Leasing Farm Land in Vietnam?

Allblack Active member

25POSTS

8 years ago

Hi All,

I am a semi-retired researcher in Australia & have been approached by a family run agricultural business in Australia. They wish to further their business in SE Asia. The crop is for organic food.

I have looked at Thailand, Lao, Cambodia to lease at least 40 Hectares or about 100 acres. A reliable water supply is essential, a house on the property would be advantageous.

The land can be from the bottom of the Mekong delta up to or past Nha Trang

The land is for food production & most will be exported, though we may expect some local sales for expats.

I realise that leasing land in Vietnam is for a 50 year tenure. Dealing with the bureaucrats is mind numbing in all countries, I am prepared to deal with that.

I would welcome any ideas or thoughts as to cost of leasing & possible pitfalls.

Many Thanks

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safetywa Member

20POSTS

8 years ago

Hi,

My name is Brett. I should be able to help you. Drop me a line and we can discuss further.
My email address is ***

Regards
Brett

senwl Serial expat

820POSTS

8 years ago

Please don't post your personal contact info (email, phone no., skype etc.) on a public forum.
Use the private messaging system to exchange your contact information with other members.
To send a PM, go to that person's profile and click on 'Send a message'.

Please have a look at the Vietnam forum code of conduct.
Thank you.

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saigonlolo Active member

29POSTS

8 years ago

Before finding land, I suggest first checking the process for setting up the agriculture business in vn

this is because it's not legally possible for this business to be 100% foreign owned. Max foreign ownership is 51% so there should be at least a Vn partner contributing to the business. The company also cannot lease farmland from normal land owners for its activities. It can only lease from the state.

therefore, you should find a local partner who has the land and then form a partnership with them to legally own and run the business. By doing this, there's no need to lease the land because the partner will contribute the land to the聽 business

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Allblack Active member

25POSTS

8 years ago

Many thanks for the information.

We have been in discussion with a land holder who currently leases 100 hectares in An Giang. The lessee is willing to partner in a Joint venture, however he is quite aggressive with his demands, so we terminated our discussions.
The government process is long, arduous &very slow, but progress is being made. We have encountered bureaucracy in all 4 countries so far.
Thank you again

Best Regards

Glen

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Guest2023 Guest

0POSTS

8 years ago

I would try Cambodia, less restrictive than Viet Nam. Our ex-treasurer Costello has set up there. Viet Nam has too much red tape and is slow in getting things operational.

THIGV ViP

4427POSTS

8 years ago

Mr Allblack:聽 Aside from the leasing aspects, I was wondering if you have any experience with organic farming in the tropics.聽 Even if your home area in Australia may not be frost free, unless it is in the far North, it probably has either a serious chill or a prolonged dry season, both of which reduce insect populations.聽 You also need to be aware that nutrient requirements in the tropics may be substantially different than you are used to.聽聽Phosphorous ties up in many tropical soils, and plain rock phosphates that you may find acceptable by organic standards may be insufficient for optimum yields.聽 Rapid breakdown of organic matter and leaching both reduce soil Nitrogen as well.聽 I am not saying that organic methods will not work in the tropics but I will say that the methods used in temperate areas will need to be modified significantly.

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Allblack Active member

25POSTS

8 years ago

Many thanks for your input.

We have taken into account nutrient levels required for tropical climes.
Our main requirements is that the soil pH level is 6 to 7.5. Together with a good water supply.
Many thanks again.

Best Regards

Glen

Allblack Active member

25POSTS

8 years ago

#10

Many thanks.

Cambodia is quite interesting & you are correct about red tape. It is a very good option, my predilection is for Vietnam or Lao

We are not looking for any government subsidies or tax breaks in any of the 4 countries

By way of coincidence one of my best friends ex-brother-in-law was or still is a business of partner Peter Costello.

Best Regards

Glen

THIGV ViP

4427POSTS

8 years ago

#11

Allblack wrote:
Our main requirements is that the soil pH level is 6 to 7.5.

