Distressed Vietnam agri major Loc Troi’s stock plunges 75%
Loc Troi Group JSC, one of the biggest agribusinesses in Vietnam, has seen its LTG ticker plummet 75% from around VND40,000 ($1.61) per share in July 2023 as it struggles with performance downturn, cash flow distress, and personnel problems.

Rice is the main business of Loc Troi Group based in the Mekong Delta province of An Giang. Photo courtesy of the group.
On the Unlisted Public Companies Market (UPCoM), LTG, based in the Mekong Delta province of An Giang, hit its floor price of VND9,900 ($0.4) per share on Thursday, below the par value for the first time in its trading history since 2017. The stock was trading at VND9,400 a share at 1:30 p.m. on Friday.
Over the past five months, foreign shareholders have sold their shares in the Loc Troi Group. Data from VietstockFinance indicates that foreign ownership in the company decreased from 44% to 36.6% from May at the end of September, corresponding to a net sell-off of nearly 7.46 million shares.
LTG was originally a favored stock among foreign investors, with ownership reaching 42.4% (out of a maximum allowed 49%) by the end of 2023. Notably, the largest shareholder, Marina Viet Pte Ltd, held a 25.2% stake.
The LTG plunge and exit of foreign investors took place amidst sharply reduced profits following audits, cash flow difficulties, overdue debts to farmers, and personnel problems.
At the beginning of April, the company announced its audited financial statements for 2023, showing that its net profit had plummeted 94% year-on-year to VND17 billion ($684,379) due to the elimination of profit from the purchase of low-cost shares of Loc Nhan Food Joint Stock Company.
Then group also faced troubles related to overdue debts to farmers. Since the start of the 2023-2024 winter-spring crop, the group has signed contracts for production linkage and investment in agricultural materials and services (interest-free) for more than 50,000 hectares in the Mekong Delta region. Based on estimated yields, the group planned to purchase all the rice produced and worked with banks to secure financing for timely payments to farmers.
By mid-April, Loc Troi had purchased over 300,000 tons of rice valued at VND2.5 trillion ($100.64 million), with total payments to farmers reaching approximately VND2 trillion. The company said that due to payment and credit problems related to rice buyers and banks, it had to arrange cash flow from other partners and even accept selling dry rice at low prices, which affected farmers. On May 20, Loc Troi coordinated with TPBank to complete all overdue payments to farmers, fulfilling commitments with both farmers and local authorities.
At the 2023 AGM, then CEO Nguyen Duy Thuan acknowledged the group’s cash flow difficulties and said it would take a few years to fix them.
In mid-July 2024, Thuan was relieved of his duty as CEO by the board of directors. Subsequently, several other officials also resigned, including member of the supervisory board Nguyen Thi Thuy, board member Johan Sven Richard Boden, and member of the supervisory board Tieu Phuoc Thanh.
Loc Troi Group has proposed to the An Giang provincial People’s Committee that it direct relevant authorities to take measures against Thuan for fraudulent acts, indicating legal violations that caused losses to the company.
At a recent meeting on the occasion of the 20th anniversary of Vietnamese Entrepreneurs Day organized by the Vietnam Chamber of Commerce and Industry (VCCI) in the Mekong Delta, Loc Troi Group chairman Huynh Van Thon admitted mistakes in choosing its leadership, which have led to significant losses to the company.
Cash flow distress, declining business performance
Loc Troi Group started out in the agricultural chemicals sector before expanding into seed production, rice cultivation and the rice value chain. After ending its partnership with Syngenta, one of the world's leading agricultural chemical companies, in early 2022, the group has focused more on food production.
Former CEO Thuan had mentioned the goal of achieving a gross profit margin of 30% in the rice business through mechanization, optimizing production organization, reducing waste, saving costs, and increasing efficiency.
During the four years under Thuan’s leadership, Loc Troi's revenue surged from VND7.71 trillion ($310.57 million) in 2020 to VND16.52 trillion ($665.2 million) in 2023. The rice segment grew to contribute nearly 70% of total revenue, while revenues from agricultural chemicals and other segments declined.
However, the gross profit margin for the rice business has continued to shrink, reaching only 2% in 2023, down from 2.9% in 2022, and contributing less than 10% of Loc Troi’s total gross profit. The agricultural chemicals segment, on the other hand, has been the main contributor with a gross profit margin of 51% and accounting for nearly 80% of the group's gross profit.
While the group’s revenue has increased, it has also seen growing receivables and rising bad debts. At the end of 2023, short-term receivables reached VND6.52 trillion ($262.53 million), nearly three times the amount at the beginning of the year. Overdue debts amounted to VND808 billion ($32.53 million), with more than VND517 billion overdue for over a year.
In this context, Loc Troi had to increase borrowings to ensure working capital. Short-term debt almost doubled to VND6.23 trillion ($250.86 million) by the end of 2023, resulting in a debt-to-equity ratio of 2x.
As of now, it is yet to release its Q2 and audited semi-annual financial statements. Based on its Q1 financial statement, there has been little improvement in its financial condition.
Loc Troi earned revenues of VND3.85 trillion ($155 million) in Q1/2024; however, its gross profit declined, resulting in a net loss of VND96 billion ($3.86 million).
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