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Vietnam Joint-Venture Rice-mill Project

Vietnam Joint-Venture Rice-mill Project

Exported Rice Processing Plant at north of Xang River Industrial Zone, Lap Vo district, Dong Thap Province, Vietnam. Revenue: 180 billions VND in 2007; 200 billions VND in 2008. Main activities: supply and authorized exporter: US$3million in 2007; US$3.2mil in 2008. Products including: Southern long rice and foreign matters with high quality for export to international markets: the Philippines, Cuba, Malaysia, Russia, Middle East etc.

Project Advantage for Investment

Located in Mekong Delta, Dong Thap province is the socio-economic and culture center of southern part. With advantage of climate, land, favorable investment environment for developing rice processing plant, Dong Thap is considered as greatest rice-producing region in Vietnam to provide rice for Mekong River Delta and the whole nation.

Investment in Vietnam

Being the rice processor and authorized exporter, the company has many advantages including possessing stable input source, various materials purchasing network, standard production line for processing rice with current capacity of 60,000 tons of rice per year. In recent years, the company has being voted as one of the guaranteed quality and quantity enterprise in supplying and being an authorized exporter for Northern Food Corporation and Vietnam Food Association to the Philippines, Malaysia, Middle East, Russia and Cuba, etc, ensuring food security for Viet Bac area.

Currently the company has one rice mill and process plant in Lap Vo district, Dong Thap province. Because of low capacity and old-fashioned equipments, it is required to build a new modern and high capacity production plant constructed in northern Xang River Industrial Zone. The Industrial Zone was invested by Lap Vo People’s Committee which issued the Land use right for the company for long term. The land has advantage of marine transportation (not affected by road transportation), sanitary environment warranty, standard infrastructure.

Project Information

Location: At lot 1 + 2 in North Xang River Industrial Zone with area of 8,400 m2 ( 100m x 84m )
The project is built in plain area, near the river that it is convenient for commodity transportation. Project construction includes factories, warehouses, offices, subsidiary construction, electricity station, flower and plant garden, internal traffic as follows:
Warehouse: preserving materials

Factory with 2 production lines for milling and polishing rice. Each line has capacity of 8-12 tons/hour. (Total capacity is 16-24 tons/hour)

Investment Cost

Basic total investment: 98,690 million VND consist of:
Land use fee: 17,850 VND
Main Categories (Factories, by-product warehouse, electrical – water equipment, fire prevention) : 35,700 million VND
The 2 production lines of milling and polishing rice: 25,140 million VND
Other expenses: 4,500 million VND
Provisions Expenses: 3,500 million VND
Construction of Office and staff housing: 1,500 million VND
Purchasing Equipments for manufacturing (equipments of measurement, testifying, checking products’ quality): 6,000 million VND
Environment settlement: 4,500 million VND

Capital

Capital Development: 98,690 million VND
Movable Capital: 105,000 million VND
Total Capital: 203,000 million VND

Estimated Average Revenue: 15% per year