In particular you should take care if using land that has been in pineapple production.聽 Pine is acid loving and land that has been in production for a while may even be in the 4.0-4.5 range.聽 One plus is that crushed coral may be available in Vietnam.聽 If it is, its varied particle size means it will not work all at once, but will act as a sort of delayed release.聽 Moving Ph back up suddenly has problems too.

Guest2023 Guest

0POSTS

8 years ago

#12

Not sure if you are aware, but the salinity problem in the Mekong Delta is getting worse by the year.

Allblack Active member

25POSTS

8 years ago

#13

Thank you.
I was at the Bac Lieu last year doing work in the aquaculture industry & noticed the salinity problem, It hasn't been helped by the dams being built up stream in Laos. These dams restrict the river flow further down stream & an unintended consequence is rising salinity, plus other issues, such as, land degradation, income loss, species loss etc:

If & when our project commences, our first responsibility to ensure the land we use is in better condition prior to our leasing it.

Cheers

Glen

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Allblack Active member

25POSTS

8 years ago

#14

Great information. We know that from pineapple production in Queensland that there is nutrient depletion. On some farms the soil needs complete remediation & dolomite, CaMg(CO3)2 is now a natural choice

My nephew in New Zealand, is a farmer with a degree in pasture management. When he bought the farm the soil was very acidic. He treated the farm 360 Hectares with dolomite. He has recently completed a research programme with Canterbury University by using dolomite with great success. I am waiting to see his research papers.

Again, my thanks

Best Regards

Glen

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THIGV ViP

4427POSTS

8 years ago

#15

In the case of pineapple, it really is not so much nutrient depletion as it is management that intentionally allows the soil to become acidic as that condition actually allows the acid loving plant to be better nourished.聽 Experience in Hawaii is that substantial P and fair amounts of N were left behind.聽 Burning of plant residue, as is common with pine culture, leaves behind very usable P although much of the N is lost.聽 Raising Ph will release the P for other crops.聽 The advantage of coralline materials, if available, over dolomite would mostly be price.聽 Dolomite is fast.

Allblack wrote:
If & when our project commences, our first responsibility to ensure the land we use is in better condition prior to our leasing it.

I would hope that your responsibility would be to leave the land in better condition after you finish leasing it.

safetywa Member

20POSTS

8 years ago

#16

Allblack,
Suggest you check your email.

Have 500 hectares approved for Agricultural and has been signed off by聽 Peoples Committee in Province and the VN government in Hanoi聽 Land is close to International airport has as mush fresh water you could possibly need. I have a registered company here in VN and my company works in the field of Agriculture.

Brett

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Allblack Active member

25POSTS

8 years ago

#17

Again my thanks.

I am very select with whom I work with. All projects that I have work with must have a complete exit strategy that includes a land remediation programme, future pollutant risk management,economic impact on employees and other contingencies that may affect local & social issues etc:

Many Thanks

Best Regards

Glen

2 members reacted to this post

ozzyman Member

17POSTS

8 years ago

#18

Someone mentioned that max foreign ownership is 51% and thats partially correct. Theres a way to work around that by having a local VN register the company first for a few months then buy all the company shares and have complete ownership. I suggest comparing land prices and other major factors first to decide on a country to focus your attention on.

I live in Vietnam and own an agricultural trading company with my father here, but we have our 250ha farm in Mondulkiri province Cambodia. Last time I checked farm land in Vietnam was about $10,000-20,000usd/ha for a 50 year lease term, Cambodia was around $2,000usd/ha, and I'm sure its even cheaper in Laos. Lifestyle is more comfortable in Vietnam and I export from Vict/Cat Lai so thats why I stay here. Also it only and takes me about 5 hours by car to get to our farm, which would be the same if I lived in Phnom Penh.

