Agri major HAGL moves into industrial cluster infrastructure development

Hoang Anh Gia Lai JSC, an agribusiness major, has been approved to invest in an industrial cluster in the central Vietnam province of Gia Lai, marking a notable expansion beyond its core fruit business.

Gia Lai authorities have allowed HAGL to develop and operate the Mang Yang No.2 Industrial Cluster, a 75-hectare project in Hra commune with total investment of VND400 billion ($15.2 million).

The project is expected to be completed within 30 months, including around VND300 billion for construction and the remainder for compensation and resettlement support.

Under project requirements, the investor must demonstrate equity capital of at least 15% of total investment. In its proposal, HAGL said it would fully fund the project with its own capital. The company currently has equity exceeding VND13.2 trillion ($501.67 million).

The investor is also required to allocate at least 20 hectares, or 5% of the cluster’s area, for high-tech enterprises in the private sector, small and medium-sized firms and startups.

HAGL plans to complete construction of technical infrastructure by December 2027, begin operations in January 2028, and reach full occupancy by December 2028.

The company has committed to ensuring sufficient funding and completing all infrastructure within 22 months from the date of project approval, followed by full occupancy within the next 12 months. It also pledged to voluntarily terminate the project without compensation if it fails to meet its commitments.

Strategic diversification

Founded in 2006 and headquartered in Pleiku, Gia Lai province, HAGL is shifting toward a more diversified business model that includes infrastructure, alongside its traditional agriculture and livestock operations.

According to its Q4/2025 consolidated financial statements, HAGL reported net revenue of nearly VND1.84 trillion ($69.85 million), up nearly 16% year-on-year, and net profit of VND931 billion ($35.38 million), more than four times higher than a year earlier.

For the full year, revenue reached VND7.44 trillion ($282.76 million), up nearly 29%, with fruit accounting for the bulk at VND5.73 trillion ($217.7 million). Net profit rose to over VND2.24 trillion ($85.21 million), more than doubling from 2024 and exceeding the company’s targets.

As of end-2025, total assets surpassed VND26.89 trillion ($1.02 billion), up more than VND4.6 trillion compared to the beginning of the year.

For 2026, HAGL targets profit of VND4 trillion ($152.02 million) and aims to become a leading agricultural company in Vietnam by 2030, with plans to develop 10,000 hectares of coffee plantations and invest in instant coffee processing facilities.