TIM NNG C HI U T PT NNG

TIỀM NĂNG & CƠ HỘI ĐẦU TƯ PT NÔNG NGHIỆP POTENTIALS AND INVESTMENT OPPORTUNITIES FOR AGRICULTURAL DEVELOPMENT IN MEKONG DELTA VỚI ĐỒNG BẰNG SÔNG CỬU LONG

Contant I. Introduction 1. The Economic importance of Mekong delta 2. Geographic location 3. Economic - Social 4. Economic development potential of marine economy 5. Economic characteristics - the key economic sectors II. CONTENT 1. Development of the sugar industry and bio-Regional 2. Development Project beet material in Soc Trang and Tra Vinh 3. Mining projects produce sugar from Nipal pam at Tra Vinh - and the Mekong Delta

The Economic importance of Mekong Delta M K E C O N O M I C ANNUAL CONTRIBUTION TO ECONOMIC DELTA COUNTRY 21% GDP 50% yield of rice and 90% of rice exports 70% of fruits production 56% Aquaculture product 63% to export fishery products nationwide 43% of sugar

Mekong Delta ¡ The Mekong Delta is the largest economic region of Viet Nam. ¡ The natural area is about 40. 060 km 2 (accounting for 12, 3% of the country). Alluvial soil accounts for 1. 2 million ha sweet. Soil acidity and salinity accounted for 2. 5 million ha of land ¡ Located in the tropics with mild climate. Average annual temperature is 27 o. C.

Social Profile ¡ The Mekong Delta has 13 administrative units including one city which directly ¡ Population : over 18 million people (accounting for 21% of the national population). ¡ and over 63% of working age, 78% in agriculture.

Geographical advantages ¡ The Mekong Delta is bordered on three sides by the sea and located in the central of South East Asia. This is the strategic location for economy and for international commerce. ¡ It is located next to the South East Asia countries (Thailand, Singapore, Malaysia, Philippines, Indonesia. . . ) - a dynamic and development economic zone, important markets and investment partners.

Located in the corridor of maritime economic development. ¡Located in the economic corridor of Viet Nam ¡ Being the southern key economic region. ¡ Occupied 50% of imported goods and exported goods of the south of Viet Nam through Saigon port and Ba Ria-Vung Tau port.

Water-way and road transport ¡ The Mekong Delta connects with Laos, Cambodia and Thailand via the Mekong river. With dense net of rivers and canals, it makes water-way the most advantageous compared to many other region in the country. ¡ Provinces in the Mekong Delta are connected by National road 1 A. Besides, Ham Luong bridge and Co Chien bridge (will be constructed) will improve the transport system of the Region and make it more comfortable.

Located in the international maritime routs

Potential of maritime economy ¡ The region has maritime economic potential with the deep water routes and international transit port. ¡ Located in the area of major maritime transportation and international airlines, between South Asia and East Asia as well as Australia and other islands in the Pacific. This is very important position in international exchange

Key Economic Sector – Agriculture ¡ Natural area is about 40. 518, 5 km 2, accounting for about 11% of the country. ¡ The value of agricultural production led the country, occupies over 40% of total national agricultural production. ¡ The area of paddy land is about 3. 970 thousand hectares, accounting for 35% of the land. ¡ The area of crops, rice and crops rotation about is about 20 – 30% of total land area. ¡ Sugarcane growing area is about 58 thousand hectares

Land comparision The area of paddy land (thousand hectares) Comparison of land area (km 2) Mekong Delta 35% REMAINING 65% MEKONG DELTA 11% Area of water surface for the aquaculture by province 1200 1066 1000 800 754 600 400 80 el ta D Ea g on So ut h la ig h l. H st 13 nd . . . lc ra tra en C l& ce nt id m N or th C en N or tra th ho er n le co un t ry la nd 0 53 ek 41 M 200 w REMAINING 89% Area of water surface for the aquaculture by province

