Hoang Anh Gia Lai Group and Trường Hai Auto Corporation announce a strategic tie-up in HCM City on August 8 in the presence of Prime Minister Nguyen Xuan Phuc. — VNS Photo

Truong Hai Auto Corporation and Hoang Anh Gia Lai Group on Wednesday announced a strategic deal to develop the latter’s agricultural business into a leader in Viet Nam and pursue a property project in Myanmar.

Thaco and its shareholders recently bought convertible bonds worth VND3.8 trillion (US$163.1 million) issued by Hoang Anh Gia Lai Agricultural JSC.

Thaco, through Dai Quang Minh Real Estate Investment JSC, in which it holds a 85 per cent stake, bought 51 per cent of Hoang Anh Gia Lai Myanmar Co., Ltd. at VND4 trillion ($171.63 million).

It is expected to increase its holding to 65 per cent.

Thaco has also promised to help restructure HAGL’s debts of around VND14 trillion and mobilise funds to manage the latter’s fruit orchards and expanding them, and invest in the second phase of the Myanmar project.

Thaco and Dai Quang Minh will be in charge of developing the project by 2020 at a cost of $320 million.

Speaking at the event to announce the strategic tie-up, Prime Minister Nguyen Xuan Phuc said he is delighted to see a leading industrial enterprise and a large agricultural one collaborate for a large, hi-tech agricultural project.

He expected the tie-up between the two ambitious companies to boost agriculture and industry in Viet Nam.

The PM hoped the agreement would be a template for the application of technology in agriculture and investment in agriculture, and called on big businesses to invest in agriculture.

He believed the co-operation would usher in a new way of thinking: that agriculture can be successful with the use of high technology and methodical strategies. — VNS