Few processing facilities, scatter scale

According to the Department of Agriculture and Rural Development (DARD), the commodity farming production accounts for 70 – 80 percent of the agriculture area and scale in Bac Giang province. However there are a few of investors in the sector.

Farm produce packaging at G.O.C Export Food Processing Joint Stock Company.

The province has some 200 agriculture businesses. Most of them have small scale and limited capability. These businesses mostly operate in the field of seed and fertiliser supply. Less than 5 percent of them process the farm produce. Thus, huge volume of agriculture products is consumed and exported under preliminary processed form, leading to low value.

Though Yen The district has a total chicken flock of more than 3 million heads, there is no big enterprise investing in local poultry slaughtering system in dozens of years. The quantity of slaughtered chicken and chicken paste only hit dozens of tonnes per year.

Luc Ngan district is home to a fruit cultivation area of over 6,000 hectares with total productivity of 50,000 tonnes per crop. However, only fresh orange and pomelo are sold sometimes at very low price making severe loss to the farmers. The quantity of lychee for processing is not much. Only dozens of tonnes out of nearly 100,000 tonnes of lychee per crop are used to make juice or canned frozen lychee at some local enterprises.

The DARD’s Director Duong Thanh Tung explained that agriculture production has high potential of risk. Many plants bear fruits in certain seasons while it costs a lot of money to invest in a farm produce processing line which only operates few months per year.

The agricultural and rural infrastructures have been upgraded but still yet to meet the demand for developing the concentrated commodity agriculture. Most of the investment was spent on irrigation infrastructure thus the enterprises are not interested in the farming sector.

Representative of G.O.C Export Food Processing Joint Stock Company (G.O.C)(Lang Giang district), a top leading company in farm produce processing shared that it is very hard to build up the material area in Bac Giang province because the farmers now do not like the farm work as previously. G.O.C expected the provincial competent sectors and localities to issue preferential policies to form the concentrated production area with large scale so that it can hire the local land for investment.

Field accumulation and expense support

The agriculture sector plays an important role to the provincial socio-economic development. The provincial Committee’s Standing Board issued the Resolution No.401-ND/TU on April 3, 2019 about the agriculture development strategy in Bac Giang province till 2030, with the vision to 2035.

The lychees' flesh is frozen at Vifoco Import Export Joint Stock Company.

The Resolution specifies to develop the agriculture toward modern, sustainable trend via promoting the local competitive advantages, applying technical advance, adapting to market mechanism, climate change and international integration.

The agriculture is developed synchronously with industry, commerce and service so as to support each other to create various products and high values. Also, the People’s Council issued special policies to encourage the business to invest in agriculture and rural area.

The province continues well executing the Government’s Decree No.57/2018/ND-CP dated on April 17, 2018 about the policy and mechanism to encourage the enterprises to invest in agriculture and rural area such as preferential tarif, hiring the land and water surface of household and individual...

Implementing these above regulation, at first the DARD has promptly conducted survey at the districts of Lang Giang, Hiep Hoa and Luc Nam to accumulate the fields up to 30 hectare and above, hence inviting the big investors including T&T group, Vingroup to cultivate hi-tech flower and vegetable.

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Truong Son