Vietnam exported over 24 million tons of wood chips and wood pellets in 2024,  generating nearly $3.5 billion in revenue.

Most of these products are used as fuel for thermal power plants in importing countries.

According to the Vietnam Timber and Forest Products Association (VIFOREST), exported wood pellet reached 6.03 million tons, earning $805.27 million—a 29.1% increase in volume and an 18.5% rise in value compared to 2023.

South Korea and Japan remained Vietnam's top markets, accounting for 94% of the export volume and 92.6% of the export value. The European Union ranked as the third,  importing 95.6 thousand tons, valued at $15.76 million.

Mr. Nguyen Thanh Phong, Head of the Wood Pellet Sub-Association under VIFOREST, revealed that Vietnam is home to approximately 350 enterprises and factories producing wood pellets, 80 of which are actively involved in exports. In addition, dozens of foreign direct investment (FDI) enterprises from South Korea and Japan have set up production plants in Vietnam, reflecting growing international interest in the sector.

"It is forecast that the global demand for wood pellets for thermal power will reach around 30 million tons in 2025, and after 2030, demand may soar to hundreds of millions of tons annually. Although Vietnam ranks second globally in wood pellet exports, it currently meets only 10-15% of the total global demand," Mr. Phong noted.

At COP26, world governments pledged to reduce greenhouse gas emissions, including substituting fossil fuels with renewable biological materials like wood pellets. Mr. Phong emphasized that wood pellets are poised to become a critical commodity, contributing to Vietnam’s efforts to achieve its climate goals under the COP26 commitments.