The plan was presented at a strategy seminar on Monday held by HAGL in cooperation with Orient Commercial Joint Stock Bank (HoSE: OCB) and OCB Securities.

If completed, the plantation would become the largest directly managed coffee-growing area in the world, surpassing estates operated by international producers such as Horizon Plantations(14,656 hectares) and Daterra (6,405 hectares).

The planned expansion comes as Vietnam’s coffee industry continues to grow strongly. In 2025, the country exported about 1.59 million tons of coffee worth roughly $9 billion, according to the Vietnam Coffee Cocoa Association.

Demand is also rising in major consumer markets. Coffee imports by China reached $2.07 billion in 2025, up 57% from a year earlier, creating opportunities for companies with large-scale, centralized plantations.

Against that backdrop, HAGL (HoSE: HAG) aims to move beyond exporting green coffee beans and expand into higher-value processing segments.

Under the plan, the company expects total revenue from its coffee business to reach nearly VND18.75 trillion ($713.05 million), with green coffee beans accounting for about 64.1% of revenue, or $457.46 million.

Roasted and ground coffee products are projected to contribute 17.2% of revenue, equivalent to $122.44 million, while refined products such as instant coffee and cascara tea are expected to account for 18.7%, or about $133.23 million. Processed products are seen as key to stabilizing profit margins amid volatility in global commodity markets.

To support this strategy, HAGL plans to invest over VND1 trillion ($38.04 million) in a processing facility capable of extracting coffee essence from by-products including about 72,743 tons of cascara, as well as fruit and husk residues.

Technical support for plantation development is being provided by the Western Highlands Agriculture and Forestry Science Institute (WASI), which is supplying hybrid coffee varieties.

The cultivation model targets planting densities of about 4,700 trees per hectare for Arabica and 3,150 trees per hectare for Robusta, higher than traditional farming densities.

Under the plan, total fresh coffee output is expected to reach about 565,000 tons annually. HAGL will also apply wet processing and controlled fermentation techniques to ensure consistent flavor quality for green coffee beans at industrial scale.

The group has identified Paksong (a district in Champasak province, southern Laos) as a key cultivation area for its Arabica plantations, with about 15,000 hectares planned. The region’s high elevation and climate conditions, including the absence of frost over the past decade, make it suitable for large-scale Arabica production.

The integrated farming model will also incorporate traceability standards and emission reduction technologies to meet international supply chain requirements.

During the seminar, representatives from WASI said the company’s focus on Arabica is supported by projections that global Arabica cultivation areas could decline by up to 50% by 2050 due to climate change, potentially tightening global supply.

They also noted that margins for refined coffee products could remain high because the raw materials used in the extraction process, mainly coffee by-products, carry minimal input costs.

HAG shares ended at VND15,300 ($0.58) each on Monday.