VietNamNet Bridge - Experts see worrying problems if Hoang Anh Gia Lai Group (HAGL) sells land in Laos and in Vietnam.

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Hoang Anh Gia Lai's President Doan Nguyen Duc

Doan Nguyen Duc, President of HAGL, which is facing serious financial problems, has stated the group would sell 20,000 hectares of rubber tree plantation in Laos to pay debts if the government does not rescue it.

According to Nguyen Van Ngai, Economics Dean of the HCMC University of Agriculture and Forestry, there are two issues that need to be considered thoroughly.

First, HAGL has the right to sell its assets to get money for debt repayment. However, it could be a problem in national defence and security if the 20,000 hectares of forestland in Lao territory are near the Vietnamese border.

If this is just a normal project, the government should respect the enterprise’s self-determination. It should let HAGL sell land to pay debt and not rescue it.

Second, if the sale of the land in Laos cannot help HAGL pay the debt, it may consider project land in Vietnam. If this happens, Vietnam needs to prevent this by taking over the land use rights and letting the enterprise go bankrupt.

Doan Nguyen Duc, President of Hoang Anh Gia Lai, which is facing serious financial problems, has stated the group would sell 20,000 hectares of rubber tree plantation in Laos to pay debts if the government does not rescue it.
“The consequences will be immeasurable if large forestland areas are sold or the land exploitation rights are transferred to Chinese or foreign businesses,” Ngai said.

The expert went on to say that Vietnam needs to maintain an uncompromising attitude towards businesses which take losses and then threaten to sell land if the government does not save them.

“If the enterprise cannot be saved, it would be better to let the Vietnam Rubber Group take over the rubber tree land or let the enterprise go bankrupt,” Ngai said.

An analyst, agreeing with Ngai, said that though it is the businesses’ right to sell its assets, the government needs to intervene if this has an impact on national interests.

He said foreign companies may obtain the right to exploit forestland in Vietnam if they buy stakes in Vietnamese enterprises which become equitized.

Many countries are cautious about investments from China for fear about national security and defence.

Da Nang City’s authorities have expressed their deep concern over the fact that many Chinese have bought projects located in important positions in the city.

Nguyen Ngoc Lung, head of the Institute for Sustainable Forest Management and Forest Certification, also said the public has raised its voice against the leasing of forestland in border areas. 


Dat Viet