Bau Duc receives 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 in the group of Vietnamese fruits and vegetables and accounting for 51%. China is the largest consumer market for durian in Vietnam 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. "Therefore, I believe that in the next 10 years, durian is still a potential crop, there is no need to worry about the price," Bau Duc expressed. Currently, fruit trees are the main business of HAGL. In particular, durian trees promise to bring in big profits. This is a fruit tree that "returns 4 times the capital", with 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.
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Bau Duc's business has the ambition to make a profit of thousands of billions.
Starting from real estate, then hydropower, in 2013, Mr. Duc suddenly announced a shift to agriculture. To restructure investment, HAGL sold all hydropower projects, shares of wood companies, etc. to raise money to focus on investing 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, even selling subsidiaries in this field. After 10 years of participating in the agricultural sector with many crops and livestock, now, with the main crop of durian, some forecasts say that Mr. Duc's HAGL may return to a profit of thousands of billions per year. In 2023, HAGL will achieve VND 6,930 billion in revenue and VND 1,817 billion in after-tax profit. This is the highest profit in the past 12 years of this enterprise. 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 that he felt ashamed with his friends because of business failures and debts. Now, the once famous football boss feels much more comfortable because the debt is insignificant and the enterprise is profitable. The HAGL boss said that he is determined to revive his enterprise for the sake of honor. Billionaire Tran Dinh Long's "sideways" move has the advantage . The agricultural sector is also assessed 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.
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Billionaire Tran Dinh Long sees that the agricultural industry is more promising than the steel industry.
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 deployed 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. In the field of poultry farming, according to the 2022 annual report, Hoa Phat's daily output of clean chicken eggs reached about 850,000 eggs, maintaining the No. 1 market share in terms of chicken egg supply in the Northern region. Hoa Phat's pig output in 2022 reached nearly 404,000 heads, including commercial pigs, breeding pigs, etc. In 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 a revenue of over 10,000 billion VND, accounting for the second largest revenue after the core industry of steel. Recently, Hoa Phat Poultry Company Limited (a member of Hoa Phat Group) announced that the company's clean egg production and consumption 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 has 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 a number of 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 invested thousands of billions in agriculture In 2015, Mr. Nguyen Dang Quang made a new move 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 spending 1,400 billion VND to open a pig farm in Nghe An with a 3F farming model. This move is considered to anticipate the demand for high-end food products that are growing strongly in Vietnam thanks 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 usage rates thanks to its competitive pricing strategy, helping to narrow the price gap between products and meat in traditional markets. The brand's revenue last year reached VND 6,984 billion, up 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 when acquiring Hoang Anh Gia Lai International Agriculture Joint Stock Company - HAGL Agrico, specializing in the agricultural sector of Hoang Anh Gia Lai.
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Billionaire Tran Ba ​​Duong invests in agriculture.
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 owned 26.7% of shares and operated all production and business activities of HAGL Agrico, meaning it held 36,050 hectares in Laos and Cambodia. In 2022, the first year HAGL Agrico returned to Thaco, business results could not be better than under Mr. Duc when 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 on the basis of 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 building urgent items to serve production and business, converting ineffective fruit and rubber gardens to banana and pineapple planting 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 at integration - circulation./.

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