Afternoon tea with Mr. Duc

This time I took the initiative to arrange a meeting with Mr. Duc in Saigon. On previous occasions, he would "invite" me to Gia Lai , sometimes to try vegetarian pork, sometimes to taste ripe durian, sometimes simply to show off his newly implemented "productivity-based system," where banana bunches weighed twice as much, the person receiving the contract earned billions of dong, and he was delighted; or there was the time he spontaneously ate pork right on the farm, "without any smell because it was 100% recirculated"... it depended on what he was interested in showing off.

Our conversations in Saigon that afternoon, a rainy afternoon at the end of September, had nothing to do with work. And thanks to that, I also realized a very different side of Mr. Duc, the businessman Doan Nguyen Duc, Chairman of Hoang Anh Gia Lai Group (HAGL).

It had been almost two years since I last saw Mr. Duc, although during that time I still received durians he sent. Mr. Duc said he was in a period of "deep hiding," which startled me. I remembered his previous "deep hiding," when he disappeared for almost five years before reappearing. Mr. Duc laughed heartily and reassured me: "I'm hiding to work, hiding to catch big fish."

Despite his cheerful demeanor, Chairman Duc that afternoon possessed a subtle serenity that not everyone noticed. I felt that at this stage, he had both the heart and the means to step aside when observing the ups and downs, including the bitterness of human relationships and the ways of the world, to "enjoy" them more than to prove himself. Because he realized that when he had the least money, he was also the richest in affection, not only from acquaintances but also from strangers, even those he had never met. These acts of kindness, whether intentional or unintentional, had a positive impact on many "life-or-death" issues for HAGL, helping him rise from the depths and rebuild.

Like the "billion-dollar marriage" between two private corporations, Thaco and HAGL, in 2018. To date, that was perhaps the investment deal that defied conventional business principles. Before Thaco and HAGL signed their strategic cooperation agreement, the two business owners only knew each other superficially. However, in the context of HAGL being like a "giant ship sinking in the ocean," Mr. Doan Nguyen Duc sent a handwritten letter to Mr. Tran Ba ​​Duong (Chairman of Thaco) with the sole reason: he thought Mr. Duong had money. Mr. Tran Ba ​​Duong, in an interview with Thanh Nien newspaper in 2020, admitted that one of the reasons he invested in HAGL was because "everyone I met praised Mr. Duc." The subsequent events unfolded as we witnessed – a "billion-dollar marriage" that caused a stir in the market and garnered significant media attention.

Mr. Duc's joy is now linked to the growth and development of durian and banana crops.

But that's just the surface; there are stories between the two businessmen that not everyone knows. Mr. Duc recounted that when he took Mr. Tran Ba ​​Duong to Laos and Cambodia to inspect HAGL's agricultural facilities, Mr. Tran Ba ​​Duong made an extremely quick and decisive decision. Immediately afterward, Mr. Duong transferred thousands of billions of dong to Mr. Duc to handle HAGL's urgent problems "without a single receipt." Of course, all the necessary procedures were completed immediately afterward. But Mr. Duc still affirmed that Mr. Duong's actions demonstrated the "stature of a great, fierce, and decisive businessman" during afternoon tea with us at the Rex Hotel in late September. This billion-dollar deal, tinged with the spirit of "the heroes of Liangshan Mountain," between two famous Vietnamese businessmen is perhaps very rare. It shows the courage, decisiveness, and strategic vision of entrepreneurs who think big and act big.

Similarly, the fact that dozens of banks unanimously submitted a request to the State Bank of Vietnam to restructure HAGL, and then the State Bank of Vietnam and relevant ministries and agencies sent a letter to the Government requesting attention to HAGL's restructuring to maintain operations in Laos, Cambodia, etc., is also remarkable. That was on December 31, 2016, when Mr. Duc decided to announce that "HAGL was insolvent." Many people tried to dissuade him, because saying it would almost certainly lead to bankruptcy. But he was determined. He said that hiding the problem would only worsen it. At that time, HAGL's debt had reached over 28,000 billion VND, making it impossible to pay interest and installments, and leaving no cash flow to maintain operations. "It was practically over," Mr. Duc recalled. In that dark moment, Mr. Duc was sitting in the Rex Hotel. I didn't ask who he was with, or if he was alone. But even if there were more than one person, I believe that moment was not only the "darkest" as Mr. Duc admitted, but perhaps also the loneliest. It was the last day of the old year, the earth and sky were transforming to welcome a new spring, while Mr. Duc was still grappling with the unpredictable scenarios of his life.

