HAGL Faces Continued Uncertainty: Auditor Flags Concerns Over Sustainability

Hoang Anh Gia Lai Group (HAGL), chaired by Doan Nguyen Duc, is facing mounting financial challenges that raise significant concerns about its ability to continue operations. While the company reported a profit after tax of over 500 billion VND in the first half of 2024, the auditor, Ernst & Young Vietnam, flagged several key issues. Notably, HAGL’s accumulated losses surpassed 957 billion VND, and short-term liabilities outweighed short-term assets by 350 billion VND. These factors prompted the auditor to express “considerable doubts about the Group’s ability to continue as a going concern.” HAGL is addressing these concerns by liquidating investments, assets, and receivables, and pursuing debt restructuring with lenders. The company is also relying on revenue from its pig and coffee businesses to support its operations. However, the extent to which these measures will be sufficient to alleviate the company’s financial difficulties remains uncertain.