Hoang Anh Gia Lai Group
Encyclopedia
Hoang Anh Gia Lai Group (also Hoang Anh Gia Lai Joint Stock Company, Công ty Cổ phần Hoàng Anh Gia Lai, abbreviated as HAGL or HAG) is a diversified company headquartered in Pleiku
, Vietnam
.
From a small furniture producer the company diversified into other industries such as rubber, finances a football club (Hoang Anh Gia Lai Club) and was Vietnam
's largest property developer in 2010 and the second largest in 2011.
producing furniture and employing 200 workers. Another wood processing plant was added in 1993 in the suburbs of Pleiku. The company diversified into granite processing in 2002 and later real estate and hotels.
HAGL was registered as a joint stock company in 2006.
's mid-tier market. It has secured enough land for proposed projects for the period from 2012 to 2016. The land has been procured at prices lower than the current market value (May 2011), resulting in prospects for high profit margins.
HAGL built the athletes' village for the 2009 Southeast Asian Games
in Vientiane
, Laos
. In return, it received a large rubber concession in Laos' north-east.
HAGL also operates a chain of 4 and 5 star hotels and resorts in Ho Chi Minh City
, Da Lat, Da Nang
, Nha Trang
, Quy Nhon etc.
ese provinces of Gia Lai
and Dak Lak, as well as Cambodia
and Laos
. It is investing at least US$225 million to expand the area of its rubber plantations to 51,000 by 2012, at least 25,000 of which are being planted in Laos
. It has acquired rights to grow rubber trees in Attapeu Province in the south-east of Laos and in the north-east of the country. The rubber plantations are also expected to provide three million cubic meters of wood, which will be used in the group's wood processing and furniture business.
HAGL has a subsidiary and several joint ventures in the rubber industry:
province of Thanh Hoa started in 2009 at a cost of around 500bn VND. Several other projects are being planned or under construction in the Central Highlands
of Vietnam. HAGL has three hydro power projects, as well as a 28MW thermo-power plant project, in Laos
Electricity from these power plants will be sold to a Lao partner rather than Vietnam's EVN
because the former's prices are around 30% higher.
Some of HAGL's power plants are developed by its subsidiary HAGL Hydro Power (CTCP Thủy Điện HAGL) which has a capital stock of 100bn VND, 70% of which is owned by HAGL Group. Other joint ventures include the following:
South Central Coast
and North Central Coast
of Vietnam and Xekong Province
of Laos
:
s (GDRs) in 2011, from which it raised 56.5 million US$.
It has also issued bonds in the Singapore
an market. One of its main investors there has been Singapore's government-owned Temasek Holdings
, which invested 110 million US$ until May 2011 and spent another 5.39 million (1.13 trillion VND) in July 2011.
Pleiku
Pleiku is a town in central Vietnam, located in that nation's central highland region. It is the capital of the Gia Lai Province; it is inhabited primarily by the Bahnar and Jarai ethnic groups, sometimes known as the Montagnards or Degar....
, Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
.
From a small furniture producer the company diversified into other industries such as rubber, finances a football club (Hoang Anh Gia Lai Club) and was Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
's largest property developer in 2010 and the second largest in 2011.
History
Hoang Anh Gia Lai was set up in 1990 as a small factory in PleikuPleiku
Pleiku is a town in central Vietnam, located in that nation's central highland region. It is the capital of the Gia Lai Province; it is inhabited primarily by the Bahnar and Jarai ethnic groups, sometimes known as the Montagnards or Degar....
producing furniture and employing 200 workers. Another wood processing plant was added in 1993 in the suburbs of Pleiku. The company diversified into granite processing in 2002 and later real estate and hotels.
HAGL was registered as a joint stock company in 2006.
Real Estate
HAGL is established in Vietnam's residential property development business, with a focus Ho Chi Minh CityHo Chi Minh City
Ho Chi Minh City , formerly named Saigon is the largest city in Vietnam...
's mid-tier market. It has secured enough land for proposed projects for the period from 2012 to 2016. The land has been procured at prices lower than the current market value (May 2011), resulting in prospects for high profit margins.
HAGL built the athletes' village for the 2009 Southeast Asian Games
2009 Southeast Asian Games
The 25th Southeast Asian Games was held in Vientiane, Laos, in December 2009.This was the first time Laos had held the Southeast Asian Games...
in Vientiane
Vientiane
-Geography:Vientiane is situated on a bend of the Mekong river, which forms the border with Thailand at this point.-Climate:Vientiane features a tropical wet and dry climate with a distinct monsoon season and a dry season. Vientiane’s dry season spans from November through March. April marks the...
