Sydney-based New Forests, an investment manager specializing in nature-based real assets, has made its first investment in Vietnam through its Tropical Asia Forest Fund 2 ( TAFF2 ), taking a strategic stake in Tavico Group, one of the country’s leading timber processors.
This latest move marks TAFF2’s fourth acquisition and a notable step in the fund’s regional expansion strategy. The investment positions Vietnam as a focal point for an integrated timber processing and plantation business that will span Laos, Cambodia and Vietnam.
Tavico, founded in 2005, began as a modest log trader and sawmill with an annual output of 12,000 cubic metres ( m³ ). Today, the company operates at a scale of approximately 250,000m³ annually, enough to supply timber for over 16,000 medium-sized homes.
Tavico has diversified into furniture wholesaling, warehousing and modular home construction, and it now aims to move further up the value chain into finger-jointed panels, engineered flooring, furniture and Forest Stewardship Council ( FSC )-certified wood pellets.
Tavico also runs a 3,200-hectare FSC-certified community forestry initiative involving smallholder farmers. With New Forests’ backing, this programme is expected to expand, creating broader employment and revenue-sharing opportunities while strengthening certified wood supply chains.
“This partnership reflects a shared vision for long-term value creation through innovation, sustainability and local community impact,” says Geoffrey Seeto, New Forest’s senior managing director of emerging markets. “Vietnam is a powerhouse in the global wood industry, exporting nearly US$4 billion in products in Q1 2025 alone.”
Vo Quang Ha, CEO of Tavico Group, adds the investment will help expand the company’s value-added capabilities and reinforce its leadership in sustainable sourcing.
The deal was supported by the Restoration Seed Capital Facility, which provided due diligence funding aimed at ensuring high environmental and social standards.
New Forests currently manages US$8 billion in assets globally across 4.2 million hectares, with TAFF2 accelerating deployment across Southeast Asia.