Hoang Anh Gia Lai (HAGL), a Vietnamese agricultural conglomerate, has escalated its durian cultivation operations to 2,000 hectares within two years, responding to the heightened market demand emanating from China. The expansion reflects the company's strategic pivot towards long-term crop investments, transitioning from its initial focus on short-cycle crops for immediate financial returns. HAGL's chairman, Doan Nguyen Duc, highlighted the journey towards this expansion milestone during a tour with shareholders across the company's Laotian durian farms, underscoring the formidable challenges encountered en route.
The inaugural durian harvest from 600 hectares is anticipated next year, benefitting from the expertise of Thai agricultural consultants, given Thailand's standing as a leading durian exporter. Duc emphasized the temporal market opportunity, citing a projection that China's self-sufficiency in durian production, even if pursued on foreign territories, would require seven to ten years. This forecast positions the upcoming five years as a strategic window for HAGL's durian venture.
Beyond durians, HAGL has also augmented its banana cultivation footprint by 40% to 7,000 hectares over the same period, with 60% of its banana yield destined for the Chinese market, and the remainder distributed between Japan and South Korea. Concurrently, the firm is amplifying its pig farming capacity, targeting a stock of 500,000 pigs by the subsequent year. This agricultural diversification contributed to HAGL's revenue reaching VND4 trillion (USD 172.41 million) in the first nine months, marking a 20% profit increase year-on-year to VND831 billion (USD 35.83 million).
Source: VNExpress