BAPI Hoang Anh Gia Lai JSC was established on May 26, 2022, as a joint venture between Hoang Anh Gia Lai JSC (HAG on HoSE) and Dong A Pharmaceutical Trading Co., Ltd., primarily engaged in the distribution and retail of banana-fed pork provided by Hoang Anh Gia Lai and other food products.
At its inception, the company had a chartered capital of VND50 billion. Hoang Anh Gia Lai held 55% of the chartered capital, Dong A Pharmaceutical held 40%, and the remaining 5% belonged to an individual shareholder. Mr. Dinh Van Loc was the legal representative of the company.
Mr. Doan Nguyen Duc speaking at the launch event of Bapi-Heo an chuoi HAGL. Photo: GLO
After more than a year of operation, at an investor meeting in late August 2023, Hoang Anh Gia Lai’s management announced that they had to downsize the scale from nearly 200 banana-fed pork stores to 52 stores to reduce losses. Of these, 46 stores are located in Ho Chi Minh City.
The reduction in the number of stores in the banana-fed pork retail system has caused many partners of BAPI Hoang Anh Gia Lai to struggle, from equipment suppliers to franchise partners.
According to documents from the Cong Thuong Newspaper, in 2022, BAPI Hoang Anh Gia Lai signed a contract to purchase display cabinets, coolers, and freezers from CNC Gia Khang Co., Ltd. (headquartered in Tan Thoi Nhat Ward, District 12, Ho Chi Minh City) with a total value of VND2,680,032,000. BAPI Hoang Anh Gia Lai made a payment of VND1,253,842,000 for the goods.
Display cabinets at BAPI Food stores provided by CNC Gia Khang. Photo: Ngan Nga
On December 26, 2022, the two parties proceeded to terminate the contract. According to the termination agreement, BAPI Hoang Anh Gia Lai was required to pay CNC Gia Khang VND1,426,190,000. However, after signing the termination agreement, BAPI Hoang Anh Gia Lai only paid an additional VND820 million to CNC Gia Khang. The company has since defaulted on the remaining payment despite repeated requests.
In response to BAPI Hoang Anh Gia Lai’s breach of contract, CNC Gia Khang was compelled to take legal action, filing a case with the court to demand that BAPI Hoang Anh Gia Lai settle the outstanding payment of VND606,190,000, along with late payment interest and contract violation penalties as stipulated, totaling over VND300 million in interest and penalties.
In court, the representative of BAPI Hoang Anh Gia Lai acknowledged the debt and pledged to make full payment. On May 28, 2024, the People’s Court of Pleiku City issued Decision No. 14/2024/QD-ST-KDTM, approving the agreement between the parties, with BAPI Hoang Anh Gia Lai agreeing to settle the debt in two installments by the end of June and July 2024.
The representative of the Pleiku City Civil Judgment Execution Agency stated: “BAPI Hoang Anh Gia Lai JSC is obliged to pay CNC Gia Khang Co., Ltd. a principal amount of VND606,190,000 and interest of VND100,000,000. In addition, BAPI Hoang Anh Gia Lai JSC will be subject to interest at the prescribed rate.”
Despite the successful mediation in court, BAPI Hoang Anh Gia Lai failed to honor its commitment to settle the debt, despite repeated requests from CNC Gia Khang.
Mr. Dinh Van Loc has stepped down as the legal representative of BAPI Hoang Anh Gia Lai. Photo: KTVN
Notably, immediately after the final debt payment deadline (July 31, 2024), BAPI Hoang Anh Gia Lai proceeded to change its legal representative. Specifically, as of August 7, Mr. Le Thanh Tien became the legal representative of BAPI Hoang Anh Gia Lai, replacing Mr. Dinh Van Loc.
It is worth mentioning that Mr. Dinh Van Loc is the Chairman of the Members’ Council of Dong A Pharmaceutical Trading Co., Ltd., a well-established company in the pharmaceutical industry, offering community healthcare products such as Black Garlic and Diamond Garlic.
The last-minute change in the legal representative of BAPI Hoang Anh Gia Lai raises suspicions about Mr. Dinh Van Loc’s attempt to evade debt obligations and maintain the reputation of the Chairman of Dong A Pharmaceutical.
Regarding the delayed payment of debts, a representative of BAPI Hoang Anh Gia Lai explained: “The company is currently in the process of restructuring and liquidating assets, facing financial difficulties. In addition, the company has to settle debts with multiple suppliers and ensure the company’s operations, resulting in delays in debt repayment.”
As for the change in the legal representative, the representative stated that it was due to personal reasons and Mr. Dinh Van Loc’s health, and that it was not an attempt to evade debt repayment. The decision was made to reduce Mr. Loc’s role in the company.
The contract violations committed by a company with the scale and potential of BAPI Hoang Anh Gia Lai have raised questions in the business community. This not only affects the reputation of the company and Mr. Dinh Van Loc but also erodes consumer trust and causes harm to business partners.
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