The New Forests-managed tropical Asia forest fund has invested in Tavico Group, a timber processing infrastructure company in Vietnam.
The Tropical Asia Forest Fund 2 (TAFF2) fund has invested an unspecified sum in the supplier of solid wood lumber and logs.
Tavico, founded in 2005, currently has an annual production capacity of around 250,000 cubic metres, equivalent to supplying wood for 16,500 medium-sized houses.
The investment, which marks TAFF2’s first investment in timber processing infrastructure in Vietnam, will seek to establish a platform for an integrated timber processing and plantation business across Laos, Cambodia and Vietnam.
New Forests said Tavico plans to expand into more lucrative segments, such as finger-joint panels, flooring, furniture, glue laminated timber and FSC-certified wood pellets.
Geoffrey Seeto, senior managing director for emerging markets at New Forests, said: “We are excited to be announcing our first investment in Vietnam, partnering with Tavico, a company with significant scale and network for timber processing across the country. This collaboration reflects a shared vision for creating long-term value through innovation, sustainability, and positive impact on local communities.
“Vietnam remains a key player in the global wood industry, recording close to $4bn (€4.8bn) in wood product exports in the first quarter of 2025 with key exports including wooden furniture, pellets, woodchips, plywood and engineered wood products.”
Vo Quang Ha, CEO, Tavico Group said, “This partnership with New Forests marks an exciting new chapter in Tavico’s journey. With their support and global expertise in sustainable forestry, we’re well positioned to expand our impact, strengthen our value-added capabilities, and continue leading the way in responsible wood sourcing in Vietnam.
“Together, we aim to help elevate the entire Vietnamese wood industry by promoting higher sustainability standards, encouraging the use of certified wood, and supporting the development of a traceable, high-value supply chain that benefits both local communities and the environment.”
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