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Local feed producers recently announced an increase in feed prices from VND150 to VND250 per kg. The price for raw materials used in animal feed production has risen faster than the proportion of livestock product prices, reducing scale and economic efficiency.
Farmers on the outskirts of Ha Noi have said that feed prices have risen from VND11,000 to VND13,000 per kg, a 30 to 50 per cent year-on-year increase. The 52S brand of animal feed, produced by the CP Animal Feed JSC has fetched prices of between VND220,000 and VND310,000 per 25 kg.
Le Phan Minh Nguyet, like many other breeders in central Thanh Hoa Province's Hoang Hoa District said that feed prices had never increased by such an extent as recently observed. Raising a 75 kg pig costs around VND5 million on average, making pig prices go up sharply in recent months by 10 to 40 per cent. But these higher prices failed to catch up with the price of feed which, together with that of medicines, rose by 20 to 50 per cent.
Alongside animal feed, the husbandry sector has been experiencing difficulties of its own, including disease, due to bad weather, high interest rates and increased costs of electricity, water, labour and medicine, without an increase in production.
Tien Dung, the owner of a livestock farm in the Ung Hoa District of Ha Noi said that, having raised 4,000 chickens, he had to spend around VND150 million (US$7,300) on animal feed per month, an increase of VND30 million ($1,500) since the start of the year.
Dung added that, if animal feed prices continued to rise, he would consider changing business in order to avoid further risks.
According to the Viet Nam Animal Feed Association, domestic producers refrained from increasing their prices in order to keep up with market prices. If prices were allowed to increase too quickly, breeders would not be able to afford to continue doing business, which could mean that feed producers would have no market in which to operate.
While Viet Nam has been viewed as a country with great agricultural potential, its animal feed sector has experienced periodic shortages of raw materials, 50 per cent of which is imported from abroad, causing local resource wastage and instability due to volatile exchange rates.
Hoang Kim Giao, head of the Livestock Production Department, said that, due to the rapid growth of the breeding industry, the animal feed sector had experienced a 15 to 17 per cent growth of its own, which has led to raw material resources not being able to meet local demand. By 2020, Viet Nam is expected to need around 15 million tonnes of animal feed a year to placate domestic demand.
Many animal feed producers have been restructuring, cutting costs and co-operating with related stockholders in order to cope with the current situation. Feed producer GreenFeed has confirmed that it will be applying a multi-module integrated system to help it manage its resources more effectively. According to a company representative, farmer support will play an essential part in sustainable development.
The Viet Nam Animal Feed Association also confirmed that producing a suitable volume of quality raw material is also important, seeing as this was a current weak point in the system.
The association has proposed the redistribution of land and investment planning in the production of raw materials for the animal feed industry, which would also need more attention from ministries in terms of taxes and administrative policies affecting stabilised prices.
ADB grants loans to finance City urban rail project
Prime Minister Nguyen Tan Dung on Tuesday issued an official document which recommends that the State President approve the ADB loan agreement for the construction of Metro Line 2 in HCM City.
Earlier, the prime minister had authorised the Governor of the State Bank of Viet Nam to sign the loan agreement with a representative of ADB in Viet Nam.
In the agreement, ADB pledged to fund US$40 million in the first phase of the project and the other US$500 million during the 2011-2012 period.
The route broke ground in August last year at Tham Luong Depot. The US$1.3 billion project, which connects Ben Thanh Market and Tham Luong Depot, is also financed by Germany's largest bank-Kreditanstalt Fuer Wiederaufbau and the European Investment Bank.
As planned, the city will put the 19-km route of the first phase of metro 2 into operation by 2016.
The HCM City People's Committee is responsible for implementing the project between 2011 and 2016.
The city government plans to build a $7.5 billion metropolitan rail system with a combined length of 109 kilometres. It will have six lines by 2020, with 84 per cent of the funds expected to be from overseas lenders.
Bangkok to host lab equipment show
Many Vietnamese companies will take part in the first exhibition and conference on scientific equipment, technology, instruments and laboratories to be held in Bangkok from October 5-7.
The exhibition (Thailand Lab 2011), organised by the NCC exhibition Organiser Co., Ltd and VNU Exhibition Europe, will display the latest innovations in biotechnology, analysis, diagnostics and laboratory technology and equipment.
It will also include professional conferences where leading experts, including one from Viet Nam, will present the latest advances in various fields.
