“Bầu Đức’s 10,000-Hectare Coffee Venture: Are Coffee Farmers Profitable, or Are They All Getting Rich?”

According to an article by journalist Trần Đăng Lâm in the Agriculture and Environment Newspaper, Mr. Đoàn Nguyên Đức, Chairman of the Board of Directors of Hoang Anh Gia Lai Group (HAGL – stock code: HAG), shared detailed insights into the decision to invest in a 10,000-hectare coffee project.

When asked about the confidence in the project’s success, Mr. Đức replied, “Look at coffee farmers—do any of them lose money? They all prosper! Hoang Anh Gia Lai will never incur losses. I’ve calculated meticulously: even if coffee prices drop to 30,000 VND/kg, we won’t lose, while current prices range from 120,000 to 140,000 VND/kg.”

During their investment in Laos, HAGL recognized the significant potential of coffee cultivation, particularly on the Boloven Plateau. With support from the Lao government, the Group decided to invest in coffee, as the region is ideal for growing Arabica coffee.

Hoang Anh Gia Lai is investing in 10,000 hectares of coffee, with 80% in Laos and 20% in Vietnam. The project began in June 2025, and 3,000 hectares have already been planted. The remaining 7,000 hectares will be completed in 2026-2027.

Mr. Đức emphasized that this is a major project for both the Group and the Lao government, as it will create substantial employment opportunities for locals. “Specifically, 10,000 hectares of coffee will directly employ over 10,000 workers. For Hoang Anh Gia Lai, 10,000 hectares is manageable, and we have the capacity to execute it,” he stated.

The total investment for the 10,000 hectares is approximately 5 trillion VND, to be mobilized over three years. Mr. Đức noted that HAGL has secured funding for the first year, with 3 trillion VND remaining for 2026-2027.

Mr. Đức expressed confidence in achieving this, sharing that Hoang Anh Gia Lai’s annual profit ranges from 1.5 to 2 trillion VND. In 2025, profits are expected to reach 1.5 trillion VND, rising to 2.5-3 trillion VND in 2026 and continuing to grow in 2027.

The funding for this project comes from reinvested profits from previous years, with no reliance on loans.

There are three financial plans for the project: using business profits, raising capital from financial markets, and bank loans. Hoang Anh Gia Lai will prioritize the first option and, if necessary, tap into financial markets. Loans will only be considered as a last resort.

HAGL has signed a Technical Consulting and Supply Contract for 30 million coffee seedlings with the Western Highlands Agriculture and Forestry Science Institute (WASI).

Regarding fertilizers, the Group is constructing three organic fertilizer plants—two in Laos and one in Vietnam. HAGL’s strength lies in its large livestock population, including pigs, chickens, and silkworms. Combined with coffee husks, this provides an endless source of organic fertilizer. Additionally, a 7,000-hectare banana plantation will significantly enrich the soil.

For processing facilities, Mr. Đức announced that two plants will be built in Laos during 2026-2027, each with a capacity of 1,500 tons/day, requiring an investment of a few hundred billion VND. One plant will also be constructed in Vietnam.

Mr. Đức is confident about market demand, as coffee is a globally consumed product with trading platforms in London and New York, ensuring virtually unlimited sales potential.

Regarding exports under the “Hoang Anh Gia Lai Coffee” brand, Mr. Đức stated that with 10,000 hectares and an average yield of 5-6 tons/hectare, the output will reach 50,000-60,000 tons.

All “Hoang Anh Gia Lai Coffee” products meet export standards. Pricing will be determined by the market. Currently, Gia Lai’s Robusta coffee is priced at 4,500 USD/ton, while wet-processed Arabica coffee is at 9,000 USD/ton.

Mr. Đức anticipates the first harvest in October 2027. Depending on market conditions, and based on current prices, Hoang Anh Gia Lai expects to generate approximately 600 million USD annually from the 10,000-hectare project.