The Kien Giang Province Department of Agriculture and Rural Development, Loc Troi Group Joint Stock Company and Military Commercial Joint Stock Bank (MB Bank) on July 4 signed an agreement to grow high-quality rice on an area of 300,000ha at an estimated investment cost of VND12 trillion (US$513.39 million) in the province.

The department and other provincial agencies will work with Loc Troi Group to draft annual plans for it.

The land will be granted a planting area code and high-efficiency production models that Loc Troi uses elsewhere in the Mekong Delta will be adopted here too.

All the rice harvested will be bought by Loc Troi and its associates for export.

MB Bank will provide credit of up to VND12 trillion for all production activities. The credit agreement is valid until December 31, 2024, after which the parties will decide whether or not to extend it.

Loc Troi will also consider construction of a modern rice husking and drying mill in Kien Giang, and build an agricultural information system and an innovation centre together with the province to gradually promote digital transformation in agriculture.

Also at the signing ceremony, Loc Troi signed a contract to transfer the right to use two rice varieties, OM 18 and OM 5451, to the Kien Giang Breeding Centre for Agriculture, Forestry and Fishery.

The group will support the centre with training for production, storage and preservation of rice to ensure the quality of seeds delivered to farmers is on par with what it supplies in other localities.

The country’s rice exports were up in both volume and value terms in the first half of the year to 3.5 million tonnes and over $1.7 billion . — VNS