Ha Giang calls for investment
The northern province of Ha Giang is calling for investment in 42 projects for the 2011-15 period, according to the Investment and Planning Department.
The investment capital will be used to benefit in the agricultural and industrial sectors, as well as to improve infrastructure and services.
Key projects include Tan Quang Airport, a cement factory in the Binh Vang industrial zone, the Ha Giang Trade Centre and several hydroelectric plants.
Garments exports total $6.1b in H1
The Viet Nam Textile and Apparel Association reported that in the first six months of the year, the country's textile and garment exports reached US$6.1 billion with 55 per cent from the United States.
The association said the textile and garment sector is in the process of growing its overseas markets.
Hai Duong attracts foreign projects
The northern province of Hai Duong has licensed 21 foreign direct investment projects (FDIs) in the first half of the year, an increase of 66.6 per cent with a combined capital worth of over US$266.3 million, according to the provincial Department of Planning and Investment.
Fourteen of these are newly-licensed projects with registered capital of $215 million and seven others have received capital top-up, amounting to $51.3 million.
The newly licensed projects focus on textiles and garments, phone accessories and hotel business.
At present, the province has 215 FDI projects with total registered capital of $2.9 billion, creating jobs for more than 90,400 labourers.
Vinh Long licenses new projects
In the first half of the year, more than 138 enterprises in the southern province of Vinh Long received business licences, amassing total capital of 1.5 trillion (US$74 million).
Enterprises have mainly invested in industry, trade and construction.
The private sector demonstrated a high investment rate, with an average registered capital of VND11billion ($533,000) for each enterprise.
This year the province plans to persuade 280 more enterprises to invest in the area.
Real estate expo held in Ha Noi
The second real estate and financial services expo opened yesterday in Ha Noi.
Roughly 50 real estate, financial and furniture businesses are participating in the expo where they are showcasing their projects and exchanging information.
The expo aims to create tight connections between firms, investors and consumers.
The Viet Nam Chamber of Commerce and Industry and the Viet Nam Real Estate Association are organising the event which will end tomorrow.
Italian firms seek to expand in VN
A business delegation of 11 top Italian machinery makers will visit Viet Nam next month seeking a stronger foothold in the market, according to Italian Trade Commissioner Marco Saladini.
They will participate in the Viet Nam Machine Tools and Automation Exhibition 2011 that will take place from July 5- 8 at the Saigon Exhibition and Conference Center in District 7.
CPI in H2 forecast to surge 2.5-3.9 per cent: GSO
The General Statistics Office (GSO) predicts the consumer price index (CPI) in the second half of the year will increase roughly 2.5-3.9 per cent, lifting the whole year's figure to about 15.8-17.2 per cent.
Nguyen Duc Thang, director of the GSO's Pricing Statistics Department, said he anticipated that CPI rise in H2 would be lower than the 6.65 per cent figure in H2 last year.
However, he said this year's CPI would certainly exceed the Government's 15 per cent target.
"The Government's target to keep CPI this year under 15 per cent is unfeasible," Thang said.
The GSO said the CPI in June was already 13.29 per cent higher than at the end of 2010 – and just 1.7 per cent lower than the target for the remaining six months of the year.
Thang said the CPI rise in the third quarter would be slower than at other times of the year. However, he said relevant authorities still needed to alleviate factors that could cause food prices to rise.
An upward CPI trend is also anticipated in the fourth quarter, as is usually the case during the busiest shopping period of the year, Thang said.
Earlier, Vo Hong Phuc, Minister of Planning and Investment, forecast the annual CPI rate would be 17-18 per cent.
Seminar discusses auto industry
The establishment of an auto manufacturing and support hub in central Viet Nam's Chu Lai economic zone was discussed at a seminar held by the Ministry of Industry and Trade in Ha Noi on Tuesday.
The seminar, which sought to gather opinions from relevant bodies on the second draft of Viet Nam's auto development strategy, attracted many policy-makers and hundreds of participants from the auto industry.
According to the draft, the domestic auto industry would focus on producing one or two strategic automobile models to satisfy demand and develop support industries.
It aims to provide around 70 and 74 per cent of automobiles for the domestic market by 2015 and 2030 respectively, while also trying to make auto production a key Vietnamese industry by 2020.
The eventual policy will have to fulfil Viet Nam's commitments to the World Trade Organisation.
