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Lao PM meets THACO & HAGL

Released at: 13:08, 26/01/2019 BUSINESS SPOTLIGHT

Lao PM meets THACO & HAGL

Photo: VNA

Lao Prime Minister welcomes Vietnamese companies on January 24.

by Pham Kien

Lao Prime Minister Thongloun Sisoulith expressed his appreciation of the Truong Hai Auto Corporation (THACO)’s agricultural investment strategy in a closed chain and will create conditions for THACO and Hoang Anh Gia Lai (HAGL) to continue investing and developing agriculture in Laos in the future.

At the government office of the Lao People’s Democratic Republic, Prime Minister Sisoulith and government members welcomed THACO Chairman Tran Ba Duong and Mr. Doan Nguyen Duc, Chairman of HAGL, on January 24.

Mr. Duc reported to the Prime Minister that the group’s investment in Laos had been affected by the steep fall in the price of rubber latex in the world market, which made the group unable to fulfil its commitment to building Nongkhang Airport.

He added that the group signed a strategic deal with THACO on August 8 last year, under which THACO has provided financial support for HAGL to restructure and pay debts. Thanks to this assistance, HAGL has overcome a difficult period, stabilized its finances, and continued to invest in agriculture.
     
HAGL is proceeding to convert the area for palm oil and under-developed rubber trees to fruit trees, with a plan to increase the total area of fruit trees to 16,000 ha and retain 10,000 ha of rubber trees. In particular, with THACO’s commitment of financial support and its existing construction capacity, HAGL committed to the Prime Minister to focus on the construction and opening of Nongkhang Airport on Laos’ national day, December 2.

THACO will be mainly responsible for a comprehensive restructuring of the company, including debt restructuring and arranging investment capital to implement the sustainable agricultural development strategy, based on synchronous solutions: appropriately applying high technology, and governance through the application of information technology on the basis of digitalization and mechanization in all stages in the value chain of agricultural production, from cultivation to harvesting, transporting, storage and processing, according to each group of fruit trees and industrial plants.

At the same time, the application of internal contract management will be applied to replicate cooperation with outside farmers, contributing to creating a sustainable value chain for the agricultural sector in Laos and Vietnam.

Mr. Duong said his firm will supply agricultural machinery and mechanization solutions for HAGL’s farm in the southern Lao province of Attapeu. The company will also open a transportation route from Attapeu to THACO’s agro-forestry-industry park and Chu Lai Port in Vietnam’s central Quang Nam province through the Bo Y border gate in Kon Tum province.

Mr. Duong affirmed that THACO and HAGL will work for the common target of developing fruit tree cultivation in Laos. THACO will build a closed value chain in the field, expand the large-scale cultivation model, and transfer technology to Lao farmers to reach the goal of developing sustainable and high-value agriculture in Laos.

THACO will advance $12 million to HAGL to complete the remaining items at Nongkhang Airport. It will assign its subsidiary Dai Quang Minh to help with the management and supervision of construction, so that the airport will be completed on schedule.

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