Over the past decade (2013–2022), Vietnamese pellet exports have expanded rapidly. Specifically, the export volume increased 28-fold and the export value also surged 34-fold. Accordingly, Vietnam has become the world’s second-largest producer and exporter of wood pellets, trailing only the United States.
In 2022, Vietnam exported 4.9 million metric tons of wood pellets, generating export revenue of USD 790 million. During the first five months of 2023, Vietnam’s wood pellet exports reached 1.57 million metric tons. Export earnings totaled approximately USD 256.5 million.
South Korea and Japan are Vietnam’s two largest export markets for Vietnamese pellet exports. In 2022, exports to these two countries accounted for 97% of Vietnam’s total wood pellet export volume and value across all international markets.
During the first half of 2023, Vietnam exported approximately 0.8 million metric tons of wood pellets to South Korea. By the end of 2023, exports to this market were likely to reach between 1 million and 1.5 million metric tons. Vietnam is South Korea’s leading supplier of wood pellets, meeting around 80% of the country’s total demand.
Vietnamese pellet exports
The first months of 2023 saw significant price volatility for Vietnamese pellet exports to South Korea. At the beginning of the year, export prices to both South Korea and Japan were around USD 140 per metric ton (FOB Vietnam). Prices then surged to USD 180–190 per metric ton. They later declined gradually.
By June 2023, export prices to South Korea had fallen to about USD 110 per metric ton. Meanwhile, shipments to Japan were sold at USD 145–165 per metric ton. This sharp decline forced some Vietnamese wood pellet producers to suspend production. These were particularly small companies with limited financial resources.
According to experts from Forest Trends, the Japanese market is considerably more stable than the South Korean market. Long-term purchase agreements typically last 10 to 15 years. They are currently priced at around USD 145–165 per metric ton (FOB Vietnam). In addition to these long-term contracts, some Japanese companies also sign short-term agreements with Vietnamese suppliers.
To date, Vietnam has exported approximately 1 million metric tons of wood pellets to Japan. All Vietnamese wood pellets exported to Japan should carry FSC certification. The raw materials used for these exports come from domestically grown plantation timber. They consist primarily of acacia wood.
Vietnamese source: https://baochinhphu.vn/gia-tri-xuat-khau-vien-nen-tang-34-lan-trong-10-nam-102230713121604519.htm
If you are interested in Vietnamese pellet exports, please contact us:
Company: Agrideco Vietnam Co., Ltd.
Address: No 02, Alley 325 Kim Nguu, Vinh Tuy Ward, Hanoi, Vietnam
Tel/Kakao Talk/Whatsapp: +84 989 649 804
Website: https://agridecovietnam.com
Email: agridecovietnam@gmail.com