Hanoi (VNA) - The shortage of raw materials due to the COVID-19pandemic has disrupted supply chains, raised logistics costs and lengthenedtransportation time, making many businesses to face difficulties inproduction.

However, Truong Hai Auto Corporation (THACO) is one of the fewbusinesses that have not been severely affected by the pandemic thanks to itsself-sufficiency of components from its subsidiary THACO Plastic Components Manufacturing Company.

According to THACO, with the development of the auto industry, carmanufacturers tend to look for suppliers of components which are strong enoughto increase the localisation rate, in which plastic components are one of the“key cards” to promote the development of the domestic spare parts industry, accountingfor 30-50 percent.

In order to actively supply plastic components to increase the localisation rate, the THACO Plastic ComponentsManufacturing Company was put into operation in 2018. As most automotive plasticenterprises mainly produce simple components or only process a few stages, thecompany has built a value chain from research, product development, moldprocessing to production and supply.

Notably, in the production of plastic components, mold playsa very important role. As the company has a mold factory, it has taken the initiative inmaking molds for the production of spare parts in accordance with specificrequirements of customers.

Thanks to technology mastery and production activeness, thecompany has contributed to increasing the localisation rate for THACO AUTO'svehicle lines, and participated in the supply chain of plastic components formajor automobile and motorbike manufacturers, thus helping to increase the domesticproduction content and localisation rate, meeting the criteria of RegionalValue Content (RVC).

From experience and technology background in manufacturingautomotive plastic components, the company has developed a variety of plasticproducts, serving many industries such as household appliances, electricity -electronics, and mechanics.

2021 marks the first year that the company’snon-automotive plastic products are supplied abroad. Many products such as doorlock covers, stadium seats and plastic bottles have been exported to the US,Australia, and Canada.

Currently, the company is entering into joint ventures withmajor partners to gradually join the global plastic supply chains, and alsopromoting cooperation with foreign direct investment enterprises to develop thedomestic market, and expand exports to the EU, the US, Australia and Japan./.