Vietnam, RoK develop agricultural value chain

(VOV) - The Republic of Korea (RoK), Vietnam signed a Memorandum of Understanding (MoU) on carrying out a project to build new rural areas and develop agricultural value chain in central Ninh Thuan province.

The signatories were the Ministry of Agriculture and Rural Development (MARD), the Korea International Cooperation Agency (KOICA) and CJ group – the RoK’s leading group of food material distribution - and Ninh Thuan provincial People’s Committee.

Deputy Minister of Agriculture and Rural Development, Tran Thanh Nam affirmed that the project is a public-private partnership (PPP) model between Vietnam and the RoK with the aim of generating jobs and increasing income for labourers.

The three-year project will be implemented from May 2014 to May 2017 in Tam Ngan hamlet, Lam Son commune, Ninh Son district with a total funding of US$1.7 million from KOICA and CJ group.

The project will focus on enhancing capacity building in rural areas, organising training courses on the implementation of programmes to build new rural areas, improve the environment, upgrade primary schools and kindergartens and increase agricultural output,in particular chilli farming.

Under the MoU signed between the provincial People’s Committee and CJ group on September 4, 2013, both sides  worked on developing a chilli growing area of around 500-600 hectares in order to export chillies to CJ group’s processing food factories in the RoK and other nations.

In the future, CJ group is likely to purchase an increased volume of around 5,000 tonnes of dry chillies per year.

In the first phase, CJ Group will provide Vietnamese farmers with 16 new varieties of chillies, materials and the necessary funding required to grow chillies in Thuan Bac district, Lam Son commune, Ninh Son district.

After that, CJ group will be responsible for providing chilli varieties and transferring cultivation technologies to farmers and has pledged to purchase 100% of the chillies under the agreed prices.

Once successful, the cooperation model will be rolled out in other localities nationwide.

Lee Jae Wook, CJ group’s Vice President said that the group plans to launch a series of projects in Vietnam in the future.