During its 21 years of operation, Hoang Anh Gia Lai (HAGL) has experienced many development stages with different strategies built from changes in business environment and macroeconomic conditions. In 2013, HAGL promoted the leading principle "Focus on core competencies" to serve as a lodestar for its comprehensive corporate restructuring and pave the foundation for stable and sustainable development in the future.
At the back of restructuring, HAGL only keeps highly lucrative properties and projects. In agriculture, HAGL develops such crops as rubber, oil palm, sugarcane, and maize in 2014. With real estate business, HAGL keeps Hoang Anh Gia Lai Myanmar Centre Complex. This is the biggest project in the finest location in Yangon, Myanmar in the context that the supply is seriously short and property prices are very high.
In business, the HAGL leadership always attaches much importance to environmental, social and corporate governance (ESG) to create sustainable development and strengthen the confidence of shareholders and investors. The group considers ESG an essential component for the success of HAGL.
While focusing on its business performance efficiency, HAGL pays attention to developing local economies where it has business operations by carrying out following objectives: Creating values for shareholders and developing the national economy, paving the way for local economic development; creating jobs and employing local labourers. In addition to economic development, HAGL always focuses on investing in community development and enhancing social life inside and outside its project areas in Cambodia, Laos and Vietnam.
Specifically, in Vietnam, HAGL has to date funded US$15.3 million for community development and social life improvement programme, primarily concentrating on infrastructure development, employment, healthcare, education, flood relief, poverty reduction, and other activities. In Gia Lai province, HAGL has contributed to building many cultural works. It built and upgraded Pleiku Stadium into a modern, convenient sporting centre. Particularly, HAGL funded over VND200 billion to construct a 200-bed general hospital, which received personnel and technical support from HCM City Medicine and Pharmacy University.
In September 2013, HAGL provided free medical checks and medicines for ethnic minority communities in Gia Lai province. This programme helped 55 people to have their bad eyes treated, with a total expense of VND200 million, sponsored by the group. In 2014, HAGL is expected to carry out the similar programme in other communities.
With its long-term investment strategy, HAGL Arsenal JMG Football Academy had first soccer players after seven years of training, which are now the skeleton of the Vietnam U19 national squad. Resounding victories of Vietnam U19 team had millions of supporters rejoicing. The team won the silver medal at Southeast Asia Tournament and secured the top place in qualifying Group F, Asia U19 Championship. The team impressively defeated the Australian U19 team 5-1.
In Cambodia, in 2013, HAGL CEO directly met, visited and learned 18 residential communities around HAGL projects. After their contacts, HAGL announced its community support programme in Cambodia with a budget of some US$10 million. The programme, which will run from June 2013 to 2016, will fund the construction of roads, houses, wells, schools and clinics. Besides, the group provided free medical checks and free eye surgeries for people. With the enthusiastic participation of Youth Union members, Trade Union members, and voluntary employees from its subsidiaries, doctors, nurses and specialists from six departments (Internal Medicine, Surgery, Obstetrics, Paediatrics, Ophthalmology, Ear, Nose and Throat) of HAGL Medicine and Pharmacy University Hospital examined health and provided medicines for all 18 communities around HAGL projects in Cambodia. Over 50,000 people were examined and provided drugs. And, 100 people were diagnosed with bad eyes and offered free surgeries at HAGL Medicine and Pharmacy University Hospital. The total budget for medical checks, medicine provision, eye surgeries and other treatments is over US$70,000, fully funded by HAGL.
HAGL investment projects in Cambodia have created thousands of jobs for local workers. When its projects enter stable operation, HAGL will employ approximately 8,000 workers with an average monthly salary of US$250 each. Under the plan, in the next three years, HAGL will also build 3,000 houses for its employees (one house for every two employees) and each house is worth US$3,500.
In addition, HAGL has carried out community infrastructure investment programme from 2013 to 2016. At first, the group will execute items agreed with the communities during the meetings with HAGL leaders, mainly essential public works like roads, bridges, community houses, schools, water wells, toilets, and other items worth more than US$3 million. Once completed, HAGL will discuss with the communities to build new categories.
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Business performance highlights:
· VND673 billion paid to the State Budget
· 21,403 employees are working forHAGL
· US$10 million is the budgetHAGL spends on community construction in Cambodia in three years. In 2013, HAGL disbursed US$2.2 million.
· US$37.6 million has been funded for community development by HAGL in Vietnam and Laos to date.
* VND140 billion will be spent on SAP ERP system which enables the group to integrate all business activities into a unique system and enhance business and governance efficiency.
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HAGL is sponsoring the Cambodian Football Federation to build the National Football Academy in Bati, Takeo Province. The funding of US$4 million by HAGL is allocated into many different packages like academy construction, coach recruitment and footballer training.
In Laos, HAGL has launched community development programmes in Attapeu and Sekong provinces since 2008. Till now, the group has built hundreds of kilometres of asphalt roads, gravel roads and power lines and is constructing two international airports in Attapeu and Hua Phan provinces. Up to the present time, HAGL has contributed tens of millions of US dollars to build social facilities, including a 200-bed general hospital, a primary school, 2,000 houses, and new Phu Vong District Administrative Centre in Attapeu province. Previously, the group funded US$19 million to the Government of Laos, including a US$4 million non-refundable grant and US$15 million to be paid in instalments by Laos in three years to build the athletes village for SEA Games 25, which has been converted international a dormitory village of the National University of Laos. This programme was highly appreciated by the Government of Laos as it really benefited citizens, alleviates poverty and helps Attapeu province to develop.
For its outstanding efforts in the past years, HAGL has, and will, pursued its strategic development goals and directions.
Van Luong
Vietnamese
