In 2010, the total volume of exported tea of Vietnam is estimated to reach 132,000 tonnes, with a turnover of US$194 million. Among the above volume, Lam Dong accounted for 10,160 tonnes (7.7 percent) with a turnover of US$17.36 million (8.95 percent of national export turnover). Lam Dong’s tea products have reached such large markets as Taiwan, Middle East countries, Singapore, the EU, the USA, China, Thailand, Russia and Indonesia, etc.
In a talk with Vietnam Business Forum, Mr Huynh Ngoc Canh, Director of Lam Dong’s Department of Industry and Trade, states that during the past years, the provincial authority and the industry and trade sector have always paid attention to investment policies, preserved and improved the brand name of the province’s traditional tea growing areas with a view to creating competitive advantages for Lam Dong’s tea products in domestic and overseas markets. Lam Thao reports.
Please tell us about the competitive advantages of Lam Dong’s tea products in domestic and export markets.
Lam Dong is the only province in the South with favorable conditions of climate, land and height for tea growing. This is a suitable place for a lot of precious tea species from Taiwan, China and Japan, etc. The local people in tea growing areas have gained valuable tea processing practices and experiences. Tea production and processing has become a traditional production industry of the locality.
As assessed by Vietnam Tea Association, Lam Dong is a locality with many records of Vietnam’s tea industry, such as: having the very first tea factory in Vietnam (Cau Dat), having the largest tea growing area (30 percent of national tea growing area) and higher productivity compared to national average productivity; highest income generated from each tea growing hectare (approximately VND300 million per hectare per annum) and highest export price.
Furthermore, Lam Dong is the province with the first enterprise to apply biotechnology to churn out tea products which meet food safety standards; to develop and operate “Eco tea tourism” model; to have the most ancient tea processing factory which is still operating; to have the largest tea drinking store in Vietnam and to be the first province in Vietnam to organize Tea Culture Festival, etc.
What policies have been promulgated by Lam Dong’s authority in order to attract inputs for the development of tea industry in the area?
Lam Dong has attracted a lot of foreign investors, mainly Taiwanese, to make investments in tea production and processing. These enterprises are entitled to preferential treatment according to Law on Foreign Investment in Vietnam and Lam Dong’s policies on investment attraction. So far, many tea companies in Lam Dong have been privatized, including Cau Dat Tea JSC, Di Linh Tea & Coffee JSC, Bao Loc Tea JSC and Minh Rong Tea JSC, etc. Lam Dong is continuing to privatize some units in tea companies with 13-51 percentages of shares held by the State. Privatization has initially helped companies be active in attracting investment from shareholders including workers, officers, banks and other enterprises. It has also offered tea companies opportunities to upgrade equipment and change tea species.
Implementing the policy on changing structure of agricultural plants of Lam Dong province, the State has supported Lam Dong 30-50 percentages of the amount needed to buy seed plants in order to switch to new species of high productivity and quality, such as TB14, LD97, LDP1 and Taiwanese tea species. On average, the provincial authority annually allocates fund to change seed plants for 200-300 hectares of high quality tea. The growing area of high quality tea in Lam Dong now really reaches 5,000 hectares. Such tea species of high yield as TB14, LD97, Kim Tuyen and Thuy Ngoc, etc. are being planted on such area and 22 foreign and 11 local enterprises are cultivating there. 20 organisations and individuals producing tea have been granted with production certificates according to VietGAP standards.
The province authority has paid attention and provided direction to relevant authorities to effectively implement the hi-tech agriculture programme. The awareness of almost all tea producers in Lam Dong has been raised in terms of selecting advanced farming techniques. This is one of the steps which help Lam Dong’s tea industry develop sustainably and guarantee regional and global integration. Particularly, Vietnam Tea Festival regularly organized biannually in Lam Dong will serve as opportunities for tea producers here to advertise and introduce their images and brand names to domestic customers; to seek for international partners and thereby establish business partnership. Through festivals, Lam Dong is gradually having its tea brand name affirmed in international market.
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