Rubber Industry Group loses VND 20 billion per year for Long Thanh Airport

2,362ha of rubber plantation of Vietnam Rubber Group (VRG) is in the area of ​​land recovery for the project of Long Thanh airport. However, since the project lasted for many years, the VRG suffered considerable damage due to the aging of the orchard that could not be re-planted and the associated costs incurred.

According to the plan to recover 5,000ha (2010) for Long Thanh Airport project, the area of ​​land acquisition under the management of Dong Nai Rubber Company Limited is 2,362.01 ha.

Rubber Industry Group loses VND 20 billion per year for Long Thanh Airport

Long Thanh airport project has been planned since 1995, so when the old garden, the company can not carry out liquidation re-planting. This caused the Group to suffer a lot due to the old plantation, low productivity, revenue is not enough to cover the cost. Meanwhile, the Group still has to maintain workers to protect the orchard, if not want to be encroached by local people.

It is estimated that the Rubber Industry Group will have to compensate for losses of over VND 20 billion.

According to the report of VRG, in addition to planning area for investment to invest in Long Thanh airport, Dong Nai province is planning to recover area for auxiliary works for the airport area such as office work As a result, the rubber area of ​​the Group in Dong Nai Province has been narrowed, affecting the Group’s production and business efficiency.

In order to effectively use this land fund, the VRG recommends that the local government should withdraw one time and assign the Group to continue using the short-term crops. When the province needs to use the project investment progress, the group will hand over.

According to the VRG report, the total land area of ​​the Group after equitization is 491,929 ha. In particular, the land fund of the parent company, one-member limited liability company and four non-productive units are 216,372 ha; Land fund of joint-stock companies – Management Limited is 275,556 hectares. Compared with before equitization, the area of ​​the whole corporation reduced 279,400 hectares – handed over to the local management and use.

VRG also said that by the end of 2016, the unused area was 28,515 ha. In particular, the forestry land does not convert to rubber is 14,392 hectares; stream land, not suitable for rubber plantation is 2,090 ha; rubber plantations under planning, waiting for new planting is 5,517 ha; Land for re-farming is 6,516 ha.

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