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. During this event, they also signed a comprehensive strategic cooperation agreement for engine production and manufacturing in Vietnam.

The Kim Long Hue engine manufacturing plant boasts a total investment of $260 million, with a two-phase development plan. The first phase focuses on a 30-hectare area, targeting the production and assembly of various engine types for the automotive industry. It is expected to be operational by the second quarter of 2025, with an impressive 90% automation rate.

Initially, the plant will prioritize the production and assembly of diesel engines, 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 drivetrain systems, including axles and gearboxes.

According to the People’s Committee of Thua Thien Hue province, the Kim Long Motor Hue assembly complex is designed to produce and assemble buses, trucks, and cars, as well as automotive parts and components. The projected capacity is an impressive 108,800 vehicles per year. Currently, the company has almost completed the first phase of construction, achieving an average production capacity of 500 vehicles per month.

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

Regarding the project’s investors, Kim Long Motor Hue Joint Stock Company was established in April 2018 with an initial charter capital of VND 500 billion. 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 VND 680 billion, 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, 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 road passenger transport, the Phuong Trang Group has diversified its business portfolio to include real estate, construction investment, and automotive manufacturing.

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

In addition to his role as Chairman, Mr. Luan also has a significant presence and controlling stake in several member companies within the group.

One notable example is Phuong Trang Passenger Car Joint Stock Company, or Futa BusLines, established in April 2013. As of November 3, 2015, its charter capital stood at VND 200 billion, 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 from VPBank’s Ho Chi Minh City branch. In June 2019, he further utilized 8 million shares, equivalent to 40% of the charter capital, as collateral for another loan from the same bank.

Mr. Luan has also established two other entities in the transportation sector: Phuong Trang Transport and Tourism Services Joint Stock Company (Futatrans Corp) and Phuong Trang Express Joint Stock Company (Futa Express). Futa Express operates in the field of express delivery under the same brand name, with its headquarters 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 Danang.

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

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 VND 20 billion, with Mr. Nguyen Huu Luan holding a 50% stake and the position of Chairman of the Board of Directors. The remaining 50% stake is held by shareholder Dao Viet Anh.

A clear indication of the group’s foray into automotive manufacturing was the establishment of Nam Kim Long Can Tho Joint Stock Company in April 2019, with a charter capital of VND 700 billion. The founding shareholders of this company were entities within the same ecosystem.

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