Bau Duc: Persistently doing agriculture, refusing real estate projects with profits of thousands of billions

Mr. Doan Nguyen Duc - Chairman of the Board of Directors of Hoang Anh Gia Lai - affirmed that the company is focused on investment, proving that it is possible to get rich from agriculture. If anyone invites him to participate in a real estate project with a profit of thousands of billions, he will "thank" and refuse.

Mr. Doan Nguyen Duc affirmed to persevere in developing the agricultural sector - Photo: BONG MAI

Hoang Anh Gia Lai Joint Stock Company (HAGL, stock code HAG) held the 2025 Annual General Meeting of Shareholders on June 6.

Grow more mulberry and coffee

In response to investors' concerns, Chairman of the Board of Directors Doan Nguyen Duc frankly shared that Hoang Anh Gia Lai had encountered many difficulties when switching from real estate to agriculture.

However, he affirmed his stance: "Even if tomorrow you invite me to do real estate and make a profit of thousands of billions of dong, I will thank you and not do it." He expressed his determination to prove that farming in Vietnam can still be viable and make you rich, when you know how to take advantage of opportunities and develop a systematic system.

After a period of earning large revenues from fruits (bananas, durians, macadamia nuts) and pig farming, Mr. Duc revealed that the business is expanding to two more crops: mulberry and coffee.

Specifically, Hoang Anh Gia Lai has planted 2,000 hectares of mulberry in Gia Lai and Lam Dong , aiming to increase the area to 4,000 hectares in the near future, thereby exporting silk internationally.

“In farming, how much money you earn per hectare of land is important. Compared to all the crops that Hoang Anh Gia Lai invests in, mulberry brings in the most money,” Mr. Duc emphasized.

The company is developing 4,000 hectares of coffee and tea, a high-quality variety that needs to be grown at an altitude of over 1,000m, which in Vietnam only occupies 10%. Hoang Anh Gia Lai chose to grow on the Bolaven Plateau (Laos) thanks to its large land fund.

Mulberry is a short-term crop, it can be harvested and profitable after 7 months of planting. Coffee is a long-term crop, but now it only takes 2 years from planting to harvest.

"We have land, human resources, and a systematic organization. What is difficult for others is easy for us," Mr. Duc shared.

Determined to clear debt and repay agricultural engineers who have been with us for more than 10 years

A notable point in Hoang Anh Gia Lai’s 2025 plan is the expected issuance of 12 million bonus shares for employees. Only employees who have worked at the company for 10 years or more are eligible for this benefit.

Chairman Doan Nguyen Duc said this was a necessary decision to show gratitude to the staff and agricultural engineers who had accompanied Hoang Anh Gia Lai during the most difficult period, when Hoang Anh Gia Lai was in a liquidity crisis and even had to pay unpaid salaries. They were people who had been with the company for a long time, not only working in Vietnam but also in remote farms in Cambodia and Laos.

Now that the business situation is gradually stabilizing, the company is eager to compensate appropriately, motivate and retain staff in the context of the agricultural industry being fiercely competitive for high-quality resources.

Regarding the business picture, Hoang Anh Gia Lai recorded revenue of nearly VND 5,800 billion and after-tax profit of nearly VND 1,100 billion in 2024, completing 75% and 80% of the year plan.

At the meeting, shareholders agreed on the 2025 plan for the company to achieve a revenue target of VND5,510 billion, down 5% compared to the previous year. After-tax profit increased slightly by 5% to VND1,114 billion (+5%). Choosing a cautious option with higher feasibility.

Regarding the financial situation, Hoang Anh Gia Lai said that from an accumulated loss of more than 3,300 billion VND in 2022, by the first quarter of 2025 it had decreased to 80 billion VND. Showing efforts to resolve debt.

For the VND4,000 billion bond debt, Hoang Anh Gia Lai plans to issue 210 million common shares to convert and pay a minimum of VND2,520 billion to bondholder group B (including the entire principal and part of the interest).

If the plan is approved and successfully implemented, the business will continue to negotiate to waive the remaining debt - which can then be recorded in profits.

Hoang Anh Gia Lai's financial situation has many positive changes - Chart: BONG MAI

Rise from agriculture

Mr. Duc confided that in the past, when the media mentioned Hoang Anh Gia Lai, "everything was turned upside down". Not to mention, many times when borrowing money, the documents were thrown in the trash. But after many efforts to stick with the agricultural sector, from a state of illiquidity, Hoang Anh Gia Lai has recovered, made a profit and paid off its debts. Mr. Duc firmly believes that: "From now on, it will be very difficult to find bad things".

In addition to financial restructuring and debt reduction, HAGL also implemented a strategy of streamlining and improving the efficiency of the management apparatus, digitizing agriculture, and eliminating accumulated losses. From there, the stock was removed from the warning list and re-granted margin (margin loan).

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Source: https://tuoitre.vn/bau-duc-kien-tri-lam-nong-nghiep-tu-choi-du-an-bat-dong-san-loi-ngan-ti-20250606113346663.htm