HAG Signs MOU with Champasak for 5,000 Ha Coffee, Targets World's Largest Coffee Grower

Overview

Hoang Anh Gia Lai (HAG) has signed a Memorandum of Understanding (MOU) with the Champasak provincial government in Laos to develop 5,000 hectares of coffee and processing plants on the Bolaven Plateau. The project is part of HAG’s broader strategy to become the world’s largest coffee grower, targeting a total area of over 20,000 hectares across Vietnam, Laos, and Cambodia. The company currently owns approximately 14,000 hectares of coffee, already the largest globally.

Key Facts

• HAG signed an MOU with Champasak province on May 10, 2026, in Pleiku, Gia Lai.
• The agreement covers 5,000 hectares of coffee and processing plants in Paksong district, Bolaven Plateau.
• HAG aims to expand its total coffee area to over 20,000 hectares across Vietnam, Laos, and Cambodia.
• The company currently owns approximately 14,000 hectares of coffee, the largest in the world.
• In Q1 2026, HAG reported net revenue of VND 1,784 billion, with fruit segment contributing VND 1,314.7 billion (+32% YoY).
• Retained earnings after tax stood at VND 2,663.1 billion as of end-Q1 2026.
• On April 29, 2026, HAG completed a VND 2,000 billion bond issuance (HAG12601, 36-month term) rated A by Fiin Ratings and guaranteed by OCB.

What Happened

On May 10, 2026, Hoang Anh Gia Lai (HAG) and the Champasak provincial government signed an MOU to develop 5,000 hectares of coffee and processing facilities in Paksong district, on the Bolaven Plateau. The agreement was formalized in Pleiku, Gia Lai, with senior officials from both sides present.

Champasak Party Secretary Alounxay Sounnalath stated that the province will facilitate high-tech agricultural investment and expects the project to drive local development. Gia Lai Vice Chairman Nguyen Huu Que noted that the investment will generate budget revenue and employment for local workers. The MOU is part of a broader cooperation framework between Gia Lai and Champasak provinces.

Market Context

HAG shares (HOSE: HAG) have been supported by the company’s turnaround in agriculture, particularly fruit and coffee. The Q1 2026 results showed strong revenue growth in the fruit segment, which is the main driver. The coffee expansion plan, funded by a VND 2,000 billion bond issuance, signals management’s confidence in the sector. The bond’s A rating and OCB guarantee provide some credit comfort. However, HAG’s historical debt issues and reliance on agriculture in volatile regions remain risks.

Strategic Significance

The MOU reinforces HAG’s ambition to dominate the global coffee plantation market. By expanding into Laos, the company leverages lower land costs and favorable climate conditions on the Bolaven Plateau. The target of 20,000 hectares would solidify HAG’s position as the world’s largest coffee grower by area, potentially giving it scale advantages in production and processing. The project also aligns with Laos’ push for high-tech agriculture and cross-border cooperation with Vietnam.

What to Watch

• Progress on land clearance and planting in Paksong district over the next 12 months.
• HAG’s Q2 2026 earnings report for updates on coffee segment revenue and margins.
• Utilization of the VND 2,000 billion bond proceeds and any additional financing needs.
• Coffee price trends (robusta and arabica) and their impact on HAG’s profitability.
• Regulatory approvals and any changes in Laos’ investment policies for foreign agricultural projects.