The Automotive Tycoon: Unveiling the Man Behind the $260 Million Car Engine Factory in Hue

Unveiling Kim Long Motor Hue’s Backers: A Comprehensive Insight

In August 2024, Kim Long Motor Hue, a prominent company in the automotive industry, made a significant move by organizing a groundbreaking ceremony for their new engine manufacturing plant in the Chan May – Lang Co Economic Zone, located in Thua Thien Hue province. This event also marked the strategic cooperation agreement signed between the company and its partners for engine production and manufacturing in Vietnam.

The Kim Long Hue engine manufacturing plant boasts a total investment of 260 million USD, with a planned two-phase development strategy. The first phase focuses on a 30-hectare area dedicated to producing and assembling a range of engines for the automotive industry, aiming to commence operations in the second quarter of 2025. Impressively, the automation level is targeted to reach 90%.

In the initial phase, the factory will prioritize the production and assembly of internal combustion engines (Diesel), CNG engines, and electric motors, with an annual capacity of over 12,000 units. The subsequent phase will involve investing in the production and manufacturing of automotive bridges, gearboxes, and drive systems.

According to the People’s Committee of Thua Thien Hue province, the Kim Long Motor Hue assembly complex is designed to produce and assemble passenger cars, trucks, and cars; manufacture auto parts and components; with an expected capacity of approximately 108,800 automobiles per year. Currently, the company has almost completed the first phase of construction, achieving an average production capacity of about 500 vehicles per month.

It is worth noting that the investor is in the process of adjusting the total project investment to approximately 21 trillion VND.

Regarding the project’s investors, Kim Long Motor Hue Joint Stock Company was established in April 2018 with an initial charter capital of 500 billion VND. Kim Long Nam Joint Stock Company held 90% of the shares, while the remaining 5% was owned by two individuals, Nguyen Hai Dang and Nguyen Tri Dung.

By 2020, the company had increased its charter capital to 680 billion VND, but the shareholder structure remained undisclosed. As of June 2024, tax information indicated that the company employed 50 people.

The latest update, as of August 2024, reveals that Kim Long Motor Hue’s leadership comprises Chairman of the Board of Directors, Nguyen Huu Luan; General Director, Vo Phi Hai; and Deputy General Directors, including Nguyen Quoc Hoan, Ho Cong Hai, Ly Quoc Viet, and Le Quoc Dat.

Profile of Businessman Nguyen Huu Luan

Entrepreneur Nguyen Huu Luan (born in 1966) is renowned as the owner of the Phuong Trang ecosystem. With over 20 years of experience in the field of passenger road transport, the Phuong Trang Group has expanded its business to real estate, construction investment, and automobile manufacturing.

The core legal entity within the Phuong Trang ecosystem is Phuong Trang Investment Joint Stock Company (formerly known as Phuong Trang Automobile Joint Stock Company, abbreviated as Futa Corp), established on February 12, 2003, with a charter capital of 770 billion VND. Mr. Nguyen Huu Luan holds a controlling stake of 98.66% in the company.

In addition to his role at Futa Corp, Chairman Nguyen Huu Luan also has a significant presence and controlling stake in several member companies.

One notable example is Phuong Trang Passenger Car Joint Stock Company – Futa BusLines, established in April 2013. As of November 3, 2015, Futa BusLines had a charter capital of 200 billion VND, with shareholders including Phuong Trang Taxi Joint Stock Company (40%), Mr. Nguyen Huu Luan (52.67%), Pham Dang Quan (5.83%), and Nguyen Thi Ngoc Trinh (1.5%).

In August 2017, Mr. Luan used his 52.67% stake in Futa BusLines as collateral for a loan at VPBank’s Ho Chi Minh City branch. In June 2019, he further collateralized 8 million shares, equivalent to 40% of Futa BusLines’ charter capital, for another loan at the same bank.

Mr. Luan has also established two other entities in the transportation sector: Phuong Trang Transport and Tourism Services Joint Stock Company (abbreviated as Futatrans Corp) and Phuong Trang Express Joint Stock Company (Futa Express). Futa Express operates in the field of express delivery with the same brand name, currently headquartered in District 10, Ho Chi Minh City.

Around 2010, Futa Corp ventured into the real estate sector with Phuong Trang Real Estate Joint Stock Company (Futa Land), amassing a substantial portfolio of properties in Ho Chi Minh City and Da Nang.

In May 2020, Phuong Trang Investment Group Joint Stock Company – Futa Group was established with a charter capital of 500 billion VND. As of May 2022, the company increased its charter capital to 2,500 billion VND, with Mr. Nguyen Huu Luan serving as Chairman of the Board of Directors and legal representative of the company.

Demonstrating further ambition, the Phuong Trang Group established an automobile business, Nam Auto Limited Company, in 2003. As of September 2024, the company has a charter capital of 20 billion VND, with Mr. Nguyen Huu Luan holding a 50% stake and the position of Chairman of the Board of Directors. The remaining 50% stake is owned by shareholder Dao Viet Anh.

A clear indication of Phuong Trang’s foray into automobile manufacturing was the establishment of Nam Kim Long Can Tho Joint Stock Company in April 2019, with a charter capital of 700 billion VND. The founding shareholders of this company are members of the same ecosystem.

In addition to the aforementioned enterprises, Mr. Nguyen Huu Luan also represents several other companies, including Son Tra Da Nang Real Estate Investment Joint Stock Company, Phu My Trading and Real Estate Services Company Limited, and Phuong Trang Long An Real Estate Joint Stock Company.