Creating and developing a sustainable raw material area has been one of the most critical strategies of our company since we were founded. The People’s Committee of Nghe An province approved a planning area of 50.000 hectares over 6 districts of Western Nghe An. According to Decision No. 4212/QĐ-UBND dated 20th September 2013 regarding “Approval for the planning area of raw materials for Nghe An Wood Processing Plant”,
– The rental area is 12.589 hectares. Out of this area, 11.000 hectares is for self-plantation to ensure part of the raw material needed for the wood processing plant. The remaining area belongs to state-run farms and individual farmers.
– The area for joint ventures is 38.422 hectares.
Those above areas belong to State-run Farms, Management of Protection Forest, and Voluntary Youth Group 3 and 6. The planning area is relatively concentrated, continuous and in the radius of 100km from the plant with convenient transportation routes.
Besides, in order to have a sustainable development of raw material area, May Forestry JSC will have to focus on the following tasks.
– Have good management of planting raw material on the rental area to ensure efficient operation of Nghe An Wood Processing Plant. As of now, May Forestry JSC under the instruction of TH Group has founded 2 joint stock companies for the development of raw material to manage and organize plantation on the rental area. They are TH Material Investment and Development for North – East of Nghe An Joint Stock Company, and TH Material Investment and Development for Phu Quy of Nghe An Joint Stock Company. May Forestry JSC is the majority shareholder of both companies to organize and plan operations;
– Set up joint ventures with organizations and individuals to ensure proper forest exploitation, efficient plantation, improved production capacity to increase higher revenue/plantation area and thus, increase income for farmers. To execute this task, our company has planned a mechanism for joint ventures with support from local authorities to meet, discuss and sign contracts with organizations and individuals in the planning areas over 6 districts of Western Nghe An;
– Set up a network for raw material procurement and transportation, ensure efficiency, and reduce middlemen and costs. Procurement plan has to be elaborated and specific so that organizations and individuals can plant and exploit accordingly. This task has been well executed to ensure raw material supply for the Plant once it is in operation;
– Establish seeding and tissue culture centre to provide high-yield seeding, reasonable costs and ensure plantation techniques for organizations in the planning area for this project. This task has been helped and supported by various authorities, especially by Nghe An Department of Agriculture and Rural Development and Ministry of Agriculture and Rural Development.
Having those tasks well executed with support from effective policies, planning management of the State, Nghe An province, local authorities and people in the planning area, May Forestry JSC is committed to successfully developing a sustainable raw material area as per targets approved by Nghe An province for this project.