Dak Song Forestry Co: Successfully Going through Natural Disasters

In 1993, Dak Song Forestry Company was established via the merge of two national plantations, namely Thuan An and Dak Rung, but they nearly dissolved and debt amounted to approximately VND9 billion. On the verge of bankruptcy, many officials and workers were puzzled, not knowing which doors were open to them.

 

At that same time, the Government promulgated Decision No. 187 with an aim to enabling plantations to restructure themselves in order to continue to maintain development of these models. And then, the Government signed Resolution 24 on boosting development of enterprises in the forestry sector. A way for state owned plantations to overcome obstacles became available.

To enhance and accelerate the growth of forests, especially economic forests, the company has taken an initiative to bring Acacia mangium x Acacia auriculiformis into production, and pushed the growing of Aquilaria Agallochea , a tree of high economic value. According to Ms Thai Thi Tu Anh, director of the company, one hectare of Aquilaria Agallochea  can bring about VND300 million. The company is also proposing with local authorities to expand oil and petrol business. Accordingly, the company will open five more oil and petrol stations. The seeds and seedling centre of the company will also get upgraded to become a famous forestry centre in the region.

 

After getting approval from the locality, one and then two filling stations of the company were set up. The income of the enterprise gradually became stable and the enterprise made remarkable achievements. Ms Tu Anh shares that “whenever coffee harvesting season arrives, filling stations bring the company an average amount of VND60 million per day and some VND2 billion per month.”

 

Turnover and profit rate of the enterprise keeps increasing. Living standards of Dak Song, therefore, is improving. In 2008, Dak Song had a turnover of VND12 billion. Turnover for 2009 is expected to be around VND20 billion. Average income per month of a Dak Song employee is VND3 million.

 

By the time we complete this report, perhaps Ms Thai Thi Tu Anh has completed her role as a director and moved to a new position – Deputy Chairwoman of Dak Song district. We strongly believe that the time spent with Dak Song Forestry Company will help her successfully in her new role.