Theres currently a few large pieces of land in Cambodia that was offered to us by our government officials connection. Its part of the Economic Land Concession and is to be used strictly for agricultural projects. Local villagers and squatters were recently located to a 4,000ha piece of land which caused to attract some bad media attention.

Regardless of which country you choose to setup shop, you'll want to have some good solid connections with the local people and officials. Being a foreign investor in SEA is the perfect target for the local people to scam, cheat and take advantage of.. which unfortunately more likely occurs then not.

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chrkuhl Member

3POSTS

8 years ago

#19

Hi Allblack.

I might be able to put you in touch with someone. Please contact me on ***

It sounds like a really interesting idea and project. I am into organic farming and wholefoods myself.

Have a great day.
Christian

Allblack Active member

25POSTS

8 years ago

#20

Many thanks to all those who made a contribution to leasing farmland in SE Asia.

I returned from New Zealand & by pure chance via a discussion with an old family acquaintance, he had 32 hectares of pristine land that met all the requirements required by the farming group, year round fresh water from a natural spring, pH level 6.5 to 7.5. electricity, good road, housing & shedding, close to markets, stability etc

A proposal has been accepted by the agricultural group which include:
exit strategy that includes a strict land remediation programme, future pollutant risk management, economic impact on employees and other contingencies that may affect local & social issues etc:

So, thank you for all your fantastic input & I will be back in Vietnam, hopefully in September, this time to retire (I hope)

Best Regards & Thank you again

Glen

THIGV ViP

4427POSTS

8 years ago

#21

In May, you are beginning a farming venture, which typically has longer time to positive cash flow than most businesses, and planning to retire in September?

Allblack Active member

25POSTS

8 years ago

#22

My "brief" was site selection only. nothing more, nothing less.

I have no financial interest in their project, nor do I want/request any.

The family group asked me to select the best site in the southern hemisphere with parameters, for their project for a fee, which I have completed in full & to their full satisfaction.

If you have an agricultural or aquaculture project in SE Asia, I may be able to assist. For a fee of course.

THIGV ViP

4427POSTS

8 years ago

#23

Allblack wrote:
The family group asked me to select the best site in the southern hemisphere...

Perhaps it is a good thing that you chose NZ instead of VN.聽 After all, Vietnam is in the Northern Hemisphere.聽聽聽 Additionally, their chances of success in organic farming will be greater as NZ has a winter of sorts, at least on the south island.聽 Even in Aukland, temperatures get low enough to suppress insects.

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Allblack Active member

25POSTS

8 years ago

#24

I have just, moments ago, completed a "chat" with my friend in NZ. We spoke about site selection etc: & the consensus is, that organic food produced there is a valuable marketing cachet

Eggenvina New member

6POSTS

5 years ago

#25

Re: Leasing Farm Land in Vietnam

My name is Jan Eggen, I am a Norwegian man living in Vietnam, and I am also interested in renting some agricultural land in Vietnam. Have you found any farmland yet ?, and if you have, where in Vietnam is it located?

Best regards,
Jan Eggen
Email: [link moderated]

Good_Man Serial expat

206POSTS

5 years ago

#26

Dear Jan,

Due to a stroke I have 3500 m3 of land for rent, plus a single story house with a garden and inside parking available. The land is fenced in with 2500 m3 on one lot and 1000 m3 on an adjacent lot with a fence.

The house is new and has two bedrooms, a kitchen, two bedrooms and living room. The garage has a washer hookup and 45 m3 of storage. The fenced backyard has 75 m3 land that is used as a garden.

The land and property are in Tuy Phuoc, which is 30 minutes from Quy Nhon. It is available now.

Eggenvina New member

6POSTS

5 years ago

#27

Dear Good_Man,

Thanks for the quick reply, I understand that your land is north of Nha Trang and Tuy Hoa, how many kilometers from Tuy Hoa is it to your land? And how far is it to the beach?

How many square meters is the one-storey house, and in what building materials is it built?

What is the rental price and rental conditions for your plot?