, Laos
Laos
Laos Lao: ສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົນລາວ Sathalanalat Paxathipatai Paxaxon Lao, officially the Lao People's Democratic Republic, is a landlocked country in Southeast Asia, bordered by Burma and China to the northwest, Vietnam to the east, Cambodia to the south and Thailand to the west...
. In return, it received a large rubber concession in Laos' north-east.
HAGL also operates a chain of 4 and 5 star hotels and resorts in Ho Chi Minh City
Ho Chi Minh City
Ho Chi Minh City , formerly named Saigon is the largest city in Vietnam...
, Da Lat, Da Nang
Da Nang
Đà Nẵng , occasionally Danang, is a major port city in the South Central Coast of Vietnam, on the coast of the South China Sea at the mouth of the Han River. It is the commercial and educational center of Central Vietnam; its well-sheltered, easily accessible port and its location on the path of...
, Nha Trang
Nha Trang
Nha Trang is a coastal city and capital of Khanh Hoa province, on the South Central Coast of Vietnam. It is bounded on the North by Ninh Hoà district, on the East by the South China Sea, on the South by Cam Ranh town and on the West by Diên Khánh district...
, Quy Nhon etc.
Rubber
HAGL operates rubber plantations in the VietnamVietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
ese provinces of Gia Lai
Gia Lai Province
Gia Lai is a province in the Central Highlands of Vietnam.-Administrative divisions:The province is divided into one city , two towns , and 13 districts:#Chư Păh#Chư Prông#Chư Sê#Đắk Đoa#Đắk Pơ#Đức Cơ#Ia Grai#Ia Pa...
and Dak Lak, as well as Cambodia
Cambodia
Cambodia , officially known as the Kingdom of Cambodia, is a country located in the southern portion of the Indochina Peninsula in Southeast Asia...
and Laos
Laos
Laos Lao: ສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົນລາວ Sathalanalat Paxathipatai Paxaxon Lao, officially the Lao People's Democratic Republic, is a landlocked country in Southeast Asia, bordered by Burma and China to the northwest, Vietnam to the east, Cambodia to the south and Thailand to the west...
. It is investing at least US$225 million to expand the area of its rubber plantations to 51,000 by 2012, at least 25,000 of which are being planted in Laos
Laos
Laos Lao: ສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົນລາວ Sathalanalat Paxathipatai Paxaxon Lao, officially the Lao People's Democratic Republic, is a landlocked country in Southeast Asia, bordered by Burma and China to the northwest, Vietnam to the east, Cambodia to the south and Thailand to the west...
. It has acquired rights to grow rubber trees in Attapeu Province in the south-east of Laos and in the north-east of the country. The rubber plantations are also expected to provide three million cubic meters of wood, which will be used in the group's wood processing and furniture business.
HAGL has a subsidiary and several joint ventures in the rubber industry:
- HAGL Rubber (200bn VND capital, 99% owned by HAGL)
- Hoang Anh - Quang Minh Rubber (100bn, 57.5%)
- Ban Me Rubber (25bn, 66.6%)
- Hoang Anh - Mang Yang Rubber (45.39bn, 40%)
Energy
HAGL has been investing in electricity projects, mainly hydro power. Construction of two dams in the north-centralBac Trung Bo
Bắc Trung Bộ is one of the regions of Vietnam. It consists of six provinces: Thanh Hóa, Nghệ An, Hà Tĩnh, Quảng Bình, Quảng Trị, Thừa Thiên-Huế...
province of Thanh Hoa started in 2009 at a cost of around 500bn VND. Several other projects are being planned or under construction in the Central Highlands
Tây Nguyên
Tây Nguyên, translated as Western Highlands and sometimes also called Central Highlands, is one of the regions of Vietnam. It contains the provinces of Đắk Lắk, Đắk Nông, Gia Lai, Kon Tum, Lâm Đồng....
of Vietnam. HAGL has three hydro power projects, as well as a 28MW thermo-power plant project, in Laos
Laos
Laos Lao: ສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົນລາວ Sathalanalat Paxathipatai Paxaxon Lao, officially the Lao People's Democratic Republic, is a landlocked country in Southeast Asia, bordered by Burma and China to the northwest, Vietnam to the east, Cambodia to the south and Thailand to the west...
