A Dutch firm has decided to invest US$250 million in a project in the southern province of Binh Phuoc to develop cashew nut material areas, conduct deep processing, and produce cashew nut shell oil for export.

A farmer in Binh Phuoc harvest fresh cashew nuts

Representatives from the Mekong Cooperation EUROPE BV (MCE) of the Netherlands and the An Viet Phat (AVP) One-Member Co. recently held a working session with provincial officials to discuss the project, which will be implemented under the form of the circular economic model.

General Director of MCE Nguyen Thanh Tan said the joint venture will develop a 200,000-ha materials zone, a 200-ha plant processing cashew nuts with a capacity of 168,750 tonnes a year, and two plants producing refined cashew nut shell oil for export and cashew peel residue, with a capacity of 118,125 tonnes a year each. The three plants will cover a combined area of 50 ha.

The MCE-AVP joint venture will also build a factory to produce wood pellets for export, with total investment of US$45 million, which is expected to produce 225,000 tonnes of products a year.  

Tan said the cashew material area will be developed in line with European organic standards, while by-products such as cashew nut shells will be used for oil production and poor cashew plots used to produce wood pellets for export.

The representative from MCE said that after an experimental planting area is developed, the enterprises will sign deals with farmers via cooperatives to develop raw material areas in accordance with international standards.

Vice Chairman of the provincial People’s Committee Tran Van Mi affirmed that local authorities will create favourable conditions for the two businesses to implement the project, adding that an investment license will be handed over this month.