Violations detected at Trung Nguyen Coffee in Lam Dong province

The Trung Nguyen Legend coffee enjoyment and display area faces delays for many years

In mid-May, Lam Dong Department of Planning and Investment issued a document responding to the proposal on the extension of the land lease term and the implementation of the project on building a Trung Nguyen Legend coffee enjoyment and display area in Loc An commune, Bao Loc district of Trung Nguyen Coffee JSC.

The document said that, in light of the Ministry of Planning and Document’s conclusion from December, the project is bound for violation review under regulations in the Investment Law 2014 and Land Law 2013, and that this is one of 14 projects in Lam Dong which incurs delays.

“After reviewing the alleged violations and receiving further guidance from the province’s management, the Lam Dong Department of Natural Resources and Environment will sum up and submit proposals to the provincial People’s Committee for consideration,” said the document.

The department has also required Trung Nguyen Coffee JSC to report on the project implementation, including investment preparation procedures, construction pace, possible violations, and financial statements in the two recent years.

Earlier, in 2017, Pham S., deputy chairman of Lam Dong People’s Committee signed a decision approving the investment proposal for the project.

The project envisaged covering over 15,500sq.m with a $1.43 million in total investment, in which Trung Nguyen Coffee contributes over $652,000, with the remainder raised from diverse sources. The project was set for completion by the end of the third quarter in 2019.

Also in Bao Loc district, another project of Trung Nguyen Coffee on raising several animals under forest shades, building a tea processing plant, and promoting eco-tourism development faces a long delay.

In mid-May, the project owner asked for an official withdrawal from the project which got its investment certificate granted by Lam Dong People’s Committee in 2010. The project covers more than 190ha in Loc Phu commune in Bao Lam district.

The$10.8-million project was set to be completed by the end of this year; however, has so far failed the target.

More than that, after receiving the forest area for the project’s implementation, the company has let roughly half the area (100 out of the 190ha) take damage before cashing in compensation payments for the loss of forest resources of the state.

Amid an unfinished investment, in July 2019, Lam Dong Department of Planning and Investment received notice from Trung Nguyen Coffee JSC about the termination of the project’s execution.

Last March, Lam Dong People’s Committee issued a decision on taking back all the forest under the project from Trung Nguyen Coffee JSC.

According to Nguyen Van Son, director of Lam Dong Department of Agriculture and Rural Development, as of now, the province has taken back all 65.13ha of forest from Trung Nguyen Coffee JSC (except for the part of forest being lost that has demanded Trung Nguyen to make compensation) which was handed over to the relevant forest management unit.

Son said, “Current regulations do not rule to send businesses or forest owners who incur a loss of forest resources to the court. They are just liable to compensate for the lost forest resources.”