Lam Dong Province to Build Over VND 500 Billion Agricultural Product Processing Plant

Lam Dong Province in Vietnam's Central Highlands is set to build a large-scale agricultural product processing center with an investment exceeding VND 500 billion (over $20 million USD). The facility is designed to process 50,000 tons of coffee and 15,000 tons of pepper annually, aiming to address the current situation where approximately 90% of the province's agricultural output is exported in raw form. The "Phuc Sinh Dak Nong Export Agricultural Product Production and Processing Center," to be located on a 20-hectare site, is scheduled for completion in the first quarter of 2027. According to Mr. Le Trong Yen, Standing Vice Chairman of the Lam Dong Provincial People's Committee, this marks the largest agricultural product processing project ever undertaken in the province. The plant will focus on deep processing of coffee, pepper, and other agricultural products to increase their added value. Lam Dong Province, after its merger, boasts approximately 327,000 hectares of coffee plantations, the largest in the country, with an annual output of about 1.5 million tons, representing nearly 50% of Vietnam's total coffee production. The province's coffee exports are valued at around $4.5 billion USD annually. However, Mr. Yen noted that about 90% of the coffee output is still exported raw, with only about 10% undergoing deep processing. This results in added value that is not commensurate with the province's potential. Consequently, developing the processing industry is viewed as a critical direction for enhancing the competitiveness and building the brand of agricultural products. "The project's focus on deep processing aligns precisely with the direction the locality desires. It will not only enhance the value of agricultural products but also serve as a foundation for building brands for Lam Dong's agricultural produce, and Vietnam's as a whole," Mr. Yen stated. Dak Song was chosen as the location for the plant due to its advantages in raw material supply. The area has about 34,000-36,000 hectares of pepper cultivation, the largest in the country, and is conveniently connected to approximately 140,000 hectares of coffee-growing regions in Dak Mil, Tuy Duc, Dak R'lap, and Krong No. Provincial leaders believe that establishing the plant in this location will allow the company to leverage local pepper resources and form a procurement and processing hub for the vast surrounding coffee-growing areas. This provides favorable conditions for building a complete value chain from raw materials to processing and export. In addition to coffee and pepper, the center aims to process vegetables, flowers, root crops, and fruits to diversify products and increase export value. Provincial leaders also anticipate that the project will contribute to strengthening the linkage between businesses and farmers, ensuring a stable supply of raw materials, creating stable output channels, and mitigating the issue of "bumper crops leading to low prices." Mr. Phan Minh Thong, Chairman of Phuc Sinh Group, announced that this will be the seventh factory in the company's system, positioned to become a large-scale agricultural product processing center for the Central Highlands. The plant will concentrate on processing and exporting coffee, pepper, and other agricultural commodities, meeting the increasingly stringent demands of the international market, including the EU's Deforestation Regulation (EUDR). Prior to the project launch, Phuc Sinh and the Development Bank of the Netherlands (FMO) signed a $15 million USD financing agreement to invest in the construction of the center. The company aims for the plant to achieve annual revenues of approximately VND 1,000 billion ($4 million USD) after it reaches stable operation. On the same occasion, Phuc Sinh also launched its e-commerce platform kcoffee.vn and a mobile application, directly connecting consumers with businesses and farmers. The company stated that the platform will distribute processed coffee, pepper, and other agricultural products. Established in 2001, Phuc Sinh currently exports agricultural products to about 120 countries and territories. The company has consistently led Vietnam's pepper exports since 2007, holding approximately 8% of the global market share. Information Source: VnExpress