In the first half of 2024, Vietnam demonstrated its significant role in the global biomass market, particularly in the export of wood pellets and wood chips. With an extensive forest area of over four million hectares, primarily consisting of acacia, pine, eucalyptus, and rubber trees, Vietnam has leveraged its forestry resources to become a key supplier of biomass products. These products serve various industries, including paper manufacturing, energy production, food processing, and animal husbandry. Among these, wood chips and wood pellets are Vietnam’s primary exports.
During the first six months of 2024, Vietnam’s wood chip exports reached nearly 9.1 million tons, generating over $1.3 billion in revenue. Meanwhile, wood pellet exports totaled more than 2.6 million tons, bringing in approximately $345.5 million. Together, these two products accounted for nearly 99% of Vietnam’s total biomass export value.
After a period of intense competition for raw materials between the wood pellet and wood chip industries in 2022, both markets saw a significant drop in export prices in the first half of 2023. The prices stabilized around $140-145 per ton for wood chips and $130-135 per ton for wood pellets. However, in Q2 2024, both products experienced further price declines, with wood chips maintaining a more stable price compared to wood pellets.
Japan and South Korea remained the dominant markets for Vietnamese wood pellets, accounting for 90% of the total export value. The European Union (EU) market also expanded its share compared to 2023, representing nearly 10% of Vietnam’s wood pellet export volume and value in the first half of 2024. The export volume to these markets increased by 25.9% year-on-year, though the value only saw a modest increase of 6.4%.
The average export price of wood pellets in the first half of 2024 was around $132.6 per ton. In Japan and South Korea, the average prices were approximately $146.3 and $104.3 per ton, respectively. The declining price trend, especially in Japan, suggests that prices may soon return to pre-2022 levels. Additionally, many exporters faced challenges in the South Korean market due to high production costs and low export prices, which were comparable to 2021 levels.
China and Japan were the primary importers of Vietnamese wood chips, together accounting for over 90% of the total export value. The export volume of wood chips increased by 47.3% year-on-year, while the value grew by 31.3%.
The average export price of wood chips in the first half of 2024 was around $145 per ton. Prices in the Chinese and Japanese markets were close, at approximately $146 and $143.4 per ton, respectively. The South Korean market, though smaller, offered a higher average price of over $149 per ton, albeit with significant price fluctuations.
Vietnam’s wood pellet and wood chip industries have shown resilience and adaptability in the face of market challenges. While price volatility remains a concern, especially for wood pellets, the sustained demand from key markets like Japan, South Korea, and China underscores Vietnam’s crucial role in the global biomass supply chain. As the industry navigates these challenges, continued focus on optimizing production costs and expanding market reach will be essential for maintaining Vietnam’s competitive edge in the global market.
To learn more about wood pellets, refer to the information available here
Source: Research group of timber associations and Forest Trends compiled from Vietnam customs data
Vietnam’s wood industry is facing strong pressure as the U.S. imposes new tariffs of up to 50% on furniture and wood products. The move threatens profits and exports while forcing Vietnamese companies to adapt through market diversification, supply chain transparency, and sustainable production — especially for wood pellet exporters seeking stability in the Korean and Japanese markets.
Read more
On September 26, 2025, the Vietnam Wood Pellet Association successfully held its General Assembly, marking an important milestone in the industry’s ongoing journey toward sustainable growth. During the event, the Association officially elected its Executive Committee for Term II (2025–2030) — a group of leading companies and dedicated individuals who will steer the industry through a new era of opportunities and challenges.
Read more
Vietnam wood exports 2025 achieved solid growth in the first nine months, with exports reaching USD 12.4 billion, up 6.2% year-on-year. Despite global demand slowing, Vietnam continues to strengthen its position in major markets like Japan and Korea through sustainable production, product diversification, and active use of free trade agreements.
Read more
In the first eight months of 2025, Vietnam’s wood pellet exports reached 5.46 million tons and USD 795.9 million, marking record growth. Strong demand from Japan boosted the industry, while South Korea slowed. Despite raw material challenges, Vietnam remains a leading biomass supplier with promising future opportunities
Read more
Producing wood pellets involves a series of meticulously orchestrated steps that transform raw wood materials into efficient, eco-friendly fuel. This process, carried out in a wood pellet factory, ensures the production of high-quality pellets suitable for various heating and energy needs. Here is a detailed look at the process of wood pellet production.
Read more
