Showa Denko Corporation aims to trial cutting edge vegetable growing methods at its new facility.
At a meeting with the Ha Nam Provincial People's Committee on April 8, the CEO of Japan's Showa Denko Corporation Mr Daiken Murakami revealed his company had decided to build a test plant for vegetable production using LED technology.
After surveying a number of provinces in Vietnam, Mr Murakami said that Showa Denko had identified Ha Nam as ideal due to it having the appropriate policies to attract investment as well as its geographical location near Hanoi and convenient transportation network.
This is the company's first overseas plant to produce fresh vegetables. It will be built in Dong Van Industrial Zone II in Duy Tien and is expected to open in 2015.
Because this is a test plant, investment capital is only about $1 million. In the future, if it is successful, the firm will expand the scale of production.
"Showa Denko has successfully researched techniques for growing fresh vegetables with the use of LED lighting," Mr Murakami said. "LED bulbs can generate the optimal wavelengths of light to adapt to the needs of plant development and boost their growth up to 2.5 times the speed when compared to conventional lighting."
Additionally, the amount of waste can be reduced from 50 per cent to 10 per cent per crop harvest while also cutting water usage.
This technology is essential for agricultural production when climate change begins to have a negative impact on traditional, outdoor cultivation.
Speaking at the meeting, the Secretary of the Ha Nam Provincial Party Committee and Chairman of the Ha Nam People's Committee, Mr Mai Tien Dung, highlighted that the investment by Showa Denko is consistent with the provincial plan of agricultural development towards further industrialisation.
The province committed to invest in the infrastructure of roads, electricity and irrigation systems to support the plant's construction.