The State Securities Commission of Vietnam (SSC) has announced the revocation of the public company status of Loc Troi Group JSC (UPCoM: LTG), effective August 11. The company had previously fallen behind on the disclosure of several financial reports.

Following the loss of its public company status, LTG now faces the prospect of having its securities registration canceled at the Vietnam Securities Depository and Clearing Corporation (VSDC) and no longer being traded on a centralized market, including UPCoM. Shareholders will retain ownership of their shares, but liquidity could become significantly more limited.

It marks a major setback for a company that once held a notable position on Vietnam’s stock market. LTG shares previously traded above US$1.20 apiece, but had fallen to about US$0.20 by June 19, 2026, before trading was suspended from June 26.

The Hanoi Stock Exchange (HNX) suspended trading in LTG shares from June 26. To date, the company has yet to publish its audited financial statements for 2024, its semi-annual financial statements for 2025, its full-year 2025 financial statements and its semi-annual financial statements for 2026.

On July 2, LTG was also fined about US$3,200 by the SSC for repeated violations of information disclosure deadlines.

Loc Troi’s difficulties extend well beyond disclosure requirements. On May 4, 2026, the company received a court ruling in a credit contract dispute with PVcomBank, under which it was ordered to pay nearly US$8.9 million in principal and interest calculated as of July 9, 2025. Some collateral assets have also been seized and handled for debt recovery.

Loc Troi has attributed the delays in publishing its financial statements to “force majeure events” related to its 2024 financial crisis, coupled with major personnel changes that made it difficult to compile the necessary figures and documents. In June 2026, LTG terminated its 2024 audit contract with EY Vietnam and signed with UHY to conduct the audit and review. However, CEO Tran Khanh Du said the company had still not had sufficient time to complete the required procedures.

Mounting pressure from the expansion of its rice value chain

Looking back at Loc Troi’s trajectory, its current difficulties did not emerge overnight.

Originally established as An Giang Plant Protection Company, Loc Troi once had a “cash cow” in its crop protection chemicals business. Gross margins in the segment reached as high as 30% at one point, helping the company maintain strong profits and abundant cash flow.

After 2019, however, Loc Troi accelerated its strategy of transforming itself into an agricultural services group, gradually reducing its reliance on crop protection products while building an integrated rice value chain. Food revenue surged from about US$245 million in 2022 to roughly US$432 million in 2023. Total revenue in 2023 reached approximately US$630 million.

The problem was that rapid revenue growth did not translate into a corresponding rise in profit. Gross profit margin fell to around 15%, while interest expenses continued to climb. Loc Troi also had to provide farmers with advance payments at zero interest while borrowing from banks at higher rates. Fluctuating rice prices and a rising USD/VND exchange rate added further pressure.

Another major turning point came with the end of Loc Troi’s distribution partnership with Syngenta in late 2021. Syngenta did not unilaterally terminate the arrangement; the two sides had agreed under their 2019 contract that the partnership would conclude at the end of 2021. Even so, the development marked an important shift in Loc Troi’s crop protection business.

After ending its partnership with Loc Troi, Syngenta became a strategic investor in Vietnam Fumigation JSC (VFG). In the following years, VFG recorded strong profit growth, while Loc Troi entered a period of losses and mounting financial pressure.

In 2023, LTG’s profit plunged roughly 25-fold to just around US$629,000, its lowest level since 2008. In the first quarter of 2024, the company posted an after-tax loss of more than US$3.6 million. At the same time, it faced substantial debts owed to farmers and increasingly severe financial pressure.

During Nguyen Duy Thuan’s tenure as CEO, from May 2020 to July 2024, Loc Troi also expanded rapidly in terms of revenue, assets and borrowing. After more than four years at the helm, Thuan was removed from the position.

In January 2026, Tran Khanh Du was appointed CEO, while Bui Quang Phu became chief financial officer. Chairman Huynh Van Thon described the strengthening of the executive team as an important step in upgrading corporate governance and carrying out a comprehensive restructuring. Du has also acknowledged that Loc Troi is facing intense pressure over its finances, credibility and future.

Loc Troi’s biggest challenge now is to restore its operations, address its financial problems, complete its outstanding reports and rebuild the confidence of shareholders, business partners and farmers.

Without audited financial statements, the true picture of Loc Troi’s assets, liabilities, cash flow and business performance cannot yet be fully assessed. Shareholders will therefore have to wait until the outstanding financial statements are completed and disclosed before they can determine where the company truly stands.

Once an agricultural powerhouse earning hundreds of billions of dong in annual profits, Loc Troi has now seen its shares suspended from trading and its public company status revoked. The road ahead is therefore about more than reviving its business. It will also test the new leadership’s ability to restructure the company and revive one of Vietnam’s major agricultural brands.

Manh Ha