ForestFinance Service Center
Eifelstr. 14+20D-53119 Bonn
Vietnam is a coastal state in Southeast Asia that shares a border with China, Laos and Cambodia. Our GreenAcacia forest areas are located in the northern part of the country in the Ba Ché district (130 kilometres from the capital, Hanoi) and the Quang Tri province in Central Vietnam. On both sites we have found excellent soil and climate conditions in addition to well-managed Acacia mangium forests.
The European Union is one of the most important trading partners of Vietnam. In 2012, Vietnam and the EU signed a partnership and cooperation agreement, a free trade agreement is being negotiated. Moreover, Vietnam has been a member of the World Trade Organization since 2007. With the WTO accession, a country commits itself to liberalised world trade and is considered to be a reliable economic partner. Also, it attracts more foreign investments, in this case especially from the ASEAN region as well as Taiwan and South Korea.
The Ben Hai river region, where the acacia forests are situated, was heavily destroyed during the Vietnam War and is therefore in need of further development. In the 1960s, the tropical forests were destroyed through the slash-and-burn method as well as deforestation. Afforestation and sustainable forestry is supported by the regional authorities, but also by the highly committed and well-trained local population.
The project “GreenAcacia” does not only focus on ecological aspects by transforming monoculture plantations into mixed forest, but also on the important social progress in a rural region of a rapidly developing country. Here, ForestFinance provides secure permanent jobs with long-term prospects through professional training and further education.
The Vietnamese economy is booming. It took some years for the country to restore itself after the War that was waged until the 1970s. By 1986 the major economic and political change (the so called “Doi Moi” policy) has made Vietnam an economic miracle. In the early 2000s, Vietnam had the fastest growing economy in Asia, apart from China, and reduced the proportion of poor people in its population from over 50 (1996) to below 20 per cent (2000).
After these significant reforms in 1986 and the economic upswing, growth rates were at seven to eight per cent. According to the Federal Foreign Office (as of November 2016), economic growth was at six per cent during the first three quarters in 2016. Beyond the direct environment, there are enormous sales markets for wood of any kind in China, Japan, Australia and Taiwan. Germany and Vietnam have a longstanding and friendly, stable relationship at many levels, for example international development and economic cooperation. Since autumn 1996, a double taxation agreement between Germany and Vietnam is in place.