance, Corporate Culture, Communication, Marketing, and Administration, which advise THACO & Sub-holdings leaders; participate in the governance model through consulting, supporting, supervising, and training activities; and act as a coordination point for highly integrative and complementary specialized functions.

2025 marks the beginning of the implementation of business production plans based on a standardized and digital governance platform. Thus, the corporate function departments at THACO Headquarters shall understand business to provide timely advice, support, and coordination in addressing Sub-holdings' governance-related proposals, as well as developing suitable plans, focusing on the following key tasks:

1. Enhancing the governance system:

- THACO and its Sub-holdings are to refine their organization structure, charts, functions and duties. The aim is to refine their three-tier governance model, standardize regulations, and streamline processes based on practical experience to increase transparency and efficiency.

2. Strengthening human resources:

- The focus is on strengthening the workforce at corporate function departments at THACO Headquarters and Sub-holdings, particularly the leadership and potential leaders. Employees are required to have high professional qualifications, positive attitudes, and ethical qualities that align with the development needs of the new period. Continuous training programs are implemented to enhance professional expertise, management and digital skills, leading employees to adapt to rapid changes.

- Special attention is given to rejuvenating the workforce, combining training and development to build the next generation of leaders.

3. Digital transformation:

- THACO is accelerating the implementation of the ERP system as part of its digital transformation roadmap across the ecosystem. This system serves as a tool for managing business operations and governance, ensuring resource integration to optimize costs and increase efficiency.

- THACO also plays a leading role in upgrading IT infrastructure, ensuring the stability and efficiency of digital platforms at THACO and Sub-holdings.

4. Effective work management via KPIs:

- Utilizing Key Performance Indicators (KPIs) to measure and evaluate work efficiency aims to boost productivity, increase income, and reduce costs across the system.

- The KPI governance system will be standardized across all levels, from THACO to Sub-holdings, divisions, departments, and down to individuals. The focus will be on achieving the key targets: 1) business operations, 2) governance, and 3) personal development and training.

- Enhanced training and coaching will motivate and support employees to take active roles in successfully fulfilling the KPIs.

5. Corporate culture development:

- Developing the corporate culture at THACO and Sub-holdings emphasizes THACO's industrial characteristics: “discipline, technical expertise, creativity,” along with a positive work attitude and standardized code of conduct, under the principle that "Each employee is a brand ambassador of THACO."

- Internal activities, cultural and sports events, and social responsibility initiatives will foster unity, strengthen internal bonds, and promote teamwork spirit. These efforts will also highlight THACO's core values, fostering a culture of “real value” as the foundation for THACO's cultural development.

With the Chairman’s decisive guidance and the high determination of all employees, we are confident that the 2025 plan and the five-year plan (2023-2027) will be executed effectively, achieving the strategic goals set forth.

On behalf of all THACO employees, we commit to upholding the spirit of dedication to THACO, and through THACO, to the national economy. We are committed to continuous learning, cultivating a positive attitude, and enhancing our professional and managerial skills to meet job requirements, aiming for sustainable development in the context of global integration and digital transformation. This aspiration is shared by every THACO employee.

2. Mr. Nguyen Quang Bao, THACO AUTO President

THACO AUTO remains committed to our strategic plan: manufacturing and selling a full range of vehicles (trucks, buses, passenger cars, and new energy vehicles) across various segments (mainstream, premium) under international and THACO brands that meet the usage conditions in Vietnam and customization needs. Business and management are conducted seamlessly along the value chain from product research and development, production & distribution, to car retailing, repair services, and supply of spare parts and materials. The automotive retail system features diverse models that "integrate and complement" THACO AUTO's multi-brand business activities, serving THACO and Sub-holdings, maximizing value for customers and the economy.

In 2024, with timely government policies, the automobile market grew by 30% compared to 2023. THACO AUTO sold over 91,000 vehicles of various types and exported more than 1,100 vehicles. However, product development for trucks and buses was slow, and market forecasting and solutions for service customer groups were inadequate.

