Korean firms eye fruit juice, biofuel plants in southern Vietnam city Can Tho

Two major enterprises from South Korea - Lotte Chilsung Beverage and SEP Cooperative - are planning to survey and invest in two large-scale projects in the Mekong Delta city of Can Tho.

They include a tropical fruit juice processing plant and a biofuel extraction plant using rice straw and other agricultural by-products, heard a working session on Sunday between a Korean business delegation and the Can Tho Department of Industry and Trade.

Lotte Group's unit Lotte Chilsung Beverage, in partnership with the Vietnam-Asia Net Zero Alliance (VANZA), outlined plans for a juice factory targeting export markets such as South Korea, the EU, the U.S. and Japan.

With a capacity of 300,000-500,000 liters per day, the plant will require 600-1,200 tons of fruit daily, including pineapple, mango, passion fruit, pomelo, banana and dragon fruit. It will also produce Korean rice-based beverages.

The project requires 50-70 hectares for production, logistics, R&D, and by-product treatment, with pulp to be reused for bio-oil, fertilizer, and biomass power.

Investment is estimated at $120-180 million in the first phase, rising to $150-220 million at full scale.

The facility could create up to 900 direct jobs and 2,500 indirect jobs, while contracting farmers and cooperatives certified to GlobalGAP, HACCP and ISO 22000 standards.

At the meeting, SEP Cooperative presented plans for a bio-diesel plant converting rice straw and other residues into renewable energy, following its successful Malaysian model using palm waste.

A feasibility study is underway with South Korea's energy authority. The 30-hectare project aims to turn surplus straw – often burnt in fields – into fuel, alongside fruit peels, sugarcane bagasse, and maize stalks.

Deputy director of the Can Tho Department of Industry and Trade Le Thanh Thanh welcomed the proposals, saying they fit the city’s strategy for sustainable industry.

With 510,000 hectares of rice land and some two tons of straw per hectare, most of which remains unused, Can Tho can supply abundant raw materials.

Industrial park officials offered sites such as Vinh Thanh, Song Hau 2 and Tran De, with the latter spanning100 hectares ready for lease at $85 per sqm for 44 years. Song Hau Industrial Park also provides river transport advantages for fruit and straw.

The city Department of Agriculture and Environment confirmed that after feed and mushroom farming needs are met, 80% of straw is still available, stressing the environmental and income benefits of converting it into biofuel.

The Korean companies will conduct site surveys in October before finalizing decisions.

Can Tho authorities pledged favorable conditions and legal support to accelerate implementation, aiming to boost the city’s economy and add value to Mekong Delta agriculture.