Furthermore, businesses investing in auto parts in Chu Lai will be given many priorities regarding land and corporate tax.
Several participants said that the establishment of an auto centre at Chu Lai Open Economic Zone in Quang Nam Province was unreasonable and unnecessary.
Bui Ngoc Huyen, general director of Xuan Kien Vinaxuki JSC, said that the soft policies should not only apply to auto manufacturers who set up their factories at Chu Lai.
"All auto manufacturers nationwide should be allowed to enjoy the policies," he said.
He also said that auto centres should be developed based on the existing manufacturing sites such as Bac Ninh, Hung Yen, Hai Duong, Long An, Binh Phuoc and Dong Nai, adding that to develop the auto industry, investors must own sophisticated technology and abundant capital. Therefore, Chu Lai is not an ideal site for all auto manufacturers.
The seminar also discussed possible challenges to the domestic auto sector.
Representative from the Ministry of Planning and Investment Nguyen Hoang Thong said that authorities should review the current trend of the auto industry in order to help it develop in a sustainable way.
Licence grants for new auto assembly factories should be reduced as the country has too many already, Thong said, adding that more favourable policies should be enacted to help all businesses involved in the auto development strategy.
Pham Manh Cuong, an expert from the Ministry of Transport, said the draft did not mentioned any requirements regarding technology, infrastructure or transportation for the auto industry.
Cuong emphasised that the new strategy should be based on the current strategy in order to take advantage of the capital already invested.
Participants also requested that the strategy include transparent tax policies.
In response, Deputy Minister of Industry and Trade Le Duong Quang asserted that the second draft will feature soft policies for the entire auto industry, not only for businesses in Chu Lai.
Indian textile firms seek City partners
A delegation of leading Indian cotton manufacturers and exporters under the Cotton Textiles Export Promotion Council of India (Texprocil) met with executives of Vietnamese companies in HCM City yesterday to seek trade and investment opportunities.
Vo Tan Thanh, director of the Viet Nam Chamber of Commerce and Industry in HCM City, said despite facing many difficulties, the local garment and textile industry achieved good results in the first half of the year.
Its export revenue in the period topped US$6.16 billion, an increase of 30 per cent over the same period last year.
The sector expects to earn an estimated $13.2 billion to $13.5 billion from garment and textile exports this year, surpassing the year's target of $13 billion, he said.
However, to achieve that goal, Thanh said the sector must import a large volume of raw materials, including cotton, from other countries since local sources were unable to satisfy demand.
Amit Ruparelia, Texprocil chairman, said "Viet Nam had emerged as a leading exporter of garments and was constantly on the look-out for high quality cotton textiles including cotton yarns and fabrics."
As one of the world's leading suppliers of textiles and clothing, Indian businesses can supply any kind of raw material used in textile and garment production to Vietnamese partners, he said.
The imports of cotton textiles from India to Viet Nam have more than doubled since 2009, he said, adding that last year Viet Nam spent $50 million to import cotton textiles from India.
Abhay Thakur, Consul General of India in HCM City, said trade between Viet Nam and India had risen sharply in recent years.
Last year it rose by more than 34 per cent over 2009, reaching $2.75 billion. In the first four months of this year, it was worth $1.26 billion and could reach $4 billion by year-end, he said.
"Texprocil has come here not to compete with the Vietnamese industry, but to work in co-ordination with it so that the competitive advantage of both countries is utilized to mutual benefit," he added.
New white rhinoceros oilrig contract signed
An epCI contract based on the design, procurement, fabrication and installation of the H4 superstructure oilrig was inked between PetroVietnam, the Hoang Long Joint Operating company and the Petroleum Equipment Assembly & Metal Structure JSC in Ha Noi yesterday.
The US$44 million construction project will start on July 4 and run until late May, 2012.
The H4 oil rig's upper storey block, weighing 2,500 tonnes, will help ensure increased oil and gas extraction efficiently at the white rhinoceros oil field, situated in Block 16-1, based on a continental shelf around 100 km southeast of Vung Tau City and under contract and management of the Hoang Long Joint Operating company.
Oil field development will include a storage vessel, two clusters of oilrigs known as H1 and H4 and an internal system of underground pipelines to transport crude oil and gas.
Following successful project completion, the oil field is expected to welcome its first oil flow in August 2011.