He knows more about agriculture than a real farmer.

Deep down, he was gambling between the belief in restructuring and the harsh reality of life. That belief stemmed from a typical "Chairman Duc" way of thinking: that HAGL's difficulties were due to objective factors, not that he had "taken the money and done something wrong." HAGL's investment projects were all thoroughly vetted and well-evaluated by banks, and the borrowed capital was used for its intended purpose… All those arguments were valid. But how many cases in life are there where those who do things right and well still have to bitterly leave the game if they fail? Of course, Chairman Duc also anticipated the worst-case scenario: "If you understand, then support us and we'll restructure together. Otherwise, all the debt is secured by collateral, and we'll just sell it to recover."

Ultimately, his belief prevailed, and HAGL was officially approved for restructuring. This also marked a new milestone, a journey of frantic work to pay off debts for Chairman Duc. He experienced both the bitterness and sweetness of life, the ups and downs of human nature... nothing was left out. Currently, HAGL still owes approximately over 4,000 billion VND. "According to the plan, by 2026 HAGL will be completely debt-free, becoming the first billion-VND company in Vietnam," Chairman Duc asserted, but didn't forget to add a remark tinged with the bitterness of human nature: "Because we're already heavily in debt, people associate us with debt. So even if HAGL owes just one dong, we're still known for it. Meanwhile, many companies owe hundreds of thousands of billions of dong and nobody knows. So, let's just focus on paying it all off."

I asked Mr. Duc if he ever wondered why so many people liked him. He thoughtfully admitted he wasn't entirely sure. But he never put others in an awkward position because of his actions. "Maybe through the process of working together, people feel a sense of friendliness, perhaps it's because good deeds are rewarded, so it's just one stroke of luck after another," Mr. Duc speculated.

It was this very answer that made me realize how different Doan Nguyen Duc, the businessman, had become. It's not easy for someone who was once the richest man on the stock exchange to become the most notorious debtor in Vietnam to consider himself lucky. "If you live recklessly, people will avoid you, not help you," Doan Nguyen Duc added, saying that from then on, he understood even more deeply the need to live a truly serious life. Never to let society or others criticize you. And therefore, he is proud of what he has built today, "though not as big as before, it is very sustainable and in the right direction that society needs." That is agriculture.

When the durian trees first started bearing fruit, Mr. Duc "invited" us to come and taste them.

Mr. Duc is striving to prove that agriculture can absolutely bring in profits of 5,000 - 7,000 billion VND per year. "That's something no one dared to think of before. If no one dared to think of it, and we can do it, then people will say it was worthwhile to have been quiet for a while and then achieved something worthwhile," he said with a hearty laugh, breaking free from a rare moment of self-reflection. "I assure you, if agriculture is done properly, the profits are very good, and it produces real consumer products for society. Many people just announce their wealth, but no one knows what products they have. But in Vietnam, if you ask Mr. Duong, everyone knows he makes cars, or Mr. Long makes steel… You need products for society to recognize and respect you," Mr. Duc philosophized.

He went into the garden, parted the lush foliage, and revealed the durian fruit peeking out from behind.

Today's Mr. Duc is more contemplative and philosophical.

He said HAGL currently has about 2,000 hectares of durian orchards, and he's sticking with that number, not expanding further "so he can focus on other things." I asked what it was, and he said it was a secret. Since the debt crisis, Mr. Duc has become more cautious. "I'll only announce it when I have real income, reported sales figures, and products on the market. If I talk about it now, people will say I'm just talking nonsense." I questioned him: "You announced you'd stick with 2 trees and 1 pig...?" Mr. Duc explained: "Before, I set that target to reassure my team, to show that I wouldn't expand too much. But not expanding means not venturing into other industries, only agriculture. And in agriculture, you have to diversify your investments for safety." As if to prove his unwavering commitment to agriculture, Mr. Duc recounted that even when people invited him to take on this or that project, promising billions of dong, he would "thank them and never." He has always held the belief that he will only do agriculture and never venture out further. "You've already defined greed; people need to know when to stop. If you can't cut off your greed, you'll just keep plunging in and die," bầu Đức philosophized again.