Sincerely,
Jan Eggen

Good_Man Serial expat

206POSTS

5 years ago

#28

Dear Jan,

It's been a long journey, but it's been fruitful. My recovery has been slow but steady and can spend more time to write. I need it. It's took me a long time to write this聽

Okay, to answer your questions. The house and farm are in Phuoc Thanh. It's by Quy Nhon, which is the capitol city in Binh Dinh province. It is 16 km from the beach and close to entertainment, if that is what you are looking for. Quy Nhon Is an up and coming place to be. It's got places to see and do and a mix of traditional and new styles.

The house is brick and concrete. The layout is about 257 m2 (not m3). It was suppose to be my home for my retirement so everything is new. (I will take pictures of the house and farm0

The rent is cheat. The land is 6,000,000 VND a month and the house is 5,000,000 VND a month. That's 72,000,000 VND per year and 60,000,000 VND per year which is a total of 132,000,000 VND per year (about $5,800 a year).

I will also ask what if cost you for a Visa to stay here for 1, 3 and 5 years.

MarkinNam ViP

1068POSTS

5 years ago

#29

X Dragon fruit land also poses depletion issues

Eggenvina New member

6POSTS

5 years ago

#30

Dear Good_Man,

Thank you for your answer, where is you living now?

Are there usually strong storms at the fall in the area that you are going to rent out your house?

In the reality so was I looking for some bigger land for farming, but I think that your house is situated in a very beautiful area, and I think it may be a very nice area for living.

I is also looking for a cheap health insurance, do you know any company that can offer that in Vietnam, I is now over 62 year old, and think I need a health insurance for living in Vietnam.

Sincerely,
Jan Eggen

Good_Man Serial expat

206POSTS

5 years ago

#31

Hey Jan, this is Mark. (I figure it should be on a first name basis)

I am living with my fiancee's house in Quy Nhon.

The rainfall in a given year is pretty steady with the rainy season (October thru February) it is the heaviest from November thru January. The worst times are from the cyclone, but they are infrequent. In the eight years I have been living here I saw one storm that got me worried but in the end I was worried for nothing. And I built my house on high ground so there is no worries about flooding.

If you want more land we can look at some land but it won't be as cheat as it is here.

When I got sick I didn't have Health Insurance I am not a rich man and I did alright. I spent around 150,000,000 VND for everything. In hindsight I wish I had some major catastrophic health insurance coverage, but I didn't so I can't cry over spill milk.

1 member reacted to this post

Good_Man Serial expat

206POSTS

5 years ago

#32

I got a load of recent pictures of the property and land. You're better off getting me your email address

All the best,

Mark

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Eggenvina New member

6POSTS

5 years ago

#33

Hello Mark,

My email address is: ***

Best regards,
Jan Eggen

Moderated by Cheryl 5 years ago
Reason : For security reasons, do not post your contact details on the forum.
We invite you to read the forum code of conduct

stumpy Laos Expert

18028POSTS

5 years ago

#34

For personal security do not post contact details here on the open forum. Use the message system to exchange details.

Eggenvina New member

6POSTS

5 years ago

#35

Stumpy,
Please can you explain a little more about the message system to exchange details for me?

Regards,
Eggenvina

SteinNebraska ViP

1298POSTS

5 years ago

#36

Eggenvina wrote:
Stumpy,
Please can you explain a little more about the message system to exchange details for me?

Regards,
Eggenvina

Everything the two of you have been chatting about thus far is in the public forum for everyone to read.聽 To send him a private message similar to an email, click on his name in one of his posts above and then click the box "send a private message".聽 That message will go to him directly.

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Eggenvina New member

6POSTS

5 years ago

#37

SteinNebraska,

I understand,

Thank you,

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naijuvarghese34 Member

1POSTS

2 years ago

#38

@Chu Lai, i am from india, kerala, i wood like to lease land in vietnam, for agricultural purpose, wat is the procedure there can you replay me, how can i get a sponser there to get a visa and all