The People’s Committee of the central Binh Dinh Province licensed an investment certificate to Japan-based Marubeni Lumber Co Ltd to invest in a project worth US$5 million during a ceremony held on February 13.

The project, located in the province’s Nhon Hoi Economic Zone (EZ), is the first foreign direct investment (FDI) project that has been implemented in the zone since its establishment in 2005.

A representative of Marubeni Lumber Co Ltd said the project, covering an area of 10ha in Park A in Nhon Hoi EZ with an operation period of 50 years, would be implemented in the second quarter of this year and completed in the second quarter of 2018.

Once completed, the project will provide wood and wood products for export, such as industrial wooden goods and wooden furniture. The investor will also lease land for factory construction.

The project is expected to help increase export volume for Binh Dinh Province, contributing to the growth of the province’s wood processing industry, creating jobs for more than 200 labourers and stabilising the province’s social welfare.

Marubeni Lumber Co Ltd plans to raise the project’s investment capital to $20 million in phase two. The company hopes to attract more investors, especially Japanese firms, to the project.

Also at the ceremony, Saigon-Nhonhoi Industrial Park Corporation signed a contract with Marubeni Lumber Co Ltd to lease land-use rights of Park A in Nhon Hoi EZ to the Japanese company.

In February alone, Binh Dinh has, so far, granted investment certificates for two FDI projects.

The previous project is a garment factory funded by a Canadian investor in An Nhon Town. — VNS