The Vietnam Development Bank (VDB) and the Thai Nguyen and SAHABAK JSC have signed a credit agreement to finance construction of medium density fiberboard (MDF) factory construction project located in the northern part of Bac Kan Province. The Vietnam Development Bank (VDB) will extend a loan of VND680 billion for a tenor of 12 years with State preferential interest rate. SAHABAK JSC, the borrower, uses loan proceeds to finance the project to manufacture MDF plywood with a capacity of 108.000 m3/year. Having total investment of VND 1,076 billion, the SAHABAK JSC’s project is the country’s largest plant of this kind. The project will use 160 engineers and high qualified workers, ensuring a stable consumption of 300.000 m3 wood material/year supplied from local market. This MDF factory is the second phase of SAHABAK JSC’s investment program. The first phase aimed to build the balk and plywood bar factory has completed and been into operation since 2010 with designed capacity of 3.000 m3 product/year, creating jobs and stable income for 400 workers, of which 90% are local people.