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					Project on goods flower production in Sa Pa

Projects calling for investment

PROJECT ON GOODS FLOWER PRODUCTION IN SAPA
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PROJECT CODE PROJECT OBJECTIVES

LC- 03
- Invest in building a centralized goods flower growing area with high quality meeting domestic and export demand. (100 hectares). - Train laborforce for growing flowers; - Register and develop SAPA flower trademark.

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INVESTMENT TYPE INVESTMENT SCALE 1 2

Domestic   Joint-venture   100% foreign-owned  Land use area Total expected investment capital Labor need Main works 100 hectares 60 billion dongs 800 employees + Project and build high-quality centralized flower growing area, satisfying domestic and export demand (100 hectares). + Train laborforce for growing flowers; + Expand flower consuming market internally and externally. + Establish a center for flower science and technology study and transfer in Sa Pa.

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INVESTMENT DURATION VIETNAMESE PARTNER 1 Organization:

50 years. Possibly extended as regulated.

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SAPA PEOPLE’S COMMITTEE 2 Address: Xuan Vien street, Sa Pa town, Sa Pa district, Lao Cai province. + Telephone: (84) 020.872524 + Fax: (84) 020.871662

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REQUIREMENTS

FOR

Much experience in production, development and trading in high-quality flowers.

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LÀO CAI INVESTMENT – TOURISM AND TRADE PROMOTION CENTER Telephone: 020.830408 Fax: 020.830003 E- mail: lcitp@laocai.gov.vn Website : www.laocai.gov.vn/lcitp

Project on goods flower production in Sa Pa

Projects calling for investment

INVESTORS

Capability of finance, implementation.

machinery

and

equipment

for

project

Ability of searching and developing the market. The project’s activities are required to strictly abide by environmental protection regulations and sustainably exploit natural resources.
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PROJECT LOCATION

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Location description: The project is implemented in Sa Pa, a mountainous district with the area of 68,136 hectares, covering 8.24% of the province’s area. It borders Bát Xát district to the North; Văn Bàn district to the South; Bảo Thắng district to the East; and borders Than Uyên and Phong Thổ districts – Lai Chau province to the West.

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Comparative advantages of the project location: - Special advantages: Sa Pa is endowed with a lot of particular advantages helping the investor to minimize risks in project implementation process. 1) Product quality: Because Sa Pa has got distinct climate, its flower quality and fragrant are much better than in low-land areas. Flower crop of Sapa is also contrary to that of other provinces (it is possible to grow winter flower varieties of low-land areas in summer); therefore, product value is considerably high and consumption capacity is very huge. 2) Competitive capability: Sa Pa flower has been recognized and welcomed by demanding markets, so it has got high competitiveness. - Land, climate: Sa Pa has got good land conditions; altitude, ground and climate suitable for growing high-grade flowers of high quality (rose, orchid, gerbera, forget-me-not and carnation, etc.). - Human resource: Abundant laborforce, low labor cost.

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Difficulty of the project location - Infrastructure structure has not been fully-equipped, some transport works still have been underway. - Skilled employees are in short, labor quality remains relativley low.

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MARKET ANALYSIS

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Situation of growing and exporting flowers in Vietnam Vietnamese economy is shifting in the direction of industrialization and modernization. Agriculture sector is also undergoing centralized developement aimed at goods production. At present, growing flowers for export is mainly in mountainous areas but scattered; therefore this

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LÀO CAI INVESTMENT – TOURISM AND TRADE PROMOTION CENTER Telephone: 020.830408 Fax: 020.830003 E- mail: lcitp@laocai.gov.vn Website : www.laocai.gov.vn/lcitp

Project on goods flower production in Sa Pa

Projects calling for investment

does not facilitate procurement, storage and transport. On the other hand, import-export companies are mainly located in industrial parks and big cities, so there has not been a link between them and material areas. Their capability of competing and penetrating into the market is limited, especially foreign markets; they have not take advantage of available resources. In fact, importation of flowers with great quantity catering for consumption is rapidly increasing. 2 Necessity of investment As a mountainous province, Lao Cai is endowed with natural conditions suitable for growing such flower kinds as rose, orchid, gerbera, forget-me-not and carnation, etc.) At present, there is a rapid increase in high-grade fresh flower demand in both domestic consumption and export. Thus, investment in growing high-quality flowers at this time is definitely appropriate; it both makes best use of natual conditions of Lao Cai and brings big profit to the investors.
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PROJECT
EFFECTIVENESS

Contribute to socio-economic development,e conomic growth and economic structure transfer to agriculture industrialization and modernization. Contribute to boost economic growth rate and per capita income; Create jobs for locals and train their skills. Stably develop the local economy; effectively and fully exploit natural conditions, laying foundations for agriculture development here.

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LÀO CAI INVESTMENT – TOURISM AND TRADE PROMOTION CENTER Telephone: 020.830408 Fax: 020.830003 E- mail: lcitp@laocai.gov.vn Website : www.laocai.gov.vn/lcitp


				
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