Decoding Vietnam’s Coffee Craze: Insights from Bầu Đức

Bầu Đức revealed that starting in 2027, Hoàng Anh Gia Lai will begin harvesting coffee. By 2028, coffee is projected to become the corporation's primary revenue source.

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On November 25th, Hoang Anh Gia Lai Joint Stock Company (HAGL, stock code: HAG) hosted a shareholder meeting, sharing insights into their 10-year restructuring journey and future plans.

Bầu Đức’s Coffee Export Vision

During the event, Mr. Doan Nguyen Duc (Bầu Đức), Chairman of HAGL’s Board of Directors, announced that coffee would become a strategic crop, driving the company’s revenue and contributing significantly to the target of VND 5,000 billion in profit by 2028.

According to Bầu Đức, a two-year surge in coffee prices, driven by Chinese consumers shifting from tea to coffee, has tripled its value. HAGL’s land is ideal for coffee cultivation, particularly Arabica, which commands twice the price of Robusta and requires only one-third of the labor needed for bananas.

Bầu Đức engaging with shareholders post-event

HAGL has already planted 2,000 hectares of Arabica coffee and plans to add 1,000 more hectares this year. By the end of 2027, the company aims to cultivate 10,000 hectares of coffee in Vietnam and Laos, with a 70% Arabica and 30% Robusta split.

With global coffee trading hubs in London and New York, HAGL focuses on minimizing production costs to enhance profitability. Unlike other crops, HAGL relies on domestic expertise from the Western Highlands Agriculture and Forestry Science Institute (WASI), recently signing a technical consultancy and 30 million coffee seedling supply agreement.

HAGL positions itself as an agriculture-focused conglomerate, specializing in four key crops: bananas, durian, mulberry, and coffee.

Bầu Đức addressing hundreds of shareholders

HAGL focuses on green coffee bean production, avoiding retail distribution. For fruits, the company prioritizes fresh produce sales, targeting high-value markets like China, South Korea, and Japan.

Strategic Partnership with OCB and OCBS

On the same day, HAGL signed a strategic partnership with Orient Commercial Bank (OCB) and OCBS Securities. Bầu Đức emphasized that after years of challenges, the company is returning to growth, focusing on large-scale green agriculture—a strategy requiring strong financial partners like OCB and OCBS.

“This collaboration will strengthen HAGL’s financial foundation, enabling us to pursue ambitious goals. With OCB’s support, we aim to lead Vietnam’s agriculture sector by 2030 and become a key regional supplier,” Bầu Đức stated.

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