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420 FDI projects in forest / reforestation and wood processing

   10/5/2006

Hanoi: Vietnam’s forest planting and wood processing sub-sector is attracting foreign investors’ concern, thanks to the potentials and advantages of domestic market, exporting markets, skilled, plentiful and cheap labour force. According to the report of Forestry Department – MARD, the forest reforestation and wood processing sub-sector has attracted 420 FDI projects with total registered capital of USD1.3 billion, mostly in South East and North Central provinces. At present, there are 210 on-going projects with total registered capital of USD1.05 billions and implemented capital of USD 330 million. According to the statistical data, investors from Asia such as Taiwan, Japan, Korea and Singapore account for 90% of the total foreign investment in wood processing and forest planting. Due to the prohibition of forest harvesting/exploitation but permission of wood importing by local authorities, most of FDI projects have been focused on wood processing from imported materials not on material forest planting. Many enterprises mobilized capital to invest in increasing area of production forest with short-time harvesting cycle (from 6-7 years) to produce chopped timber.

VNA 18/09/2006 -- 4:47 PM
10/5/2006

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