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
The Vietnamese wood pellet industry has witnessed impressive momentum in 2025. During the first eight months of the year, Vietnam exported 5.46 million tons of wood pellets, generating a total export value of USD 795.9 million. Compared to the same period in 2024, this represents a 43.3% growth in volume and a 57.4% growth in value. Remarkably, by August 2025, Vietnam had already achieved nearly 90% of the total volume and 99% of the total value of its entire 2024 performance.
This robust growth underscores Vietnam’s role as one of the leading suppliers of sustainable biomass energy to international markets.
Another notable achievement is the upward trend in export prices. The average export price of wood pellets in the first eight months of 2025 reached USD 145.6/ton, up 9.1% compared to 2024. This price increase has helped wood pellet producers maintain profitability despite raw material shortages and competition from other biomass products such as wood chips.
When analyzing market distribution, Japan and South Korea remained the two most important destinations, accounting for 93.9% of Vietnam’s total exports.
While export figures are strong, Vietnamese producers face serious domestic challenges. Raw material availability has tightened significantly. In the North, supply dropped due to damages from Typhoon Yagi in September 2024. In the Central region, heavy storms also reduced raw material availability, forcing manufacturers to use even large logs to keep production stable. In the South, supply decreased due to U.S. trade investigations and tariffs affecting Vietnam’s plywood exports.
On top of that, regulatory pressure is mounting. Authorities require more rigorous documentation to prove the legal origin of wood inputs. Many manufacturers must now work closely with suppliers to ensure transparency and compliance, increasing operational costs.
Domestic consumption, meanwhile, remains limited. Only FDI companies and industrial parks with carbon reduction goals are using wood pellets. Most local businesses still rely on fossil fuels, as government incentives for switching to renewable energy are not yet widespread.
Looking ahead, Vietnam’s wood pellet exports are expected to continue growing in the short term, but the market outlook varies by country.
To sustain growth and strengthen competitiveness, Vietnamese exporters should:
The first eight months of 2025 highlight a breakthrough year for Vietnam’s wood pellet industry. With exports soaring to record levels, Vietnam has reinforced its position as a leading supplier to the global renewable energy market. Yet, behind the strong numbers lie challenges in raw material supply, environmental scrutiny, and international competition.
For Vietnam to maintain its momentum, the industry must prioritize sustainability, quality, and innovation. By adapting to stricter global requirements and seizing opportunities in green energy markets, Vietnam’s wood pellet exporters can continue to thrive and secure their place in the international supply chain for years to come.
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
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