Vietnam’s Nhon Tan Holdings and Japan’s Marubeni Lumber have called on the central province of Binh Dinh to support them in exporting wooden pellets to Japan.
At a recent meeting with Binh Dinh Chairman Pham Anh Tuan, executives of the two firms sought support related to procedures, customs clearance and establishment of plantations.
Marubeni Lumber will continue investing in Binh Dinh and will connect other fellow companies to invest in the central province, said Marubeni Lumber chairman Fumitaka Shimizu.
The Japanese firm's Binh Dinh factory was operating efficiently, serving the supporting industry and the manufacturing-processing sector, he added.
Binh Dinh-based Nhon Tan Holdings and Marubeni Lumber have signed an agreement for the annual purchase of 200,000 tons of pellets, said Nhon Tan chairman Le Hoai Ngoc, asking provincial authorities to support the cooperation.
Nhon Tan Holdings was investing in a VND659 billion ($27 million) pellet plant in the province, with an annual output of 300,000 tons, he said.
Binh Dinh Chairman Tuan said Binh Dinh was among the biggest hubs for wood processing and export in Vietnam with annual revenues of $1 billion, equivalent to 60% of the province’s total export revenue. "The province was home to 32 wooden pellet factories, including one foreign-invested plant, with a total output of 2.3 million tons."
The provincial leader recommended that the two firms invest in plantations so as to ensure diverse and sustainable inputs for long-term operations.
Binh Dinh's wood output reached 79,856 cubic meters in August and totalled 679,259 cubic meters in the first eight months of this year, up 1.8% and 2.2% year-on-year, respectively, according to provincial data. In January-August, the province planted 1,439.8 hectares of plantations, up 54.9% year-on-year.