The property developer Vingroup JSC (Vingroup) and Truong Thanh Furniture Corporation (TTF) on Friday signed a principle agreement worth VND16 trillion (US$ 705 million) to designate strategic supplier.

Under the agreement, Vingroup will order TTF to produce wood products with a total value of VND16 trillion within five years from the date of signing.

The products provided by TTF include exterior and interior furniture, wood flooring and other wood products, in order to equip Vingroup’s residential real estate projects across the country.

Being one of the leading real estate corporations in Viet Nam, Vingroup is investing in the construction of a large number of property projects, resorts and many functional projects in the country.

In the upcoming time, Vingroup will continue to expand its presence to nearly 30 provinces with many new projects. The rapid growth in scale of development as well as the speed of projects implementation has made Vingroup become one of the largest building materials consumers in the market.

TTF is one of the most experienced manufacturers of wood processing in Viet Nam with a system of eight factories, most of which are equipped with European processing technologies.

In addition, TTF also has three forestation companies in Dac Nong, Dac Lak and Phu Yen provinces, implementing the 100,000 planted forest project in Viet Nam.

The company’s products are currently distributed to the Vietnamese market and 30 countries in the world, meeting the quality standards of Vingroup.

This agreement, the largest furniture supply contract in Viet Nam, is expected to help both sides to optimise their production efficiency and open the bilateral development orientation in the future. — VNS