Thaco enlarges charter capital by one-third ahead of Vingroup’s exit from high-speed rail bid

Vietnamese conglomerate Thaco Group has increased its charter capital by a third, just one day before rival Vingroup announced its withdrawal from the planned North-South high-speed railway project. According to updated corporate filings released on Wednesday, Thaco raised its charter capital to nearly VND40.52 trillion ($1.54 billion) from VND30.39 trillion ($1.16 billion), via a stock dividend distribution at a 3:1 ratio. Following the capital increase, domestic private investors continue to hold a controlling 73% stake, while foreign investors own the remaining 27% across 106 legal entities. Singapore-listed Jardine Cycle & Carriage (JC&C) remains Thaco’s largest foreign shareholder with a 26.7% stake, while the rest are mainly individual investors linked to South Korea holding small minority positions. Thaco's industrial-mechanical complex. Photo courtesy of the group. Thaco is among the groups that have submitted proposals to engage in Vietnam’s flagship North–South high-speed rail project. In its proposal, the group estimated total investment at $61.35 billion, with about 20%, or $12.27 billion, funded by its own capital. The remaining more than $49 billion would be financed through domestic and international loans, for which Thaco has sought government guarantees and interest support over a 30-year period. Thaco’s founder and chairman Tran Ba Duong has said he and his family could reduce their combined ownership in Thaco to 51% through capital hikes and share sales to mobilize funding for the railway project. Earlier this month, Thaco inked a strategic cooperation agreement with South Korea’s Hyundai Rotem to localize the production of locomotives and carriages for urban metro and high-speed railway projects. Accordingly, Hyundai Rotem will transfer core technologies and support Thaco in manufacturing locomotives and carriages for urban metro and high-speed railway projects under a Vietnamese brand. Thaco plans to develop a rail industrial complex on a 786-hectare site within its automotive and supporting industries zone in Binh Chi ward, Ho Chi Minh City. The complex will include rolling stock production lines, a closed-loop test track, and one of Vietnam’s largest rail maintenance hubs. On Thursday, Vingroup (HoSE: VIC) said it had pulled its bid for the North–South high-speed rail line to reallocate resources to other large infrastructure projects. The conglomerate said it would continue investing in other high-speed rail routes, including Ho Chi Minh City-Can Gio and Hanoi-Ha Long, with total planned investment of about VND202 trillion ($7.68 billion). The same day, VinSpeed, Vingroup’s rail-focused subsidiary, raised its charter capital to VND45 trillion ($1.71 billion) from VND33 trillion ($1.26 billion).