A notable signal for the global flow of green capital has just turned toward Vietnam: New Forests, an international investment manager specializing in forestry, has made its first strategic investment in the country through the Tropical Asia Forest Fund 2 (TAFF2). The chosen partner is TAVICO Group, one of Vietnam’s leading names in wood processing.
This deal not only marks New Forests’ pioneering entry into Vietnam—where it brings the expertise of managing US $8 billion in assets across 4.2 million hectares of forest worldwide—but also underscores growing international investor interest in the nation’s strong green-growth potential. From humble beginnings, TAVICO has risen to a production scale of about 250,000 m³ of timber per year and is actively moving toward higher-value, sustainable products.
The timing of this investment is especially significant. Vietnam is recognized as a “wood industry powerhouse” on the global map and is now at a pivotal stage of building an ambitious yet nascent carbon market to realize its commitment to net-zero emissions by 2050. Notably, New Forests’ capital arrives as Vietnam advances its legal framework for the carbon market—illustrated by Decree 06/2022/ND-CP—while the wood sector faces increasingly stringent sustainability requirements from major export markets such as the European Union with its EU Deforestation Regulation (EUDR).
New Forests is investing not only in the traditional wood sector but also in the dual potential of sustainable timber and future carbon-credit opportunities. This represents a forward-looking move in line with global trends and regulations, signaling the likelihood of attracting more high-quality “green” capital to Vietnam—particularly investments seeking both sustainable production and climate-finance returns.
New Forests’ Strategic Move: Investing in Vietnam’s Wood Value Chain
Choosing TAVICO was no accident. The company has demonstrated outstanding production capability—growing from a timber trader and sawmill with an initial output of 12,000 m³/year into a group capable of 250,000 m³/year, enough wood for more than 16,000 mid-sized homes. Second, TAVICO continuously diversifies its products and moves up the value chain, expanding into areas such as wholesale furniture showrooms and warehousing services.
Geoffrey Seeto, Managing Director, Emerging Markets at New Forests, noted: “This partnership reflects a shared vision of creating long-term value through innovation, sustainability, and community impact. Vietnam is a global wood powerhouse, exporting nearly US $4 billion in wood products in just the first quarter of 2025.” On TAVICO’s side, Vo Quang Ha, CEO, affirmed that the investment will allow the company “to expand value-adding capacity and strengthen our leadership in sustainable supply.”
New Forests’ vision extends beyond TAVICO. The goal is to make Vietnam a hub for integrated plantation and wood-processing operations, with the potential to expand into neighboring markets such as Laos and Cambodia. This aligns with TAFF2’s overarching strategy of building a diversified portfolio of sustainable forestry assets across Southeast Asia—including Malaysia, Indonesia, Vietnam, Thailand, Laos, and Cambodia—serving end-markets for timber, rubber, and especially carbon. Notably, TAFF2 is structured as blended finance, allowing the integration of investments that deliver clear positive impacts focused on climate action, community engagement, livelihood improvement, and biodiversity conservation.
New Forests’ emphasis on TAVICO producing FSC-certified wood pellets and expanding FSC community forestry programs is more than adding value to timber; it is a strategic preparation to lay a solid foundation for future carbon-credit generation. Plantation and sustainable-forest-management projects with international certification such as FSC hold a significant advantage in meeting stringent requirements of global voluntary carbon markets—for example, Verra or Gold Standard. With experience in Afforestation, Reforestation, and Revegetation (ARR) carbon projects under Verra in Laos—and a target of generating about 10 million tonnes of carbon from TAFF2 projects—New Forests clearly sees TAVICO as a potential partner to realize its carbon strategy in Vietnam.
Moreover, TAFF2’s blended-finance model is a crucial differentiator. By mobilizing capital from both commercial and impact investors, the fund can allocate substantial resources to activities with social and environmental benefits. This means projects such as the collaboration with TAVICO—especially community-forestry initiatives—have the support needed to scale and replicate positive impact far beyond what TAVICO could achieve alone. The message is clear: Vietnamese businesses with strong ESG initiatives and the potential to generate carbon credits will become increasingly attractive to international funds with long-term vision and sustainable-development commitments.
Thị trường Carbon
