Wood pellets (Photo: Vietnam Timber and Forest Product Association) Hanoi (VNA) – The Republic of Korea (RoK) and Japan have become thebiggest importers of Vietnamese wood pellets, accounting for over 95% ofVietnam’s total export of this product, reported the Vietnam Timber and ForestProduct Association.
The wood pellets exported to the RoK areprimarily made from by-products of the wood processing industry, such assawdust, wood shavings, and leftover wood scraps. The exporters are mostly inthe southeastern region where wood furniture factories are concentrated.
In the first five months of this year, thevolume of wood pellets exported to the RoK reached 0.65 million tonnes,equivalent to 96.1 million USD in value, representing a decrease of 41% involume and 45% in value year-on-year.
Meanwhile, the Japanese market has shown high stability in both volume andprice. In January-May, Vietnam's exports of wood pellets to Japan reached 0.87million tonnes worth 151 million USD, down 5.7% in volume and up 19.7% in valueannually. The orders received are mostly long-term contracts.
The price of export to the RoK in June was only around 110 USDper tonne while that to Japan ranged from 145-165 USD per tonne.
Japan requires pellets from domestically grown timber in forestswith sustainable forest management certification (FSC). This source of rawmaterial is mainly available in areas with a high concentration of plantedforests in Vietnam, particularly in the central and northern regions.
Vietnam has become the world’s second biggest manufacturer of woodpellets, only behind the US. From 2013-2022,the volume and value of Vietnam's wood pellet exports increased by 28 and 34times, respectively.
According to the General Department ofVietnam Customs, Vietnam exported 1.57 million tonnes of wood pellets valued ataround 256.5 million USD in the first five months of this year. Exportation iscurrently on an upward trend./.
