Lesson 2: Agricultural One Member Co., Ltd. - Breakthrough in productivity and quality
For the farms converted according to Resolution 28-NQ/T.Ư of the Politburo into agricultural one-member limited liability companies, there has been a very clear development, especially effective in land use, with increasing economic value per unit area.
Specifically, Xuan Thanh Agricultural Company Limited (Quy Hop) after the conversion had a spectacular "breakthrough". Mr. Hoang Minh - Director of the Company said: Previously, the Company was called Xuan Thanh State Farm, mainly structured orange, rubber, tea, sugarcane trees... After the conversion, the Company's land area was 1,700 hectares, through research and testing of tree varieties, the Company decided to grow 2 main trees: orange and rubber.
Orange trees in particular are highly effective, with a structural area of over 650 hectares, mainly Van Du oranges, Xa Doai oranges and Valenxia 2 oranges. These are 3 orange varieties that can withstand harsh weather and are suitable for the climate and soil here. Orange varieties are all planted in separate seasons, ripening late and early, especially over 300 hectares serving the Lunar New Year market. The company has received investment from Project DA 15 (Ministry of Public Security and Institute of Genetics) to build a system of greenhouse nurseries to produce disease-free orange and tangerine varieties, producing over 25,000 orange varieties each year. The company's oranges have been granted a geographical indication certificate by the Vietnam Intellectual Property Office with the brand name "Vinh Orange".

Harvesting oranges at Xuan Thanh Agricultural Company Limited (Quy Hop).
At the orange lots this time, the contracted households are busy harvesting. Ms. Nguyen Thi Hien, a contracted household in team 3, is cutting ripe oranges to pack in boxes, happily showing off: This year's orange crop is good, her family planted 1.2 hectares of oranges and harvested about 40 tons, sold at the original price of 40,000 VND/kg, earning 1.6 billion VND, after deducting expenses, the profit is 1.2 billion VND; Mr. Ngo Minh's household in team 4 has a revenue of 1.4 billion VND/year, Ms. Nam Giang has a revenue of 1 billion VND/year...
Mr. Minh added: For the form of contracting households to grow oranges, the Company plans the land, supplies seeds, supports techniques, services, takes care of output consumption, lends capital to people to grow oranges, the Company collects 5-6%; the average orange yield is 25 tons of oranges/ha. Currently, the Company is growing 40 hectares of Mat oranges of foreign hybrid varieties, early ripening oranges. In addition, the Company has 557 hectares of rubber with 780 contracting households; has a processing factory with a capacity of 6 tons of dry latex/day. Before the conversion in 2005, the Company achieved a revenue of more than 3.5 billion VND, after the conversion in 2012, the revenue reached over 19 billion VND, the average salary of workers reached 3.5 million VND/person/month.
After the conversion, Nghe An Fruit Tree Company Limited also had a positive change. The company has 1,800 hectares of land, after the conversion, the company's main structure is rubber trees (over 900 hectares). Thanks to planting new varieties and taking care of them according to the right technical process, the rubber yield reached 1.4-1.5 tons of dry latex/ha, averaging over 100 million VND/ha/year. In 2007, the company boldly invested in a rubber latex processing line with a capacity of 3,000 tons of dry latex/year; this line alone created jobs for 60 workers with a salary of 6 million VND/person/month. The company also actively purchased rubber materials in Thanh Hoa province for processing, in addition, it cooperated with local people in the communes to plant over 300 hectares of rubber, which will be harvested in 2013. Up to now, the Company has created jobs for over 300 workers, with an average salary of 3.5 million VND/person/month. Revenue in 2006 was 15 billion VND, and in 2012 it reached 81 billion VND.
It can be said that the farm system after being converted into a one-member agricultural LLC due to its high autonomy, combined with the investment attention of the State, the companies have actively exploited the potential advantages to develop the strong crops of each land area. The economic structure has gradually shifted positively, capital and assets, technical facilities are invested to meet the requirements of production development, land is strictly managed and used effectively. Linking product consumption with other units to have stable product output.
Especially thanks to the companies' many measures to apply scientific and technological advances in production, investing in care according to the correct technical process, the productivity and quality have increased. For example, orange trees have increased their productivity from 100 tons/ha to 150 tons/ha, with high selling prices, so the revenue has reached 500-600 million VND/ha/year, sugarcane raw materials have increased from 60 tons of sugarcane/ha/year to 90-100 tons/ha/year... The volume of business products has reached high levels such as dry latex rubber reaching 1,320 tons, after conversion reaching 4,160 tons, orange fruit reaching 8,500 tons, after conversion reaching 14,500 tons. Especially due to limited land funds, the companies have linked with communes in the area to grow plants suitable for the soil such as sugarcane, tea, coffee, rubber, bringing profits to the company and households.
However, the current difficulty is that some companies still lack capital to invest in production planning and renovation, such as building raw material roads, building irrigation systems for industrial crops, building modern coffee and rubber processing lines, investing in mechanization in production, etc.
Van Truong - Hoang Vinh