Bac Ninh: Earning 40 billion VND per year by producing Vietnamese exported charcoal

While many Vietnamese timber processing enterprises still focus on peeled timber, sawn wood, or handicraft products, some processing facilities in Bac Ninh Province have taken a different approach. They have shifted toward higher-value processing and product diversification as Vietnamese exported charcoal. This helps increase the value of raw materials while creating additional jobs for local workers.

Previously, after each harvest of plantation forests or long-term fruit trees, the main timber was raw material for processing industries. The wood received little or no value-added processing before marketing. However, branches and small wood were useless, using as household firewood.

Meanwhile, demand for smokeless charcoal in countries such as Japan and South Korea is increasing. It mainly serves restaurants, barbecue parties, and light industrial uses.

Vietnamese exported charcoal

Recognizing this opportunity, several enterprises in Bac Ninh have invested in anaerobic kiln systems to produce Vietnamese exported charcoal. It must burn evenly, have high calorific value, low ash content, be odorless, smokeless, and contain no chemicals in the treatment process.

One of the pioneering companies is HATA Bac Giang Vietnam Co., Ltd. (Luc Nam commune), founded by Mr. Nguyen Van Hieu (born in 1977).

After working in South Korea, Mr. Hieu has learned smokeless charcoal production technology. This is a relatively new industry in Vietnam, and he later began exporting his Vietnamese exported charcoal to the Korean market.

The main raw materials are forestry by-products and long-term fruit tree wood such as longan, lychee, jackfruit, pomelo, and eucalyptus. The production process includes raw material selection, pyrolysis under oxygen-limited conditions, natural cooling, sorting, and packaging.

Unlike traditional charcoal, Vietnamese export-grade charcoal must meet strict requirements. It must have stable burning performance, low ash content, no impurities, no smoke, and no chemical preservatives. Finished products are packed in standardized sizes and shipped by sea.

Thanks to this tightly controlled process, the company’s charcoal has been highly popular in foreign markets. On average, the enterprise exports 110–130 tons per month, generating around 40 billion VND in annual revenue.

Vietnamese exported charcoal factory

The production of export charcoal not only increases the value of plantation forest materials but also creates additional jobs for rural workers. At Van An Production and Trading Co., Ltd. (Luc Son commune), many local workers works in raw material procurement, preliminary processing, kiln operation, sorting, and packaging. They earn incomes of 7–8 million VND per month.

According to data from the Forestry Department, Bac Ninh Province currently has 727 wood-processing establishments. This includes 37 units directly exporting wood products and only 4 enterprises exporting charcoal. Processing activities contribute to raising the province’s total forestry export turnover to about 115 million USD in 2025.

Although the scale of the charcoal export industry in Bac Ninh remains relatively small compared to sawn timber or handicrafts, it has opened a new direction. The utilization of forestry by-products for charcoal production has created additional value from previously underused materials. It helps increase raw material value, develop a circular economy, and create additional income for local people.