Chiem Hoa Single-member Forestry Co., Ltd: Sustainable Forestry Economic Development Model

After years of development with many ups and downs, like many other companies and business units in forestry sector, Chiem Hoa Forestry Company has been facing several difficulties. Specifically since 2005, the company has encountered difficulties in accessing long-term credit capital from the investment and development fund of the State, thus having to borrow commercial loans with high interest rates. Nevertheless, carrying the responsibility as a state-owned enterprise based in the area, the company has continually promoted the application of science and technology in production and rigorous management mechanism in a joint venture forestry planting with households, which has contributed to maintaining the forest capital and creating conditions for forest development to stabilise production and the lives of thousands of workers and farmers in the area.

 

To date, more than 1,683 employees of the company and households near the forest are engaged in forest planting, protection and exploitation of 4,356.6 hectares in the joint venture with the company. Typically, in 2006, Mr Dao Xuan Chien in Tham hamlet, Hung My commune (Chiem Hoa district) keenly joined the venture with Chiem Hoa forest farm to plant 18 hectares of cross-bred acacia, and rehabilitate and plant more than 2 hectares of cross-bred acacia on the forest garden of the family. In 2005, Mr Ha Quang Trung in Trung Tam hamlet, Tan An commune boldly signed a contract to plant nearly three hectares of forest. Thanks to such joint mechanisms, from 2013 onwards, many households have been able to exploit the ventured forest area and gained income of hundreds of millions of Vietnam dong.

 

Mr Luu Vinh Phuc, Chairman cum CEO of Chiem Hoa Forestry Company shared that Chiem Hoa Forestry Company boldly applied the joint venture model with households in the area, bring significant results including helping reduce dependence on loans as well as effectively mobilizing human forces to participate in forest ownership to jointly manage, exploit, hold responsible and share the benefits from the forest. This is the biggest success of the company in the context that many companies have become unable to keep land and have faced many difficulties in production and business activities.

 

It can be said that 10 years of implementing the joint venture reforestation program have brought a very practical result for Chiem Hoa Forestry Company, as well as for the engaged households. In particular, that the company invest capital through the provision of land, seedlings, fertilizers and techniques has contributed to enabling thousands of households in the district, including the poorest ones to participate in planting. This has brought benefits for the company and the engaged households as well, contributing positively to the work of creating jobs for local workers. In 2014, the company planted 620.8 hectares of new plants over 550 hectares, reaching 112.9 percent of the plan; took care of 1,581 hectares of planted forest, reaching 100 percent of the plan; protected nearly 7,000 hectares of natural and planted forest; exploited 25,527.81 cubic meters of wood, reaching 127.6 percent of the plan; consumed 25,527.81 cubic metres of wood. Specifically, the company submitted to the state budget VND2 billion, reaching 110 percent.

 

It is worth noting that in addition to maintaining stable growth, the company is also very concerned about the living conditions of its 126 employees. The company covers full social insurance, health insurance and unemployment insurance for its officers and employees according to regulations. The company also holds regular training sessions and skill contests; considers increasing wage and level for workers to employees. In 2014, the company increased wages for 18 employees and bought labour protective equipment for workers worth nearly VND60 million. In addition, the company participates in social, charitable and humanitarian activities; raises support funds; supports programs launched by ministries and agencies such as visiting families under specific policies and poor families, raising funds for the poor, building roads, etc., which displays the spirit of "whole leaves protecting torn ones" and "when drinking water, remember its source" and solidarity within the company employees and people in the social community.