Agri-Tourism

Project Overview
HOA BINH INTERNATIONAL AGRICULTURAL DEVELOPMENT JSC,.
VIETNAM
 1. Executive Summary
• Highlights
• Mission Statement
• Vision
• Goals and Objectives
• Services or Products
2. Project Information
• Project Location
• Land Information
• Project Overview
• Project Milestone
3. Organization & Management
• Management Summary
• Proposed Staff
4. Economic & Social Impacts
• Economic Impacts
• Social Impacts

Contents 5.
6.
Investment Phases
Financial Projections
• Estimated CAPEX
• Capacity & Income
• Profits & Losses
7. Appendix
• Project Site-visitng Images

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1. Executive Summary
Rural areas are becoming increasingly popular destinations for travel,

especially cultural landscapes that allows a glimpse into how rural people live and work.
In general, agritourism is the practice of attracting travelers or visitors to an area or areas used primarily for agricultural purposes. Agritourism has become a widely
accepted alternative form of tourism which links the agriculture sector with the tourism sector and provides opportunities for the rural community to enhance their income. Hence
many developed and developing countries have embarked on agritourism as a successful strategy for rural development at present.

In addition, there is a growing public desire to engage in rural experiences and outdoor recreational activities. By combining agriculture and tourism, agritourism offers
rural experiences to urban residents and economic diversification to farmers. Planning for agritourism requires a forward-thinking, locally-driven process. Vietnam is predominantly an
agricultural country, agritourism is considered to be an effective means to help regions lagging behind, particularly rural areas, to combat economic decline and migration and assist their
inhabitants reach a level of prosperity. Therefore, a number of appropriate policies have been implemented to support rural tourism development within the country as a tool to reduce
regional disparities between prosperous and poor rural regions.

Recognizing the opportunities, Hoa Binh International Agricultural Development JSC,. was established in order to improve agriculture value chain linkages, product
diversification, increased food security, and promotion for agricultural products within the tourism sector of a destination. Agritourism is often a feasible strategy for local economic
development and to promote traditional sustainable agriculture practices. The development of agritourism tours and demonstrations as attractions in rural areas provides the potential
for creating or expanding micro, small, or medium-sized enterprise (MSME) core and supply chain businesses, including transport, food service and products, and handicrafts.

The following proposal is designed to provide a scope for this project, gather support from key national organizations, develop a budget and seeking funding for
implementation

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 Highlights
Agriculture:
• Forming and developing high technology
agricultural areas to create sustainable
development and obtain high-value agricultural
products.
• Applying the latest science and technical
development in the agriculture areas.
• Training and enhancing the farmers’ skills;
effectively and efficiently using and developing
the soil.
• Marketing the brand of small local businesses as
well as local culture.
Tourism:
• Hoa Binh is a land of culture; each ethnic group in the
province has unique cultural characteristics that play
important roles in tourism development.
• At the same time, agritourism is also improving the
natural harmony between culture, religious and
people. It can be viewed much like eco-tourism in
that it is small-scale, low-impact, and, in most cases,
education-focused.
• Fulfilling people’s needs for information and
participation in food production, food procession,
and for better understanding farm culture and rural
heritage; needs for direct contact with animals,
plants and rural environment; needs for experiencing
the real life of a rural family and a rural society
• This agritourism project will be an attractive
destination and a highlight in the Vietnam’s
Northwest tourism chain.
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 Mission Statement
Create a farm tour that delivers an enjoyable,
affordable, and informative experience that increase
the knowledge and appreciation of our area’s rich
agricultural industry for both locals and tourists.
Goals & Objective
• Generate awareness and interest in the agricultural
industry in Northwest Vietnam
• Inform the public about local agriculture and how
the food they eat gets to the supermarket
• Create a entertaining experience that will draw
tourists to Noong Luong
• Develop a valuable educational tool to help the
public gain a greater understanding and appreciation
of what agriculture is about while adding to the
tourism draw of a region.
Vision
Become a popular attraction that provides valuable
information on area’s agricultural industry and
provides an entertaining experience for all
customers.
Services or Products
Intending to deliver farm based excursions to
customers. The Farm Tours intend to guide
customers in selecting a tour(s) based on pre-
defined criteria. These tours will be chosen by
ridership of the consumers, which include
preferences such as: Budget; Activities sought;
Destination; and Time of Travel.
A traveler will hence be able to select areas of
interest based on their preferences and
subsequently identify destinations to visit. The
intention is to provide customers with access to
exclusive destinations, not just sight-seeing, and
access to special interest farms according to the
group's/individual's preferences.
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2. Project Information
Project Location
• Noong Luong is one of 23 administrative units of
Mai Chau district, Hoa Binh province. It’s located in
the total area of 15,99 square kilometers with the
population of 1620 people of 6 different ethnic
groups.
• The terrain is complex and diverse with hills, valleys
and rocky mountains, with an average elevation of
800m above sea level; the highest elevation being
1.184m, and the lowest being 455m.
• Noong Luong is about 140km away from the capital
of Vietnam (Hanoi); and about 31km in walking
distance from the center of Mai Chau district.
• By 2015, the total natural area of ​the commune is
1,646.99 ha. Of which, agricultural land area is
1,361.06 ha.

