Vietnam agri major Loc Troi appoints chief account as CEO amid crisis

Loc Troi Group JSC, one of the biggest agribusinesses in Vietnam, has appointed its chief accountant Nguyen Tan Hoang as new CEO.

Hoang, 47, began working at Loc Troi in August 2012 and has served as chief accountant since then.

In his inauguration speech, Hoang stated that this is "an extremely important responsibility during a period considered the most difficult for the group".

He promised to work with the board of directors, the executive board, and the entire staff to lift Loc Troi out of its current crisis and move further on the path of "developing sustainably with farmers."

Chairman Huynh Van Thon held that the appointment of Hoang as CEO marks an important milestone in the company’s restructuring process, while demonstrating its determination to revive in the coming time.

In mid-July, Loc Troi Group relieved Nguyen Duy Thuan from the CEO position amid a series of internal disputes and business problems.

Then the group proposed the An Giang provincial People’s Committee direct relevant authorities to take measures against Thuan for allegedly fraudulent acts and illegal violations that caused losses to the company.

These problems have hindered Loc Troi from releasing its financial statement for the second quarter of 2024, causing its equity price to plummet.

Closing the Thursday trading session, the price of LTG shares on the Unlisted Public Companies Market (UPCoM) was VND9,500 ($0.38), less than one-third of the same period last year (at over VND30,000 on October 16, 2023).

Loc Troi Group was originally An Giang Plant Protection Service Company. Currently, the shareholders of Loc Troi include the An Giang provincial People's Committee and two foreign funds, Marina Viet and Augusta Viet.

The firm 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.

It 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).