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|What lines behind the N.A Motor's intention to become strategic investor of Hapro|
Hapro reported bleak business results with a profit of only VND10 billion in 2017 and a rather small charter capital of VND2.2 trillion ($96.6 million). Nevertheless, N.A Motor decided to become its strategic investor. What are the reasons behind the deal?
We know that Hapro is currently struggling, however, we also see that it has great potential on the long run. Besides, its sectors of operation are suitable with N.A Motor’s long-term development plan.
Notably, N.A Motor plans to develop the import-export segment to bring Vietnamese goods abroad, while Hapro has an advantage in exporting pepper, cashew nuts, rice, medicinal herbs and canned food. Besides, Hapro has a number of flagship products like Chu Dau pottery products. Thus, once N.A Motor becomes the strategic investor of Hapro, we will connect our advantages to realise the above targets and optimise benefits for both sides.
There are rumours that N.A Motor is actually aiming for Hapro’s land plots in Hanoi. Would you like to comment?
In my opinion, this is rather subjective as almost all of the land plots are rented out for specific purposes. Besides, according to current regulations, after firms conduct equitisation, they are not permitted to change the land use purpose of the plots that they manage.
Furthermore, before deciding to equitise Hapro, the Hanoi People’s Committee issued a decision to withdraw 61 land plots from Hapro, including the 12-hectare plot in Long Bien.
After officially becoming the strategic investor of Hapro, what are N.A Motor’s plans for Hapro?
N.A Motor is mostly interested in Hapro’s import-export business, thus, we will work with foreign partners, including Japanese firms to increase the exports of N.A Motor and Hapro’s flagship products, including Chu Dau pottery.
After that, we will increase agricultural product exports to overseas markets, aiming to exploit Hapro’s full potential. According to the plan, this year, Hapro will export 500 containers of goods to more than 20 overseas markets.
Besides, N.A Motor and Hapro will co-operate to develop our domestic retail chain. We believe that with the co-operation of Hapro and Vietnam Intimex JSC, we will have certain advantages in this sector.
On March 30, Hapro will put 34.5 per cent stake on sale via public auction at the initial price of VND12,800 ($0.56).
After the equitisation, Hapro will step up product development. The firm targets boosting its export turnover to make up 80 per cent of its accumulated revenue and make Hapro an international brand.
Besides, the firm plans to build and develop certain export product groups, including rice, pepper, cashew nut, coffee, and handicrafts.
Hapro will establish representative offices in the Middle East, Angola, Southeast Asia, and Eastern Europe to facilitate exports around the world.
In the domestic market, Hapro will continue to increase the distribution of fresh fruits, rice, handicrafts, and seafood, among others.