MARD Deputy Minister expresses high anticipation for the 3,000 billion VND 'mega project'

Advanced and comprehensive technology

On June 5, a delegation from the Ministry of Agriculture and Rural Development (MARD), led by Deputy Minister Phung Duc Tien, visited and collaborated with the Xuan Thien Thanh Hoa 1 high-tech livestock production complex (located in Ngoc Lac District, Thanh Hoa Province). The complex is invested by Xuan Thien Thanh Hoa Joint Stock Company (Xuan Thien Group). The Xuan Thien Thanh Hoa 1 high-tech livestock production complex is a large-scale facility that houses 180,000 meat pigs and 5,600 sows. Additionally, it has a feed manufacturing plant with a yearly capacity of 500,000 tons. The entire investment for this complex amounts to about 3,000 billion VND.

Mr. Nguyen Huy Hoang, General Director of Xuan Thien Group, declared that the feed production plant is equipped with the most cutting-edge technology available globally. Every stage of the process is meticulously automated, encompassing the measurement of raw material, regulation of temperature, monitoring of sensors, and packaging. This feed mill in Vietnam is among the largest, capable of supplying all the Xuan Thien farms in Thanh Hoa. This enables investors to take a proactive approach in managing their feed suppliers, ensuring control over input quality, and maintaining biosecurity.

Deputy Minister Phung Duc Tien praised and valued Xuan Thien Group's dedication to allocating resources towards investing in state-of-the-art technical infrastructure and equipment for pig farming, following a field tour. He stated that the success of the Xuan Thien high-tech livestock complex will significantly contribute to the advancement of the livestock industry in Thanh Hoa Province specifically, and the entire country as a whole. The Deputy Minister also stated his optimism that an increasing number of firms in Vietnam will engage in high-tech agriculture, adopting the large-scale circular model represented by Xuan Thien Group.

"Vietnam has achieved a significant export milestone by reaching a total of 1.45 billion USD in animal feed exports. If Vietnam's animal feed has low costs, high nutritional value, and low feed cost per unit product, the export value is likely to increase significantly in the near future", Deputy Minister Phung Duc Tien anticipates. 

The building of Xuan Thien's feed processing factory enhances Vietnam's animal feed production. This exemplifies the ability to achieve self-sufficiency in feeding oneself through the entire process of processing raw materials to producing final products. Deputy Minister Phung Duc Tien stressed that increasing the number of feed processing plants will lower the cost of feed per unit of livestock product, hence improving market competitiveness.

Deputy Minister Phung Duc Tien has indicated that the MARD has recommended several policies to the government for the development of the agricultural sector, with a specific focus on livestock. These policies include investment incentives, land allocation, labor regulations, fees, and taxes. These elements are essential in attracting investment in the livestock industry as a whole, with a specific focus on feed plants. Given the advantageous conditions and rules in place, the development of large-scale high-tech livestock in Vietnam is expected to gain significant speed in the near future.

MARD pledges to provide assistance to businesses

The Thanh Hoa Provincial People's Committee has recently given approval to invest in four high-tech livestock projects in Ngoc Lac, out of the total ten projects in phase 1, as stated in the report by Xuan Thien Group. These projects include Xuan Thien 2 and Xuan Thien 3 located in Nguyet An and Minh Tien communes respectively, Xuan Thien 5 in Van Am commune, and Xuan Thien 6 in Phung Giao commune. The Xuan Thien 4 project is now awaiting clearance from the Provincial People's Committee. However, it must first fulfill the prerequisite of submitting the "Environmental Impact Assessment Report" for evaluation before it can be granted approval.

Mr. Nguyen Huy Hoang, the General Director of Xuan Thien Group, expressed his desire for ongoing assistance from the leaders of Thanh Hoa province to carry out the remaining investment tasks at the high-tech pig farming complex in the coming future.

"Furthermore, the enterprise must adhere to the regulations regarding the specified timeframe for both investment and land clearance. Nevertheless, if the legislation stipulates that land clearing must be finished within a six-month timeframe, a project encompassing around 200 hectares will be unable to reach agreements with locals for compensation and execution within the specified period.

Hence, we suggest that the duration for clearing the land should be directly proportionate to the size of the project's land area, hence increasing the period for compensation and clearance. Moreover, compensation entails other legal complexities such as addressing the needs of households lacking proper housing, lost land-use rights certificates, and unresolved inheritance matters. These concerns have a substantial impact on the advancement of the project and necessitate the assistance of local authorities",  Mr. Hoang made a suggestion.

Deputy Minister Phung Duc Tien has pledged that the MARD will provide ongoing assistance to businesses and collaborate with local authorities to address land-related challenges. This will facilitate Xuan Thien in successfully finishing the remaining investment components.

In addition, the Deputy Minister proposed that Xuan Thien Group, in collaboration with local authorities, should identify suitable sites for investing in slaughterhouses and pork processing facilities. This initiative aims to provide high-quality products for the domestic market and international export.