Production of rice Production of paddy by year (thous tons) 40000 35000 30000 25000 20000 39989 15000 21570 10000 5000 3081 0 whole country Northern midland 6154 1047 North Central & central coastal area Central Highland 1334 South East Mekong Delta Production of paddy by year (thous tons)

The key sectors ¡ Rice ¡ foothold RICE IS HUGE INVENTORY OF VIETNAM NOT, but also the world with impressive contribution: Rice production accounts for 50% of the national rice output, but accounts for 90% of exported rice (about 7 million tons/year). The delta produces more rice than Korea and Japan combined Viet Nam is the second largest rice exporter globally after Thailand.

The key sectors ¡ Seafood: - Viet Nam has 1, 066 million hectares of aquaculture land, exports reached 2. 5 billion USD - The area of aquaculture is about 754 thousand hectares, accounting for 41% of the national aquaculture area (about 1. 066 million hectares). Output to reach 56% of the total national output. - Export turnover reached 37, 709 Billion VND equivalent to 1, 7 billion USD(year 2010) of national exports. Soc leading shrimp exporter.

Agricultural orientation to cope with climate change ¡ Policy for changing in plants and animals responds to climate change ¡ Increase in area under crops, short-term foodgrains. ¡ Increase in area under sugarcane and industrial plants for the production of key sectors with high economic efficiency such as sugar, gas, fertilizer. . . ¡ Prioritize the development of energy and renewable biological energy industry

Development of sugarcane and bio-energy industry ¡ Annual MKD contribution of about 500, 000 tons of sugar for 43% of the total national sugar production was estimated in 2010 the country reached 1. 130 million tons of sugar. ¡ The green resource for producing sugar and fuel are huge but untapped ( Nipah palm)) ¡ Currently, Viet Nam has an ethanol production plant based on cassava of Itochu corporation– Japan with investment capital of 100 million USD. It is expected to consume 48% of cassava throughout the country by 2025. This will greatly effect the domestic food supply ¡ With above mentioned reasons, investment projects on developing feedstock area for producing sugar and ethanol from sugar beet and nipah palm are welcomed and supported by leaders at all level. This is a new production model which fully utilize land resources, promote the strengths of plants and is suitable with the region as well as climate change to develop sugar and green energy industries.

General information about sugar industry of Viet Nam ¡ The area of sugarcane cultivation of Viet Nam is 266. 3 thousand hectares of which Mekong Delta is 57. 5 thousand hectares, accounting for 18%. ¡ Sugarcane production reached 23% of the country the equivalent 1. 13 million tons / in 2010, ¡ Sugacane yield is from 60 – 100 tons/ha (Tra Vinh – Soc Trang) ¡ In 2010 the country imported 250. 000 tons of sugar. ¡ Currently, there are 37 factories producing sugar from sugarcane which have small capacity. Six of which are 100% foreign- owned factories with capacity of 4, 500 tons/year. The remaining 31 factories have capacity of 700 -1, 000 tons/year. ¡ The Mekong Delta has 10 sugar factories (in Tra Vinh, Soc Trang, Ben Tre, Hau Giang )

The advantages of Soc Trang Province ¡ Strategic location: It has 72 km coastline with Dinh De and Dinh An estuaris which have advantages in development of seaports. The construction of Dai Ngai port with Dinh An Economic Zone of Tra Vinh will form a hub transit port of the Mekong Delta ¡ The population of Soc Trang is 1. 3 million people, in which 62% are working age with 30% trained. This is the period of “demographic bonus” of Viet Nam in general and Soc Trang in particular which helps create strong momentum for socio-economic development. ¡ Land area is 350. 000, of which 274, 677 ha for agriculture with 144, 000 ha of paddy land (production reached 1. 7 million tons, equivalent to 1 million tons rice/year) ¡ The area for long-term crops is 40. 658 ha. Aquaculture area occupies 20% of the total area with annual export turnover of 400 million USD.

