HAGL Chairman Says No Fear of TPP

Minh Tam

14:22 13/10/2015

BizLIVE - HAGL Group’s cow-raising model will be able to neutralize challenges from the Trans-Pacific Partnership agreement once the accord comes into force, said tycoon Doan Nguyen Duc.

HAGL Chairman Says No Fear of TPP

HAGL Chairman Doan Nguyen Duc addresses an event. (Source: Internet)

Vietnam’s livestock industry, which mainly has small scale, low productivity and high costs, will bear heavy pressure when the nation joins the high-standard  TPP agreement, but large firms such as Hoang Anh Gia Lai (HAGL), Vinamilk, TH True Milk and Hoa Phat Group that apply advanced technologies have no fear of the trade accord, said HAGL Chairman Doan Nguyen Duc.
HAGL is raising over 120,000 Aussie cows at large-scale farms using Israeli technology in Vietnam, Laos and Cambodia and sells 300 cows per day to the Vietnamese market, with prices competitive with imported products, Mr. Duc, dubbed “Coach” Duc for being president of Hoang Anh Gia Lai football club, tipped.
He pointed out advantages of the local livestock sectors, which are its “home field”, a young 90-million population, low transportation costs and cheap labor costs. “The biggest opportunity that the TPP brings about is the motivation for the local livestock to make changes to grow up,” he added.
To help local farmers and small business to catch up with the TPP, Vietnam needs to roll out a strategy to aid them in accessing advanced animal husbandry models. In addition, farmers need to have big land funds, finances and technologies to carry out large-scale farming and higher standards for farm produce should be determined, Mr. Duc said.
HAGL, which is focusing on raising cow and cash crops in Laos, Cambodia and Vietnam and a real estate complex in Myanmar, earned a consolidated net profit of 831.44 billion Vietnamese dong ($41.5 million) in the first half of 2015, up 30.7% year-on-year. Its net revenue jumped 87% year-on-year to 3.04 trillion dong in the period.
HAGL shares (coded HAG on the Hochiminh Stock Exchange), edged up 0.65% to 15,400 dong each at 14:00 on Tuesday. Its forward P/E is 5.76x.