Having once been a leading real estate businessman in Vietnam, Mr. Duc admitted that this sector is so alluring and creates such great greed that it can blind people; he himself was once like that. But according to Mr. Duc, the profits in this industry are just "counting crabs in a hole." That's where the risk lies, and that's where the greed originates. "For example, a project is bought for 1 dong, then sold for 5 dong – a huge profit, right? But that's completely wrong with reality. Because real estate in Vietnam carries very high interest rates and the implementation time is too long, so if you calculate it accurately and completely, there's nothing left. Think about it, if the process is done correctly, a project from investment approval, licensing, commencement, construction, completion of all paperwork, to selling to customers takes a decade or more, not to mention market risks, management, policies... But everyone forgets the costs of that stage and just calculates it as making 1 dong and selling for 5 dong, so you see all the billionaires. In reality, there's nothing left," Mr. Duc analyzed, adding that after realizing this, he decided to withdraw from real estate and switch to agriculture.

But more than just "realizing" it, he reached a state of "obsession" with the plants and trees. As I was writing this, Mr. Duc sent me a message. He was in Cambodia again. In my mind, I pictured him driving amidst vast fields of durian and banana trees... I remembered the scene two years ago when his car skidded, one wheel sinking into a deep ditch hidden by grass on the Bolaven Plateau (Laos), tilting at a 45-degree angle as he took us to visit his vast durian orchard.

Nothing can stop Mr. Duc from continuing his journey.

Now, Mr. Duc is reaching the final stage of his debt repayment journey. "In the last five years, most businesses have increased their debt, but I went from over 28,000 billion VND down to just over 4,000 billion VND. Paying off all the debt is already a hero's achievement," Mr. Duc quipped, then laughed heartily, returning to the cheerful Mr. Duc I've known for so many years. Today's Mr. Duc has many things to be proud of and amused about. He's proud to have experienced both the highs and the lows. He's proud to have dared to reveal the truth about HAGL's liquidity problems. He's proud to have received the affection of many people, even when he fell into the abyss...

Then, he thoughtfully added that after paying off his debts, he would repay the kindness that life had given him. He wanted to do something for those who had stayed with him until now, because without them, he certainly wouldn't have been able to do it. "Right now, as I sit here drinking tea with you, the machine is still running, the business is still operating. There was a time when the company didn't pay salaries for 5 months, but everyone still worked normally and happily. So without those people, I couldn't have gotten through this period. I don't know how, but I will help them fairly. Now I'm 63 years old, and by the time I'm 65, after paying off my debts and repaying life's kindness, I'll be content. After all, you can't take your money with you to the grave anyway, so there's no point in fighting over it," Mr. Duc asserted.

I recall my first meeting with Mr. Duc, about 16-17 years ago, also at the Rex Hotel. He had something he wanted to clarify with the market. He spoke rapidly, as if I already knew the whole story, without even asking if I needed a glass of water, as is customary in diplomacy. At that time, Mr. Duc was at the peak of his career, with numerous projects and more money than he knew what to do with. In 2009, I interviewed Mr. Duc when he became the richest person on the stock exchange, and also the most likely candidate to become Vietnam's first USD billionaire. However, that scenario didn't happen. Because not long after, Mr. Duc withdrew from the real estate sector, officially shifting his investment to agriculture. Mr. Duc never imagined that this would be the beginning of HAGL's descent into the abyss. From the richest person on the stock exchange, he became the most notorious debtor in Vietnam. But it was also from within that raging storm that he brought HAGL back, in a way perhaps even more spectacular than their descent.

When I stood up, the second cup of tea was finished, and the rain had stopped...

I have an appointment with Mr. Duc to visit his "secrets" in Laos on a date in the near future.

Source: https://baodaknong.vn/tra-chieu-cung-bau-duc-232473.html