On September 16, Hoa Phat Agriculture Development JSC (HPA) – a subsidiary of Hoa Phat Group chaired by billionaire Tran Dinh Long – filed for an IPO with the State Securities Commission, marking a significant milestone in its 10-year journey in agriculture.

HPA plans to offer up to 30 million shares at no less than VND 11,887 (USD 0.47) per share, based on book value as of June 30, 2025. Proceeds will fund farm systems, feed mills, working capital, and expansion in central and southern Vietnam.

The company targets listing on the Ho Chi Minh City Stock Exchange (HoSE) in December 2025 under the ticker HPA.

Since entering agriculture in 2015, Hoa Phat has focused on animal feed, pig farming, Australian beef, and egg production. Today, it ranks among Vietnam’s top 13 animal feed producers, leads the Australian beef market, and is the No. 1 supplier of clean eggs in northern Vietnam, producing nearly 1 million eggs daily. Its modern closed-loop pig farms have a capacity of over 600,000 pigs annually.

In 2024, agriculture revenue reached VND 7,084 billion (USD 280 million), up 12.2% year-on-year, with gross profit tripling to VND 1,462 billion (USD 58 million). In the first half of 2025, revenue hit 61% of the annual plan, and net profit surged 2.3 times. Net profit is expected to reach VND 1,600 billion (USD 63.2 million) this year, with EPS estimated at VND 6,274.

The results highlight the efficiency of Hoa Phat’s closed supply chain, which cushions against raw material volatility and animal disease risks.

Vietnam’s livestock market, valued at about USD 35 billion, is booming. Domestic players like Hoa Phat, Dabaco (DBC), and BAF Vietnam posted strong profits in 2024 and early 2025, driven by higher consumer demand, export recovery (USD 410.7 million in livestock exports in the first 8 months of 2025, up 24.5%), and better cost control.

Bright prospects, stronger rivals

Agriculture has become Hoa Phat’s second-largest profit driver after steel. Despite modest charter capital of VND 2,550 billion (USD 101 million) following restructuring, HPA has outperformed many competitors in profitability.

In early 2025, Hoa Phat’s agricultural revenue trailed Dabaco and Masan MeatLife (MML), but its pre-tax profits were nearly on par with Dabaco, thanks to its closed-loop model and premium products like Australian beef and clean eggs.

This year, Hoa Phat targets 1 million tons of animal feed, 750,000 pigs, 200,000 beef cattle, and 300 million eggs annually. The IPO will provide capital to expand in central and southern regions, where demand is surging.

However, the market remains dominated by foreign-invested enterprises (FDI), which account for 43% of pork supply and 60% of animal feed production. Domestic firms hold only 19% and 40%, respectively.

Despite this, leading Vietnamese players such as Dabaco, Hoa Phat, Masan, BAF, Mavin, GreenFeed, and Truong Hai are stepping up competition. While BAF pursues acquisitions, Dabaco invests in high-tech farming, and Masan leverages retail, Hoa Phat benefits from its parent group’s financial strength to gain ground.

Hoa Phat now operates across five core sectors: steel, steel products, agriculture, real estate, and household appliances. In 2024, agriculture contributed 5% of revenue and 8% of profit.

In the first half of 2025, group revenue topped VND 74 trillion (USD 2.9 billion), with net profit rising 23% to VND 7,614 billion (USD 301 million), largely from steel. The company is targeting full-year revenue of VND 170 trillion (USD 6.7 billion) and profit of VND 15 trillion (USD 594 million), with agriculture seen as a new growth engine alongside its steel backbone.

Manh Ha