Electricity from these power plants will be sold to a Lao partner rather than Vietnam's EVN
EVN
EVN may refer to:* European VLBI Network, an array of European-centric radio telescopes.* Zvartnots International Airport, IATA airport code* Escape Velocity Nova, the third installment of the Escape Velocity computer game series....
because the former's prices are around 30% higher.
Some of HAGL's power plants are developed by its subsidiary HAGL Hydro Power (CTCP Thủy Điện HAGL) which has a capital stock of 100bn VND, 70% of which is owned by HAGL Group. Other joint ventures include the following:
- Hoang Anh Dakbla Hydro Power (110bn, 70%)
- Hoang Anh Phat Tai Hydro Power (100bn, 75%)
- Hoang Anh Tona Hydro Power (150bn, 94.38%)
Mining
HAGL has recently been diversifying into mining. It has subsidiaries and joint ventures in the Central HighlandsTây Nguyên
Tây Nguyên, translated as Western Highlands and sometimes also called Central Highlands, is one of the regions of Vietnam. It contains the provinces of Đắk Lắk, Đắk Nông, Gia Lai, Kon Tum, Lâm Đồng....
South Central Coast
Nam Trung Bo
Nam Trung Bộ is one of the regions of Vietnam. It consists of the independent municipality of Đà Nẵng and seven other provinces. The two southern provinces Ninh Thuận and Bình Thuận are sometimes seen as part of the Southeast region.The region has traditionally been one of the main gateways to...
and North Central Coast
Bac Trung Bo
Bắc Trung Bộ is one of the regions of Vietnam. It consists of six provinces: Thanh Hóa, Nghệ An, Hà Tĩnh, Quảng Bình, Quảng Trị, Thừa Thiên-Huế...
of Vietnam and Xekong Province
Xekong Province
Sekong is a province of Laos, located in the south-east of the country.-Geography:Sekong was created in 1984, when it was split off from Salavan Province. It is bordered by Vietnam to the east, Attapeu Province to the south, Salavanh Province to the north, and Champasak Province to the west...
of Laos
Laos
Laos Lao: ສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົນລາວ Sathalanalat Paxathipatai Paxaxon Lao, officially the Lao People's Democratic Republic, is a landlocked country in Southeast Asia, bordered by Burma and China to the northwest, Vietnam to the east, Cambodia to the south and Thailand to the west...
:
- HAGL Mining (200bn VND, 75% owned by HAGL Group)
- Gia Lai Mining (140bn, 51%)
- Quang NgaiQuang Ngai ProvinceQuảng Ngãi is a province in the South Central Coast region of Vietnam, on the coast of South China Sea. It is located 883 km south of Hanoi and 838 km north of Ho Chi Minh City.-History:...
Mining (100bn, 80%) - Hoang Anh Thanh Hoa Mining (200bn, 83.7%)
- Kbang Mining (100bn, 66.93%)
- Hoang Anh GL - KontumKon Tum ProvinceKon Tum province lies in the Central Highlands region of Vietnam and shares borders with Laos and Cambodia. It has an area of 9,934 square km and a population of approximately 330,000. The economy is primarily agricultural.-Name:...
(50bn, 83.7%) - Hoang Anh XekongXekong ProvinceSekong is a province of Laos, located in the south-east of the country.-Geography:Sekong was created in 1984, when it was split off from Salavan Province. It is bordered by Vietnam to the east, Attapeu Province to the south, Salavanh Province to the north, and Champasak Province to the west...
Mining (5.3bn, 83.7%)
Financial Information
| Revenues (bn VND) | Profit before tax (vn VND) | Net profit (bn VND) | |
|---|---|---|---|
| 2010 | 4,526.47 | 3,017.41 | 2,222.08 |
| 2009 | 4,370.25 | 1,743.5 | 1,286.9 |
| 2008 | 1,885.15 | 1,006.16 | 765.34 |
| 2007 | 1,589.43 | 869.71 | 622.34 |
Financing
Apart from domestic bank loans, HAGL has been able to tap into international financial markets to finance its rubber and hydro power projects. It is Vietnam's first company to list global depository receiptGlobal Depository Receipt
A global depository receipt or global depositary receipt is a certificate issued by a depository bank, which purchases shares of foreign companies and deposits it on the account...
s (GDRs) in 2011, from which it raised 56.5 million US$.
It has also issued bonds in the Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
an market. One of its main investors there has been Singapore's government-owned Temasek Holdings
Temasek Holdings
Temasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about S$193 billion at end of March 2011, focused primarily in Asia...
, which invested 110 million US$ until May 2011 and spent another 5.39 million (1.13 trillion VND) in July 2011.