Deal #545

Location #1

Spatial accuracy level
Administrative region
Location
Da Nang, Vietnam

Target country
Vietnam
Comment on location
Nissho Iwai's forestry and wood chip production businesses in Vietnam began with Vietnam-Japan Chip Corporation, which was established in Danang City in Quang Nam Province in 1993. See https://www.sojitz.com/en/news/2002/05/20020527.php

Location #2

Spatial accuracy level
Administrative region
Location
Cái Lân, tp. Hạ Long, Quảng Ninh, Vietnam

Target country
Vietnam
Comment on location
VIJACHIP Cai Lan (established in 2004), see https://www.sojitz.com/en/special/project/post-13.php

Location #3

Spatial accuracy level
Administrative region
Location
Vung Ang, Ha Tinh Province, Vietnam

Target country
Vietnam
Comment on location
Vietnam-Japan Chip Vung Ang Corporation (VIJACHIP VA). See https://www.sojitz.com/en/news/2002/05/20020527.php

Land area

Size in operation (production, in ha)
[2010] 39274
Comment on land area
"VIJACHIP as well as VIJACHIP Vung Ang (established in 2001) and VIJACHIP Cai Lan (established in 2004), which also adopted this business model, successfully planted a total of 39,274 ha through the end of 2010 and created approximately 500,000 jobs annually. " See https://www.sojitz.com/en/special/project/post-13.php

Intention of investment

Intention of investment
Timber plantation (for wood and fibre)

Nature of the deal

Comment on nature of the deal
there are two ways for securing plantation in Vietnam. -The first one is to rent directly the land to the Vietnamese local authorities. This is the case, for instance, of QPFL (See Deal 542). -The second one is to make a JV with a State Forest Enterprise (SFE), which will provide the land and hold the responsibility for the plan tation – or will sub-contract with farmers to get additional logs. See Karsenty A., Roda J.-M. 2005. Study on the Impacts of Market and Investment Liberalization on Vietnam's Pulp and Plantations Sector, with Particular Reference to China, Programme ASIA PRO ECO, Union Européenne (https://agritrop.cirad.fr/550308/1/document_550308.pdf)

Negotiation status

Negotiation status
Concluded (Contract signed)

Implementation status

Implementation status
[2014] In operation (production)
Comment on implementation status
Information from company: https://www.sojitz.com/en/special/project/post-13.php

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of jobs (domestic)
500000
Comment on jobs created (domestic)
VIJACHIP as well as VIJACHIP Vung Ang (established in 2001) and VIJACHIP Cai Lan (established in 2004), which also adopted this business model, successfully planted a total of 39,274 ha through the end of 2010 and created approximately 500,000 jobs annually. (See https://www.sojitz.com/en/special/project/post-13.php)

Operating company

Name of investment project
VIJACHIP (Vietnam – Japan Chip Corporation)
Comment on investment chain
VIJACHIP is a Joint Venture between the Japanese NISSHO IWAI (now SOJITZ Corporation) and the VINAFOR, a State-owned company/with five local forestry companies (according to another source). Sojitz has three directly managed woodchip manufacturing subsidiaries in Vietnam that conduct afforestation projects: VIJACHIP Cai Lan Corporation, VIJACHIP Corporation, VIJACHIP Vung Ang Corporation.

 

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Data source #1

Data source type
Research Paper / Policy Report
File
Date
2001-01-01
Comment on data source
The Pulp Invasion: The international pulp and paper industry in the Mekong Region by Chris Lang

Data source #2

Data source type
Company sources
File
Date
2008-01-01

Data source #3

Data source type
Research Paper / Policy Report
Date
2006-01-01

Data source #4

Data source type
Company sources
File

Data source #5

Data source type
Company sources
File
Date
2009-04-01

Data source #6

Data source type
Media report
Date
2013-01-07

Data source #7

Data source type
Company sources
File
Date
2011-07-01
Comment on data source
From this source, "Sojitz is active in the tree-planting business in Vietnam and Australia. Approximately 46,000 hectares of forest have been created in Vietnam by providing financing the farmers and supplying free saplings through Sojitz’s four wood chip process mills in the country. ", however, this amount might include also QPFL (Deal 542, see more at https://agritrop.cirad.fr/550308/1/document_550308.pdf)

Data source #8

Data source type
Other (Please specify in comment field)
File
Date
2015-03-30
Comment on data source
Loan Agreement

Data source #9

Data source type
Research Paper / Policy Report
File
Date
2005-01-01

Data source #10

Data source type
Company sources
File
Date
2014-02-01

Data source #11

Data source type
Company sources
File
Date
2002-05-27

Data source #12

Data source type
Media report
File
Date
2012-08-11
Comment on data source
Vietnamese source on supports of company for the local people.

How did the community react?

Community reaction
Consent
Comment on community reaction
Local peopla are happy because of supports of company. See Vietnamese source: http://www.quangninh.gov.vn/vi-VN/huyenthi/huyenbache/Trang/Tin%20chi%20ti%E1%BA%BFt.aspx?newsid=816&cid=1&dt=2012-08-01

Promised benefits for local communities

Promised benefits for local communities
Financial Support
Comment on promised benefits for local communities
Providing free seeds, transfering technical knowledge, see Vietnamese source: http://www.quangninh.gov.vn/vi-VN/huyenthi/huyenbache/Trang/Tin%20chi%20ti%E1%BA%BFt.aspx?newsid=816&cid=1&dt=2012-08-01

Detailed crop, animal and mineral information

Crops area
Accacia, Eucalyptus

Use of produce

Country 1
Japan
Comment on use of produce
export plantation wood chip to Japan, maily Japanese Oji Paper. See https://agritrop.cirad.fr/550308/1/document_550308.pdf

In country processing of produce

In country processing of produce
Yes

June 9, 2019, 7:07 p.m.

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Aug. 23, 2016, 5:05 p.m.

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Aug. 11, 2015, 8:01 p.m.

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Jan. 22, 2015, 3:16 p.m.

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June 18, 2014, 1:58 p.m.

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May 13, 2013, 1:48 a.m.

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Feb. 15, 2013, 5 p.m.

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