Awakening Potential of Home to Coconuts

3:26:25 PM | 7/8/2005

Ben Tre is a located in the basin of the Mekong delta, 86 kilometres from Ho Chi Minh City. It is bordered with Tien Giang, Vinh Long and Tra Vinh provinces. It has a 65 kilometre coastline with three rivers, Ba Lai, Ham Luong and Co Chien. Roads and waterways are main routes of communication in Ben Tre with two national highways 60 and 70, three fishing ports and two inland ports.

Advantage of fisheries and gardening economy

Agriculture plays a dominant role, with a strong development of the gardening economy. Famous for being home to coconuts, Ben Tre now has 35,000 hectares under coconut trees with an output of 220 million coconuts. Its area under sugarcane is put at 11,150 hectares. Also, the province is home to other special fruit, such as longan, mango, rambutan, mangosteen, and durian with a total area of 40,000 hectares. For the development of fruit gardens, Ben Tre province has promoted the production of seedlings. Now, the province produces 20 million seedlings to supply its farmers and other localities nationwide. Via the development of seedlings, the province is improving the quality of fruit.

With a 65 kilometre coastline and many rivers and canals, Ben Tre has 40,000 hectares of water surface for raising black tiger shrimps, fish, arca and crabs. Last year’s output was put at 66,000 tonnes. The farming of black tiger shrimps is developing rapidly in the coastal districts of Binh Dai, Ba Tri and Thanh Phu with 5,000 hectares for industrial or semi-industrial farms. Apart from shrimps, Ben Tre’s baby clam (or meretrix lyrata) farming area has been recognised by the EU. The province has a fishing fleet with 610 boats whose capacity is put at 136,000 CV.

Industrial and handicraft production does not account for a high proportion of the economy but the province has made some efforts to upgrade technology and equipment, so its products better meet the world market’s demands. Seafood processing has seen rapid development with four plants of small and medium-sized capacity of between 1,500 and 6,000 tonnes per year. The province’s seafood products have been exported to the EU, the US and Japan. However, these plants can meet only 30 per cent of local material supplies. Also, traditional crafts such as handicrafts, construction material production, fruit semi-processing and mechanics also play an important role in generating incomes for local workers. These industries have developed with an increased competitiveness and integration into the domestic and regional economies. The average growth rate for the 2001-2005 period has reached between 14 and 16 per cent. Export turnover of the industrial sector accounts for 90 per cent of the whole province’s export value.

From now to 2010, the province is striving to gain a GDP growth rate of between 10 and 11 per cent with a per capita income of between US$600 and 650 per year. Also, the province will increase its export turnover to US$180 million in 2005 and US$400 million in 2010. Ben Tre town will become a city, with a third class rating. Its infrastructure facilities will be upgraded with roads linking the province with Tien Giang and Tra Vinh provinces. By 2010, 40 per cent of local workers will have been trained. All people living in urban areas will have safe water and the number of telephone units is estimated to be 6.3 for every 100 people.

Investment attraction

The investment environment in Ben Tre province has become more favourable with some advantages, such as cheap labour cost, abundant material supplies, low land rent, simple investment procedures, and great support from the local authorities. The province is accelerating its building of infrastructure in the An Hiep industrial complex (65 hectares), and the Giao Long industrial park (194 hectares) to serve investors in 2004. The province has applied a one price mechanism for both Vietnamese and foreign investors in terms of water, electricity, post and telecommunication. Investors will enjoy maximum support from the local authorities. Now, the province has assigned its Investment Promotion Centre to act as the focal point in receiving and providing investment information.

For enterprises investing in production and processing coconut products, the province will provide them interest subsidies for their fixed assets. They will be able to access short-term export support loans. Also, they will enjoy a 50 per cent reduction of fees for technology transfer, and subsidies equal to 100 per cent of interest of loans for investment in fixed assets, as well as subsidies equal to 30 per cent of fees for applying quality management systems, such as ISO, HACCP and TQM.

Fore investors in the Giao Long industrial park, land rent with infrastructure fees is put at US$0.5 per square metre per year. Investors will be exempted from land rent for four years and enjoy a 50 per cent reduction for two following years since they sign contracts. At the same time, according to the scale of their projects and number of workers, they will enjoy other priorities. The province will provide investment support equal to between 50 and 100 per cent of interest for 24 months.