New Forests has made its first strategic investment into the rapidly growing Vietnamese timber processing industry, with its Tropical Asia Forest Fund 2 (TAFF2) investing in the Tavico Group, one of the country’s leading suppliers of lumber and logs. Wood Central understands that Tavico, founded in 2005 as a small-scale log trader and sawn timber mill, has expanded into furniture, warehousing and modular construction with a production capacity of 250,000 cubic metres of lumber every year —enough to build 16,500 mid-sized houses.
Under the terms of the deal, TAFF2 will help Tavico establish a regional platform for an integrated timber processing and plantation business, eventually taking in Laos, Cambodia, and Vietnam (the hub’s focal point). In addition, it will help the company expand into higher-value products, including finger-joint panels, flooring, glulam, and FSC-certified wood pallets: “We are excited to announce our first investment in Vietnam, partnering with Tavico, a company with significant scale and network for timber processing across the country,” according to Geoffrey Seeto, New Forests Senior Managing Director for Emerging Markets.
“Vietnam remains a key player in the global wood industry, recording close to USD 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.”
Geoffrey Seeto, New Forests Senior Managing Director for Emerging Markets.
Vo Quang Ha, CEO of the Tavico Group, said the partnership will see Tavico tap into New Forests’ global experience in sustainable forestry: “We’re well positioned to expand our impact, strengthen our value-added capabilities and continue leading the way in responsible sourcing in Vietnam. 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 local communities and the environment.”
In addition to processing, Wood Central understands that TAFF2 will also help Tavico expand on its established 3,200-hectare FSC-certified community forestry program, which provides smallholder farmers with access to employment opportunities and revenue sharing. “The investment from TAFF2 will expand this program for smallholder farmers in Vietnam,” New Forests said in a statement. “Tavico’s ambitions for supporting and growing the availability and supply of high-quality, certified wood from community-based farms at scale align with New Forests’ and TAFF2’s vision to deliver sustainable, long-term livelihood impact through scaled, commercial activities.”
