ANNUAL REPORT 2020

Forestry

Gemadept was granted economic concession land by the Royal Government of Cambodia in Royor commune, Kohgnek district, Mondulkiri province. Gemadept is one of the few foreign enterprises to be granted a large area of land, in a favorable area with Highway 78 running through, climate and soil conditions suitable for planting and clearing rubber trees and other industrial trees.

Since being officially deployed, up to now, the project has achieved initial results: rubber tree grows well up to the standard of girth and height; traffic infrastructure, roads, bridges; new residential areas including rows of houses with electricity and water supply have been completed synchronously; environmental and social work has been carried out in consultation with international organizations …

Some advantages of the project

Natural condition:

  • Abundant water source due to many rivers and streams flowing through
  • The climatic conditions are similar to those in the Southeast of Vietnam with the average temperature of 260C – 290C, the average rainfall > 1,600mm.

Land fund:

  • 30,000 ha of seamless land lot
  • Not in preservation area
  • Land use rights of 50 years.

The infrastructure:

  • World Bank-funded National Highway 78 runs through the project
  • Near the energy plant
  • Near water resource

In 2020, the outbreak of the epidemic globally affected the price of natural rubber latex, in addition to human resource constraints due to social distancing. Therefore, the Company proactively stopped its plan to put 300 hectares of rubber garden into trial operation. The Company continued to perform well the minimum care of rubber gardens according to the standard procedure of Vietnam Rubber Group. As a result, the rubber plantations grew well, evenly, without herbaceous grass, good ventilation and less pests and diseases.

Project management continued to be enhanced through the completion of Oracle management software application for accounting, purchasing and material management modules. At the same time, the Company cooperated with local authorities at all levels to propagate and educate workers and people in the project area about the protection, environmental conservation, deforestation, not setting traps of wildlife hunting, etc. Security posts at project sites have been equipped with efficient solar cell lights. The plan to use solar cells will continue to be equipped on farms in the near future.

In addition, the Company continues to actively seek cooperation partners for project development, exploiting a large land with great potential, continue to maintain good support from the local authorities in Cambodia such as the Ministry of Agriculture, the General Department of Rubber, and the governments at all levels of Mondulkiri province, at the same time care about the stable living conditions of employees.