BAFOCO: Efforts to Overcome Difficulties

BAFOCO: Efforts to Overcome Difficulties

Ba Ria Vung Tau Forestry Company Limited (Bafoco) is well known for its outstanding work in the fields of planting, tending and protecting forests; planting, tending rubber trees and extracting latex; and production, processing and export of rubber latex. In recent years, rising costs and difficult access to bank loans have significantly affected its operation. However, thanks to its efforts and appropriate solutions, the company has fulfilled or exceeded the set plans, sales targets and made significant contributions to the state budget.

The forest covers an area of nearly 5,000 hectares including 1,700 hectares of rubber in Xuyen Moc district’s centre surrounded by five communes including Hoa Hiep, Hoa Hoi, Bong Trang, Bung Rieng and Binh Chau. This investment comes from Bafoco and from the capital of individual households and organisations in the area. Over many years of good care and management, the forest is now becoming increasingly valuable in the economic development and environment protection of the district. On an area of 5,000 hectares of forest, 2,000 hectares are already for exploitation to serve the paper industry, making sustainable profit for production and business operation of Bafoco and economic income for households who contribute to building and preserving the forest. In addition, Bafoco also owns forest of dipterocatus, tectona grandis, and other trees with high economic value which are ready to be put into service for the wood processing industry.

1,700 hectares of rubber has been invested since 2006, and is now exploited for export. In the early stage, Bafoco exported only a modest output of about 1,000 tonnes a year to the Chinese and Indian markets. This is the starting step. In recent years, rubber prices continuously get lower, making it difficult for Bafoco when it has spent much on this tree. Facing the difficulties, Bafoco has made many efforts mobilising capital from various organizations; reducing costs and seeking new markets, etc. This has helped the company overcome difficulties and complete a good plan. It is expected that Bafoco will put into operation 1,000 hectares of rubber this year. According to the forecast, in 2014 the price will experience more positive changes than in 2013. If rubber prices are as good as expected, it would be a good signal to Vietnam’s rubber industry in general as well as Bafoco in particular.

In addition to exploiting, the forest protection is considered a critical task. The company actively increases its security forces, enhances patrolling and management, coordinates with the ranger force and local police for timely detection and timely handling of illegal deforestation. However, for better forest protection, it is essential to have the attention and support of the local authority and the willingness of people. It is important to take more drastic actions and increase deterrent penalties, which will limit illegal deforestation. Thanks to those fruitful results, in 2013, the company received Labour Order Grade III helping to encourage the company to fulfil its mission in the future.

Duc Binh

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