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Belgium-backed $1mn warehouse left unused in Vietnam’s Mekong Delta

Belgium-backed $1mn warehouse left unused in Vietnam’s Mekong Delta

Wednesday, August 02, 2023, 18:03 GMT+7
Belgium-backed $1mn warehouse left unused in Vietnam’s Mekong Delta
A cold warehouse valued at over US$1 million, sponsored by Belgium, sits inoperative in Cang Long District, Tra Vinh Province, Vietnam. Photo: Tong Khoa / Tuoi Tre

A cold warehouse valued at over US$1 million, sponsored by Belgium, and inaugurated last year has lain idle in Vietnam's Mekong Delta region due to legal issues.

Located in Cang Long District, Tra Vinh Province, the smart cold storage facility is the first of its kind in the Mekong Delta, spanning an area of over 1,000 square meters and having the capacity to hold 60 metric tons of agricultural products.

Its sponsor and developer aimed to establish a comprehensive smart cold storage chain that facilitates the seamless transportation of agricultural products from Mekong Delta provinces and cities to the Cai Mep-Thi Vai Terminal, located in southern Ba Ria-Vung Tau Province. 

From there, the goods will be shipped to European ports, including Antwerp in Belgium and Rotterdam in the Netherlands.

The project is expected to significantly enhance farmers’ capability in preserving fresh fruits through the application of technology, gradually bridging the gap between the Mekong Delta agricultural products and the European market.

However, after over a year since its inauguration on March 17, 2022, the cold storage facility remains shuttered and abandoned in the middle of a vast field alongside National Highway 53.

According to Le Van Dong, deputy director of the Department of Agriculture and Rural Development of Tra Vinh Province, the warehouse is an asset financed by a foreign entity, and as per Vietnamese law, it must be placed under public management before utilization.

However, during the funding process, the government of Belgium failed to provide adequate invoices and documentation, so the province has been unable to incorporate it into public property.

Upon being interviewed by Tuoi Tre (Youth) newspaper on Wednesday, Dong said that his department is striving to complete the required procedures to put the warehouse into use by the end of this year.

Updates: August 3, 2023, 8:00 pm

We received an email from the Embassy of Belgium in Vietnam, saying that they "have reached out to a representative from ICE-LOFT, the Belgian company in charge of this project.

"They (ICE-LOFT) have informed us that they have finished all the necessary steps. They have already done the signing of the handover of all assets, practical and other technical documents in accordance with the project framework. It is the responsibilities of the Vietnamese side to take care of the project."

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Bao Anh - Chi Hanh - Tong Khoa / Tuoi Tre News

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