In 2025, THACO AUTO will continue to refine our systematic and standardized governance to advance digital management. The company will prepare active production and business plans to meet targets set by the Chairman's message, with specific directions in 2025 as follows:

- Production Division in Chu Lai: is to complete the construction and launch the new automotive R&D Center. Focus intensively on product research and development; explore manufacturing technology solutions for components, spare parts, and accessories to become a regional production hub. Expand and develop export markets, particularly for THACO-branded trucks and buses. Strengthen collaborations with international partners such as Mercedes, Volvo, and MAN to manufacture and export vehicles to designated markets. Increase vehicle export sales and boost the export of components and spare parts developed and produced by THACO.

- Business divisions at Head Office: include the Passenger Car (PC) Business Division, PC Services Business Division, and Truck & Bus (CV) Business Division. Manage vehicle and services business activities from the Head Office directly to companies - branches; the management boards - dealerships (both affiliated and independent) and customers. Focus on market forecasting, transactions with partners, and planning to ensure sales targets and market share objectives; manage inventory, ordering, and coordination through policies and regulations.

- Retail systems in the two regions (Northern and Southern Vietnam): organize and manage the activities of affiliated and independent dealerships so that affiliated dealerships can conduct methodical governance, ensuring stable growth, aiming for effective performance in 2025 and sustainable development as a true enterprise. Meanwhile, independent dealerships should operate in the way of the affiliated, effectively partnering and developing with THACO.

- We will manage operational costs and financial efficiency of units by vehicle model, business activity, location, and legal entity.

- The firm is to complete the ERP system implementation for assembly plants and provincial companies; integrate database into the THACO AUTO MIS (management information system).

- Plan the development of a disciplined, technical, and creative workforce with a dedicated serving spirit; manage personnel based on standard criteria, identify needs and solutions for training and development. Form a suitable workforce to implement THACO AUTO's "distinctive" strategy.

The THACO Chairman’s 2025 Message has also inspired and motivated all THACO AUTO employees to cultivate perseverance, expertise, and management skills, upholding a dedicated serving spirit, confidently overcoming challenges, continuing to play a leading role in creating breakthrough solutions, and systematically implementing governance refinement and upgrade programs to successfully achieve the outlined strategy and plans.

3. Mr. Tran Bao Son, THACO AGRI President

The year 2025 marks the third year in THACO AGRI's five-year plan (2023-2027), representing a pivotal point for achieving our strategic goals.

In 2024, THACO AGRI planted 2,300 hectares of new banana plantations, exporting 56,700 tons of fresh bananas. We developed cattle farming integrated with fruit cultivation (including durian, mango, and pomelo), reaching a total of 111,500 cattle and producing 920 tons of fresh fruit. The company organized production based on an enterprise model and gradually refine the large-scale integrated agricultural complex model. We also expanded pig farming combined with forestry planting, raising 85,000 pigs and selling 99,400 pigs for meat. THACO AGRI's total revenue for 2024 reached VND 2,200 billion. However, the business results did not meet the set targets due to delays in construction and land improvement for new plantations and farms, inconsistent mechanization application, and unstandardized processes and technical standards.

Therefore, in preparation for 2025, THACO AGRI has reviewed our resources, focused comprehensively on governance, and set forth key investment and business operation plans. These objectives include planting 10,000 hectares of new banana crops, increasing the total banana area to 13,300 hectares with an export yield of 272,600 tons of fresh bananas. We also plan to trial 560 hectares of pineapple cultivation. THACO AGRI will invest in comprehensive farm facilities to raise over 254,800 cattle. We aim to plant over 4,000 hectares of new fruit crops, increasing the total fruit cultivation area combined with cattle farming to 9,300 hectares, with an export yield of 10,400 tons of fresh fruit. The company will produce 634,000 tons of composted cow manure for farming purposes. We will invest in factories and warehouses to establish specialized agricultural industrial parks at each complex. THACO AGRI will also refine existing farms, develop two new farms, and raise over 197,800 pigs, with a 230,500 commercial pigs for pork. The animal feed is set to produce at 167,000 tons. Total investment for 2025 is projected at VND 7,550 billion, with estimated revenue of VND 8,340 billion.

