A US$9.8m chipboard mill has started operations in northern Vietnam with the capacity to produce 16,500m3 each year.

The Thai Nguyen mill, which will produce chipboard for interior decor and furniture, was set up with funding by China and is being overseen by Vietnam’s ministry of agriculture and rural development. The funding also paid for planting of 6,000ha of acacia and eucalyptus forests, about half of which have already been planted.

The mill and another plant in Gia Lai are designed to encourage tree farming and limit the logging of natural forests.