Under the plan, 2.098 hectares of planted production forest in plot 6, sub-zone 55, Nam Duong commune, will be converted to another land-use purpose for the project.

Representatives of Smart Wood BG JSC and Bac Ninh forest rangers inspect the raw material area in Deo Gia commune.

The plant is expected to have an annual production capacity of about 60,000 to 100,000 tonnes of wood pellets.

Smart Wood BG, based in Chu ward, was established in 2024 and specialises in processing and manufacturing wood products, including wood pellets.

To meet raw-material traceability requirements and export standards, the company is working with forest growers in several communes in the former Luc Ngan district to develop production forests under sustainable management practices.

Its linked forest area currently covers about 8,400 hectares and is expected to expand further.

The development of a stable and concentrated raw-material area will provide a basis for building an integrated supply chain from forest planting and harvesting to processing and product distribution.

The company said it also operates a wood pellet plant at Dong Xoai 1 Industrial Park in Dong Nai city, with an annual capacity of about 120,000 tonnes. Its products are exported to Japan and European markets.

The Nam Duong project is expected to increase local wood-processing capacity, expand markets and raise the value of planted-forest timber, while supporting the development of a sustainable supply chain spanning forest planting, harvesting, processing and exports.

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