To achieve the mentioned goals, THACO AGRI focuses on enhancing governance capabilities for basic construction activities, implementing survey, design, and construction tasks comprehensively. We will control and improve construction processes and methods to ensure quality, technical standards, accelerate progress, and optimize investment costs.

THACO AGRI will also streamline leadership teams at all levels, recruit workers to meet demands, and take care of employees' lives to ensure their stability and commitment with the company. Training programs will be organized at different levels. The company will implement ERP software to manage production activities and set KPI targets to increase productivity, control quality, costs, and optimize operational efficiency for units, departments, and individuals.

Year 2025 will certainly be a challenge for THACO AGRI, but from the initial successes in 2024 with our large-scale, integrated, and circular agricultural production model, all THACO AGRI leaders and employees will emphasize dedication, overcome challenges, and commit to achieving the 2025 goals. This will lay a sustainable foundation for the coming years and contribute to THACO's overall development.

4. Mr. Do Minh Tam, THACO INDUSTRIES President

THACO INDUSTRIES is a THACO’s Sub-holding executing business in the field of mechanical engineering and supporting industries, with a large-scale, regional-level centralized production model.

In 2024, THACO INDUSTRIES launched an R&D center and factories for auto glass, chassis and auto body parts, and auto electrical equipment to enhance production capabilities. We also recently established a sales company in the U.S. to develop international markets. Consolidated revenue reached nearly VND 10,800 billion, with exports reaching nearly USD 130 million.

Reasons for not meeting the 2024 plan include: economic recession, reduced purchasing power, especially for semi-trailers in the North American market. Export legal procedures remain problematic. Market forecasting and assessment for international markets were untimely. Product research and development activities were slow and did not meet customer requirements.

In 2025, THACO INDUSTRIES commit to implementing the Chairman's 2025 Message with the following solutions:

Business operations management: This is the input to promote production and business activities from the outside, seeking and developing markets, especially export markets, organizing management by product group and market sales:

- Timely market analysis and assessment, building business solutions to ensure targets and business plans.

- Enhancing business management roles by product group, market sales, and forming a team of sales engineers.

- Efficiently operating companies in the U.S., South Korea.

- Promoting the THACO INDUSTRIES brand and its subsidiary product brands, i.e., Thaco Trailers, Thaco Parts, Thaco Machinery.

- Applying business data management and sales management software.

R&D operations management: This is a driving force, creating differentiation through active product research and development proposals, promoting business operations.

- Activities are organized along the value chain: Market Research - Product Research - Material Research - Design, Simulation - Prototype Production - Product Testing and Refinement.

- Specialized product research and development: auto components, semi-trailers, machinery, agricultural machinery, with configurations and functions suitable to customer and market conditions.

- Research the application of metallic and non-metallic materials; test materials and components to meet material standards and product quality standards required by customers and markets.

- Provide consultancy, design, testing, and product trial services.

Production management: Production activities comprise 19 factories with mass production, while still meeting individual customer requirements, managed with a combined and specialized approach, highly complementary and integrated within the value chain.

- Enhance production capacity and competitiveness by upgrading and expanding workshops and investing in automation in production.

- Organize streamlined production towards specialization and automation. Implement and operate ERP software at units to manage business and production activities.

- Develop a diverse supply chain, control product quality, costs, and prices throughout the entire chain. Manage ordering, inventory, and investment plan to reduce financial costs.

In 2025, we will continue to streamline our organizational structure and upgrade governance for greater efficiency. We will enhance the application of digitalization in business operations.

Based on the THACO’s industrial characteristics, we inherit and develop the distinctive attributes of THACO INDUSTRIES to form a workforce that meets new criteria and standards, aligning with the strategy of being "pioneering, flexible, safe, and high-quality.”

THACO INDUSTRIES remains loyal to our goal to participate in the global value chain. To date, we have exported products to 20 countries, serving over 60 international customers and 165 domestic customers. In 2025, we will continue to adhere to our strategic objectives while further streamlining our organization and upgrading governance, applying digitalization and ERP software in business operations.

