In Q1 cow trading earns over VND1.2 trillion, or 62.5 per cent of the total revenue for Hoang ANh Gia Lai Group. — Photo cafef.vn

HA NOI — The central highlands province of Kon Tum is withdrawing approval for a VND1.6 trillion cattle project run by Hoang Anh Gia Lai Group (HAG) in Ia H'Drai District, officials said.

The action will halt progress on the project, which aimed to raise 35,700 cows and expand to 112,000 cows, according to the provincial People's Committee.

The HAG chairman told the local media that he had not done any work on the Kon Tum project after receiving the investment certificate in 2015, adding he had no plans to develop it either.

However, chairman Duc did not give any reasons for not completing the project.

In the first quarter of this year, cow trading earned over VND1.2 trillion, or 62.5 per cent of the total revenue for the group. HAG started raising Australian-breed cows in 2014 and have delivered them to the market from March 2, 2015.

In 2015, HAG announced it was spending VND6.3 trillion on raising cows. Currently, it is estimated to own 236,000 beef and dairy cows. Last year, the group also inked deals with local giant meat supplier Vissan and food producer NutiFood, to supply them with beef and milk respectively.

On the market, due to having run up debts amounting to some VND30 trillion with local banks, HAG shares fell by more than 60 per cent to its lowest level since the group first listed its shares in 2008.

On May 27, each HAG share was traded at VND7,900 on the local market.