Hoang Anh Gia Lai Group

Hoang Anh Gia Lai Group (HAGL Group; ), registered as Hoang Anh Gia Lai Joint Stock Company, less formally known by its trading name Hoàng Anh Gia Lai (HAGL), is a diversified company headquartered in Pleiku, Vietnam.

From a small furniture producer the company diversified into other industries such as rubber, finances a football club (Hoang Anh Gia Lai Club) and was Vietnam's largest property developer in 2010[2] and the second largest in 2011 (behind Vingroup).[3] It has also grown significantly outside of Vietnam, with investments of around $1bn in Laos, hundreds of millions in Myanmar, $100m in Cambodia and tens of millions of dollars in Thailand.[4]

History

Hoang Anh Gia Lai was set up in 1990 as a small factory in Pleiku producing furniture and employing 200 workers. Another wood processing plant was added in 1993 in the suburbs of Pleiku. The company diversified into granite processing in 2002 and later real estate and hotels.

Industries

Real estate

HAGL is established in Vietnam's residential property development business, with a focus Ho Chi Minh City's mid-tier market.[8] It has secured enough land for proposed projects for the period from 2012 to 2016. The land has been procured at prices lower than the current market value (May 2011), resulting in prospects for high profit margins.[8]

HAGL built the athletes' village for the 2009 Southeast Asian Games in Vientiane, Laos. In return, it received a large rubber concession in Laos' north-east.[2] The company is developing an 8ha complex in Yangon, Myanmar including a hotel, mall, offices and apartments with a total planned investment of US$300 million. The project was approved in December 2012 after long negotiations.[9]

HAGL also operates a chain of 4 and 5 star hotels and resorts in Ho Chi Minh City, Da Lat, Da Nang, Nha Trang, Quy Nhon etc.[5]

Rubber and other cash crops

HAGL operates rubber plantations in the Vietnamese provinces of Gia Lai and Đắk Lắk, as well as Cambodia and Laos.[10] It is investing at least US$225 million to expand the area of its rubber plantations to 51,000 by 2012, at least 25,000 of which are being planted in Laos.[11] It has acquired rights to grow rubber trees in Attapeu Province in the south-east of Laos[11] and in the north-east of the country.[2] The rubber plantations are also expected to provide three million cubic meters of wood, which will be used in the group's wood processing and furniture business.[11] A major customer buying rubber from HAGL is Michelin.[12]

Energy

HAGL has been investing in electricity projects, mainly hydro power. Construction of two dams in the north-central province of Thanh Hóa started in 2009 at a cost of around 500bn VND.[2] Several other projects are being planned or under construction in the Central Highlands of Vietnam.[15] HAGL has three hydro power projects, as well as a 28MW thermo-power plant project, in Laos[11] Electricity from these power plants will be sold to a Lao partner rather than Vietnam's Vietnam Electricity because the former's prices are around 30% higher.[11]

Some of HAGL's power plants are developed by its subsidiary HAGL Hydro Power (CTCP Thủy Điện HAGL) which has a capital stock of 100bn VND, 70% of which is owned by HAGL Group. Other joint ventures include the following:[5]

Mining

HAGL has recently been diversifying into mining. It has subsidiaries and joint ventures in the Central Highlands South Central Coast and North Central Coast of Vietnam and Xekong Province of Laos:[5]

HAGL Mining (200bn VND, 75% owned by HAGL Group)
Gia Lai Mining (140bn, 51%)
Quảng Ngãi Mining (100bn, 80%)
Hoang Anh Thanh Hóa Mining (200bn, 83.7%)
Kbang Mining (100bn, 66.93%)
Hoang Anh GL - Kon Tum (50bn, 83.7%)
Hoang Anh Xekong Mining (5.3bn, 83.7%)

trading name	HAGL Group Hoàng Anh Gia Lai
native name	CTCP Hoàng Anh Gia Lai
native name lang	vi
type	Joint Stock Company
foundation	1990
founder	Đoàn Nguyên Đức
location city	Pleiku, Gia Lai
location country	Vietnam
key people	Đoàn Nguyên Đức (chairman) Nguyễn Văn Sự (general director) Nguyễn Văn Tốn (Supervisory Board)
industry	Furniture, Real estate, Rubber, Sugar, Football, Mining, Electricity, Hospital
revenue	4,399.5 bn VND (2012)
operating income	613.8 bn VND (2012)
net income	365.2 bn VND (2012)
assets	21,284 bn VND (2012)
num employees	9842 (2011)
homepage	http://hagl.com.vn/
footnotes	‡R1R‡

Hoang Anh Gia Lai Group

History

Controversy

Industries

Real estate

Rubber and other cash crops

Energy

Mining

Financial information

Financing

References