Truong Hai Auto posts huge profit

Update: July, 30/2014 - 08:19

In the second quarter alone, Truong Hai Auto earned a pre-tax profit of VND743 billion ($35.2 million).— Photo vietpress

HA NOI (VNS) — Truong Hai Auto Corporation reported a huge net profit of VND1.245 trillion (US$59 million) in the first half of this year. This is even higher than last year's profit of nearly VND1.140 trillion ($54 million).

In the second quarter alone, Truong Hai Auto earned a pre-tax profit of VND743 billion ($35.2 million).

After six months, the company has completed more than 67 per cent of its yearly profit target, according to a report on the Tri Thuc Tre website.

Recovery of the auto market helped boost sales. According to a report by the Vietnam Automobile Manufacturers' Association, sales by members reached 54,986 vehicles in the first six months of the year, an increase of 27 per cent year-on-year.

Truong Hai Auto led the market with sales of 17,851 vehicles, a year-on-year rise of 40 per cent, which accounted for 32.5 per cent of the market shares. It even outperformed Toyota (31.8 per cent), Ford (9 per cent) and Honda (4.7 per cent) thanks to strong sales of KIA and Mazda vehicles.

Despite huge profits, annual corporate income tax filed by the company is very low and has not exceeded VND40 billion ($2 million) a year since 2009.

Most of the company's production and assembly is performed at the Chu Lai Economic Zone where it enjoys preferential investment policies on corporate income tax, personal income tax.

Ending June this year, it paid VND807 billion ($38 million) in taxes payable to the State Budget.

The corporation, Viet Nam's biggest local auto firm with a charter capital of VND3.525 trillion ($167 million), is listing shares on the Over-The-Counter market under the code of THA. Total outstanding shares on the market are 250 million.

The corporation has a plan of debuting shares on the stock exchange, but it has been delayed for several years. — VNS