Banana varieties imported from the Philippines grown in Nghe An are not suitable for the soil?

(Baonghean.vn) - The banana project invested by Globe Farm Co., Ltd. of Korea in Yen Thanh (Nghe An) has been facing many difficulties for the past 6 years. In particular, the banana variety imported fromPhilippines is not suitable for soil.

The banana export production project in Yen Thanh is facing many difficulties. Photo: PV

The project of growing and processing bananas for export in Vien Thanh commune, invested by Globe Farm Vietnam Co., Ltd., was granted Investment Certificate No. 271043000001 by the Provincial People's Committee on February 26, 2010, with a scale of 200 hectares including a 1-hectare packaging factory; total investment capital of 4,000,000 USD (four million US dollars).

Up to now, the investor has invested about 25 billion VND to build a factory, banana hanging system, import banana tissue from the Philippines to incubate and plant 140,000 seedlings.

On June 9, 2010, the Company signed a land lease contract with Vien Thanh Commune Electricity Service Agricultural Cooperative with a total area of ​​54 hectares of more than 700 households in 7 hamlets (hamlets 4, 5, 6, 7, 8, 9 and Dinh Hat hamlet) with a land lease price of 600 USD/ha/year, and paid land lease of 61,469 USD in the first installment and 80,166.5 USD in the second installment.

The project of growing and processing bananas for export in Vien Thanh commune is a new model in the agricultural and rural sector invested by Korea and has received support from all levels and sectors. Initially, there were products sold in the market and exported abroad, however, due to unfavorable weather conditions and unsuitable soil conditions. The management and production organization of the investor were ineffective (planting, care, management, production and consumption processes).

It is known that the total output from 2012 to 2015 was only about 750 tons, equivalent to more than 1 billion VND, 149 tons were exported to Korea, the remaining bananas had to be retailed to more than 600 tons to people and traders. Currently, the project is operating at a standstill, only arranging a number of technical staff to maintain and focusing on investing in a new location in Dong Nai.

Ms. Dang Thi Thanh, the company's accountant, said: "For the past two years, bananas have not been exported because of poor quality. In the summer of 2015, many bananas died, and this past winter was too cold to produce fruit, and if they did produce fruit, they were spoiled. However, workers have worked hard to take care of and retail 30 tons of fruit, with each kilogram of bananas costing 2,500 - 3,500 VND. Revenue has been over 800 million VND. The company has also invested in a sprinkler irrigation system, but last year there was no water either."

The road the Provincial People's Committee invested in the project worth nearly 40 billion VND is more than 8km long. Photo: PV

Due to poor development of some banana growing areas, on March 30, 2015, the Company returned 9.21 hectares in Cay Truong and Song Vang fields in hamlets 5, 8 and Dinh Hat hamlet. Currently, the Company still owes land rent for 2015 and 2016 with a total amount of 53,754 USD (about 1,196 million VND).

Faced with the project's risk of bankruptcy and land use debt, Yen Thanh District People's Committee recently held a meeting with the Investor of the Banana Planting and Processing Project for Export in Vien Thanh Commune.

According to Mr. Son Young Wan (Korean), the Company is still determined to carry out the project and pay the full land rent between the Company and the people. "In recent years, the weather in Nghe An has been harsh, crops such as corn, sugarcane and bananas have all suffered damage. The sandy soil in Yen Thanh is not very suitable for banana trees, so the Company wants to reduce the land area and return some land to the people. The district and commune authorities have created conditions to return some ineffective production land areas and reduce land rents."

Mr. Phan Van Tuyen - Chairman of Yen Thanh District People's Committee said: The District People's Committee shares the difficulties with the investor. However, the investor needs to develop a long-term production plan to maintain the project and report to the Provincial People's Committee, District People's Committee and local authorities to jointly remove difficulties and obstacles, and resolve recommendations and proposals in the coming time...

The investor needs to pay 70% of the land rent in 2015 before April 30, 2016, the remaining 30% of 2015 must be paid before May 30, 2016, and the land rent for the first 6 months of 2016 must be paid before June 30, 2016.

The district will accept the return of some ineffective production land areas and reduce land rents discussed and agreed upon after completing the payment of outstanding land rents in 2015 and the first 6 months of 2016 to the people.

Bananas in Vien Thanh this season have beautiful fruit, but they are mainly sold retail and cannot be exported.

Yen Thanh district assigned Vien Thanh commune to strengthen the explanation to the people about the current situation and difficulties of investors; coordinate with investors to mobilize people to take back the leased land area when investors do not need to use it.

The district also assigned relevant departments and branches to coordinate with the investor during the project implementation in the locality, creating the most favorable conditions when the investor requests to complete related legal procedures. Mr. Phan Van Tuyen also hopes that the Provincial People's Committee will have a mechanism to support the difficulties of investors and households in land reclamation and other related support in case the investment is not effective.

If Globe Farm Vietnam Co., Ltd. no longer invests in local production, the Provincial People's Committee is requested to have a plan to introduce a new investor to replace it. Because land reclamation for cultivation after the company returns the land is very difficult and time-consuming.

Pearl