New Forests enters Vietnamese timber industry

New Forests made its first investment in Vietnam, backing one of the country's top suppliers of lumber and logs.

Via the Tropical Asia Forest Fund 2 (TAFF2), New Forests has invested in Tavico Group.

It is the fourth investment made by the fund, which also recently acquired a stake in Laos-based timber plantation company Burapha Agro-Forestry.

Tavico was founded in 2005 as a log trader and sawn timber mill. Today it also has a distribution centre and operations across wholesale home furniture, warehousing, and modular wooden home construction operations.

The investment will seek to establish a platform for an integrated timber processing and plantation business across Laos, Cambodia, and Vietnam, New Forests said. Tavico is looking to expand into finger-joint panels, flooring, furniture, glue laminated timber, and FSC-certified wood pellets.

To do this, Tavico has partnered with several local small holder farmers to create a 3200-hectare FSC-certified community forestry program. The investment from New Forests will help expand the program across Vietnam.

"We are excited to be announcing our first investment in Vietnam, partnering with Tavico, a company with significant scale and network for timber processing across the country. This collaboration reflects a shared vision for creating long-term value through innovation, sustainability, and positive impact on local communities," New Forests senior managing director, emerging markets Geoffrey Seeto said.

"Vietnam remains a key player in the global wood industry, recording close to US$4 billion in wood product exports in the first quarter of 2025 with key exports including wooden furniture, pellets, woodchips, plywood, and engineered wood products."

Also commenting, Tavico chief executive Vo Quang Ha said it makes an exciting new chapter for the company.

"With [New Forests'] support and global expertise in sustainable forestry, we're well-positioned to expand our impact, strengthen our value-added capabilities, and continue leading the way in responsible wood sourcing in Vietnam," he said.

"Together, we aim to help elevate the entire Vietnamese wood industry by promoting higher sustainability standards, encouraging the use of certified wood, and supporting the development of a traceable, high-value supply chain that benefits both local communities and the environment."