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Too many rubber mills, not enough supply   2008-10-01 - Viet Nam News

Two new planned rubber processing mills in Vinh Linh District of the province will further exacerbate rubber supply problems and raises environmental concerns.

Currently, the 7,800ha of land designated in the province for rubber cultivation supplies only 11,700 tonnes of rubber latex a year, approximately half the amount for already existing factories to produce at full capacity.

A decree issued on February 14 this year by the provincial Department of Industry and Trade declared there should be no more investments in rubber mills in the short- or medium-term, especially in Vinh Linh District, to ensure the balance between manufacturing and material supply.

However, two more factories belonging to the private enterprises of Ben Hai Joint Stock Company and Tran Duong have received licenses this summer from Vinh Linh District's People's Committee to begin construction in the district.

Currently, the 7,800ha of land designated in the province for rubber cultivation supplies only 11,700 tonnes of rubber latex a year, approximately half the amount for already existing factories to produce at full capacity, said provincial authorities.

The provincial authority plans to enlarge the growing area to 15,000ha by 2010 to produce about 13,000 tonnes of latex per year, which will still not meet even the current manufacturing demand.

"There should be only one rubber processing mill in Vinh Linh District, which is enough for the current ability of material supply", said Thai Vinh Khang, the director of Quang Tri's Department of Industry and Trade.

The construction of these two rubber processing factories would lead to ineffective investment, financial waste and worse, polluted environment, he added.

According to the Chairman of Vinh Linh District's People's Committee, Le Duc Yen, the construction of the new factories is a part of industrial zone development projects in the province.

The construction expense of a proper waste treatment system accounts for 20 per cent of the total investment capital, so investors often have not paid enough attention to their environmental responsibilities.

Currently, the province is planning to conduct inspections to check economic efficiency and the environmental impacts of all factories in the province in the upcoming time, according to Nguyen Duc Cuong, the vice chairman of the provincial People's Committee.

Cuong also said that there would be a temporary halt in granting construction licences to investors until the inadequacies are solved to ensure benefits of investors, local farmers and social community are recognised.



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