THAGRICO meets with President Nguyen Xuan Phuc and businesses in Cambodia
Cambodia - On Dec. 22, 2021, President Nguyen Xuan Phuc had a meeting with Vietnamese businesses in Phnom Penh Capital in Cambodia. THACO Chairman Tran Ba Duong and THAGRICO President Tran Bao Son attended the event.
THACO receives the foreign investment license from the Ministry of Planning and Investment
After taking over from Hoang Anh Gia Lai in 2018, THAGRICO, THACO's agriculture subsidiary has restructured debt and investment with a total registered capital of $388 million.
Up to now, the company has planted more than 16,000 hectares of fruits, including more than 10,000 hectares of bananas, 4,000 hectares of mangoes, 300 hectares of pineapples and more than 2,000 hectares of other fruits.
It has turned a large area of oil palm trees and rubber trees to fruits, i.e. bananas, pineapples, mangoes and to raise cattle, constructing transport infrastructure, power grids, water reservoirs, 24 banana processing and packaging factories, solar power projects, worker housing, production plants, and transport fleets.
THAGRICO's fruit harvest and export volumes in 2021 reached 250,000 tons with an export revenue of $151 million. Covid social distancing caused worker shortages, increased costs in material, difficulties in cross-border transport and unharvested fruits.
THACO Chairman Tran Ba Duong and THAGRICO President Tran Bao Son attended the meeting
In 2022, THAGRICO will continue its present work, plant more fruits together with rear pigs and cattle under the semi-grazing system in Kratie and Rattanakiri provinces in Cambodia, and produce organic fertilizers to supply for fruit farms. The company expects to reach 416,000 tons of fruits, and earn export revenue at $424 million.
THACO keeps on its investments in solar power projects, worker housing, material factories, and special transport fleets with a total estimated amount of $100 million. Meanwhile, THAGRICO will pour in an investment estimated at $100 million for fruit conversion and livestock. After the conversion finishes, it will use another $500 million.
To lift difficulties to carry out the above projects, THACO Chairman proposed solutions to remove power shortage, labor shortage, increase the transport fleet to 700 vehicles which can operate across Cambodia.
In 2021, THAGRICO has created jobs for Vietnamese people in Tonle Sap with incomes ranging from $250-350 per month and provided them with fully-equipped housing areas.
The Vietnamese company is house to more than 15,900 workers, including more than 14,400 Cambodians, 1,400 Vietnamese and Filipinos who are experts and technicians in agricultural mechanization and managers.
To provide sustainable employment for Vietnamese people in Tonle Sap, Mr. Duong emphasized the support of the Vietnamese Embassy in Cambodia was important factor in building the bridge between the two countries which helps to solve the problem. He also asked for continued support from the Vietnamese Embassy and authorities at cross-border provinces of the 2 countries to enable convenient goods transport for businesses.
At the meeting, businesses also pointed out other difficulties and challenges, i.e. lack of skilled workers, difficulties in bank loans, tax regulations and made recommendations to the Governments of Vietnam and Cambodia for their support.
Listening to the representatives, President Nguyen Xuan Phuc was delighted to see Vietnam's investment was going a better direction, and the determination of the businesses. The President emphasized that the companies have played a significant role and sent his praises to the Vietnamese businesses in Cambodia. He also promised more efforts from the ministries to strengthen cooperation with Cambodia to support the national businesses.