5. Mr. Tran Anh Vu, THADICO Vice President

The year 2024 presented many difficulties and challenges for THADICO and the investment and construction sector in general. Nonetheless, through determined efforts, THADICO employees successfully completed: the first phase of Ba Son bridge's lighting project; the expansion and upgrade of Chu Lai Port for THILOGI; the R&D center and manufacturing plants for THACO INDUSTRIES; the main infrastructure at Chu Lai and Thai Binh industrial parks; and the Hong Kong restaurant at the 4th floor of Thiso Mall Sala.

Despite the attainment of key 2024 goals, several outstanding issues remain, causing delays in some projects which have not met THACO's strategy and plans. The main external challenge is project legal procedures, especially related to planning. Additionally, THADICO lacked proactive collaboration with government agencies in handling legal procedures and failed to assign units for these tasks, leading to untimely and incomplete information handling. Furthermore, as the investment and development of commercial real estate projects amidst market competition and the need for sustainable development requires THADICO and THACO's Sub-holdings to come up with their own distinctive business models, the research, refinement and submission of proposals have not yet met the overall project plans.

As we step into 2025, THADICO is determined to make breakthroughs and complete key tasks according to Chairman Tran Ba Duong's 2025 Message, with the following specific management solutions:

- Establish and operate the Public Administrative Relations Department (with regional teams) dedicated to developing and implementing solutions for public administrative agencies at local and ministry levels for each project. Upgrade and refine the legal management operations at the Head Office to perform forecasting and advisory functions for the leadership on policies and specialized legal regulations (investment, land, planning, construction), while appraising, controlling, and coordinating the implementation of legal procedures for THADICO's key projects.

- Accompanying THISO and other Sub-holdings, THADICO will build design models aligned with the strategy and business models of each project. Oversee and manage the entire design models and concepts throughout execution, ensuring the security of internal design technologies and processes.

- Focus on developing a workforce compatible with THACO's philosophy, culture, and industrial management methods, emphasizing the "integrity and honesty" in the investment and construction fields.

- Apply artificial intelligence and digital technology in design and construction; implement ERP system to enhance management capacity, improve operational efficiency, and aim for comprehensive digitalization by 2027.

Chairman Tran Ba Duong's 2025 Message has inspired and motivated all THADICO employees to achieve the 2025 goals and further develop the THADICO (Dai Quang Minh) as a pioneer in the investment and construction sector, and to cultivate a workforce with excellent industrial characteristics, especially the leadership team.

On behalf of the leadership and all employees of THADICO, with the highest determination, I pledge to complete the key tasks outlined in Chairman Tran Ba Duong's 2025 Message.

6. Ms. Tran Vien Ngoc Oanh, THISO Vice President

In 2024, after more than three years since its establishment, THISO gradually completed and refined the strategic model "One destination - Multiple utilities, services," integrating THISO Mall, Emart hypermarket, Thiskyhall conference and wedding center, and various F&B models developed by THISO. The total revenue in 2024 reached over VND 5,780 billion. However, this result did not meet the set targets, primarily because the consumer market did not achieve the expected purchasing power and legal barriers caused delays in project implementation. Additionally, entering the new commerce and service sector for THACO required continuous strategy and plan adjustments, as well as considerable time to train and develop specialized human resources.

In 2025, while challenges are still forecasted, many opportunities for development can be harnessed if we utilize and promote our existing potential. At today's New Year's Opening Ceremony, THISO is committed to striving with determination to achieve the goals set out in Chairman Tran Ba Duong's 2025 Message, specifically as follows:

Real estate business and operation management: The revenue target is VND 2,300 billion. In 2025, four new commercial real estate and service projects will be commenced and put into operation by 2026.

Retail business at Emart hypermarkets: the revenue target is VND 3,737 billion.

Convention, wedding, and F&B: The revenue target is VND 228 billion. The second Thiskyhall branch will be completed and put into operation at THISO TC-PHI mall, along with three F&B models developed by THISO.

