Cambodia returns land taken from Hoang Anh Gia Lai

March 30, 2019 | 08:03
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Information that Cambodia has taken back 742 hectares of land from Hoang Anh Gia Lai (HAG) had a negative impact on the HAG and HNG shares, but the company said it has not received any decision from the Cambodian government to this effect.
cambodia returns land taken from hoang anh gia lai
Hoang Anh Gia Lai refutes information that Cambodia would take back land from them

A decade ago, the Cambodian government decided to give about 19,000 hectares of land to Hoang Anh Gia Lai.

However, the local communities in Cambodia filed a complaint in 2014 over “serious” environmental and social effects with the World Bank’s International Finance Corporation (IFC), which had invested in a fund that financed HAG’s ventures in Cambodia and Laos, according to Reuters.

A dispute resolution process was set up, and HAG agreed to stop further land clearance. A year later, HAG agreed to return land that was not planted or cleared, and its concessions were reduced by more than 60 per cent.

Also according to the Highlanders Association and advocacy groups Equitable Cambodia and Indigenous Rights Active Members, which are representing the communities, the country made a decision to take back 742 hectares.

However, according to HAG's representative, until March 28, the company had yet to receive any decision from the Cambodian government on the recovery of 742 hectares of land.

"Cultivation activities at the project proceed as usual," the representative said to newswire

HAG recently sent a notification to shareholders about the final registration date to attend the 2019 annual general shareholders’ meeting on April 8, 2019 and the ex-right date is April 5. The meeting is scheduled on April 26 in Pleiku, Gia Lai, and will revolve around HAG’s production and business activities, and investment in the 2018-2019 period.

HAG and HNG of Hoang Anh Gia Lai closed the March 28 session with a decline. Specifically, HAG decreased 0.18 per cent to VND5,600 ($0.24) per share, and HNG reduced 1.92 per cent to VND15,300 ($0.66) per share.

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