Hoang Anh Gia Lai Agrico (HAGL Agrico) plans to sell its 100 per cent of its stake in Dong Duong Rubber Investment and Development Co Ltd to Thadi Agriculture Production And Processing Joint Stock Company.
Dong Duong Rubber is a subsidiary of HAGL Agrico with charter capital of 1.46 trillion dong ($63.8 million) as of the end of last year.
Dong Duong Rubber operates mainly in the fields of processing rubber products, afforestation and forest conservation, construction, trading industrial machinery and transporting goods.
Since the end of last year, global rubber prices are been skyrocketing. Rubber price in Vietnam is currently at an eight-month peak at 51,000 dong per kg, up 27 per cent from the beginning of this year.
The rising prices were attributed to rising oil prices in the first few months of the year (up 35 per cent) and unfavourable weather conditions affecting production and storage, especially the tropical storms in Thailand, early winter in some Southeast Asian countries and drought in Yunnan province in China.
HAGL Agrico maintains 47,100ha of rubber production, of which 20,300ha are in Laos, 4,900ha in Vietnam and 21,800ha in Cambodia. HAGL operates a rubber latex processing factory with a capacity of 25,000 tonnes per year in Laos.
Thadi is an agricultural production arm of Truong Hai Auto Corporation (Thaco) specialising in research and development of agricultural materials and fruit processing equipment, as well as the distribution and export of fruits to foreign markets. VIET NAM NEWS