Dear leaders, shareholders, partners, customers and all employees!

On the occasion of the Lunar New Year 2020, on behalf of THACO Group, I would like to send you and your family the best New Year wishes.

2019 is the second year that Vietnam's auto industry integrates into the ASEAN region with countries that have developed their auto industries and supporting industries many years before Vietnam, such as Thailand, Indonesia and Malaysia. Total car import sales reached 142,000 units, up 71% compared to 2018; domestic automobile enterprises also increased output, creating stiffer competition.
After two years of integration, THACO's total automobile sales in Vietnam still reach over 90,000 vehicles per year, continuing to be the market leader with a market share of more than 32%. In 2019, THACO's total auto sales were 91,710; in which, passenger cars reached 66,470 (including Kia: 30,103 vehicles; Mazda: 32,731 vehicles, and Peugeot: 3,636 vehicles); truck: 23,004, bus: 2,236. THACO contributed to the national budget VND 19,573 billion, an increase of 1.93% compared to 2018.

THACO builds a strategy to become a multi-industry corporation, in which Automotive and Mechanical are the mainstays, and at the same time develops other strategic business lines of the Vietnamese economy with two in the field of manufacturing and engineering. Main business activities are Agriculture and Forestry and Investment in transport infrastructure, Industrial parks and urban areas; and two in the business field supporting the main business areas are Trade and Freight Forwarding - Logistics. These industries complement each other to create an integrated and highly competitive production and business platform.

Thaco Chu Lai has completed the new construction and upgrading of auto manufacturing and assembling factories towards automation and management on a digitized platform for mass production according to customers' specific requirements, at the same time. THACO has been implementing the largest production of auto parts and components in Vietnam.

With the right strategy and drastic implementation plan in automobile production and business, THACO has overcome integration challenges, joined the global value chain and promoted the export of spare parts to Korea and Japan. Japan, Russia, Kazakhstan, Malaysia, Turkey achieved sales of 14.5 million USD; took orders for 2020 of $21 million. At the same time began to export nearly 200 cars of all kinds to ASEAN countries such as the Philippines, Thailand, Singapore, Myanmar, Cambodia; semi-trailers to the US and currently has received auto export orders in 2020 of nearly 1,200 vehicles.

In the field of agriculture, THACO has invested in Hoang Anh Gia Lai Agriculture Company (HNG) with 35% stake and established THADI agricultural business. In 2019, HNG's fruit export revenue was 100 million USD, THADI's was 55 million USD. THADI has been planting new 15,000 hectares of bananas and fruit trees, and 19,000 hectares of HNG. THACO and Hoang Anh Gia Lai are developing an export plan with a turnover of 1 billion USD in 2020.

Recently, THADI invested in Hung Vuong Joint Stock Company (HVG) with a 35% stake and participated in the management of implementing the strategy of completing the business value chain of aquatic products and livestock (breeding, raising, food, processing, export). At the same time, investing 65% in the joint venture THADI - HVG in the production of breeding pigs (parents) with a scale of 60,000 pigs, the total investment value is 2,000 billion VND. Investment in raising pork is transferred with technology from HVG, according to European standards (QAFP) with a scale of 720,000 heads/year in order to provide clean and high-quality products for export and domestic market.

In the field of construction investment, for the Yangon Myanmar Center project, THACO is continuing to develop phase 2 and adjust phase 1 of the project. The total investment capital of the project is 711 million USD. After completing the whole project, Yangon Myanmar Center has a total construction floor area of ​​730,000 m2, scale of 4 basements, 5 floors of commercial podium, 32 floors of apartment towers and offices for rent. This will be a project that leaves a pioneering and large-scale investment mark of Vietnamese enterprises in Myanmar, bringing sustainable value to customers and the community. This year, SOCAR Trade Center will be put into operation in Sala Urban Area (HCMC). At the same time, the construction of trade centers combined with car showrooms will be started in other provinces such as Da Nang, Long An, Rach Gia, and Hung Yen.

On behalf of the Board of Directors, the Board of Management and all THACO staff, I sincerely thank the leaders, shareholders, partners and customers for their trust, concern, support and support. THACO has achieved results in the past year.

Wishing you a peaceful, happy and prosperous New Year; Wishing all staffs always make great efforts to contribute to THACO's development with the country.
Best regards.

Chairman of the Board

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