Mr. Duc received good news
In the last days of the year, durian prices increased sharply. In 2023, durian was the fruit with a record high export turnover, leading the group of Vietnamese fruits and vegetables, accounting for 51%. China is the largest consumer market of Vietnamese durian with a market share of 97%, reaching nearly 1.9 billion USD.
According to Mr. Doan Nguyen Duc (Bau Duc) - Chairman of the Board of Directors of Hoang Anh Gia Lai Joint Stock Company (HAGL), the current price of durian is still too expensive, only 10% of Chinese people can eat durian, not everyone has money to buy it to eat.
"Therefore, I believe that in the next 10 years, durian will still be a potential crop, so there is no need to worry about the price," Mr. Duc expressed.
Currently, fruit trees are HAGL’s main business. Among them, durian trees promise to bring in big profits. This is a fruit tree that “returns 4 times its original value” and has a very high price in both the world and domestic markets.
HAGL said it will plant more durian and increase the area to 2,000 hectares. In 2024, HAGL's durian will be harvested on a large scale. About 700 hectares are expected to be harvested in the fourth quarter of 2024, contributing to HAG's profit of about 2,000 billion VND. By 2026, HAGL's durian growing area will be 2,000 hectares, of which 1,000 hectares will be harvested. HAGL also has 5,000 hectares that can be used to grow more durian.
Starting from real estate, then hydropower, in 2013, Mr. Duc suddenly announced a shift to the agricultural sector. To restructure investments, HAGL sold all hydropower projects, shares of wood companies, etc. to get money to invest in agricultural projects.
In 2012, the proportion of the agricultural sector accounted for only 4.3% of revenue, by 2013, the revenue of this sector had increased dramatically, accounting for 38.94% of HAGL's total revenue. However, investment in the agricultural sector did not seem to be as effective as Mr. Duc expected. HAGL had to restructure many types of crops and livestock, and even had to sell its subsidiaries in this field.
After 10 years of participating in the agricultural industry with many crops and livestock, now, with the main crop of durian, some forecasts say that Mr. Duc's HAGL may return with a profit of thousands of billions per year.
In 2023, HAGL will achieve VND6,930 billion in revenue and VND1,817 billion in after-tax profit. This is the highest profit of this enterprise in the past 12 years. With profits increasing dramatically and reaching a threshold of several thousand billion VND/year, the ability to pay off all debts in 2026 as Mr. Duc shared is considered feasible.
In the past few years, Mr. Duc has repeatedly shared with his friends that he felt ashamed because of his failed business and debt. Now, the once famous football boss feels much more comfortable because his debt is insignificant and his business is profitable. The HAGL boss said that he is determined to revive his business for the sake of honor.
Billionaire Tran Dinh Long's "sideways" move takes advantage
The agricultural sector is also considered by billionaire Tran Dinh Long to have potential. Mr. Long even affirmed that agriculture will have more potential than the steel industry.
In March 2015, Hoa Phat officially established Hoa Phat Animal Feed Production and Trading Company Limited with charter capital of 2,500 billion VND.
In addition, Hoa Phat has strongly developed large-scale livestock farming in many provinces such as Lang Son, Bac Giang, Yen Bai, Hoa Binh, Quang Binh, Phu Tho, Hung Yen, Thai Binh, Dong Nai and Dak Lak.
To compete with pork products on the market, Hoa Phat has implemented the 3F (Feed - Farm - Food) livestock model. Hoa Phat decided to build the first two animal feed factories in Hung Yen and Dong Nai with a total capacity of nearly 600,000 tons/year.
As a result, after 6 years of operation, Hoa Phat has brought to the market high-quality breeding pigs and pork from a system of farms in a series of localities.
Regarding the poultry farming sector, according to the 2022 annual report, Hoa Phat's daily clean egg output reaches about 850,000 eggs to the market, maintaining the No. 1 market share in terms of egg supply in the Northern region. Hoa Phat's pig output in 2022 reaches nearly 404,000 heads, including commercial pigs, breeding pigs, etc.
