Binh Dinh province has approved the Netherlands-based furniture firm vidaXL Group B.V's proposal to invest VND763 billion ($31.7 million) in a new factory.
Per a decision issued on Friday, the 21.3-hectare plant in Becamex Binh Dinh Industrial Park, Nhon Hoi Economic Zone, is set to enter official operation in December 2028 after construction starts in October 2023.
The annual output will include 108,000 cubic meters of fine wood billets, 12,000 tons of metal billets, 4,000 tons of mattress and foam, 10 million square meters of fabric, and 540,000 rattan style plastic products.
So far this year, Binh Dinh has attracted four foreign direct investment (FDI) projects with total registered capital of $37.1 million. The south-central province has licensed 89 FDI projects worth $1.18 billion to date, including two projects worth $52.1 million from Dutch businesses.
In March, Dutch firm vidaXL said it plans to invest $50 million to build a wood processing complex in the central province of Quang Tri. vidaXL CEO and co-founder Gerjan den Hartog said the 50-hectare facility, with an annual capacity of 400,000-500,000 tons of acacia wood, will employ 3,000-4,000 people. The firm aims to start construction in 2023 and complete it in 12 months if a suitable location is provided.
Welcoming the company's proposal, Quang Tri Vice Chairman Ha Sy Dong highlighted the province’s advantages, including the annual exploitation of one million cubic meters of wood from planted forests, an abundant workforce, and land banks.