The two plants are built under a project invested by An Viet Phat Energy Company – a subsidiary of An Viet Phat Group.

They include a factory specialising in wood cutting and drying and plywood making, which has an annual capacity of 56,000 tonnes of sawn timber and nearly 190,000 tonnes of plywood. The other plant is designed to produce wood pellets for export with a capacity of 150,000 tonnes per year.

The factories, spanning 16 ha, are built at a cost of nearly 800 billion VND (about 34.6 million USD). They are expected to be put into operation in 2021.

The project is in line with the province’s socio-economic development orientations and among priority fields of investment for the 2020-2025 period and the following years.

The An Viet Phat Group decided to build the plants in Minh Quan, Tran Yen district, because of its favourable location which is close to intersection IC12 of Noi Bai-Lao Cai Expressway.

Tran Yen is also among leading localities of Yen Bai in terms of agro-forestry economic development, home to large areas of productive forests of about 188,000ha, and has zoned off areas for timber materials in line with the processing industry and consumption. They are decisive factors for the success of wood processing projects.

Chairman of the provincial People’s Committee Do Duc Duy spoke highly of the investor’s right choice to invest in Yen Bai – the gateway to the north western region and centre of the northern midland and mountainous region. The province’s forestry land area is over 530,000ha and its forest coverage reached 63 percent, ranking fourth in the country.

Yen Bai boasts suitable climate and soil for timber trees and softwood trees for paper making. The province’s total timber output hits around 480,000 cu.m. per year while the forestry industry’s value in 2020 is estimated to near 2 trillion VND, accounting for about 30 percent of the whole agricultural sector.