Vietnam's agri major Hoang Anh Gia Lai ventures into mulberry cultivation, coffee production
After overcoming two major obstacles - debt and accumulated losses - Vietnam's agri major Hoang Anh Gia Lai JSC (HoSE: HAG) is charting a bold five-year strategic roadmap, introducing two new business segments: mulberry cultivation and coffee-tea production.
97% of difficulties resolved
For the past decade, HAGL has been synonymous with persistent, heavy debts and losses. But at the company’s 2025 AMG in Ho Chi Minh City last Friday, chairman Doan Nguyen Duc declared that 97% of the difficulties had been resolved. Only a small portion remains, he said.

Hoang Anh Gia Lai's 2025 AMG of shareholders, held on June 6, 2025 in Ho Chi Minh City. Photo courtesy of the company.
At the end of 2020, HAGL carried an accumulated loss of VND6,301 billion ($241.8 million). Through a series of aggressive restructuring measures - including the divestment of non-core assets in sugar, hospitals, hydropower, and real estate - and a renewed focus on agriculture, the company slashed the accumulated loss to just VND83 billion ($3.18 million) by Q1/2025.
Although Q2 results are not yet released, Duc expressed confidence that the accumulated losses have now been fully cleared. This marks a crucial milestone, as it removes the company from the stock market’s warning list and opens the door to international investment.
As for debt, HAGL had a total of VND36,000 billion ($1.38 billion) in liabilities at the end of 2016, VND26,500 billion ($1.01 billion) of which were loans and bonds.
By the end of Q1/2025, that number had fallen dramatically to VND7,500 billion ($287.86 million), including VND3,089 billion ($118.5 million) in bond debt, primarily from a bond package arranged by BIDV and BIDV Securities in 2016.
At the AGM, HAGL’s board of directors received approval to issue a maximum 210 million shares to convert Group B bond debt valued at VND2,520 billion ($96 million) at a conversion price of around VND12,000 ($0.46) per share.
The creditors involved in the conversion include Huong Viet Investment Consulting JSC and individuals namely Le Minh Tam, Nguyen Thi Dao, Phan Cong Danh, Nguyen Anh Thao, Ho Phuc Truong, and Nguyen Duc Trung.
Chairman Duc noted that these creditors had acquired the bonds through public auctions and had become HAGL’s bondholders. If the share issuance is successful, the company expects to cut its debt by nearly VND4,000 billion ($153.5 million), of which VND2,500 billion ($95.9 million) through bond conversion.
The remaining was write-offs or reduction which could be accounted as profit as there were provisions for them. This would effectively resolve HAGL’s long-standing debt problem.
Pursuing “four trees, one animal” model
With debt and losses largely behind it, HAGL is confident in launching its first long-term strategic plan for 5-10 years. “This is the first time in 10 years that I feel confident in building a strategy that spans more than three years. Before, we had to plan one year at a time- without knowing whether we could even carry it out,” said Duc.
Currently, HAGL follows a “two trees, one animal” model focused on bananas, durians, and pigs. Bananas currently generate most of the company’s revenue, while durians have only recently started contributing. Pig farming, however, has stalled for the past year, missing the pig price upcycle due to a lack of short-term capital.
At the AGM, HAGL introduced an updated growth model: “four trees, one animal” - bananas, durians, mulberries, coffee, and pigs. Mulberries and coffee are the two newly added crops, with major investment planned in 2025. These are seen as key to generating faster returns and more stable cash flow than traditional perennial crops.
This year, HAGL plans to develop 2,000 hectares of mulberries in Da Lat, following a successful trial in late 2024. The company has also invested in a silk production facility aimed at exports.
In parallel, HAGL is launching a coffee initiative - starting with 2,000 hectares of Arabica this year and expanding to another 2,000 hectares in 2026. Arabica, a high-value crop currently priced around $9,000 per ton - double the price of Robusta - is expected to be a major growth driver.
According to Duc, the decision to focus on mulberries and coffee was based on their much shorter time to harvest: seven months for mulberries and just two years for coffee and tea - compared to durians, which take about six years. These quick-turnaround crops will help HAGL improve capital efficiency and better control cash flow. With ample land reserves and a trained agricultural workforce, HAGL is well-positioned to implement this ambitious strategy.
The company aims to earn a minimum of VND5,000 billion ($191.9 million) in net profit by 2028.
In 2025, HAGL targets VND 5,514 billion ($211.6 million) in net revenue, with 76% coming from fruit and 19% from pig farming.
The company also projects VND1,114 billion ($42.7 million) in after-tax profit, which will mark its fourth consecutive year of surpassing the VND1,000 billion ($38.38 million) profit mark if achieved.
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