Phuc Sinh Dak Nong Export Agricultural Product Production and Processing Center was launched by Phuc Sinh Dak Nong Joint Stock Company on 21/7 in Lam Dong. The project, spanning 20 hectares, has an investment capital of over 500 billion VND (approximately USD 20 million) and is expected to be completed in Q1/2027.

According to Le Trong Yen, Permanent Vice Chairman of the Lam Dong Provincial People's Committee, this is the largest-scale agricultural processing project implemented in the locality to date. The plant aims for deep processing of coffee, pepper, and other agricultural products, contributing to increasing the added value of local produce.

Model of the largest agricultural processing plant in Lam Dong. Photo: Phuc Sinh

Yen stated that after the merger, Lam Dong has approximately 327,000 hectares of coffee, the largest in the country, with a yield of about 1.5 million tons, accounting for nearly 50% of Vietnam's coffee output. The locality's coffee export value reaches about USD 4.5 billion annually.

However, he noted that about 90% of coffee output is still exported in raw form, with only about 10% undergoing deep processing, meaning the added value does not match its potential. Therefore, developing the processing industry is considered a crucial direction to enhance competitiveness and build agricultural product brands.

"The project focuses on deep processing, aligning with the locality's desired direction. It will not only enhance the value of agricultural products but also serve as a foundation for building brands for Lam Dong's agricultural products in particular and Vietnam's in general", Yen said.

According to Yen, Dak Song was chosen as the factory location due to its raw material advantages. This area has approximately 34,000-36,000 hectares of pepper, the largest in the country, and conveniently connects to a coffee growing region of about 140,000 hectares in Dak Mil, Tuy Duc, Dak R'lap, and Krong No.

Le Trong Yen, Permanent Vice Chairman of the Lam Dong Provincial People's Committee (right), Phan Minh Thong - Chairman of Phuc Sinh's Board of Directors (center), and Truong Quoc Hung - Deputy Commander of the Border Guard Command at the event on 21/7. Photo: Thi Ha

Provincial leaders believe that locating the factory here will help the enterprise utilize the local pepper raw material area, while also forming a purchasing and processing center for the vast surrounding coffee region. This creates favorable conditions for building a complete value chain from raw material areas to processing and export.

Beyond coffee and pepper, the center also aims to process vegetables, flowers, tubers, and fruits to diversify products and increase export value. According to provincial leaders, the project will also strengthen linkages between businesses and farmers, ensure proactive raw material sourcing, create stable outputs, and mitigate the "bumper harvest, falling prices" situation.

Phan Minh Thong, Chairman of Phuc Sinh Group, stated that this is the seventh factory in the company's system, positioned to become a large-scale agricultural processing hub in the Central Highlands. The plant will focus on processing and exporting coffee, pepper, and other agricultural products, meeting the increasingly stringent requirements of international markets, including the European Union Deforestation Regulation (EUDR).

Before the project launch ceremony, Phuc Sinh and the Netherlands Development Finance Company (FMO) signed a USD 15 million financing agreement to invest in the center's construction. The company targets the plant to achieve annual revenue of approximately 1 trillion VND once fully operational.

Concurrently, Phuc Sinh also launched its e-commerce platform kcoffee.vn and a mobile application, directly connecting consumers with the company and agricultural producers. According to the company, the platform will distribute processed coffee, pepper, and other agricultural products.

Established in 2001, Phuc Sinh currently exports agricultural products to approximately 120 countries and territories. The company has consistently led Vietnam's pepper exports since 2007, holding about 8% of the global market share.

Thi Ha