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KVIP struggles with lack of machinery
Trung Chanh
Wednesday,  Apr 12, 2017,21:15 (GMT+7)

KVIP struggles with lack of machinery

Trung Chanh

South Korea pledges to spend US$5 million on machinery and equipment for KVIP, but only US$2 million has been disbursed - PHOTO: TRUNG CHANH

CAN THO - The Korea Vietnam Incubator Park (KVIP) is facing difficulties as the amount of US$5 million pledged by South Korea for investment in machinery and equipment for its operations has not been fully disbursed.

KVIP director Pham Minh Quoc said the Korean side originally promised to invest US$5 million in machinery and equipment for KVIP operations. “However, late last year, at a joint committee meeting between Vietnam and Korea, they announced Korea’s National Assembly had terminated the project, so only US$2 million had been spent,” he told the Daily on the sidelines of the meeting between the government of Can Tho City and KVIP on April 11.

Due to the lack of machinery and equipment, KVIP is experiencing certain hardships during its operations. “At present, Deputy Prime Minister Vuong Dinh Hue has asked the Ministry of Science and Technology to seek funding to partly support the park,” said Quoc.

KVIP is currently managed by the Department of Industry and Trade of Can Tho in the vertical hierarchy, since the Ministry of Industry and Trade was originally responsible for working with Korea on this project. However, as KVIP is facing the problem mentioned above and most of its operating expenses are in the field of science and technology, the project is being considered for transfer to the Can Tho Department of Science and Technology.

To limit the difficulties, Can Tho vice chairman Truong Quang Hoai Nam asked KVIP to review its equipment and machinery and issue regulations on coordination, sharing equipment and machinery between KVIP and the nurseries of Can Tho University and some other units.

This is aimed to utilize mutual resources, avoid overlapping investment and waste, and partly resolve the current difficulties of KVIP, said Nam. KVIP is required to complete the coordination regulations in May.

Regarding technology transfer, in the first two years, Korea sent experts to Can Tho for assistance in management and operation of equipment, which was already done.

“We are proposing Korea supply three other experts, including a mechanical specialist, an expert in agricultural product processing and one in seafood processing, which are the major operations of KVIP. Currently, the Korean party is considering this proposal,” Quoc said.

So far, five enterprises have been selected to operate in KVIP, the director informed. They are Nhat Viet, Hoang Thang, Pham Nghia T&N, Calevy Rice Milk and Vietnam Nestling, whose products are fish meal, sowing machines, fried fish balls with salted egg, rice milk and herbal bird’s nest respectively.

KVIP covers over 4.5 hectares in Tra Noc 2 Industrial Park in O Mon District, Can Tho City. The total investment in this project is more than US$21 million, including US$17.7 million of Korean grants (of which US$5 million is set aside for machinery and equipment) and over US$3.4 million from the annual budget of Can Tho.

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