Page 59 - Agricultural innovation

5.4. Model of a Large Field in the Rice Production in the Loc Troi Group, Vietnam
5.4.1. General information

The policy of allocating agricultural production land from collective economic organizations
(cooperatives) to households under the Contracting Policy No10 boosted food and food production
in the 1990s. This has helped Vietnam from a rice importer to become one of the world’s leading rice
exporters. However, the division of land among households has created a certain fragmentation in
agricultural production in recent years. On average, each household can have up to 6–7 plots of fields
cultivated with different rice varieties, which has caused many difficulties in applying the achievements
of mechanization, chemistry and automation in the future, especially large rice-growing regions such
as the Mekong Delta. These are also the factors that promote the birth of the “large field” model in
recent years. The large sample field is a model of linkage between enterprises and farmers to produce
large-scale rice, increasing competitiveness in the process of international economic integration of
Vietnam’s rice industry.
One of the quite successful models in Vietnam is Loc Troi Group.

5.4.2. Model development
Loc Troi Group–formerly known as An Giang Plant Protection Joint Stock Company (AGPPS) is a
leading manufacturer and supplier of products and services in the Vietnamese market in the field of
agriculture, with a sustainable value chain. sustainability from research, production, and sales of seed
products, pesticides, bio-organic products, rice, and coffee. Notable milestones during the Group’s 30
years of operation, starting in 1993:
November 30, 1993: Established An Giang Plant Protection Service Company according to the
decision of the People’s Committee of An Giang province, with a very small initial facility and initial
business capital of only 750 million VND and 23 employees. Starting with the field of supplying plant
protection drugs, with reliable product quality and a breakthrough business strategy, the company
gradually received the trust of farmers nationwide. Originating from a small province of the Mekong
Delta, An Giang Plant Protection–AGPPS quickly opened a branch in Ho Chi Minh City in 1994 and
expanded its business scope across the country, its scale and sales were unprecedented stop increasing.
1996: Establishment of Seed industry. With the Seed Research and Production Center put into
operation, An Giang Plant Protection officially entered the potential field of seed research and business.
Focusing on investing in technology and intelligence in the field of research and rice breeding, An
Giang Plant Protection gradually becomes a leading unit in the seed business in Vietnam. Also in
this year, An Giang Plant Protection boldly invested in building 02 agricultural chemical processing
factories with a total capacity of over 5,000 tons per year with many types of products. Investing
in factory construction has helped the company lower product prices, packaging designs are always
improved to suit farmers’ tastes, product quality and output are always stable, helping the company be
proactive to expand distribution system to serve farmers.
1999: After 6 years of operation, An Giang Plant Protection increased its capital 57 times, revenue
reached 600 billion VND compared to 13 billion VND in the first years of establishment, and paid a
total of 109.8 billions VND to the budget. Since the early 2000s, the company’s Board of Directors has
been determined to build the company into a large corporation with the world’s leading sustainable
agricultural value chain.
2000: The company was honored to be awarded the title Hero of Labor by the State for exceptionally
outstanding achievements in production and social activities.
2002: Mr. Huynh Van Thon, General Director of the company, was honored to be awarded the title
Hero of Labor by the State.

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