About us Development orientation

Development Orientation

•    Investment in agriculture, recycling of resources

HAGL has applied scientific and technical achievements to agricultural production such as Israeli drip irrigation system, setting up a microbiological fertilizer factory, analyzing soil nutrient composition, etc. making an important contribution to economizing on water resources, limiting erosion and soil fertility, alleviating pollution, saving production costs and achieving economic efficiency.

•    Public Private Partnership

HAGL is known to have pioneered  the Public Private Partnership (PPP) model in agribusiness when expanding its business to neighboring countries.

The PPP institution has been applied very successfully in Laos, which Lao Government adopts as an exemplary model when calling for foreign investment. HAGL has sponsored interest-free capital for the Lao Government to build infrastructure facilities for SEA Games, Attapeu international airport, hospitals, schools, houses, administrative areas of local communities.

This model is also applied by HAGL in Cambodia by helping the Cambodian Football Federation to build Bati National Football Academy in Takeo province, roads, schools, clinics, and water wells for the poor.…

•    Intensive investment and  value chain 

We understand that, in order to create competitive advantage in the market, besides the large scale of investment, it is necessary to confidently focus on researching and adopting new and advanced technological solutions applied to the practical production process, especially in the agribusiness.

We have deployed Israel irrigation system in cultivation, with a team of more than 1,000 Vietnamese agricultural engineers participating in research and synchronous implementation of high-tech applications, development of industrial crops, livestock  to maximize efficiency, productivity and cost savings.

•    Unity, collaboration  for mutual development

In business HAGL has always pursued the philosophy of " Unity, collaboration  for mutual development", viewing this as a guideline in the Group's business orientation. As a result, HAGL has received the trust, sharing, support and goodwill cooperation of customers, investors, shareholders, social community and governmental agencies.

   

    

   

STRATEGY FOR DEVELOPMENT

2022 witnessed HAGL experience difficulties and challenges. Faced with this situation, the Group's leadership continues to promote the strategy of restructuring modest-profited industries, focusing on pivotal investment in substantial profited industries, minimizing risks to attain the goal of reducing the loan balance, improving financial ratios.

 

  Trade strategy and products

AGRIBUSINESS

The accession of Vietnam to the Free Trade Agreement (AFTA) and the Trans-Pacific Partnership (TPP) will open up many opportunities for businesses in agriculture. HAGL believes that the agricultural segment will enjoy a high Return On Sales when the prices in the world market come stable and the output reaches the desirable level.

  

FRUIT BUSINESS:  

In 2021, the fruit industry remained an important role in the Group's operating structure with banana as the flagship product. By the end of 2021, the Group's fruit tree area was about 10,000 ha in Vietnam, Laos and Cambodia, of which the banana area is about 5,000 ha. The Group always focuses on producing high quality products, meeting Global GAP standards or equivalent standards, eligible for export to nationalistic markets such as Japan, Korea, Singapore and Europe. Regarding the current consumption market, the Group views Chinese market as the foundation and will hold the position of the leading supplier of tropical fruits in this market. The Group will also make intensive investment in post-harvest processing to increase product value and diversify the products supplied to the market. In the future, the Group gradually aims to automate all stages of production, from tillage, planting, weeding to harvesting, packaging, and post-harvest preservation. The Group will also invest in building modern manufacturing and processing factories, creating high-quality fruit-based products such as concentrated, dried, and frozen fruit juices for export, going into competition in the international market.

   

LIVESTOCK:

The Group started investing in the pig industry from 2020. In 2021, revenue from this industry also accounts for a relatively large proportion of the revenue structure. In 2021, the Group has built 07 clusters of barns with a capacity of raising about 400,000 meat pigs per year. The Group plans to build 9 more clusters of barns by 2022, bringing the total number of barns to 16 clusters with a capacity of more than 1,000,000 pigs.

          

   

  Capital strategy

Proactively building a stable, long-term cash flow plan is an important goal in the Group's business strategy, centering on measures to generate cash to pay down outstanding loans towards a state of equilibrium in payment ability. Besides, the Group also researches and invests in diversifying agricultural products for market in order to increase revenue and expand business opportunities; operating and exploiting real estate - services to generate regular and stable income and at the same time advocate selling real estate projects when it is economically workable for capital turnover.

Researching to minimize costs through debt instruments, effective forms of capital mobilization, and at the same time reviewing the portfolio structure, liquidate non-performing assets. minimizing spread investment.

Developing financial and internal spending regulations, including salary and incentive as well as implementing cash use policy suitable to practical circumstances in order to produce great benefits to the business. 

 

  Governance system

Determining the right management system is the foundation for businesses to develop sustainably, so HAGL always prioritizes the application of knowledge and good practice models on governance to put it into operation. 

Reinforcing financial management, risk management and expenditure monitoring by effectively controlling debt collection, applying cost-saving measures. 

Expanding the domestic market and developing the market to other countries in the region, while standardizing the operating model, promoting the role of domestic and foreign branches and representative offices. 

Promoting brand development, maintaining relationships with existing customers and approaching potential customers with multiple channels and information hubs, flexibly seizing opportunities to expand the market. 

In parallel with evaluation of the performance, HAGL also put importance on improving the management system, organizational structure and human resources to keep up with the Group's development goals. In addition, the training to improve the professional qualifications of the staff and the planning and fostering of the managerial staff are always considered the key tasks of the company.