To achieve these goals, in 2025, THISO will enhance training efforts and encourage employees to continuously innovate and be ready for change to grow with the company. Additionally, ERP programs will be implemented for direct business units to help leadership manage resources optimally and proactively. The Thiso Rewards app will be launched to improve service quality, enhance customer experiences, and support the business activities of THISO’s tenants.

Following today’s New Year Opening Ceremony, THISO will ensure that each unit translates the set goals into specific actions; KPI targets will be assigned to each individual, ensuring that every unit and individual is well-versed in completing the 2025 plan and working towards THACO's overarching goal of perfecting the management foundation of a large-scale multi-industry corporation by 2027.

Once again, on behalf of the leadership and all employees of THISO, with the highest determination, we commit to following the directions from the Chairman's 2025 Message and striving to achieve the set targets.

7. Mr. Bui Minh Truc, THILOGI President

Starting with the mission to support THACO's production activities in Chu Lai, THILOGI has continuously developed to become a full-package logistics service provider for both domestic and international routes. This journey has significantly contributed to optimizing business production costs for THACO's Sub-holdings and gradually laying the foundation for local and regional economic development.

In 2024, THILOGI essentially met its business plan, but some targets were not achieved as expected. This was mainly due to global political instability affecting international shipping routes, and persistent challenges in both the global and domestic economy. Investment projects were delayed due to slow legal procedures.

In 2025, the logistics industry will continue to face challenges from tariff barriers by big countries. However, there are many opportunities to develop a more cost-effective logistics service supply chain, with increasing cargo volumes, creating opportunities for exporting goods from Vietnam to the U.S. and Europe. 2025 will be a pivotal year, marking a significant transformation in Vietnam's logistics market with many new trends. For THILOGI, this is an opportunity to assert its pioneering position in the Central Highlands - Central Vietnam, maximize existing advantages, expand the market, especially in international maritime transport and full-package logistics services. The revenue target is set at VND 5,400 billion, a 40% increase compared to 2024.

To realize this, we will focus on the key objectives considered the pillars for THILOGI's development strategy in the coming time:
In investment:

- We will establish Indochina Cross Border Trucking companies to expand operations in Laos and Cambodia. We will invest in 200 trucks to transport goods from Laos, Cambodia, and the Central Highlands to Chu Lai Port for export.

- Complete upgrading the existing Ky Ha channel to increase the capacity to receive large ships at Chu Lai Port. Continue investing in loading equipment, and port infrastructure to enhance the capacity of Chu Lai Port.

- In maritime transport, invest in and put into operation 2 container ships by Q1 2026 to meet the transportation needs of fresh fruit for THACO AGRI and export containers for businesses in Quang Nam, Quang Ngai, and surrounding areas.

In solutions:

- Develop logistics solutions for goods from China, South Korea, Japan, and India by directly implementing and controlling the entire service chain from supplier warehouses to factory warehouses, ensuring cost optimization.

- Complete the network to connect stations from roads, seaports, and warehouses, to domestic and international sea transportation, with Chu Lai Port as the center to attract and develop import-export goods in the region.

In governance:
- Assign and manage business efficiency through KPIs for each personnel in the corporation, following a three-tier governance principle from the corporation to each member unit.

- Accelerate the digital transformation, focusing on the completion and implementation of ERP applications for affiliated companies.

- In terms of personnel development, we will focus on developing a workforce that meets international logistics standards and digitally oriented criteria. THILOGI's personnel shall be dynamic, creative, and flexible, with sharp business acumen and, importantly, maintain industrial professionalism, integrity, and standard behavior.

Over the past 15 years, THILOGI has gone through the initial development phase, and logistics will increasingly play a vital role in THACO's operations. Embracing a spirit of innovation, with constant efforts, the aspirations, and the mission to build a logistics system for our homeland, with the belief that Chu Lai will develop into an international logistics hub in Central Vietnam, THILOGI is determined to achieve all set business targets, following the philosophy of creating real value through real work, worthy of the leadership’s trust. This is not only a goal but also a source of pride for all THILOGI staff in fulfilling this mission.

We will unite, innovate, and firmly advance to execute the plans for 2025 and further future goals!