Hoang Anh Gia Lai (HAGL), a major Vietnamese agri company, has set out a vision to put in place a directly managed coffee estate on the scale of 20,000 hectares by 2028 and aim for one of the world's largest single-managed estates. It is a vertical-integration model handling in-house not only cultivation but roasting, instant and cascara tea, with the coffee division alone projecting annual sales of VND 18.75 trillion (about JPY 71.3 billion, converted at US$1 = JPY 156). For Japanese distributors and buyers who have relied on green-bean-centered procurement, it is a move in which a new, growing-region-connected procurement source stands up.
The "world's largest estate" vision HAGL's chairman showed
HAGL chairman Doan Nguyen Duc announced at a seminar on March 16, 2026 a plan to expand the directly managed coffee estate to 20,000 hectares by 2028. If realized, this would surpass Horizon Plantations' 14,656 hectares, said to be the largest existing, becoming one of the world's largest estates directly managed by a single company.
Of this, about 15,000 hectares will be devoted to Arabica cultivation in the Paksong area of Champasak province, Laos. With high-density planting of 4,700 trees per hectare for Arabica and 3,150 for Robusta, the policy is to raise quality by combining wet processing and fermentation control.
What the vertical integration that "does not end with making it" contains
What draws the eye in this vision is that it takes in not only cultivation but the downstream of processing. In a processing facility investing more than VND 1 trillion (about US$38.05 million), it integrates production through refined goods such as green beans, roasted/ground beans, instant and cascara tea.
Annual fresh-fruit processing volume is about 565,000 tonnes, and the cascara processing capacity reusing coffee husk is planned at 72,743 tonnes. The flow of commercializing coffee husk, once a by-product, has a precedent within Vietnam too in the effort to turn coffee husk into value as "cascara tea," and HAGL is set to take it in on a large scale.
The breakdown of JPY 71.3 billion in sales—a design where refined goods earn
The breakdown of the coffee division's projected sales of VND 18.75 trillion is weighted toward high-value-added processed goods. A design to break away from green-bean dependence shows up in the figures.
| Category | Share | Amount (US dollar equivalent) |
|---|---|---|
| Green beans | 64.1% | About US$457.46 million |
| Roasted and ground beans | 17.2% | About US$122.44 million |
| Refined goods (instant, cascara tea, etc.) | 18.7% | About US$133.23 million |
| Total | 100% | About US$713.05 million (about JPY 111.2 billion) |
* Yen converted at US$1 = JPY 156 (same below). Processing-facility investment is more than VND 1 trillion = about US$38.05 million (about JPY 5.9 billion).
An execution structure involving financial and research institutions
Running a large estate needs the backing of funds and technology. HAGL partners with Orient Commercial Bank (OCB), and on cultivation technology links with the Western Highlands Agriculture and Forestry Science Institute (WASI).
In the industry, a view that "Vietnam, which has leaned toward green-bean exports, is finally stepping into a stage of earning through deep processing" is spreading. In fact, it Intimex's move to plan a freeze-dried coffee plant in Ho Chi Minh City is in step with, and the flow of growing-region companies going to take the downstream is clear. The tailwind in March that 2026's opening coffee exports started up 14% year on year is also backing such large investments.
Impact on Japanese buyers and distributors
For Japan's coffee distribution, HAGL's vertical integration means another window where "both green beans and processed goods can be drawn together from a single maker." A structure that completes traceability in-house suits the Japanese market, which values proof of origin and pesticide-residue management.
On the other hand, the point that Laotian Arabica becomes the mainstay is worth noting. Origin labeling and tariff routes may differ from Vietnamese product, so confirmation is needed at the procurement-design stage.
Ripple effects on the industry
If a 20,000-hectare-class directly managed estate starts operating, Arabica supply in the Vietnam-Laos border zone thickens a notch further. The trading structure, which has relied on collecting from small-scale farmers, may shift to company-led large-lot supply.
If the commercialization of by-products like cascara scales up, the revenue structure of the coffee primary growing region itself changes. More business entities less swayed by green-bean prices becomes an option for stable procurement for buyers who want to sign long-term contracts.
Key figures organized
| Item | Details |
|---|---|
| Target estate area | 20,000 hectares (by 2028) |
| Of which Paksong, Laos | About 15,000 hectares (Arabica) |
| Annual fresh-fruit processing volume | About 565,000 tonnes |
| Cascara processing capacity | 72,743 tonnes |
| Processing-facility investment | More than VND 1 trillion (about US$38.05 million) |
| Projected coffee-division sales | VND 18.75 trillion (about JPY 71.3 billion) |
| Partners | OCB (finance) / WASI (research) |
Summary
HAGL's vision is a symbolic move in which the coffee growing regions of Vietnam and Laos change from "a place to sell green beans" to "a base that makes everything through to the final product." If the estate expansion and processing investment toward 2028 proceed as planned, Japanese buyers gain a new, growing-region-connected procurement source that can draw everything from green beans to refined goods. Only on the point that the Laotian ratio is high, one wants to move on the premise of confirming origin and tariff routes.