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 Land Information
• Land Location:
In the villages: Cha Dat, Hieng, Pieng Dau - Noong Luong
commune, Mai Chau district, Hoa Binh province, there
are 4 adjacent areas of total 240.5ha.
Including Zone 1: 186.2ha; Zone 2: 6.1ha; Zone 3: 9.9ha;
Zone 4: 38.3ha;
For the protective forest area, the project will remain the
forestation land under the plan of the Provincial People's
Committee. Making only walking road for visitors. The
area of ​the road will not exceed 15% of the area
of ​protective forest land.

• Structure of Land Usage:

The total area of ​the project is 240.5 ha, including
202.2ha of productive forest land that contains lakes,
rivers and a cave; and 38.3 ha of protective forest land.

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 Project Overview
• Agricultural:
 Building an area to grow safe vegetables by applying high technology;
 Building a processing manufactory to process vegetables and fruits after harvested;
 60% of agricultural products such as flowers, vegetables, and herbs will be exported.
 Applying new technologies in agricultural production: automation, mechanization, information technology, materials technology, biotechnology, new
higher yields plant varieties, and organic farming to obtaining sustainable development.
 Establishing a breeding center applying plant tissue culture methods.
 Building a 500m2 lab with latest technology applications and facilities; 20 biological safety cabinets (Box implants); and 300,000m2 of net houses/greenhouses/nursery
houses.
 Capable of creating 7 million plant seedling per year.
 During the whole process of livestock care and harvesting, the technical data (i.e. humidity, nutrition, and light) of cropland area will be updated
constantly. These data will be stored and analyzed to build an automated dripping irrigation systems and automated sprinkling on the whole area.
 40% of agricultural land will be used to build the net house, greenhouse, and nursery house.
 The entire equipment and processing are operated by the company's strategic partners that have experience in the industry of agriculture as Stevia
Corporation – USA and IC FOOD – Korea.
• Tourism:
 In the tourist area will be built six regions representing the six ethnic cultures; each region will highlight the cultural characteristics, heritage products,
and cuisines for each group
 Each region will be built as a miniature image of the village that has typical architecture, cultural vibe, religion, and linguistics. Each ethnic group has its
own cultural nuances and ethnic similarities. Intercultural culture has both a traditional continuity and a combination of elements formed in the process
of mutual exchange.
 Popular traditional lifestyle of the people are based on agricultural activities mainly.
 Spirituality is still popular as a basis for ceremonial activities. Even though nowadays, ethnic populations are at different levels on the path of modern
life development and participate in the process of international integration. These elements will remain as lively and distinctive by the local people.

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 Project Overview (cont.)
• Capacity:
 9000 tons per year of clean vegetables including
tomato, cauliflower, kohlrabi, kale, cabbage, and green
bean etc.
 6000 tons per year of fruits including grapefruit, pear,
plum, and orange etc.
 7 millions tropical flower stems per year including rose,
peony, and chrysanthemum etc.
 8 millions plant seedlings per year to supplying within
project area and market.
 Capable of receiving more than 700 thousand
sightseeing and staying visitors per year.
• Homestay architecture:
 The traditional house has 4 legs, 4 columns, and sloping
roofs. Structurally, the traditional floors have 2 rafters, 4
columns, 8 small columns.

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 Project Milestones
Our two-year plan

Permit & Legal Approval Feedback & Design MVP

Mar, 2018 Nov, 2018 Nov, 2019

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2018 2019

Land Contract & Funding Infrastructure

Compensation
Jun, 2018 Jan, 2019 Jun, 2019

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3. Organization & Management
• Management Summary
The human resources element shall be an essential
component in the delivery of the total service. By
encouraging all employees to handle customers well,
and by having enthusiastic, capable and empowered
people interacting with our customers, we intend to
build the competitive advantage of being able to
comprehensively meet our customers' needs. In the
future there will be a need to evaluate job
performance and remuneration packages against
market benchmarks to employees for their agreed and
set out tasks so as to ensure they are competitive.
These principles extend to accident, medical, death
and welfare benefits.
• Proposed Staff
Phase 1:
 Project Management Unit: 24 people.
 Other Units: 200 people.
Phase 2:
 Project Management Unit: 30 people.
 Other Unit: 300 people
After the project came into operation, the demand for
labor would be around 500 full-time employees; and
1000 part-time/seasonal employees.

