Vina Eco Board Co., Ltd. (IFC-28969)

Countries
  • Vietnam
Geographic location where the impacts of the investment may be experienced.
Specific Location
Phu An Thanh Industrial Park, Long An Province
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 6, 2011
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
VINA ECO BOARD COMPANY LIMITED
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 9.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 93.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Nov 29, 2019

Disclosed by Bank May 6, 2011

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

Vina Eco Board (“VECO” or “the Company”) will operate a wood processing and furniture business in Long An province, Vietnam. The Company also aims to connect with local farmers as wood raw materials suppliers and then provides advice and seedlings to them.

For the wood waste, the Company will build a 11 MW bio-mass power plant to recycle the waste. In a long term, the Company is also planning to support the development of local wood processing industry by establishing the first particleboard facility in Vietnam.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Founded in 1691 in Japan, Sumitomo Forestry Co, Ltd. ("SFC" or the "Sponsor") is one of the most experienced companies in sustainable forest and plantation management, wood products and wood-based housing sectors. SFC is planning to invest in a USD 93 million project to establish a greenfield particleboard plant with an annual capacity of 250,000 m3 near Ho Chi Minh City, Vietnam (the "Project").

The new particleboard plant will be owned and operated by Vina Eco Board Co., Ltd. ("VECO" or the "Company"). VECO was established in May 2010 by SFC and Sumitomo Forestry (Singapore) Ltd., SFC's wholly owned subsidiary in Singapore.Incorporated in 1947, SFC is a publicly listed company on the first section of Tokyo Stock Exchange and Osaka Securities Exchange. SFC's shares are widely held by institutional investors, financial institutions as well as individual investors.

The total project cost is estimated to be approximately USD93 million, and SFC plans to finance the Project with 50% in long term debt and 50% in equity. The proposed IFC investment is an equity investment of up to USD 9 million for up to 20% of VECO's share capital.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

1/ Project Contact
General Project Inquiries Sumitomo Forestry Co., Ltd.
Keidanren Kaikan, 3-2, Otemachi 1-chome, Chiyoda-ku,
Tokyo 100-8270, Japan
Telephone: +81-3-3214-2220

2/IFC Contact
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384E
Mail: Webmaster

3/Local Access for Project Documentation
Vina Eco Board Co., Ltd.
D2-D7, Phu An Thanh Industrial Park
An Thanh Commune, Ben Luc District
Long An Province, Vietnam

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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