Vietnamese companies are going to kick off a pioneer project worth VND1 trillion (US$62.5 million) in Mekong Delta Long An province to improve local rice quality.
The project is the first of its kind in Vietnam and will be implemented on 10,300 hectares in Vinh Hung and Ta Hung district, by ITA-Rice, a joint venture between Tan Tao Group, Tan Duc Investment JSC and the Tan Dong Phuong Company.
Fund for the project will be sourced from ITA-Rice’s budget and bank loans.
“The project is now still on the desk. It will be launched in phases depending on land clearance, which is now underway,” said Nguyen Van San, head of Tan Tao Group’s Business Division, adding that the project is likely to start early 2008.
The project includes 10,000ha for rice cultivation, using the US and Europe’s Good Agricultural Practices (GAP) that minimizes the risk of causing pollution while protecting natural resources.
More 120ha will be used for rice processing mills under the Hazard Analysis and Critical Control Point (HACCP), a system that ensures food safety. The mill will be able to husk and package around 50,000 tons annually.
On the land, a water treatment plant with total capacity of 30,000cu.m per hour, a port for 1,000 ton ships, and a 200ha urban area will also be built.
San confirmed that the project will greatly improve the quality of rice and raise the country’s prestige globally.
However, the area for cultivating high quality rice is too small compared to the region’s 1.5 million ha of rice, where more than 70 per cent of rice produced is of low quality.
Low quality rice is the major reason for low export price of Vietnamese rice, which is usually US$20-30 lower than Thais rice, even though Vietnam is the world’s second biggest rice exporter.
Some 100ha is dedicated to construction of necessary facilities like dikes, roads, drains, said Thai Van Men, general director of the Tan Tao Group, adding that a pilot export oriented rice plantation will be carried out this 100ha.
The first year of the project’s implementation is expected to see the production of 360 tons of category-one rice and 240 tons of category-two rice, earning total revenue of US$187,500. Currently, 100ha with traditional rice cultivation can turn out 100 tons of product.
Within 10 years, some 489,000 tons of high quality rice, including 293,400 tons of category one and 195,600 tons of category two, will be exported, worth US$356.25 million, Men said.
ITA-Rice said it will provide locals with training under international standards and sign contracts to purchase their products. (VIR)
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