Hoang Anh Gia Lai Group bets on coffee, mulberry to drive new growth cycle

Vietnam’s Hoang Anh Gia Lai Group (HAGL) is doubling down on coffee and mulberry as its two strategic pillars in 2026, while ramping up processing investment and expanding production to kickstart a new growth cycle following its restructuring phase.

The company, led by chairman Doan Nguyen Duc, outlined an ambitious plan in documents released ahead of its AGM, focusing on large-scale agriculture and improved financial efficiency.

HAGL reported strong results in 2025, with revenue of over VND7.43 trillion ($282.13 million) and net profit of VND2.24 trillion ($85.04 million), exceeding its targets by 134.8% and 201.1%, respectively.

Growth was driven mainly by agriculture, as the company maintained stable output from key crops while selectively expanding into higher-potential segments.

In 2025, HAGL kept its banana plantation area unchanged at 7,000 hectares and maintained durian cultivation at around 2,000 hectares. It also refrained from expanding livestock facilities, focusing instead on herd replenishment.

In contrast, the group accelerated investment in strategic crops, planting 3,000 hectares of coffee (Arabica and Robusta) and 1,000 hectares of mulberry.

Ambitious 2026 targets

For 2026, HAGL targets revenue of VND8.62 trillion ($327.4 million) and net profit of VND4.2 trillion ($159.52 million), representing increases of 16% and nearly 87.6% from 2025's actual figures. If achieved, this would mark its highest profit in years.

The company plans to pay a dividend of VND500 ($0.02) per share based on 2026 earnings, while reinvesting heavily into coffee and mulberry 2027 projects, which it sees as long-term growth drivers.

HAGL also plans to expand cultivation with an additional 7,000 hectares of coffee, 1,000 hectares of mulberry, and 700 hectares of durian.

At the same time, it will invest in processing capacity to enhance product value, including building four wet coffee processing plants and one coffee extraction facility - a move aimed at completing its value chain and improving margins over the long term.

Despite strong earnings growth, HAGL does not plan to pay dividends in 2026. Instead, it will retain all 2025 profits, after offsetting accumulated losses, to reinvest in key coffee and mulberry projects.

The company also plans to issue bonds in 2026 to raise additional capital for operations and investment, with specific terms to be decided based on market conditions. Public bond issuances will be listed on the stock exchange to ensure transparency and regulatory compliance.

HAGL is also seeking shareholder approval to streamline its business lines, proposing to remove 16 outdated business sectors and add 17 new ones in line with current regulations.

Regional expansion

Beyond Vietnam, HAGL continues to expand its agricultural footprint in Laos and Cambodia.

In Laos, the company is developing five large-scale high-tech agriculture projects in Attapeu and Champasak provinces, focusing on bananas, durian, coffee, and mulberry. It has recently secured an extension for a multi-crop forestry project in Attapeu.

In Cambodia’s Stung Treng province, HAGL has signed an MoU for a fruit and industrial crop project covering 1,918 hectares, with total investment of nearly $28.8 million. It is also developing a 3,000-hectare agricultural project in the province to grow banana, durian, and mulberry trees.

Duc said HAGL has been among the first Vietnamese companies to invest in Cambodia since 2010, with large-scale projects in northeastern provinces such as Ratanakiri and Stung Treng.

Between 2010 and 2015, the group invested nearly 60,000 hectares of agricultural land in the country, with total capital amounting to billions of U.S. dollars.

As part of its long-term strategy, HAGL sees Gia Lai province as a logistics hub for its operations in Laos and Cambodia. It has recently received approval to develop the Mang Yang 2 Industrial Cluster, covering 75 hectares with total investment of about VND400 billion ($15.18 million).

The cluster will focus on deep-processing facilities for agricultural products such as coffee, bananas and durian for export, helping to strengthen HAGL’s value chain and competitiveness.