Advantages of farmland Sugar can area in Mekong Delta 14 Total land area for crops : 113, 000 ha 12 Area (thous ha) 10 70 8 13. 1 12. 8 4 6. 1 Area (thous ha) 13. 9 6 60 5. 9 2 50 40 30 20 10 0 0 TRÀ VINH SÓC TRĂNG HẬU GIANG LONG AN TRÀ VINH SÓC TRĂNG LONG AN HẬU GIANG Sugar cane BẾN TRE Area (thous ha) 58 BẾN TRE Corn 38 Cassava 6 Peanut 11

Study area location

Favorable conditions for development of sugar beet project ¡ Location: Soc Trang and Tra Vinh provines are located in the heart of the large raw material region with the largest industrial economic zones. This is the gateway to other countries through Dinh An port (Tra Vinh) and Dai Ngai port (Soc Trang). ¡ Land area: Growing area is large and focus, of which 274, 677 ha (Soc Trang) and 186, 170 ha (Tra Vinh) for agriculture with 30% of alkaline soil ¡ Transportation: Having major and key projects with synchronous infrastructure, transportation by water way and road in this region is very convenient which will reduces investment cost. ¡ Population: Having a large population. The population of Tra Vinh and Soc Trang is more than 2. 5 million people. ¡ Labor force: The workforce occupies 65% of the province’s population. Average income per head is low, about 1, 200 USD /year. ¡ Market: Situated in the largest consumer of sugar and fertilizer region of Viet Nam. ¡ Climate : The region has moderate climate. The average temperature is 27 o. C-28 o. C with high number of sunshine hours, from 2, 226 – 2, 790 hours/year. This region is rarely affected by natural disaster. There are two seasons a year: the rainy lasts from May to November, the rainy season lasts from December to April of next year.

Economic comparison of sugar products - Currently, Soc Trang province’s sugar production is 12, 000 tons/year in the growing area of 13, 000 ha. If developing 5, 000 ha of sugar beet growing area with 2 different crops a year will bring Soc Trang 160, 000 tons of sugar/year and other coproducts from sugar beet’s pulp such as fertilizer, pesticides… - Annual consumption of about 6 million tons of fertilizer, 45% import about 3 million tons. - Average income from sugarcane is about 5, 000 USD/crop/ha/year (in 2010) The production of sugar beet is 2 times higher than sugarcane with 4 times higher in sugar yields – Which will increase income for farmers and local budget. - Sugar production /year Sugar can sugar beet Nipal 22% 38% 40% MÍA ĐƯỜNG 10% 22% CỦ CẢI ĐƯỜNG 32% DỪA NƯỚC 36% KHOAI MÌ YIELD OF ETHANOL (L/YEAR)

Producing sugar from Nipah palm According to science reports, sap of Nipah palm has a sugar content around 14 -6% while sugarcane is 6 -10% with 14 tons of sugar /ha. Besides, the Nipah palm is also a valuable source of green energy. The yield of one hectare of Nipah palm is about 6, 480 liters of ethanol/tapping season, while cassava is only 2, 020 liters/year. Nipah palm is a one planted but harvested throughout the 50 years. In addition, Co-products from bagasse, tops leaves are used for producing: fertilizers, pesticides, plywood, roofing …

Mangrove Resources of the Mekong Delta ¡ The Mekong Delta owns a large area of natural resources. ¡ Area of forests is about 320, 900 ha including 63, 800 ha of mangrove forest and 257. 100 ha of manplanted forest

Distribution of mangroves ¡Mangroves in the Mekong Delta occupies the alluvial silt on coastal basin of the estuary to the sea and inland valley swamps less than 100, 000 ha, concentrated in the provinces of Ca Mau(58, 285 ha), Bac Lieu (4, 142 ha), Soc Trang (2, 943 ha), Tra Vinh (8, 582 ha), Ben Tre ( 7, 153 ha) ¡Currently, Nipah palm area in Tra Vinh, Ben Tre, which was converted into aquaculture area in some parts, is still a large and concentration area.

