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  • News
  • News in Vietnam
  • 25 April 2022

Attract investment in the agricultural product processing industry

To improve the value of agricultural products, develop a sustainable farming industry, and contribute to reducing seasonal pressure, the provinces of Son La and Dien Bien have been implementing many projects and programs to attract investment and development. Development of processing and preservation of agricultural products. Notably, the attraction of enterprises to invest in building factories and industrial clusters in the field of agricultural product processing has been carried out quite effectively.

With the available advantages and potential in terms of land and climate, Son La and Dien Bien have been focusing on implementing a project to restructure the agricultural sector in the direction of increasing added value and developing sustainably with the center rises to become a center of agricultural development with high technology application and a processing center of agricultural products of the Northwest region. To achieve the goal, besides preparing human resources, land funds, and mechanisms, the work of attracting investors in the agricultural product processing industry is being promoted by the provinces.

Opportunity for investors

Son La province has the third-largest natural area in the country and ranks first in the Northern midland and mountainous region, in which nearly 30% of the agricultural land area has high fertility. There are two plateaus: Moc Chau and Moc Chau. Na San has 40,000 ha in the reservoir area of ​​Son La hydroelectricity and Hoa Binh hydroelectricity, which is favorable for aquaculture development. The tropical climate is suitable for agricultural development with much rain, especially for fruit trees and industrial plants. Since 1958, many agricultural and forestry farms in Son La province have formed and thrived. Moc Chau farm has developed and succeeded with the model of dairy cow raising and production of dairy products. ; To Hieu farm (Mai Son district) grows tea, sugar cane, corn… From the agricultural production models of the agricultural and forestry farms, the thinking of agricultural production has spread to commodity production, strengthening joint ventures, association, and application of science and technology in the show, preservation, and processing of farm products in the locality.

Vice-Chairman of Son Lai Provincial People’s Committee Nguyen Thanh Cong informed: To promote the development of the agricultural product processing industry, the Party Committee of Son La province has issued Resolution No. 06-NQ/TU on the development of the agricultural product processing industry. Period 2021-2025, orientation to 2030. The goal is to attract investment, complete and put at least nine large-scale agricultural product processing factories, upgrade, expand the scale, and renew technology, machinery, and equipment for more than 50% of existing agricultural product processing establishments. To form at least one facility in each district and city for processing, packing, and preserving agricultural products with a scale suitable to the raw material area.

Like Son La, Dien Bien province has large land, advantages in natural resources, minerals, soil, climate, topography, hydrology are favorable conditions for developing industrial crops and trees, fruit, rice cultivation, mining, hydropower. Vice-Chairman of Dien Bien Provincial People’s Committee Lo Van Tien shared: Based on the potentials and advantages of each region, Dien Bien province has planned three economic areas, including national highway 279 dynamic economic axis, Da river ecological, economic axis, and Nam Po-Muong The economic axis. The regional planning has helped Dien Bien attract investors in the agricultural product processing industry, effectively developing crops such as macadamia, coffee, rubber, oranges, passion fruit, and mango.

To implement the Resolution of the 14th Provincial Party Committee, the People’s Committee of Dien Bien province has issued two plans and four projects. The agricultural restructuring plan and the new rural construction development plan; livestock development project, fruit tree development project, forestry development project, and OCOP product development project. The implementation and approval of the projects will be a fundamental orientation for Dien Bien in attracting investment and developing agriculture and forestry in the next five years, especially in the agricultural product processing industry.

In Son La province, to create a breakthrough for agriculture, in the 2016-2020 period, the Provincial Party Committee and the Standing Board of the Son La Provincial Party Committee issued five resolutions, conclusions, and announcements on leadership orientations, direct the promotion of agriculture and agricultural product processing. Son La Provincial People’s Council issued three resolutions on policies to support farming and rural development.

With the right and winning policy, the participation of the whole political system, the consensus and support of the people, Son La and Dien Bien provinces have renovated and planted hundreds of thousands of hectares of new fruit trees, contributing to bringing the Northwest sections to become the fruit basket of the whole country. In particular, these provinces’ agricultural raw material areas have risen to the top of the country in terms of output and quality, such as areas growing longan, plum, mango, Arabica coffee, cassava, sugarcane, and fresh bud tea.

Highlights of the Northwest

In Son La and Dien Bien provinces, many establishments and factories are processing agricultural products, including establishments and factories processing agricultural products to export tea, sugar, tapioca starch, milk, silk, etc. preliminary processing, passion fruit processing, rubber processing, vegetable and fruit processing, and green coffee processing establishments. Many agricultural products of Son La and Dien Bien are processed. 100% production includes milk, coffee, sugar cane, rice, tea, cassava, and 30% fresh fruit products. For example, in Son La, there are more than 500 establishments and factories processing agricultural products, of which there are 50 establishments and agricultural processing factories that export products such as tea, sugar, tapioca starch, green coffee, and passion.

Son La province has attracted businesses to invest in factories processing passion fruit, vegetables, tubers, and fruits for export in Moc Chau, Van Ho, and Mai Son districts. To create favorable operating conditions, Son La province has issued a decision to support and encourage cooperatives, organizations, and individuals to develop models of preliminary processing and processing of fruit products to increase the time required for processing store, preserving, growing product value, and reduce pressure for fresh fruit consumption.

Sharing more about the province’s support mechanisms and policies, the Director of the Dien Bien Department of Agriculture and Rural Development, Bui Minh Hai, said that Dien Bien Provincial People’s Committee has policies to support packaging and labels and funding do factories. When an enterprise invests in agricultural production and processing, it is supported up to 100 million VND for the cost of purchasing packaging, labels, and product quality inspection; at the same time, it receives maximum support of 50% of the cost of building a factory, buying machinery and equipment for product preservation and processing, but not exceeding VND 500 million/project.

In Son La and Dien Bien provinces, implementing the Resolution of the Provincial Party Committee on enhancing calling for and attracting investment, the Departments of Planning and Investment, the Departments of Agriculture and Rural Development, and the districts of the two provinces have actively advised and organize conferences to call for and promote investment in the area, contributing to creating highlights in the development of the processing industry in the Northwest. Director of Dien Bien Department of Planning and Investment Nguyen Phi Song said: By promulgating many mechanisms and implementing synchronous solutions, the business environment of Dien Bien province continues to improve positively. In the 2016-2020 period, Dien Bien has approved investment policies and granted investment certificates to 95 projects with a total registered investment capital of more than 14 trillion VND. In 2021, Dien Bien had awarded investment registration certificates and decided on investment policies for 17 projects, including many agroforestry and processing industry projects, and six completed projects came into operation.

In this regard, Deputy Director of Son La Department of Industry and Trade Nguyen Dinh Phong said: On March 23, 2022, Son La Provincial People’s Committee developed and issued Plan No. 90/KH-UBND to implement Resolution No. 6 of the Provincial Party Committee in 2022 with 11 critical tasks, and has assigned specific tasks to each department, department, branch, district, and city to focus on planning the development of the processing industry associated with the plan develop industrial parks, industrial clusters.

The two localities of Son La and Dien Bien have synchronously and effectively implemented solutions to attract investment in the agricultural product processing industry in recent years. They have been promoting the Northwest region’s outstanding strengths, creating livelihoods, and increasing income for people. In particular, attracting businesses to invest in processing industry projects is expected to make a breakthrough in turning Son La and Dien Bien provinces into centers of agricultural product processing in the Northwest. At the same time, they are bringing agriculture in the Northwest regions to develop by the orientation of large-scale and high-tech.