Hoa Phat (HPG) signs Thai Brahman cattle supply deal to diversify imports

Overview

Hoa Phat Group’s trading arm, Công ty TNHH Thương mại Hòa Phát, signed a strategic partnership with Thailand’s Meat and Livestock Export Association (TLEX) to import Brahman beef cattle. The agreement adds a new supply source alongside Hoa Phat’s existing Australian cattle imports, aiming to stabilize both volume and quality for the Vietnamese market. This move supports HPG’s agricultural diversification strategy.

Key Facts

• Hoa Phat’s trading subsidiary signed an agreement with TLEX, Thailand’s meat and livestock export association, to import Brahman cattle.
• The company plans to import about 1,300 head per month from Thailand from now until December 2026.
• In 2027, imports are expected to reach approximately 36,000 head, with further increases in subsequent years.
• Hoa Phat has been trialing Thai cattle since 2021, with a decision to scale up made in 2026.
• The company’s Australian cattle trade was valued at $200–230 million per year during 2019–2020.
• TLEX reports that Thai cattle exports to Vietnam currently exceed 200,000 head annually.
• The agreement includes biosecurity and disease-control protocols matching Hoa Phat’s Australian supply standards.

What Happened

Công ty TNHH Thương mại Hòa Phát, a subsidiary of Hoa Phat Group, signed a cooperation agreement with TLEX to import Brahman cattle from Thailand. The signing ceremony took place in Hà Nội, with representatives from the Thai Embassy, TLEX, and Hoa Phat’s agricultural arm (HPA). TLEX will coordinate cattle supply from Thai farms that meet Hoa Phat’s requirements for biosecurity, disease control, and farming practices.

The cattle will be monitored from vaccination and quarantine in Thailand until arrival in Vietnam, following the same procedures Hoa Phat applies to its Australian herd, its primary source since 2016. The Thai cattle are the same Brahman breed, helping stabilize supply and quality. Imports will increase gradually, with a target of 1,300 head per month by December 2026 and 36,000 head in 2027.

Market Context

HPG closed at 21,250 VND on August 14, 2026, on the HOSE. The company, primarily known for steel, has been expanding into agriculture, including beef cattle. This agreement diversifies its supply chain, reducing reliance on Australian imports, which have been the main source since 2016. The move aligns with Vietnam’s growing demand for beef and Hoa Phat’s strategy to build a stable, high-quality beef business.

Strategic Significance

For long-term investors, this partnership signals Hoa Phat’s commitment to scaling its agricultural segment, which could provide a new revenue stream beyond steel. By securing a second supply source, the company mitigates risks related to Australian supply disruptions or price volatility. The phased ramp-up—starting with 1,300 head per month and reaching 36,000 head in 2027—indicates a measured approach, allowing Hoa Phat to test and integrate Thai cattle while maintaining quality standards. This could strengthen its position in Vietnam’s beef market, where demand is rising.

What to Watch

• Monthly import volumes from Thailand to see if they meet the 1,300-head target by December 2026.
• Any announcements on expansion of Thai farm partnerships or additional supply agreements.
• HPG’s quarterly earnings reports for contributions from the agricultural segment.
• Updates on TLEX’s plans to shift from road to sea transport for cattle exports by 2027, which could reduce costs.
• Regulatory or trade policy changes affecting cattle imports into Vietnam.