Halong CAN Invests Over 166 Billion VND in New Hai Phong Factory

Relocation of the Old Factory

According to the resolution and minutes of the Extraordinary Shareholders’ Meeting No. 1 in 2025 of Halong Canning Joint Stock Company (Stock Code: CAN), one of the key agendas was the relocation of the food processing plant at 71 Le Lai, Ngo Quyen District, Hai Phong City. The company’s leadership emphasized that this move is a critical and “survival” task.

The reason stems from the Ngo Quyen District Planning Project until 2040 (approved in April 2025), which designates the company’s land for public green spaces and recreational areas. In reality, since 2023, the company has returned over 5,000 m² to the city.

The company will not receive compensation for the land use rights but only for the structures on the land, totaling 3.8 billion VND. Based on the current compensation plan, the management estimates a maximum compensation of approximately 30 billion VND for the remaining 5.7 hectares of land.

Currently, the company faces challenges in finding rental factory space in Hai Phong that meets the necessary infrastructure and legal requirements for food processing. If the land is reclaimed before a new production site is secured, the company risks production disruptions or halts, severely impacting its business operations.

At the meeting, Chairman Nguyen Anh Tuan stated, “Relocating the production facility is urgent as the current site is part of an urban development zone. Failure to relocate promptly will result in significant losses to the company’s production activities.”

Investing 166 Billion VND in a New Factory in Hai Phong

To ensure uninterrupted operations, CAN shareholders approved leasing a 20,000 m² plot (2 hectares) in Nam Dinh Vu Industrial Park (Zone 1), Dong Hai Ward, Hai Phong. The lease term is 34 years, until 2059, with a total lease value of over 68 billion VND.

On this new land, Halong Canning will develop the Halong Hai Phong Canning Factory project with a total investment of over 166 billion VND. The capital structure includes approximately 83.7 billion VND in equity and over 82.2 billion VND in credit loans.

The new factory is designed with two main production zones, targeting an annual revenue of 600 billion VND once fully operational:

Meat and Sausage Canning Workshop: Capacity of 10 million units/year, projected revenue of 300 billion VND.

Fruit and Vegetable Canning Workshop: Capacity of 10 million units/year, projected revenue of 300 billion VND.

The project is expected to break ground in Q2/2026 and commence operations in Q2/2027.

Approval of 1:1 Rights Issue at 15,000 VND/Share

To fund this ambitious project, Halong Canning approved a rights issue to existing shareholders to increase its charter capital. Specifically, the company will issue an additional 5 million shares at a 1:1 ratio (each shareholder holding 1 share can purchase 1 new share).

The proposed offering price is 15,000 VND/share, significantly lower than the book value (approximately 29,944 VND/share as of June 30, 2025) and the recent average market price (around 31,640 VND/share).

The total expected proceeds are 75 billion VND. Of this, 50 billion VND will be allocated directly to the new factory construction and equipment purchases, while the remaining 25 billion VND will supplement working capital. The offering is scheduled for 2026.

Addressing shareholder concerns about financial risks associated with the large-scale project, CAN’s leadership assured that they have conducted thorough analyses and are confident the project will yield positive results. They urged shareholders to trust the Board of Directors to strive for the best outcomes.

Established in 1957 in Hai Phong City as Halong Fish Canning Factory, Halong Canning Joint Stock Company (Halong Canfoco) is one of Vietnam’s longest-standing enterprises in the processed food industry.

Today, Halong Canfoco operates a production and business ecosystem comprising 3 factories and 3 offices, supporting production, management, and product distribution activities.