Brian Jeffrey
The An Giang provincial People’s Committee has acknowledged receipt of the request regarding Thuan, which has been passed on to law enforcement for further examination.
Previously, Loc Troi submitted a request to local officials to revoke Thuan’s APEC card and impose a travel ban, citing concerns over his evasive behavior and lack of cooperation with the company during the handover of responsibilities. There were indications that he might attempt to leave the country to avoid accountability.
Loc Troi is among the leading companies in agriculture services, employing thousands of agricultural engineers who directly support around 1 million farming families and manage vast rice fields across the Mekong Delta, southeastern region, and Central Highlands.
For the past three decades, Loc Troi has partnered with various stakeholders to produce and supply millions of tons of rice annually for both the domestic market and export. As of the first quarter of 2024, the company possessed total assets worth VND11.9 trillion.
Since 2015, Loc Troi has maintained a 20% share of the plant protection chemical market and expanded into rice processing and trading since 2010, aiming to become a prominent agricultural service provider.
The group envisions itself as a leading agricultural service entity in Southeast Asia in the medium to long term.
Nevertheless, recent reports highlight financial losses and debts owed to farmers, along with significant leadership changes. The situation raises questions about the future of this major player in agriculture.
On July 15, Loc Troi appointed a new leadership structure when Thuan was unexpectedly dismissed from his role as CEO after four years. Huynh Van Thon, the board chair, is temporarily overseeing the company until a new CEO is appointed.
Thuan had been leading the firm since May 2020, marking a new developmental phase for the group.
Born in 1970, he holds a master’s degree in strategic management and previously worked for numerous international firms before joining Loc Troi. From 2010 to 2015, he was part of the University of Medicine and Pharmacy Hospital.
For five years prior to his removal, Thuan served various roles at Loc Troi, including finance director and head of agriculture supplies management, without holding any company shares.
The dismissal was prompted by disappointing financial performance.
Loc Troi faced significant troubles, reportedly owing hundreds of billions of dong to about 900 farmers during the 2023-2024 winter-spring crop cycle. The company cited difficulties in cash flow critical for its operations, exacerbated by delayed payments from international partners.
The firm resorted to selling rice at reduced prices while seeking assistance from banks and partners. On May 20, they collaborated with TPBank to clear rice payment transactions.
In the first quarter of 2024, the group recorded a loss of VND96 billion, surpassing previous losses, due to high-interest loans and zero-interest advances made to farmers. Rising dollar prices further pressured profits.
Loc Troi managed to increase revenue by 38% in 2023, amounting to VND16.088 trillion, yet its post-tax profit fell dramatically to VND16 billion, substantially less than the targeted profit of VND384 billion.
The board attributed the revenue rise to a 75% increase in demand for foodstuffs and rice but acknowledged challenges in accessing capital amid fluctuating interest rates and unpredictable domestic rice prices.
Following Thuan’s departure, other key management officials, including a board member and a supervisory board member, resigned.
As of the end of the first quarter of 2024, Loc Troi’s total debts soared to VND8.94 trillion, three times its stockholder equity, while share prices plummeted from VND22,000 to VND14,000 within a span of three months.
