This initiative underscores the growing trend of foreign direct investment (FDI) in Vietnam’s burgeoning sustainable resource sector.

Tokyo Sangyo and Daichu Corporation, alongside their Vietnamese partner, Phu Tai Renewable Energy JSC, unveiled their proposal to lease 15,000 hectares of state-owned forest land during a meeting with Binh Dinh People's Committee on October 24.

Their objective is to cultivate large timber forests as a sustainable source for a biomass pellet production plant with an annual capacity of 160,000 tonnes.

Pham Anh Tuan, Chairman of Binh Dinh People's Committee noted, "The province currently manages over 75,000 hectares of forestry land dedicated primarily to production, fulfilling multiple roles including environmental protection and timber supply."

He added, "With an annual timber output of approximately one million tonnes that meets 81 per cent of the demands of local pellet manufacturing facilities, Binh Dinh is committed to fostering large-scale forestry development."

This initiative aligns with Binh Dinh's strategic goals to encourage large sustainable timber plantations. The provincial leaders expressed strong support for the Japanese investors' project and pledged to facilitate the FDI inflow into the region.

Initially, assistance will be provided to help the investors collaborate with local forestry companies and review suitable forest areas for the project.

The decision to invest in Binh Dinh is due in part to its ample resources and strategic location as a gateway connecting South Central Vietnam and the Central Highlands. This geostrategic advantage is poised to amplify the province's ability to attract investments in this sector.

Japanese investors have been notably active in Binh Dinh, spanning various sectors.

As of the second quarter of this year, the province has attracted 19 Japanese projects, totalling an investment of $94.2 million. This accounts for 22 per cent of the total FDI in the region.

Binh Dinh has set targets for 2023, aiming to attract 60 new projects from both domestic and international investors. Priority is given to medium- and small-scale investors, particularly those from Japan, South Korea, the US, Australia, New Zealand, and Europe, focusing on clean and advanced technology.

These investments are vital for the rapid development of Nhon Hoi Economic Zone, various industrial parks, and supporting infrastructure and services.

In 2022, the province secured an FDI project worth $4 million, and in the first half of 2023, another with a registered capital of just over $81,000.

Furthermore, in the first six months of the year, Binh Dinh welcomed 50 visits by international investors and organisations exploring the province's investment potential.