On June 2nd, Hanoi Television reported that Jardine Matheson, a British conglomerate with headquarters in Hong Kong, China, has invested in THACO, a Vietnamese automotive manufacturer, through its subsidiary JC&C since 2008, and increased its ownership to 26.6% in 2019. By the end of 2023, JC&C further injected nearly VND 8,700 billion by purchasing bonds issued by THACO.
Notably, JC&C expressed its readiness to take on the role of the primary financial investor if THACO’s proposed high-speed North-South railway project is approved.
Jardine Matheson is a diversified conglomerate with a history spanning nearly 200 years and a presence in over 30 countries. In Hong Kong, the group is one of the largest enterprises, leading the way in financial investment, retail, real estate, automotive, logistics, healthcare, food, and beverages. The company manages nearly USD 80 billion in total assets and is listed on both the London and Singapore Stock Exchanges.
A vision of THACO’s proposed North-South high-speed railway project, created by AI.
What is THACO’s proposed North-South High-Speed Railway Project about?
On May 31, 2025, Mr. Tran Ba Duong, Chairman of the Board of Directors of THACO, sent a letter to shareholders, partners, and employees regarding the proposed investment in the North-South High-Speed Railway Project, demonstrating the company’s determination and sense of responsibility in participating in national key projects.
According to Chairman Duong, after thorough research, on May 26, 2025, the group sent an official document to the Prime Minister and Deputy Prime Minister, proposing to invest in the North-South High-Speed Railway Project.
This project has been approved by the National Assembly with a total investment of approximately VND 1,662,000 billion (equivalent to USD 61.35 billion), excluding land clearance and compensation costs to be borne by the State (estimated at USD 67.34 billion including land clearance costs).
Mr. Duong affirmed that he would continue to research and propose measures to maximize cost savings during the feasibility study report phase and after the approval of the basic design.
THACO’s Capital Structure and Fundraising Method
The company proposed establishing a project enterprise in which it would hold a minimum controlling stake of 51%, taking the lead in managing, operating, and running the project. The remaining 49% of the capital would be called upon from domestic private enterprises and designated state-owned enterprises.
The total project investment is expected to be mobilized in two main parts:
Equity and mobilized capital of the project enterprise account for 20% of the total investment, approximately VND 312,000 billion (equivalent to USD 12.27 billion). Of this, the group commits to arranging VND 159,120 billion, equivalent to USD 6.26 billion.
Loans from domestic and foreign credit institutions account for 80% of the total investment, equivalent to USD 49.08 billion. THACO proposed that the Government guarantee and support the interest rate for 30 years. The State will be responsible for repaying the loan according to the signed financial plan.
Both sources of capital will be disbursed according to the project’s investment progress over seven years from the time the State hands over the cleared land, with a commitment not to use the loan for other purposes.
According to the company’s calculations, on average, the enterprise must mobilize about VND 22,730 billion per year (equivalent to USD 860.8 million to over USD 1 billion per year) starting in 2027.
The main method of capital mobilization is to increase capital and sell shares in the group and its member groups. Additionally, the company can also use a large part of its annual post-tax profits (estimated at VND 15,000 billion/year) to contribute capital to the project.
Project Significance and Technology Development Strategy
Mr. Tran Ba Duong assessed that this is a very large-scale project, requiring complex techniques and technology, and high demands for safety and security.
The project is not only significant for transportation but also presents an opportunity for the group and Vietnamese enterprises to develop key industries such as metallurgy, heavy and precision mechanics, digital technology, signaling, and electronic control.
The company pledges to coordinate with domestic enterprises, especially state-owned enterprises, in undertaking tasks related to security and safety to absorb technology transfers and develop domestic capabilities.
While the project may not directly generate short-term profits, it will contribute to enhancing Vietnam’s industrial and technological capabilities, narrowing the gap with regional and global counterparts in the context of deep international integration.
As the leader of THACO, Mr. Tran Ba Duong pledged to manage and operate the project effectively, ensuring that it would not negatively impact the group’s current production and business plans but instead serve as a lever to develop the ecosystem.
He also stated that in the near future, if requested by the Government, the group would finalize and present a detailed and transparent proposal, demonstrating its capacity and seriousness in contributing to a national key project.
