HomeEconomyAgricultureBillion dollar agricultural farm abandoned due to legal errors...

The billion-dollar agricultural farm was abandoned due to illegal investment


Projection technology

According to Nhat Thong Agricultural Company Limited (headquartered in Ho Chi Minh City), at the time of signing the contract, Dakruco provided cooperative land that was approved by the People's Committee of Dak Lak province for conversion to grow other agricultural crops with high technology application in Official Letter No. 2420/UBND-NN&MT dated March 29, 3 at Cu Bao rubber farm (Buon Ho Town).

In the process of investment, in April 4, the Provincial People's Committee established a Dakruco inspection team on land use and labor.

The billion-dollar agricultural farm was abandoned due to illegal investment Photo 1

Nhat Thong invests about 130 billion VND in hi-tech agricultural system

According to the inspection conclusion of the Provincial People's Committee, on September 18, 9, Dakruco signed a cooperation agreement with Tuan Hung Tay Nguyen Co., Ltd. with a deployment area of ​​more than 2019 hectares, the contract period is 113 years. At the same time, Dakruco cooperated with Nhat Thong Agricultural Co., Ltd. with an area of ​​more than 24 hectares, the contract period is 275 years.

At the time of inspection, Tuan Hung Tay Nguyen invested about VND 40 billion to grow short-term crops interwoven with perennials such as bananas interspersed with avocado, jackfruit and durian with an area of ​​about 109ha; construction of a number of works of factories, workers' houses, material warehouses, canteens and water reservoirs.

Similarly, Nhat Thong invested about 130 billion VND to grow avocado, mango, durian, cocoa, sweet potato, banana on an area of ​​about 257ha; to build membrane houses, net houses, stables and farms for raising cows, pigs, chickens, ducks and earthworms with an area of ​​about 7ha; pumping station, warehouse, water reservoir with an area of ​​about 0,72ha.

According to the Inspection Conclusion of the Provincial People's Committee, on March 29, 3, the Provincial People's Committee issued Official Letter No. 2019 on the transformation of crop structure towards the application of high-tech agriculture of Dakruco.

Accordingly, the Provincial People's Committee agreed to assign the representative of state capital in Dakruco to vote in favor of the policy of restructuring crops towards high-tech application. Thus, the Provincial People's Committee has not yet approved the policy for Dakruco to implement a high-tech agricultural investment project at Cu Bao Rubber Farm.

On the other hand, Dakruco transformed its model from Dak Lak Rubber One Member Limited Liability Company into a joint stock company from 2018. According to the regulations, from the date of issuance of the Certificate of Joint Stock Company for the first time, the equitized enterprise is responsible for carrying out the procedures to be allocated or leased land by the State according to the Land Law.

However, at the time of inspection, Dakruco had not yet been re-signed by the Provincial People's Committee to lease land according to regulations. In addition, this land area is leased by the Provincial People's Committee, paying annual land rental. Therefore, Dakruco cooperates to invest in agricultural production and business properties No. Tuan Hung Tay Nguyen and Nhat Thong are not under the rights of economic organizations that are leased land by the state and pay the land rent as prescribed in Clause 1, Article 175 of the 2013 Land Law. Therefore, Nhat Thong and Tuan Hung Tay Nguyen have stopped planting new fruit trees, having a long cycle and building agricultural productions directly.

Harmony is needed for common development

In the mid-May days, Nhat Thong farm in Dak Lak province has just over 5 skinny cows that are freely eating grass and banana bushes without anyone taking care of them. Intercropping with cocoa, durian, and old South American banana trees have just blossomed but cannot be harvested due to poor quality. In the mango growing area, the grass grows more than 100cm high, intertwined with pepper and coffee pillars. Besides, greenhouses, barns, water pumping stations... are also "covered with mats".

The billion-dollar agricultural farm was abandoned due to illegal investment Photo 2

Nhat Thong Farm has been suspended for more than a year, causing great damage

The billion-dollar agricultural farm was abandoned due to illegal investment Photo 3

Mr. Pham Huu Thoi, Director of Nhat Thong said sadly, according to the conclusion, only short-term trees can be grown. However, the circular economy model must have the waste of one product as a source of nutrition for another product, so Nhat Thong cannot continue to invest. Therefore, Nhat Thong proposed to re-sign the investment cooperation contract between Nhat Thong and Dakruco to separate the above land for the new legal entity established under the new cooperation contract and record the actual capital contribution ratio on the value of the two invested parties.

After the inspection conclusion, in July 7, Dakruco sent a written report to the Provincial People's Committee, proposing a plan for the two sides to liquidate the contract and re-sign the business cooperation contract after carrying out the procedures for approval of investment policy in order to transition the agricultural production cooperation process. However, Nhat Thong agreed to re-sign the contract but wanted to continue to invest in implementing this project in the form of direct land lease for independent investment. Therefore, this issue does not fall under the jurisdiction of Dakruco and the representative of the state capital at the company. Therefore, the company proposed the Provincial People's Committee to review, direct and guide Dakruco to organize the implementation.

The billion-dollar agricultural farm was abandoned due to illegal investment Photo 4

Director of Dak Lak Provincial Department of Agriculture and Rural Development Nguyen Hoai Duong talks to the press

Mr. Nguyen Hoai Duong, Director of Dak Lak Provincial Department of Agriculture and Rural Development, said that in January 1, the department received a dispatch from the provincial Department of Planning and Investment to comment on handling petitions for Nhat Thong. The Department of Agriculture and Rural Development has reported to the Provincial People's Committee to carefully consider this issue when dealing with Nhat Thong's recommendation, otherwise the matter will persist and the land use will be inefficient, affecting the production and business efficiency of both enterprises and the agricultural development of the province.

Based on Dakruco's land use situation, whether the company will return it or not, it only has the right to give opinions, and the Provincial People's Committee owns 98,94% of the shares to decide. On the other hand, the province's socio-economic development plan, when the province has a policy to call for investment on the area of ​​land Dakruco is managing and the list of projects calling for investment, Dakruco will hand it over to the province for implementation in accordance with regulations.

According to the Department of Agriculture and Rural Development, at point d, clause 3, article 62 of the 2013 Land Law, the Provincial People's Council can recover land to serve concentrated agricultural production in accordance with the province's socio-economic development orientation such as implementing concentrated agricultural production and processing projects. After the land is recovered, the project will be auctioned, if the winning unit is Nhat Thong, it will continue to rent the land for implementation, if another unit wins, it will return the invested part to Nhat Thong.

For projects associated with Nhat Thong and Dakruco are expected to have good development potential. Nhat Thong has been highly appreciated by the province, the Ministry of Agriculture and Rural Development, for its production of a circular economy model that does not pollute the environment, and has sustainable development. It can be seen that investment enterprises will become the nucleus to spread for farmers to develop.





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