Hoa Phat Agriculture invests completely with own capital, pig farming ROE exceeds 80%

On June 11, 2026, Hoa Phat Agriculture (HPA) attended the Emerging Vietnam 2026 Conference organized by Ho Chi Minh City Securities Corporation (HSC) in Ho Chi Minh City, holding a meeting session with domestic and foreign investors and investment funds. During the discussion with HPA leadership, capital efficiency, farming costs, and the growth potential of pig farming were the topics that investors cared about most.

On June 11, 2026, Hoa Phat Agriculture (HPA) attended the Emerging Vietnam 2026 Conference organized by Ho Chi Minh City Securities Corporation (HSC) in Ho Chi Minh City, holding a meeting session with domestic and foreign investors and investment funds

HPA has kept its pig farming cost between 42,000 and 45,000 VND per kg from 2025 until now, which is about 10,000 VND lower than the market. This is thanks to controlling the entire breeding chain and having a productivity 1.5 times higher than the industry average. Pig farming is the largest profit contributor for HPA, with the return on equity (ROE) exceeding 80%.

Emerging Vietnam 2026 is the 12th annual investment conference held by HSC, taking place from June 10 to 12, 2026, in Ho Chi Minh City. It brings together more than 300 domestic and foreign investors, global investment funds, investment banks, and over 50 leading Vietnamese enterprises.

Over 3,000 Billion VND Invested in 8 Farms, No Long-Term Loans

Hoa Phat Agriculture (HPA) currently operates 8 pig farms across the country with a scale of 25,000 sows and about 750,000 slaughter pigs per year.

The total investment for HPA's entire farm system is more than 3,000 billion VND, including 1,200 billion VND of equity. The entire amount was funded by their own capital and depreciation sources, without using any long-term bank loans.

HPA also owns nearly 400 hectares of land invested in its farm system. Back when the first farms were built in Bac Ninh (formerly part of Bac Giang), land prices were around 160 to 300 million VND per hectare. Today, this cost has risen to between 1.5 billion and 3 billion VND per hectare in some locations. Directly owning this land bank is a huge advantage for HPA when rolling out long-term projects.

Production Cost Around 45,000 VND per kg Thanks to Full Control of the Breeding Chain

Hoa Phat Agriculture controls its entire breeding chain - from great-grandparents, grandparents, and parents to commercial pigs - using the DanBred breed from Denmark, which has some of the highest reproductive yields in the world. Each of HPA's sows produces 33 to 34 weaned piglets per year, while the industry average is only around 20 to 22 piglets. This keeps the company's production costs significantly lower than businesses that cannot source their own breeding pigs. HPA's piglets are also highly favored by the market, maintaining a steady price of around 2.4 million VND per piglet.

The farm system of HPA was built with a modern, uniform design from the very start, featuring clear divisions between different functional areas. Every farm must be located near a surface water source. This water is disinfected using an industrial UV system before entering the barns, and water used for cleaning the pens is never reused. This practice prevents pathogens from spreading during their incubation period. This is also why HPA does not buy or rent existing farms currently on the market, as most of them do not meet these strict standards.

Despite the high efficiency, Hoa Phat Agriculture does not expand its herd aggressively. Growth in farming scale must go hand in hand with control. Expanding beyond control limits would create risks regarding the environment, diseases, and labor. The turnover rate for general labor in the industry is currently around 50%, and new workers need thorough training on operating procedures and biosecurity. With high demands for biosecurity, the farms do not just manage production; they also need to care for the daily lives of hundreds of workers living together inside the facility. HPA therefore firmly stands by three growth principles: growth must go with efficiency, expansion must go with risk control, and investment must guarantee long-term value creation.

In 2026, HPA's farm system entered a new production cycle. The Minh Duc farm in the South completed a full renovation in 2025 and started restocking at the beginning of the year. The herd is expected to begin reproducing again by the end of June 2026, with the first batch of market pigs ready by the end of the year. Currently, the farm is still selling market pigs by keeping commercial piglets to raise for meat. When running at full capacity, the Minh Duc farm can produce about 150,000 market pigs per year. The Long Ha 2 farm is currently finalizing paperwork following a local administrative reorganization, aiming to stock pigs by the end of this year.

Hoa Phat Agriculture aims to increase its total herd to around 31,000 sows by 2030, while continuing to look for new projects and strictly controlling the expansion process.