New Forests has announced its first investment in Vietnam via its Tropical Asia Forest Fund 2 (TAFF2), acquiring a stake in Tavico Group, one of the country’s largest suppliers of solid wood lumber and logs. The move marks TAFF2’s fourth acquisition and its first in timber processing infrastructure in Vietnam, New Forests has said in a statement.
Key details:
- Production scale: Tavico has grown from a 12,000m³ to a 250,000m³ annual capacity, supplying enough wood for 16,500 medium-sized houses.
- Operations expansion: Activities now include a distribution centre, wholesale furniture market, warehousing, and modular wooden home construction.
- Strategic ambition: TAFF2 aims to build a cross-border timber processing and plantation platform focused on Vietnam, Laos, and Cambodia
- Sustainability model: Tavico runs a 3,200-hectare FSC-certified community forestry program with smallholder farmers, which TAFF2 plans to expand.
- Sector significance: Vietnam exported nearly US$4 billion in wood products in Q1 2025, including furniture, pellets, and engineered wood
This investment deepens Vietnam’s role in sustainable forestry and timber processing.
It also signals rising foreign investor confidence in Vietnam’s certified wood value chain and smallholder engagement model.
See also: Vietnam’s Wood Manufacturing Industry 2025: Exports, Key Players, & Sustainability