Attracting many investment projects in agriculture and rural areas

Investment Highlights

Implementing the investment attraction policy of Nghe An province and the Department of Agriculture and Rural Development on prioritizing high-tech manufacturing, Japan's Biomass Fuel Group has pioneered in investing in building the Vietnam Biomass Fuel Pellet Factory in VSIP Nghe An Industrial Park.

After a short period of preparing investment procedures, in 2018, the Japanese investor started the project and 2 years later (2020) the factory was completed and put into operation. However, during this period, due to the impact of the Covid-19 pandemic, the factory's production was interrupted and it will resume operation in 2022.

Nghe An's investment attraction policy always gives priority to enterprises investing in applying high technology, so Vietnam Biomass Fuel Pellet Factory invests in modern technology (imported production lines from Europe, assembled and built by Japan) with a capacity of 160,000 tons of products/year. All products are exported to the Japanese and European markets. Due to production using modern technology and physical processing without using chemicals, the factory strictly implements the production process, from input materials to the chopping, drying, pelletizing, and cooling stages to produce finished wood pellets. These wood pellets are exported to serve many different purposes such as: Heating, fuel in processing plants and a large volume for use as input materials in thermal power plants. Wood pellets are considered a clean, environmentally friendly energy source.

The operation of the Biomass Fuel Vietnam pellet factory has created direct jobs for nearly 80 staff, workers and indirectly thousands of households planting and exploiting forests in Nghe An, contributing to the province in increasing the value of planted forests, gradually creating more market opportunities, increasing livelihoods for households planting forests, raising awareness of sustainable forest production and management for foresters in neighboring districts in the province.

Mr. Eisuke Nomura - CEO of Biomass Fuel Vietnam Company said: “Thanks to the strong attention and support from the local government, as well as the investment attraction policies of the province, especially the Department of Agriculture and Rural Development, the company has decided to invest in Nghe An, with the commitment to build a sustainable business development strategy, associated with the interests of local people, contributing to increasing income for forest growers by creating more market opportunities and increasing the value of planted forests.

In 2022, the company cooperated with the US Sustainable Forest Management Project (SFM) to invest in building a certification group and successfully evaluated 2,823 hectares of planted forests with dual FSC FM and PEFC FM certification. In 2023, the company continued to invest in expanding the area of ​​certified sustainable forest management with an expected area of ​​4,500 hectares in the three districts of Anh Son, Do Luong and Tan Ky, in order to build a sustainable and stable source of raw materials for the company as well as a market commitment to the people and local authorities.

Creating motivation for agricultural production development

One of the important driving forces for the development of agricultural production is to effectively attract investment. In recent times, the Department of Agriculture and Rural Development of Nghe An has advised and promptly and effectively handled issues related to the authority of the Department in the process of advising on the implementation of policies to encourage enterprises to invest in agriculture and rural areas according to Decree No. 57/2018/ND-CP of the Government, Decision No. 13/2019/QD-UBND of the Provincial People's Committee and Resolution 14/2018/NQ-HDND of the Provincial People's Council.

The Department of Agriculture and Rural Development has focused on attracting high-tech agricultural projects and accelerating the implementation of the High-tech Forestry Zone; continuing to implement industrial-scale dairy farming projects of TH Milk Food Joint Stock Company and Vinamilk; high-tech vegetable, root and fruit production projects in the districts of Nghia Dan, Yen Thanh, Quynh Luu, Nam Dan, Nghi Loc and Vinh city..., growing oranges and medicinal herbs in the districts of Yen Thanh, Ky Son...

In recent times, in the field of investment attraction in the Agriculture and Rural Development sector, there have been many large-scale investment projects such as: Pig farming project of Dong Bac Group (it is expected that by 2025, this group will have about 12-15 large-scale pig farms in the province, with a total herd of 200,000-250,000 pigs); 3AF Agricultural Company (currently investing in 2 closed industrial pig farms using cold technology in Tan Ky district, with a scale of 5,000 sows and 120,000 pigs) and a number of other enterprises such as: Tan Thang Company, Greenfoods Tan Ky Company, Japanese Company, Thanh Do Company... Biomass Fuel Vietnam pellet factory in VSIP Nghe An Industrial Park; Thanh Chuong Pellet Factory (BVN Thanh Huong), An Viet Phat Forestry Cooperative, Thanh Hoa Company Limited, Nghe An MDF Wood Factory of Thanh Thanh Dat Company... In the period from 2020 to 2023, the province has attracted 39 investment projects in agriculture and rural areas, with a total investment of nearly 3,300 billion VND.

Along with that, the industry focuses on developing product consumption markets, such as participating in and successfully organizing events: Vinh orange consumption connection forum; Nghe An agricultural product introduction week in Hanoi; Agricultural product consumption connection forum of provinces in the Central region in Nghe An; Working with Wincommerce Company to connect consumption of Nghe An agricultural products; Online conference on promoting production and consumption of agricultural, forestry and fishery products.

Connecting with more than 70 establishments producing agricultural, forestry and fishery products in Nghe An province to participate in fairs, with nearly 100 booths; Coordinating with VOSO E-commerce Platform to introduce and sell Nghe An agricultural products on the platform; Bringing Nghe An agricultural, forestry and fishery products to major supermarkets such as Lotte, Winmart... contributing to bringing Nghe An agricultural, forestry and fishery products to consumers nationwide as well as internationally; supporting the design and provision of 36 Qrcode codes for 36 agricultural, forestry and fishery products (bringing the number of products granted Qrcode to 115 products); supporting 128,000 stamps and labels for tracing the origin of agricultural, forestry and fishery products.

Recently, the Department of Agriculture and Rural Development has advised the People's Committee of Nghe An province to propose a number of investment attraction projects with the JICA delegation in Vietnam, agreeing to consider planning to invest in a number of key projects such as: Project to Restore and Upgrade the Southern Nghe An Irrigation System, with an estimated total investment of VND 3,500 billion, in the period of 2023-2027; Project to survey and verify SDGs business with the private sector to develop the value chain for Sanuki garlic in Nghe An province (Japan Farmer Cooperative Company has been approved to implement the project); Support Japanese enterprises coming to Nghe An to learn and cooperate in investment, especially in the agricultural sector.

Nghe An Department of Agriculture and Rural Development said: “In the coming time, the sector will continue to coordinate with the Department of Planning and Investment and related departments and sectors to carry out promotion activities, attract investment projects in agriculture and rural areas, especially high-tech agriculture, creating momentum for agricultural production development, and at the same time being the nucleus for linking the development of large-scale agricultural product value chains. Organize and implement well the mechanisms and policies to encourage enterprises to invest in agriculture and rural areas according to Decree No. 57/2018/ND-CP of the Government. Mobilize and take advantage of support capital sources from the Central Government, international organizations (WB, ADB, JICA, ...) to increase investment resources for key projects of the sector. Strengthen consulting on State management of investment projects, closely monitor the project implementation process according to the provisions of the Law on Public Investment, in order to create a favorable environment to attract investment, improve the efficiency of using investment capital. private...".