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4. Economic & Social Impacts
Economic Impacts
• Contributes to boosting trade activities; attraction
of investment to the economic component.
• Actively contributes on the implementing seeding
structure transformation on the area; improving
income and livelihoods for local people.
• Contributes a significant amount of tax, corporate
income tax, and other revenues to the
Government.
• Increases service activities and transportation;
increases revenue for the local budget; contributing
actively on the improvement of the infrastructure
system.
• The project promises to bring economic efficiency
to the investors.
Social Impacts
• Expanding business by cooperating with local
farmers. Farmers will not only remain the right
owner of their lands but also cultivating the best
methods onto soil usage; ensuring long-term
stability.
• Conservation, preservation and promotion of
traditional cultural values, traditional trades. Raise
awareness of conservation and development of
traditional local culture.
• Introduction and promotion of cultural values ​and
traditions of ethnic minority people with domestic
tourists and foreign tourists.
• Join the tourism value chain of the tourism industry
in Vietnam.
• Create stable jobs for hundreds of people with
steady income. When the project is put into
operation, it is expected to pay around US
$1,263,120.00 of salary annually.
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5. Investment Phases
Phase 1
12 months
• Deploying the entire
infrastructure; road construction,
grading, electricity, and water
supply. Construction and
implementation will be done
parallelly.
• On the 110ha of agricultural
cultivation - soil will be classified
and improved immediately.
Sowing process will be following
right after improvement process.
• Total investment capital for Phase
1 is US $60,680,000.00 (Sixty
million and Six hundred and
Eighty thousand dollars).
Phase 2
18 months
• Finishing all infrastructure works;
completing construction works on all
other segments.
• Start utilizing the net houses,
greenhouses, nursery houses, and hi-
tech lab.
• Start construction on a 800m bridge
connecting the farm to the cave – one
of the tourist attraction destinations.
• Total investment capital for Phase 2 is
US $ 91,030,000.00 (Ninety-one
million and Thirty thousand dollars).
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6. Financial Projections
Esimated Capital Expenditure
Estimated Capital ( Million USD)
No Costs
Total Phase 1 Phase 2
(A) Table
1 Construction and equipment costs 111.38 44.55 66.83
3.2
(B)=20%*
2 Management, consultant and other costs 22.28 8.91 13.37
(A)
(C)=13,5%*(
3 Contingency cost 18.55 7.22 10.83
A+B)
Total 151.71 60.68 91.03
Hoa Binh Agritourism Project Estimated Capital Expenditure

Estimated Construction Cost

Phase 1 Phase 2
Total Cost
Unit Cost Total Cost (Million
Total Cost Period
No Description Scale (m2) (m2/Million Period (Month) (Million USD)
(Million USD) (Month)
USD) USD)
1 Control Center 500 0.00382000 9 0.764 6 1.146 1.91
2 Processing Manufactory 2,000 0.00570500 9 4.564 12 6.846 11.41
3 Storage 4,000 0.00095000 6 1.52 6 2.28 3.8
4 Products Collection Yard 20,000 0.00009550 6 0.764 0 1.146 1.91
5 Net Houses/Greenhouses/Nursery Houses 300,000 0.00002853 9 3.424 18 5.136 8.56
6 Parking Lot 30,000 0.00009467 6 1.136 3 1.704 2.84
7 Vegetable Area 400,000 0.00001428 12 2.284 12 3.426 5.71
8 Fruit Area 200,000 0.00001900 12 1.52 12 2.28 3.8
9 Flower Area 400,000 0.00001425 12 2.28 12 3.42 5.7
10 Herbs Area 100,000 0.00001910 12 0.764 12 1.146 1.91
11 Cultural Center 60,000 0.00047667 12 11.44 18 17.16 28.6
12 Camping Site 200,000 0.00001900 12 1.52 12 2.28 3.8
13 Landscape 200,000 0.00002855 12 2.284 18 3.426 5.71
14 Road & Bridge 204,000 0.00004765 12 3.888 18 5.832 9.72
15 Electrical Tranmissing Station 3,000 0.00057000 12 0.684 12 1.026 1.71
16 Hi-tech Lab & Center 500 0.02858000 12 5.716 12 8.574 14.29

Total 44.55 66.83 111.38

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6. Financial Projections (cont.)

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6. Financial Projections (cont.)

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 Appendix
Project Site-visiting Images

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View from above of the Lake and the Rice Field
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View from inside the Cave 19
Thank You
Prepared by
Tram Phan
+84 982 727 996
tramphan@pbc.vn