Overview of Tra Vinh - - Tra Vinh is located in the heart of the Mekong Delta, between Co Chien river and Hau river, with 65 km long coastline. The province is 200 km far from Hochiminh city as traveling by National Road 60 through Co Chien Bridge Population: 1. 1 million people with 62% of working age Tra Vinh possesses many factors for economic development, especially the maritime economy. In 2009, the government invested in Tra Vinh 3 major projects : a large shipping channel for vessels of 20, 000 DWT, Co Chien Bridge and Coastal power plant

The region of project The natural area of Tra Vinh is 229, 000 ha, including 8, 000 ha of mangrove forest and swampy land where the Nipah palm is growing ¡ Currently, 5, 000 ha of nipah palm in the Coastal is being harvested and nearly 1, 000 ha is belong to the State. Total area of exploited Nipah palm is 7, 000 ha. ¡ Besides, the mangroves can be converted into Nipah palm area to keep land fresh water in the condition of rising sea level.

Economic efficiency of Nipah palm Efficiency for investor Recovery the large untapped feedstock source Reducing investment cost of land lease and labor, purchasing products in accordance with the capacity of plant As the product Easily reach to a consumption market and partnership with other the largest exporter of the Economic efficiency with local sugar factories and country , with raw sugar waterway trasport reduce transportation costs. exploration and production areas Incentives from the programs of the province and country.

Economic efficiency from Nipah palm Economic efficiency for local If apply the method of PT. First Flower will gain: 140, 000 tons of sugar /year , annual revenue of about 100 million USDr Several coproducts with high addedvalue Over 10, 000 jobs with high income Creating a new market, attracting accompany services

Economic efficiency from Nipah palm Scenario of sea level rice 0. 75 M

Graph of sea level rice in 2100 SCENARIOS OF SEA LEVE RISE FOR VIET NAM 120 Source: Ministry of Natural Resources and Environment 100 86 80 57 60 40 232324 20 75 71 111212 33 2830 44 3537 46 42 54 50 64 57 65 171717 0 2020 2030 2040 KB thấp (B 1) 2050 2060 KB Trung bình (B 2) 2070 2080 KB cao (A 1 FI) 2090 2100

Solutions to cope with climate change ¡ Adapt and positive response to climate change. ¡ The Mekong Delta’s main product is rice. Such future sea level rise could lead to narrow the area of paddy land in the Mekong Delta, while the economy is growing and demand for food is increasing ¡ World’s food would be serious effected because food-growing areas in the lowlands of the world would be filled in the same way. ¡ Besides, the state of saltwater intrusion is very influential to the development of agriculture. ¡ So what solution for people in flooded areas to continue living and developing economy as well as ensuring food for the country and the world?

¡ NIPAH PALM IS ONE OF THE ECONOMIC FEASIBILITY MODELS WHICH IS LOOKED AS THE MOST PROMISSING IN REPLACEMENT OF WATERRESISTANT CROPS, LAND PROTECTION AND FRESH WATER STORAGE. THESE ARE EXCELLENT POSSIBILITES OF NIPAH PALM THAT WE FAR UNKNOWN ¡WE WELCOME PROJECTS OF PT. FIRST FLOWER WITH ALL HOPE OF COOPERATION- DEVELOPMENT – AND SUCCESS

SOURCES OF INFORMATION ¡ The information in this presentation are used from the following sources: ¡ 2010 Statistical Yearbook of Statistics Vietnam ¡ Specialized reports of MARD, Vietnam ¡ Report of the Ministry of Science and Technology Vietnam ¡ Report of the Institute of Policy and Strategy for Agriculture and Rural Development Vietnam IPSARD ¡ Report of the FAO report ¡ Report of the Department of Planning and Investment of Soc Trang province ¡ Report of the Department of Planning and Investment Department of Tra Vinh

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