Name of recommendations: Recommendations on the unreasonable issues in the decision of the planning supplementation on the cassava starch processing project in Krong Bong District of People's Committee of Dak Lak Province.

Status: Responded

Recommended by units: The Yen Binh - Dak Lak Co., Ltd

Official letter: 3353/PTM - VP, dated: 2017-12-14

Recommended contents:

The Yen Binh Dak Lak Co., Ltd. (business code: 6000463016), formerly known as the Yen Ngoc Trading Private Company (Yen Ngoc Business), transformed into Yen Binh -  DakLak Co., Ltd from January 2017.

In 2015, based on the study of the Decision No. 95 / QĐ-UBND dated January 14, 2015 by the People's Committee of Dak Lak Province on the supplementation of cassava starch processing projects into the provincial master plan for industrial development of the Dak Lak Province in the period 2011-2020, orientation to 2025 ", the Yen Ngoc Company (precursor of Yen Binh - Dak Lak Co., Ltd at that time) proposed and approved by the People's Committee of Dak Lak Province for the policy of allowing execution of the project on The Cassava Starch Processing Factory in Cu Pui Commune based on the Decision No. 747 / UBND-CN dated January 30, 2015 by the People's Committee of Dak Lak Province.

Based on the content of the Decision No. 95 / QD-UBND, the Yen Ngoc Company has conducted the survey of raw material areas, calculating appropriate expenses to decide on investment and proposed the provincial committee to raise the capacity of the factory from 10,000 tons / year to 40,000 tons / year. The Yen Ngoc Company has step by step complete the machine to implement the project and complete the conversion into the Yen Binh - Dak Lak  Co., Ltd (Yen Binh - Dak Lak Company) in January 2017.

However, the Yen Binh - Dak Lak Company then knows that the  People's Committee of  Dak Lak issued a Decision No. 2101 / QD-UBND dated August 8, 2017, added to the "Dak Lak Provincial Master Plan for Industrial Development 2011-2020, orientation to 2025 "a project of processing cassava starch in Krong Bong District. According to the Decision No. 2101 / QD-UBND of the People's Committee of Dak Lak Province, the new location for new plant construction in Cu Dam and Cu Pui Communes, Krong Bong District, the plant area is 171,667 m2 and the capacity is 40,000 ton / year. After studying this project, the Yen Binh -Dak Lak Company has been realized that if the project is implemented and put into operation in the above location, it would lead to the closure of Cu Pui Cassava starch Processing Plant. of Yen Binh-  Dak Lak Company  for the following reasons:

1 - Water resources: The new project is located in Cu Dam, about 800 m far from the Krong Bong river upstream project of Cu Pui cassava processing plant project of Yen Binh - Dak Lak Company. The wastewater from the new project will be used as inputs for the production and living of Yen Binh Company in Dak Lak Province. Water sources at the project of Cu Pui cassava starch processing plant will not ensure the production and processing of starch without food safety and hygiene as prescribed by law.

In the case of new projects, the installation of waste water pipelines along the Krong Bong River through the water collection points for production of the Cu Pui Cassava Starch Factory also implies the risk of sudden bursting of pipes due to the main causes objectively or subjecttively, it can not be pre-screened and leading to a factory’s shutdown. On the other hand, if the environmental treatment system of the new project has problems of leaking, splashing or spilling into the Krong Bong River, it will immediately lead to the closure of Cu Pui Cassava Processing Plant.

2 - Regarding the raw material area: During the project construction, Yen Binh - DakLak Company has surveyed raw material areas and has written commitments to invest and sell products with 05 communes adjacent to the project is Yang Mao, Cu Dram, Cu Pui, Hoa Phong and Hoa Le. The total area of ​​cassava growing in 05 communes is about 4,400 ha. With the designed capacity of Cu Pui Cassava Processing Plant is 200-250 tons of products / day, it is possible to consume all cassava production in 05 communes. The placing new project too close to the Cu Pui Cassava Processing Factory of Yen Binh - Dak Lak Company will lead to a lack of raw materials, causing unhealthy competitions. The lack of raw materials also leads to projects that are not economically viable, causing damages to the capital and the investment in both projects. In addition, there may be an increased risk of deforestation for native cassava by people.

3 - Commercially: Most of cassava starch is exported in thousands of tons / lot. If the customer / partner is the purchaser of the product, only one poor quality bag will be found due to unsafe water supply. The seller will be fined or the contract will be destroyed, affecting the reputation and trademark of the company in particular and commercial transactions of Vietnam in general.

4 - Planning: The additional planning of the Cassava Starch Processing Factory in Cu Dap and Cu Pui Communes is not in line with the Krong Bong District land use plan. This project was added to the planning of residential land and agricultural land (arable land) under the Decision No. 3042 / QD-UBND dated December 4, 2012 of the People's Committee of Krong Bong District.

According to Yen Binh - Dak Lak Company, the above analyzations of the company are based on scientific data and inspection reports of the functional departments of Dak Lak Province such as Department of Natural Resources and Environment, Department of Agriculture the Department of Planning and Investment, the Department of Construction of Dak Lak Province, and at the same time there are practical grounds. The Yen Binh -  Dak Lak Company sent the above analysis to People's Committee of Dak Lak Province, requested the provincial People's Committee to reconsider the Decision No. 2101 / QD-UBND on the possibility of moving the new project to the other location. In order to not cause damages to legal rights and interests of the Yen Binh - Dak Lak Company

In addition, Yen Binh - Dak Lak Company said that the investment process of the project has encountered many difficulties when completion of procedures, the application for change, supplement the registration certificate business ... Yen Binh - Dak Lak Company is complaining Department of Planning and Investment of Dak Lak  Province on delaying the issuance of investment registration certificate for enterprises and the Department of Planning and Investment in Dak Lak Province to submit the report No. 379 / TTr-SKHDT, advising the People's Committee of Dak Lak Province on the Decision No. 2101 / QĐ-UBND dated August 8, 2017.

Immediately after the urgent complaint of the Yen Binh - Dak Lak Company sent to the President of Dak Lak Province People's Committee and the Director of Dak Lak Department of Planning and Investment on September 29, 2017, instead of settling complaints, the Department of Planning and Investment dated October 11, 2017 issued a Decision No. 114 / QD-SKHDT on the establishment of inspection team for the implementation of the Cassava Starch Processing Plant Project in the Cu Pui Commune, Krong Bong District. Yen Binh - Dak Lak Company . On the inspection of the project immediately after the complaint, Yen Binh - Dak Lak Company said that the reaction has negative signs, not suitable to the spirit of support, tectonics, business services under the Resolution No. 35 / NQ-CP dated May 16, 2016 of the Government and the Resolution No. 10-NQ / TW dated June 3, 2017 of the Central Committee of the Central Committee of the Party.

Yen Binh - Dak Lak Company proposed the People's Committee of Dak LakProvince to consider issues that the company analyzed, presented the practical and decided to adjust the planning in order to help solve problems in the investment of The Cu Pui cassava starch processing plant project to protect the rights and legitimate interests of Yen Binh -  Dak Lak Company and support the company successfully implemented the project.