VRG Dongwha MDF, a wood joint venture between South Korea's Dongwha International and state-run Vietnam Rubber Group, plans to invest VND3,000 billion ($125.6 million) in expanding its third production line in the southern province of Binh Phuoc.
The output expansion, from 600,000 cubic meters of products to 1.3 million, is set for completion in April 2024, company chaiman Tran Cong Kha told National Assembly Chairman Vuong Dinh Hue in a meeting late last week.
MDF VRG Dongwha was established in 2008 and its factory in Minh Hung III Industrial Park became operational in 2012. After 10 years, the company earned an accumulated post-tax profit of VND5,500 billion ($230.3 million) on a revenue of VND28,500 billion ($1.19 billion), and contributed VND2,200 billion ($92.11 million) to the state budget.
Dongwha International is a world-leading South Korean company in the wood panel industry and Vietnam Rubber Group plays a leading role in Vietnam's rubber plantation and processing industry.
VRG Dongwha MDF has invested $160 million in fiberboard projects since July 2010. It is the largest and most modern MDF/HDF plant in Asia.
Vietnam earned $11.07 billion from exporting wood and wooden products in the first eight months of this year, up 6.2% year-on-year, according to customs data. The August figure was $1.35 billion, up 65% year-on-year.