Foreign investors eye mining sector
The nation's mining industry presented evidence of considerable growth potential at the Viet Nam Industrial Minerals Conference 2011, causing increased interest among foreign investors.
Deputy Minister of Natural Resources and Environment Nguyen Linh Ngoc said Viet Nam has significant reserves of minerals, including coal, bauxite and mineral sand, but at present the country is not thoroughly exploiting its available resources.
Tran Kim Phuong, a scientist from Viet Nam Institute of Geosciences and Mineral Resources, said as mineral resources were not appropriately exploited, the loss of resources in exploiting was still great, and mining still caused adverse impacts to the ecological environment.
"That's why Viet Nam always wishes to strengthen co-operation with international experts and investors to more efficiently use the resources we have, while at the same time combating environmental pollution," Ngoc said.
Dominic Heaton, CEO of Masan Resources in Viet Nam, which manages a big tungsten exploiting project in northern Thai Nguyen City, said now it was the right time to invest in Viet Nam because there was a growing demand for minerals not only within the country but also around the world.
Bill Magennis, management partner of Allens Arthur Robinson law firm in Viet Nam, said the new Minerals Law that would come into effect this Friday would be welcomed by foreign investors because of favourable regulatory measures.
For example, the duration for an exploratory licence has been doubled in the new law, now allowing 48 months plus extensions not to exceed an additional 48 months.
In addition, Magennis noted that after Friday almost all exploration rights would be auctioned.
Consulting manager Antonio Sequeros of Tractus Asia Viet Nam said Viet Nam had previously been perceived as a challenging destination for investment in mining, and some key issues still needed to be addressed.
"In some cases, the area limitations are too small to justify use of the latest technology. And the processing of applications and renewals should be more aligned with international practice," he said.
Viet Nam now is exploiting some 38 kinds of minerals which are used for production of more 54 commodities. Value gathered from minerals and products manufacturing from minerals reach about US$25 billion last year.
According to the Statistical Yearbook, the Foreign Direct Investment in the mining sector remained small when compared to the total, accounting for approximately 5 percent in 2010. Iron, titanium and copper were the leading metals exported, though imports still outpace exports in the mining sector.
The two-day conference, which wrapped up yesterday, was held by Metal Bulletin Ltd, an international publisher and information source for the global steel market. More than 200 participants gathered for the conference from more than 11 countries.
Mekong Delta's fish farmers face tough time
Pangasius farmers in the Mekong Delta are in a dilemma and on the verge of ruin as they are unable to sell large-sized fish while factories face a shortage of small-sized fish for processing.
Farmers are in distress because traders refuse to buy their large-sized fish in the context that exporters prefer small-sized fish.
Farmers were happy to rake in profit when pangasius prices kept rising continuously from late last year till early April 2011, with prices even climbing to a record high of VND29,000 per kilogram.
However, by harvest season starting April, prices began to fluctuate down to VND23,000-24,000 per kilogram, which barely covered farming costs.
Presently only a few farms are still in business as most are struggling to meet expenses.
Le Chi Binh, vice chairman of the An Giang Aquaculture and Seafood Processing Association, said it is true that there is currently a surplus of large-size pangasius ranging from 900 grams to 1.2 kilograms at farms.
Meanwhile, factories in An Giang Province face a shortage of small-sized fish ranging from 700 to 850 grams and are unable to run at full capacity, he added.
Factories in Dong Thap, Vinh Long and Can Tho are in a similar situation, with many running at only 50-60 percent capacity.
Nguyen Trang Su, vice chairman of the People’s Committee of Hong Ngu District in Dong Thap Province, said his district currently does not have many small-sized fish to sell.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), factories in the Mekong Delta have faced a shortage of 20-30 percent compared to demand since early this year.
The association forecasts that the lack of pangasius produce could last till the end of this year.
The imbalance in supply that resulted in shortage of small-sized fish and the surplus supply of large-sized fish is troubling traders who cannot find the more preferred small-sized ones for delivery.
The situation was attributed to the lack of communication between suppliers and buyers.
The Ministry of Agriculture and Rural Development and VASEP have asked exporters to buy all pangasius from farmers and encouraged them to buy large-sized fish besides asking banks to support them.
VASEP vice chairman Duong Ngoc Minh said the association members would buy out large-sized pangasius raw produce from farmers in July.
Projects to boost garment industry
A series of projects begun recently will enhance production capacity and help maintain Viet Nam's position as one of the world's major garment and textile exporters.
