Deal #5201

Land area

Intended size

40 000 ha

Size under contract (leased or purchased area)

[2011, current] 16726 ha

Size in operation (production)

[2011, current] 2241 ha

Comment on land area

The area of 16,726 ha in 33 communes of 8 districts, town of Phu Yen, among which, till the year 2011, totally 2,241 ha of forests has been planted. The initial goal of the joint venture is to develop nearly 18,000 ha of forest in Phu Yen, but they also have plans to expand the plantation to 40,000 hectares in the province. (Source: https://thesaigontimes.vn/lien-doanh-voi-nhat-trong-rung-kinh-te-o-phu-yen/

Intention of investment

[current] Timber plantation for wood and fiber (17890 ha)

Comment on intention of investment

Truong Thanh Oji Afforestation Co. Ltd. (TTO) has a total investment capital of almost $24 million (equivalent to 455 billion dongs). (source: https://thesaigontimes.vn/lien-doanh-voi-nhat-trong-rung-kinh-te-o-phu-yen/)

Nature of the deal

Lease

Comment on nature of the deal

The project enjoys some privileges in land lease rate, import-export tax. Nevertheless, the joint venture is not allowed to directly rent investment land but through Truong Thanh group. See: http://ipcphuyen.gov.vn/tin-tuc-va-su-kien/tin-khac/576-Trong-rung-nam-2020-o-Phu-Yen:-Tap-trung-dau-tu-de-mang-lai-hieu-qua-cao.html

Negotiation status

[2011, current] Concluded (Contract signed)

Comment on negotiation status

Vietnam’s Truong Thanh Furniture Corporation holds 51% stake, while the Japanese-owned Oji Paper Co. Ltd. holds 49%. (source: https://vneconomy.vn/ttf-lap-lien-doanh-trong-rung-voi-nhat-ban.htm)

Implementation status

[2015, current] In operation (production)

Contract farming

No