Savico Restructures Portfolio, Plans VND 500 Billion Loan to Expand Geely and Lynk&Co Showroom Network

Saigon General Service Corporation (Savico, HOSE: SVC) is ramping up its automotive strategy with a major investment into a new nationwide network of showrooms for Chinese auto brands Geely and Lynk&Co. The total investment is valued at VND 720 billion, including VND 500 billion in loans and VND 220 billion from internal capital.

Acquiring 70.59% Stake in Tasco RT – A Strategic Move into China’s Auto Distribution Network

According to a resolution passed by Savico’s Board of Directors on August 7, 2025, the company will contribute capital to Tasco Auto Trading Co., Ltd. (Tasco RT) in multiple phases throughout 2025. Upon completion, Savico will hold a 70.59% controlling stake in the company.

This investment aims to establish a nationwide distribution system for Geely and Lynk&Co vehicles, with initial focus on northern Vietnam. CEO Nguyen Hai Ha will serve as Savico’s representative for the entire capital contribution at Tasco RT.

Geely and Lynk&Co: Emerging Chinese Auto Brands in Vietnam

Geely and Lynk&Co are among the fastest-growing Chinese car brands being distributed in Vietnam by Savico.

As of July 2025:

Geely has developed a network of 24 official dealerships across the country and launched three key models: Coolray, Monjaro, and EX5 (EV).

The brand also aims to complete 50 EV charging stations in major cities and along key highways by September 2025, to support electric vehicle users.

Meanwhile, Lynk&Co has built a distribution network of 12 showrooms, stretching from the south to the north of Vietnam.

Tasco RT – A New Pillar in the Tasco Auto Ecosystem

Tasco RT was established on November 1, 2024, with operations spanning passenger car sales, maintenance services, spare parts, transportation, warehousing, and real estate.

In May 2025, Tasco RT increased its charter capital from VND 100 billion to VND 300 billion and became a wholly owned subsidiary of Tasco Auto, the automotive arm of Tasco Group (HNX: HUT). The company is currently chaired by Nguyen Van Hieu, while full capital control has been delegated to Ms. Phan Thi Thu Thao.

Savico Divests from Real Estate to Refocus on Core Automotive Business

In early August 2025, Savico completed the divestment of its entire stake in the Long Hoa – Can Gio luxury residential project, covering nearly 30 hectares. The transaction generated over VND 619 billion in cash.

This move is seen as part of Savico’s strategic exit from real estate after more than two decades, allowing the company to concentrate resources on its core automotive operations.

Financial Position: High Debt Levels as Investment Intensifies

As of June 30, 2025, Savico’s financial report shows:

Short-term bank debt: approx. VND 3 trillion

Long-term debt: approx. VND 960 billion

Loans from Tasco Auto: VND 810 billion

With the planned VND 500 billion loan for its investment in Tasco RT, Savico’s total liabilities are increasing — signaling a bold, high-leverage approach to accelerate its automotive expansion, particularly in distributing Chinese EVs and hybrids.

Conclusion

Savico’s VND 720 billion investment into Tasco RT marks a significant pivot toward becoming a key player in the distribution of Chinese automobiles in Vietnam. By divesting from non-core assets and doubling down on the fast-growing EV sector, the company is positioning itself for a potential leadership role in the evolving auto market.

Whether this strategic bet pays off will depend on how fast Chinese brands gain market share — and whether Savico can manage its rising debt while executing efficiently.