The projects were mainly in developing raw materials like yarn and value-added finished products like suits, the Dau Tu (Investment Review) newspaper said, citing industry insiders.
The raw material issue was a headache for the garment and textile sector, said Tran Van Pho, general deputy director of the Viet Nam National Garment and Textile Group.
Therefore, investing in expanding production of raw material and high quality products was a step in the right direction because it would increase local material content and Viet Nam's garment and textile products competitiveness, he said.
This would also help the sector develop in a sustainable manner, he added.
One of the major projects to enhance production of raw materials was the VND1.3 trillion (US$63 million) Nam Dan garment and textile cluster project developed by the Ha Noi Textile and Garment Joint Stock Company (Hanosimex) in central Nghe An Province's Nam Dan District.
The project is divided into two phases. Costing VND850 billion ($41.2 million), the first phase will involve in building support facilities and two fiber factories producing about 300,000 spindles of spun yarn each.
The first phase of the project is expected to be completed in 2013.
With an investment capital of VND500 billion, the second phase will include a factory producing high quality yarn and two garment factories each with an annual capacity of 2.4 million pieces, apart from infrastructure facilities.
Another project has been invested in by the Nha Trang Garment and Textile Joint Stock Co, an affiliate of the Phong Phu Corporation. This factory, estimated to cost VND350 billion ($16.98 million), will be able to produce 40,000 spindles of spun yarn.
Tran Quang Nghi, chairman of Nha Trang Garment and Textile JSC, said they were speeding up construction of the project so that it can be put into operation by the end of this year.
Once put into operation in the central province of Khanh Hoa, the factory will supply polyester and TC yarn (65 per cent polyester, 35 per cent cotton) as well as other high quality threads for domestic consumption and export, he said.
However, local traders told Viet Nam News that, while the new projects were indeed good for the local industry, Viet Nam was far away from being able to substitute imported materials with those that were domestically produced.
The establishment of the Dung Quat refinery would certainly supply raw materials needed to make polyester fibre and yarn, but as of now, 70 per cent of the materials needed by the industry were being imported, and this was unlikely to change significantly in the near future, they said.
They noted that the yarn produced here still had to be exported to other countries to produce quality fabric needed to make garments.
Meanwhile, the Hoa Tho Textile and Garment JSC has started work on the Hoa Tho Veston Plant in central Da Nang City.
The VND86 billion ($4.17 million) plant will be capable of producing 400,000 suits per year, and will be the first deluxe suit manufacturer in the central region.
It is projected to be put into operation by the end of this year and bring more than $10 million in export revenues annually.
Vien Dong CEO accused of fraud, forgery
The Investigation agency under the Ministry of Public Security has decided to prosecute four men and remand them to the Supreme People’s Procuracy for manipulating stocks by falsified means to inflate prices last year.
Le Van Dung, former chairman and CEO of the Vien Dong Pharmaceutical Company; Nguyen Van Viet, Dung’s brother-in-law and member of Vien Dong Management Board; Le Van Manh, Dung’s brother and chairman of Vien Dong company and Le Minh Truyen, a stockbroker from Sacombank Securities are the four accused of fraud and forgery.
39 year old Le Van Dung will be the first person ever to be indicted in Vietnam for stock manipulation, if he happens to be charged.
According to the proceeding investigation, Dung was found to have opened 12 accounts under his and relatives’ names to conduct falsified transactions to raise share prices of the Vien Dong Company.
Dung carried out hundreds of falsified transactions in selling and buying of DVD shares from his various accounts to create a false impression in the market that Vien Dong DVD stocks were in high demand, to attract investors between early 2010 till September 2010.
Investigators revealed that the total value of these falsified deals amounted to VND221 billion (US$10,755,000). Manh, Viet and Truyen joined in to help Dung conduct these illegal transactions.
In addition, Dung and his companies colluded with others to conduct false transactions of securities and shares of the Ha Tay Pharmaceutical Company with the aim of taking over and merging it with Vien Dong. This caused huge losses to other investors.
Moreover, Dung and his companies gave incorrect information to hide the real transactions in securities and even forged documents and state seals.
VN to conduct nationwide rural, agriculture survey
Vietnam will carry out a nationwide intensive survey of its rural, agricultural and seafood sectors from July 1 to 30.
