Demand for pellets on the world market is increasing sharply, due to the Russia-Ukraine conflict reducing gas supplies from Russia to EU countries. As a result, many EU residents turn to pellets for heating in the coming winter. Vietnam is the world's second-largest exporter of wood pellets after the US. Although it is not a major supplier of pellets to EU countries, the high demand and price of tablets in the international market create opportunities for Vietnamese enterprises to expand production and export.
Besides, the export of wood pellets to two key markets, Korea and Japan, also increased compared to before. Due to the increase in fuel prices, thermal power plants in Korea and Japan also switched to using wood pellets more.
In the first 10 months of 2022, Vietnam's wood pellets export output reached nearly 3.9 million tons, equivalent to $602.7 million, up 34% in volume and 81% in value over the same period in 2021.
According to a forecast from the Vietnam Timber & Forest Products Association, the export turnover of biomass wood pellets in the whole year of 2022 can reach about $700 million, and the export of wood pellets has the potential to enter the group of agricultural and forestry products with an annual export value of over $1 billion.
With the increasing demand for clean energy globally, it is forecasted that pellets will continue to grow strongly in the coming time and this is also an opportunity for Vietnamese wood pellet manufacturers to reach out to the world.
In Vietnam, there are about 80 enterprises involved in exporting wood pellets. In this article, Vietdata will review some highlights in the financial statements of some wood pellet exporters.
An Viet Phat
An Viet Phat Energy Company Limited was established in 2014. Up to now, An Viet Phat has risen to be the number 1 pellet manufacturer in Asia, ranked in the top 5 enterprises supplying the largest wood pellets in the world in 2020.
In the first 10 months of 2022, An Viet Phat brought in more than $30 million from exporting wood pellets.
In recent years, An Viet Phat's revenue has always achieved a positive growth rate. In particular, 2021 is quite a successful year for An Viet Phat when its revenue reaches nearly VND5.8 trillion, an increase of 2.4 times compared to 2020.
After a period of negative profit, by 2021, An Viet Phat has brought in nearly VND35 billion in after-tax profit.
Hoang Dai Vuong
Hoang Dai Vuong Co., Ltd was established in 2005, Hoang Dai Vuong is one of the leading manufacturers and suppliers of a wide range of wood products in Vietnam such as wood pellets, plywood, and many other wood products.
Hoang Dai Vuong's business situation in recent years is also quite positive when revenue grows continuously in the period of 2019 - 2021. Specifically, in 2020, this manufacturer's revenue increased by 5% compared to 2019. By 2021, Hoang Dai Vuong's revenue reach nearly VND1.6 trillion, up 26% compared to 2020.
However, profits fluctuated quite a bit, in 2019 the profit was about VND2 billion, in 2020 it increased to VND2.2 billion and in 2021 it decreased to VND1.9 billion.
Phu Tai Bio-Energy
Phu Tai Bio-energy Corporation is one of Vietnam's leading manufacturers and exporters of solid biofuels and raw materials. Currently, the company owns a strong brand of wood pellet production with a total capacity of 30,000 tons/month.
The business picture of Phu Tai Bio-Energy is quite bright, as revenue has grown positively in recent years. Especially, this business's net revenue in 2021 increased by 12% compared to 2020. This business has a profit after tax of more than VND5 billion in 2021, an increase of over 60% compared to 2020.
In 2021, Phu Tai Bio-Energy also benefits from the export of wood pellets with a total value of nearly $53 million.
Nguyet Anh Joint Stock Company was established in 2009, so far Nguyet Anh has become a leading unit in the field of manufacturing and exporting wood chips and pellets in Binh Dinh and the Central-Central Highlands region.
After a period of positive growth in both revenue and profit, by 2021, this unit's revenue and profit will begin to slow down. Accordingly, revenue in 2021 decreased by 20% compared to 2020. Profit after tax is only about VND1 billion, down more than 80% compared to 2020.
Eastwood Energy established in 2013, is a manufacturer and supplier of biomass products including wood chips, sawdust, and wood pellets.
Eastwood Energy's business results in recent years have not been very positive. Although revenue in 2021 has grown again and reached VND875 billion, it is still lower than in 2018 and 2019. 2021 is also the third year in a row that this business has recorded a negative profit.
Mi Sa Viet Han
Mi Sa Viet Han Company Limited is also one of the major exporters of wood pellets today. In 2021, Mi Sa Viet Han is the leading enterprise in terms of export volume, with a total value of about $17 million.
According to data from the report, it can be seen that the revenue and profit of this business have increased continuously in the recent period. Accordingly, revenue in 2021 reached nearly VND420 billion, up 67% compared to the previous year. Profit after tax also increased by 8% compared to 2020.
Tam Phuc Gia Lai
Tam Phuc Gia Lai Trading Co., Ltd is a prestigious brand, and also one of the leading wood pellet manufacturers in the central region.
In the first 10 months of 2022, this business has brought in more than $10.8 million from exporting wood pellets.
Although there is an increase in net revenue from about VND260 billion in 2020 to VND306 billion in 2021. However, this business reported a loss of nearly VND770 million in 2021.
Nong Trai Xanh
Nong Trai Xanh Company Limited is one of the companies specializing in the production and export of wood pellets. In the context of the energy crisis, this business has brought many opportunities to export wood pellets.
Accordingly, in the first 10 months of this year, the total export value of wood pellets of this enterprise reached nearly $10 million.
2020 is quite a successful year for Nong Trai Xanh when the profit after tax reaches VND4 billion, an increase of nearly 15% compared to 2019. However, by 2021, both revenue and profit of this business will decrease compared to the same period in 2020.
In recent years, the export market of wood pellets has shown positive signs because the import demand for this environmentally friendly product in developed and developing countries is constantly increasing. This is a great opportunity for Vietnamese businesses to develop, and bring high and sustainable profits.
However, in the future, wood pellet manufacturers and exporters also need to pay attention to creating their own material areas to stabilize input materials and promptly meet the needs of domestic and foreign markets.
Source: Vietdata's 2022 Wood Industry Report
TOP 20 OUTSTANDING WOOD PELLET EXPORTERS IN VIETNAM