Economy
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| Hoàng Anh Gia Lai Group and Trường Hải Auto Corporation announce a strategic tie-up in HCM City on August 8 in the presence of Prime Minister Nguyễn Xuân Phúc. — VNS Photo |
Viet Nam News
HCM CITY — Trường Hải Auto Corporation and Hoàng Anh Gia Lai Group on Wednesday announced a strategic deal to develop the latter’s agricultural business into a leader in Việt Nam and pursue a property project in Myanmar.
Thaco and its shareholders recently bought convertible bonds worth VNĐ3.8 trillion (US$163.1 million) issued by Hoàng Anh Gia Lai Agricultural JSC.
Thaco, through Đại Quang Minh Real Estate Investment JSC, in which it holds a 85 per cent stake, bought 51 per cent of Hoàng Anh Gia Lai Myanmar Co., Ltd. at VNĐ4 trillion ($171.63 million).
It is expected to increase its holding to 65 per cent.
Thaco has also promised to help restructure HAGL’s debts of around VNĐ14 trillion and mobilise funds to manage the latter’s fruit orchards and expanding them, and invest in the second phase of the Myanmar project.
Thaco and Đại Quang Minh will be in charge of developing the project by 2020 at a cost of $320 million.
Speaking at the event to announce the strategic tie-up, Prime Minister Nguyễn Xuân Phúc said he is delighted to see a leading industrial enterprise and a large agricultural one collaborate for a large, hi-tech agricultural project.
He expected the tie-up between the two ambitious companies to boost agriculture and industry in Việt Nam.
The PM hoped the agreement would be a template for the application of technology in agriculture and investment in agriculture, and called on big businesses to invest in agriculture.
He believed the co-operation would usher in a new way of thinking: that agriculture can be successful with the use of high technology and methodical strategies. — VNS