According to the central steering board for surveys, this study is aimed at collecting basic information in the above sectors to assess a very realistic ground picture of the situation, analyze development tendencies, make plans and polices for development and focus on ways to improve the living standards of rural people across the country.
The collected data information will be also used for in-depth research work.
The content and all information data in the survey will include a realistic picture of all agricultural production in the country and issues relating to rural areas and its population with details on gender and mortality.
Experienced lawyers review Vietnam legal developments
Three foreign experienced lawyers in Vietnam made on Thursday a mid-year review of major current legal developments in the country, including the laws affecting foreign exchange, real estate, labor, banking and borrowings, consumer law, securities, private-public partnership, and next year’s WTO changes.
Nigel Russell, partner at Allens Arthur Robison, Mark Fraser, managing lawyer at Frasers Law Company, and Geoff Sutherland, foreign legal counsel with Vision & Associates, spoke about the topics at a business meeting held by the Australian Chamber of Commerce in Vietnam – Hochiminh City Chapter, in the city.
Among banking issues, Fraser mentioned the enforcement of the currency policies of the State Bank of Vietnam.
The SBV’s interest rates to enforce the currency policies are applicable to overnight loans for inter-bank electronic payments (14% yearly), loans to cover shortages for settlements conducted by the central bank (also 14% yearly), refinancing (14% per annum) and rediscount (13% per annum), he said.
In terms of labor, Fraser said the common minimum wage had increased from VND730,000 per month (US$37) to VND830,000 (US$42). Meanwhile, the minimum level applicable to employees working in domestic enterprises based in HCM City and Hanoi is VND1,350,000/month, and that for those working in foreign-invested companies is VND1,550,000/month.
He also briefed about labor disputes and a draft labor code that was finished in May 2011.
In relation to individual labor disputes, he said the Court shall be entitled to judge disputes being successfully reconciled, but the reconciliation has not been implemented; or disputes failed to be reconciled or failed to be reconciled within the relevant time limit.
Meanwhile, Russell provided a quick review of recent changes in law relating to foreign exchange, land and infrastructure.
He mentioned Resolution 11 of the Vietnamese Government on measures to fight inflation, stabilise the macro economy and ensure social security.
Among the recent developments in foreign exchange, Russell spoke about tightening of restrictions on domestic foreign currency loans, discouraging deposits in foreign currency, tougher action against unlicensed forex dealers (in the black market, banning banks from lending gold, and tightening of requirement that domestic transactions be conducted in Vietnam dong.
The recent developments in land laws include some rules on pre-sales, increase of land rental, the fact that People’s Committees allowed to adjust the official land price, a new title certificate for all real property, which is "Certificate of Land Use Rights and Housing and other Assets Ownership".
Some other new rules are about qualified foreigners and foreign-invested enterprises that are able to buy apartments, said Russell.
In the pipeline are a ban on sale of unfinished houses, and removal of Notary Public from process of buying/selling houses, but removal or not is not clear.
Sutherland from Vision & Associates talked about current legal developments in the consumer law, borrowings from the Government and State-run enterprises, and WTO changes in January 2012.
Vietnam southern delta switches to large-field farming
Many provinces in the Mekong Delta have set the model of large paddy fields for the summer-fall crop, after the model proved better profit than individual farmers working in their own small fields.
The fields range between 100 and 2,000 hectares, many of them in An Giang Province.
Doan Ngoc Pha, deputy director of An Giang Department of Agriculture and Rural Development, said the province has more than 3,000 hectares of large paddy fields for the coming crop.
An Giang Plant Protection JSC and An Giang Import and Export Company invested the seeds, fertilizers, pesticides for the fields, Pha said.
Officials from the companies also provide technical instructions to the farmers and promise to buy all the rice.
In Dong Thap Province, ten fields of more than 1,500 hectares have gathered nearly 1,200 farmers planting rice with Viet GAP (Good Agriculture Practice) standards.
During the past winter-spring crop, rice production on fields larger than 1,000 hectares in An Giang Province cost 30 percent less than the sum of individual small fields.
Nearly 500 farmers attending in the model made more than 150 percent of profit with eight to nine tons of rice harvested per hectare.
Bui Ba Bong, deputy minister of Agriculture and Rural Development, said that delta provinces should renovate their farming methods to the “large field” method to save cost and increase productivity.
The farmers should try to establish connection to businesses to have loyal customers as well as to get good help for preserving and processing their rice after harvest, Bong said.
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