DANANG – The Binh Dinh government has licensed a wood production and processing plant project with total investment of over VND4.37 trillion, making it the largest wood processing project in the province so far.
The wood processing factory will be developed in Hoai Nhon Town in the central coastal province by Kim Thanh Lap Forestry JSC.
Set to cover an area of 45 hectares, the project will get off the ground in the first quarter of 2022. As planned, the first phase of the plant will produce 180,000 cubic meters of OKAL particle board and over 425,000 cubic meters of medium and high density fiberboard each year, starting from the fourth quarter of 2023.
Nguyen Bay, director of the Binh Dinh Investment Promotion Center, said that the second phase of the project will receive the same investment in terms of capital, capacity and area.
As such, once in place, the entire factory, including the two phases, will cost over VND8 trillion and produce over 1.2 million cubic meters of particle and fiber board each year.
In 2020, Binh Dinh Province exported US$540 million worth of wood and woodwork, rising by 14% in value against 2019 and accounting for 51% of the province’s total export revenue.
Between January and September, wood and woodwork export in the province amounted to US$508.6 million, up 30.7% year-on-year.
Le Minh Thien, chairman of the Forest Products Association of Binh Dinh, said that if the Covid pandemic was brought under control, the production capacity of wood producers would soon stabilize for the rest of the year, helping fulfill previously signed export orders.