Vietnam earned USD 2.9 billion last year from selling wood chips and pellets to China, Japan, and Korea Republic.

According to the report of the Vietnam Timber & Forest Products Association, in addition to key wood products, wood chips and pellets contribute significantly to this industry.

Specifically, Vietnam exported nearly 14.4 million tons of wood chips, reaching USD 2.2 billion, accounting for 16.8% of the total export turnover of the wood industry. Compared to 2022, wood chip exports decreased by 8.8% in volume and 20.4% in value. Similarly, with wood pellets, Vietnam exported 4.67 million tons, worth nearly USD 700 million, accounting for 5.2% of the total turnover of this industry.

Currently, the above two products are exported to 13 countries and territories. China and Japan are Vietnam's two largest import markets, accounting for 92.4% of total output and 92.2% of total export value.

According to the Forestry Department, in 2023, the entire industry exploited about 19 million ster of firewood (unit of volume of firewood). This is the main input material for wood chip and pellet production. In addition, by-products of the wood processing and manufacturing industry such as scraps, chips, shavings, sawdust, etc. are also used for production of wood pellets and chips.

According to Mr. Nguyen Chanh Phuong, Director of Danh Moc Company, Vice Chairman of Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), from August last year until now, Vietnam's export turnover of timber and wood products increased by an average of 3-5%. In January, export turnover of timber and wood products earned nearly USD 1.5 billion, an increase of more than 72% over the same period last year and is increasing. Exports of wood chips and pellets in the first month of the year increased by over 22% over the same period last year.

"With the current strong growth rate, this year, Vietnam can reach USD 17 billion," Mr. Phuong said.

Similarly, according to wood chip exporters, this group still has a lot of potential for development. Wood pellet turnover could reach USD 1 billion in the near future.

Kylie Nguyen