Is Bầu Đức Pivoting to a New Flagship Product? From Selling Houses to Growing Rubber, and Sleepless Nights Over Pigs Eating Bananas

The Past: A Decade of Chasing Trends and Costly Lessons

From 2007 to 2010, Hoang Anh Gia Lai (HAGL) dominated Vietnam’s real estate market. Leveraging low-cost land and rapid project execution, the company, led by Chairman Doan Nguyen Duc, developed iconic projects like HAGL Plaza Da Nang and the Hoang Anh apartment complexes in Ho Chi Minh City. This propelled real estate revenue to a peak of VND 3,373 billion in 2009.

However, recognizing signs of a market bubble and mounting debt pressure, HAGL strategically exited the real estate sector in 2012. The following decade saw the company repeatedly pivoting to various crops and livestock in response to market “fads,” often without a solid technical foundation or risk mitigation strategies, while maintaining high financial leverage.

A prime example was the massive investment in 28,000 hectares of oil palm and 51,000 hectares of rubber during global price peaks. When markets reversed, billions were lost as oil palm plantations were cleared without generating any revenue. Similarly, the beef cattle business (peak revenue of VND 3,465 billion in 2016) quickly declined due to thin profit margins.

This reckless investment phase ballooned debt to VND 36 trillion by 2016, pushing the company to the brink of insolvency. Chairman Doan Nguyen Duc admitted, “A debt of VND 36 trillion was staggering at the time. Insolvency was a euphemism—we were on the verge of bankruptcy.” Guided by the principle, “Hiding the problem means death,” he sold off cherished assets—from hydropower plants to hospitals—to repay debt and restructure the company.

The Transition Phase: Scaling Back Livestock, Reaping Rewards from Technical Standardization

HAGL’s Revenue Structure (2009 – 9M/2025): The dramatic shift in financial composition is evident as former pillars (Real Estate, Livestock—gray and red areas) decline, making way for the Fruit segment’s (green area) absolute growth. Notably, from 2024 to 9M/2025, the Fruit segment surged, becoming the sole sustainable growth driver. Source: HAGL Financial Reports

In 2022-2023, the “pigs eating bananas” strategy emerged as a cash flow lifeline. However, 9M/2025 data shows this segment significantly contracted, with pig sales revenue at just VND 173 billion. This indicates HAGL no longer views livestock as a core growth driver.

Livestock’s retreat paved the way for the fruit segment’s explosive growth, built on a far more robust technical foundation than past endeavors. Learning from past failures, HAGL adopted Philippine banana cultivation technology and advanced Thai durian care techniques to ensure stable export quality and yields.

With 9M/2025 revenue exceeding VND 4,400 billion, fruit (primarily bananas and durian) has become the main revenue source. Bananas, cultivated on 7,030 hectares, provide steady cash flow, while 2,140 hectares of durian generate exceptional margins due to high prices and strong Chinese demand.

The Future: Betting on 10,000 Hectares of Arabica Coffee

With stable cash flow from bananas and durian, HAGL is activating its third growth pillar: coffee. Leveraging the soil and altitude advantages of Laos’ Paksong Plateau, the company aims to expand coffee cultivation from 3,040 hectares to 10,040 hectares by 2026-2027.

This strategy’s key difference is the crop mix: 70% will be high-value Arabica coffee. Chairman Duc notes that Chinese demand for coffee has tripled in the past two years as consumers shift from tea, creating a price surge. HAGL’s primary export market for bananas and durian is China.

With technical support from the Western Highlands Agriculture and Forestry Science Institute (WASI) and plans for a 1,500-ton/day processing plant in Laos, HAGL aims to become a leading regional coffee supplier, reducing reliance on fresh fruit exports, which carry preservation and transportation risks.

Alongside coffee, the mulberry segment, targeting 2,000 hectares and a silk spinning mill, is emerging as a new economic bright spot, promising high value-add for HAGL’s closed agricultural loop.

Alongside expansion plans, HAGL announced the 2026 IPO of Hoang Anh Gia Lai International Investment JSC, targeting VND 5 trillion in group profit by 2028. To support this ambition, the company signed strategic partnerships with OCB Bank and OCBS Securities, ensuring sustainable financing for its new growth cycle.