Deal #544

Land area

Size under contract (leased or purchased area)

[2010-01-01, current] 63000 ha

Comment on land area

This is just one of 6 investment projects of the company in Vietnam. Altogether the concessions of the company in all of Vietnam amount to 349,000 ha.

Intention of investment

[2010-01-01, current] Timber plantation for wood and fiber (36000 ha)

Comment on intention of investment

*To plant forests and help protect the environment while also providing more jobs to farmers; To increase the incomes of the poor living in mountainous regions, particularly ethnic minorities.

Nature of the deal

Lease

Comment on nature of the deal

*Investors from Hong Kong are protected by investment agreements with the Vietnamese Government, which the company would not enjoy if they had registered their company in Taiwan. By December 2010, InnovGreen received the land use right certificates for 8,672 hectares of forest land and have planted 4,522 hectares of forest.

Negotiation status

[2008-01-01, current] Concluded (Contract signed)

Comment on negotiation status

February 2008

Implementation status

[2014-01-01, current] In operation (production)

Comment on implementation status

Only some parts of the project has been temporarily abandoned/halted, since parts of the concession are located in areas that are “sensitive to the national security and defense” (http://www.vir.com.vn/forest-projects-facing-the-axe.html). However, the company is still alllowed to continue its project in the remaining area.

Purchase price

Comment on purchase price

*In the five projects in Lang Son, Quang Ninh, Thanh Hoa, Nghe An and Kon Tum, company invested US$255 million in planting 319,000ha of forest.