Page 61 - Agricultural innovation

research, Loc Troi Agricultural Institute is the unit receiving and implementing the transfer of science
and technology to the next industries in the value chain before sending it to farmers for application.
Meanwhile, the Seed industry, the Agricultural Materials industry and the Agricultural Services
industry are considered the three main units operating in linking farmers, organizing growing areas
and ensuring profits for farmers, with the main basis is to apply measures to reduce production costs.
This is a very new step for a business whose largest revenue comes from providing plant protection
products. The gradual increase in the proportion of revenue from the Food industry also shows a
transition from agricultural production to agricultural economy. While strengthening the “Heaven’s
Pearl” brand in the domestic market, increasing export market share to demanding markets such as
Europe, America, Japan, Australia,... is increasingly focused. Cultivation processes that ensure pesticide
residue thresholds are tested, promulgated and continuously updated by the Loc Troi Agricultural
Institute according to each market’s regulations. Inspection and monitoring of farmers’ compliance
levels are also strictly carried out from sowing to the end of the season.
All of the above activities are transparent and public through the SAPS/4HANA & IFRS
management system, QR Code traceability system and agricultural service digitalization software.
This makes the process of traceability easy and is a solid foundation for trust from partners, customers
as well as shareholders and agencies in the Loc Troi Group’s overall business ecosystem.

b) Bringing technical and scientific advances to solve problems in rice farming, helping farmers reduce
the use of pesticides and chemical fertilizers and increase profits in a sustainable way
Established in 1996, Loc Troi Group’s Seed industry is increasingly developing and creating a certain
reputation in the seed market, especially its strength is certified seeds on the basis of having a KCS
department to control seed quality from field to processing, packaging and distribution to farmers.
The exclusive purchase or sharing of the scope of exploitation and business of rice varieties comes from
the long-term partnership between the company and units, such as the Mekong Delta Rice Institute,
the Corn Institute, the Genetics Institute, the University of Can Tho University... In 2012, the company
put into operation Dinh Thanh Agricultural Research Center, the first large-scale agricultural research
center under a private company in Vietnam at that time. More than 30 key professional personnel in
the field of genetics and rice breeding, along with modern facilities, have diligently researched and
created exclusive and highly characteristic rice varieties such as Loc Troi 18, Loc Troi 28, Loc Troi
88, varieties that are universal, suitable for many ecological regions and easy to cultivate such as Loc
Troi 1, 2, 3, 4, 5... These new rice varieties are all registered. Protecting and achieving national seed
certification after the survey period has created independence and increased competitiveness in the
market in terms of rice varieties, while also creating convenience in determining growing areas and
selling output products for farmers in the linked chain.
In addition, farming processes are also methodically researched and officially promulgated.
Stemming from the market demand for quality and health-safe goods, Loc Troi Group has continuously
improved its operating methods to create a difference for the business itself. Taking science as the
foundation, transferring science and technology internally and externally is carried out on the basis of
formal research and testing activities. Loc Troi Agricultural Research Institute has standardized and
promulgated rice cultivation processes, meeting standards on pesticide residues and other food safety
and hygiene standards of strict markets as Europe, America, Japan, Australia, Korea, or common
markets in Africa, Philippines, China, etc. These processes are officially promulgated throughout the
Group’s digital system, and are supported by forces. Quantity 3 Transform into training exercises
that are lively, beautiful, easy to receive and convey to farmers linked in the Group’s value chain. In
addition, these standards are continuously updated according to changes in markets, ensuring that the

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