Binh Phuoc to promote the development of agricultural processing

In an effort to promote the development of the agricultural processing industry, Binh Phuoc People's Committee issued multiple decisions on the development of industrial clusters specializing in agricultural processing.

Binh Phuoc plans to develop at least three specialized industrial clusters to process agricultural products such as cashew nuts, pepper, coffee, fruit, and wood products such as wooden furniture, wood pellet, etc. These specialized industrial clusters are considered an important solution to develop deep processing for BInh Phuoc's key agricultural products in association with effective and sustainable export.

According to Ms. Tran Tue Hien, Chairman of Binh Phuoc Provincial People's Committee, the growth of the agricultural processing sector will encourage the development of farmers, rural communities, and agriculture, particularly in areas with challenging socio-economic conditions. Consequently, this will lead to additional employment opportunities, higher average incomes, as well as uniform local development.

The cashew industry has grown remarkably, dominating the nation's products in terms of yield and processed cashew nuts for export among various major agricultural and forestry products of Binh Phuoc province. Approximately 150 thousand hectares of cashew trees are grown in Binh Phuoc, with an annual production of 170,000 tons of cashew nuts. The province currently has over 500 businesses operating in the cashew industry. Binh Phuoc province's total cashew export turnover reached more than USD 1 billion.

On the other hand, Binh Phuoc's export wood product processing sector has been developing rapidly in recent years. Binh Phuoc currently has around 300 wood processing establishments, including 96 large-scale businesses, ten of which are FDI companies. The wood processing industry in Binh Phuoc is seeing an increase in foreign investment from countries including Korea, Taiwan, Malaysia, and China.

Binh Phuoc possesses great potential for the development of the wood industry. The largest wood processing industry in Vietnam is located in Binh Duong province, which neighbors Binh Phuoc province. Binh Duong is expanding its production scale to bordering provinces with a focus on Binh Phuoc.

Mr. Phan Van Nam from Binh Duong Woodworking Association said that Binh Phuoc is a favorable target market for the development of the wood processing industry thanks to its abundant and diverse source of raw materials. Additionally, Binh Phuoc features attractive socio-economic development policies for outside investors.

Cashew nut processing and wood processing contribute greatly to Binh Phuoc in terms of employment opportunities, income and export turnover. Binh Phuoc's exports of cashew nuts, wood and wood products in 2022 accounted for 41% of the total provincial export turnover.

Binh Phuoc anticipates that the construction of specialized industrial clusters for agricultural processing will promote the processing of cashew and wood products for export significantly after 2022. On the other hand, these industrial clusters will enhance the development of the food processing industry with key products such as pork, chicken meat, fruit, etc.

In order to effectively develop specialized industrial clusters for agricultural processing, Binh Phuoc province will establish a detailed planning for planting areas with regards to future industrial clusters. Namely, Binh Phuoc plans to establish 140,000 hectares of cashew trees, concentrated in the districts of Bu Gia Map, Phu Rieng, Bu Dang, Dong Phu; 5,000 hectares of timber plantation in addition to imported cashew, rubber and timber; 15,000 hectares of fruit trees, concentrated in Binh Long town, Loc Ninh, Ba Dop, Bu Dang, Phu Rieng and Dong Phu districts; disease-free breeding areas in all districts, towns and cities with a scale of 3 million pigs and 20 million poultry.

Binh Phuoc has set several main targets for agricultural processing until 2025:

The proportion of deeply processed cashew nuts reaches at least 15%; production value of cashew nuts and cashew nut shell oil reachees over 43 trillion dong; focus on developing domestic and foreign markets for cashew products such as Europe, America, Japan, China, Australia, Middle East;

Production value of the wood processing industry reaches over 13 trillion VND; focus on developing domestic and foreign markets for wood products: Europe, America, Japan, Taiwan, Korea, China;

Production value of the processed food industry reaches over 23,000 billion VND; focus on developing domestic and foreign markets for processed food such as: Hong Kong, Malaysia, Japan, Korea, India, USA and Australia.