During the period from 2015 to 2020, the livestock industry was invested in and grew strongly by Hoa Phat. As of 2020, Hoa Phat's agricultural sector achieved revenue of over 10,000 billion VND, accounting for the second largest revenue after the core industry, the steel industry.
Recently, Hoa Phat Poultry Company Limited (a member of Hoa Phat Group) announced that the company's production and consumption of clean eggs in 2023 was over 300 million eggs, exceeding the annual plan by 10% and increasing by more than 17% compared to 2022.
More than 7 years ago, when entering the poultry egg business, Hoa Phat Group set a target of reaching 300 million chicken eggs/year by 2025. Thus, the group achieved its target 2 years ahead of schedule.
Currently, poultry egg products are widely available in supermarkets, schools, kitchens, industrial parks, restaurants, hotels, etc. In addition, Hoa Phat chicken eggs have been initially exported to some countries such as Laos and Cambodia. In August 2023, the company deployed the Hy-Line Sonia breed, pink egg-laying chickens, imported from the US.
Hoa Phat's goal in 2025 is to double its revenue from 2020, producing 850,000 tons of animal feed, 200,000 Australian cows, 300 million eggs, and 750,000 finished pigs each year.
Billionaire Nguyen Dang Quang invests thousands of billions in agriculture
In 2015, Mr. Nguyen Dang Quang took a new step for Masan when he bought 52% of shares of the Vietnam - France Animal Feed Production Company (Proconco) and 70% of shares of the International Agricultural Nutrition Joint Stock Company (ANCO), and established Masan Nutri - Science Company Limited (MNS) to own these two companies.
In 2016-2017, Masan announced that it would spend VND1,400 billion to open a pig farm in Nghe An with a 3F farming model. This move is considered to be a way to anticipate the demand for premium food products that is growing strongly in Vietnam due to higher household incomes, health awareness and changes in modern lifestyles. Along with that, Masan also signed a cooperation agreement with Vissan, the largest meat processing company in Vietnam.
Next, Masan created an exclusive bran brand to join the pork value chain, aiming to bring high-quality meat products to compete with other products on the market.
In 2018, Masan launched the MeatDeli chilled meat brand. This product has been widely available in the Winmart supermarket system and accounts for about 2-3% of the market share, leading in price in the branded pork segment with the story "The first chilled meat according to European standards in Vietnam".
In 2023, Masan MeatLife continues to achieve higher sales and utilization rates thanks to its competitive pricing strategy, helping to narrow the price gap between products and meat in traditional markets.
This brand's revenue last year reached 6,984 billion VND, an increase of 10.9% over the same period last year.
Billionaire Tran Ba Duong's big game
In 2021, billionaire Tran Ba Duong joined hands with Bau Duc to acquire Hoang Anh Gia Lai International Agriculture Joint Stock Company - HAGL Agrico, specializing in the agricultural sector of Hoang Anh Gia Lai.
Mr. Duong said that Thaco has spent about 8,000 billion VND. To restructure the entire HAGL Agrico, Thaco had to spend about 12,000 billion VND more. In 2022, Thaco owns 26.7% of shares and operates all production and business activities of HAGL Agrico, which means holding 36,050 hectares in Laos and Cambodia.
In 2022, the first year HAGL Agrico joined Thaco, business results could not be better than under Bau Duc as it continued to suffer losses. In total, in 2021 and 2022, HAGL Agrico lost 1,119 billion and 3,576.5 billion VND respectively, but that did not discourage the billionaire.
In early 2023, Mr. Tran Ba Duong announced that he would continue to invest 8,200 billion VND in the agricultural sector based on organic and biotechnology. This shows that Mr. Tran Ba Duong has placed his trust in the growth prospects of the agricultural sector.
In the period of 2021-2023, under the management of Mr. Tran Ba Duong, HAGL Agrico has made many plans to improve the business situation such as renovating, upgrading, and constructing urgent items to serve production and business, converting ineffective fruit and rubber gardens to banana and pineapple growing and cattle raising, organic fertilizer production, etc.
In a recent interview, Mr. Tran Ba Duong said that Thaco has taken over the management of HAGL Agrico's projects in Laos and is determined to do large-scale agriculture, aiming for integration and circulation.
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