Construction of trade center and agriculture project to begin this quarter.
Vingroup will invest more than VND740 billion ($33.3 million) in building a trade center and an agriculture project in central Thua Thien Hue province.
The Thua Thien Hue People’s Committee granted an investment license to the North Vincom Retail LLC on August 8 to build the Vincom Huong Tra Trade Center, with investment capital of VND215 billion ($9.5 million) on an area of 12,500 sq m and four storeys.
The project includes two phases. The first, from now to May 2017, will conduct site clearance and compensation and build technology infrastructure and two floors of the trade center. This first phase will come into operation in June 2017.
In the second phase, from the third quarter of 2018 to the second quarter of 2019, it will build the remaining two floors, coming into operation in the second quarter 2019. Upon completion the trade center will have shopping outlets and entertainment and other services.
The People’s Committee also granted an investment license to the Vineco Agricultural Investment, Production, and Development Co. to build VinEco-Thua Thien Hue.
The project has investment capital of over VND525 billion ($23.3 million) and covers an area of 213 ha. It uses Israel technology and applies VietGAP and GlobalGAP standards in its production processes.
The investor will complete all construction procedures in the third quarter of this year and begin construction by the end of the year. Construction of an operations center will begin in the second quarter of 2017 and finish at the end of the year, while construction of a technology transfer center will also start in the second quarter of 2017 and be finished at the end of 2018.
Last year Vingroup announced it would enter into the agriculture sector under the brand name VinEco, with the aim of providing safe and clean food resources and exporting some of Vietnam’s dominant agricultural products.
With charter capital of VND2 trillion ($94 million), VinEco will build farms throughout the country with the high technology needed to grow many types of organic vegetables under VietGAP and GlobalGAP standards.
The company will plan production areas under a centralized and closed model. All stages, including research, seed technology, production, harvesting, post-harvest storage, and transport will be implemented under scientific processes, with strict adherence to quality and food safety and hygiene.
It will also apply the most modern and advanced technology in production lines, with the aim of optimizing efficiency and product quality. Israel, Japan, and the Netherlands are expected to partner VinEco in the transfer of technology, seeds and agricultural equipment.
The Vinmart supermarket network and the Vinmart+ convenience store chain will be the final link in the chain. As Vinmart has a presence throughout the country, all of VinEco’s agricultural products have ready buyers and it will also provide other partners with safe fruit and vegetables at reasonable prices.
Besides developing agricultural products, VinEco will also focus on researching methods to produce dominant products in Vietnam’s agricultural sector, contributing to promoting exports and enhancing product value.
As at June 2016, Vingroup had 20 trade centers around the country. In the first six months this year it invested in four large trade centers: Vincom Plaza in Go Vap district, Ho Chi Minh City, Vincom Plaza in Buon Me Thuot city, Dak Lak province, and Vincom Plaza Le Van Viet in Ho Chi Minh City.
The giant also recently launched Vincom Plaza Ly Bon in Thai Binh province, its third Vincom shopping center in the northeast region and the group’s 20th nationwide.