Nghe An wood pellet exports accelerate.
- Feb 28
- 4 min read
The wood pellet manufacturing industry in Nghe An is experiencing strong growth thanks to abundant raw materials, the commissioning of many large projects, and continuously expanding exports.
Amidst increasing global demand for biomass energy, the wood pellet production and export industry in Nghe An province is experiencing significant growth. Leveraging its large-scale planted forests, the province is gradually developing a closed-loop value chain from raw materials to processing and export, contributing to increased forest product value and promoting green economic growth.
Advantages from raw materials and the circular economy.
Vietnam is currently considered to have many favorable conditions for developing large-scale wood pellet production. The most important advantage comes from its vast area of planted forests with a stable source of raw materials, mainly acacia and eucalyptus, which are harvested in short cycles.
Furthermore, the booming wood processing industry has generated a large amount of by-products such as sawdust, wood chips, and wood scraps. These are the main raw materials for biomass pellet production. Utilizing these waste products helps increase the value of forest resources, reduce waste, and aligns with the circular economy model that is being encouraged.
In the overall national landscape, Nghe An stands out as a province with many advantages. The province currently has the second largest forest area in the country, with production forests accounting for a high proportion and widely distributed in mountainous districts. A stable source of raw materials provides an important foundation for the development of the forest product processing industry, especially the production of wood pellets on a large scale and sustainably.
Thanks to the advantage of local raw materials, reasonable labor costs, and an existing wood processing enterprise system, the wood pellet industry in Vietnam in general and Nghe An in particular has good competitiveness in the international market, especially in markets that require large and stable supplies.
[EN] VIETNAM WOOD PELLET INDUSTRY IN 2025 & 2026 OUTLOOK REPORT
$3,500.00
Buy Now
Attracting numerous large-scale manufacturing projects.
In recent years, Nghe An has attracted many businesses to invest in biomass energy and wood pellet production, creating new momentum for the forest product processing industry.
A prime example is the AGRIMEX – KA-Grimex factory in the Tri Le Industrial Park (Yen Xuan commune), with an investment of approximately 14 million USD. The factory, built on an area of over 15 hectares, applies modern technology to optimize production efficiency and reduce environmental impact. Currently, the company has conducted trial production of pellet batches for export.
In addition, Biomass Fuel Vietnam Co., Ltd. in VSIP Nghe An Industrial Park is a project with an investment of 24.4 million USD from a Japanese investor, implemented on an area of 5 hectares. The factory specializes in producing wood biomass pellets with a designed capacity of hundreds of thousands of tons per year, mainly exporting products to Japan and other markets with high standards.
Besides large-scale projects, many local businesses are also involved in production, such as BVN Thanh Chuong Company in Hoa Quan commune, which has already started operations, along with DKC Energy Joint Stock Company with a designed capacity of approximately 120,000 tons/year.
The projects are relatively well-coordinated, applying modern technology and strongly oriented towards exports, gradually forming a chain linking forest planting - processing - product consumption. This not only increases the value of plantation timber but also creates more jobs and revenue for the local government.
Exports increased sharply, expanding international markets.
Nationwide, Vietnam is becoming one of the world's largest exporters of wood pellets. According to the Vietnam Wood and Forest Products Association (VIFOREST), by 2025, wood pellet exports are expected to reach over 7 million tons, generating over $805 million in revenue, representing strong growth compared to previous years.
Currently, the main export markets are Japan and South Korea, accounting for over 90% of total exports. By December 2025, Vietnam had exported more than 16,000 shipments of wood pellets, with nearly 500 businesses participating, demonstrating the increasingly expanding production and export network.
In Nghe An province, wood pellet export activities are expected to be vibrant in 2025, marking a significant transition from the formative stage to a clearly developed one.
According to customs declarations from Region XI, Vietnam-Japan Biomass Energy Joint Stock Company exported approximately 61,053 tons of wood pellets produced from acacia wood in 2025, with a total value of approximately US$8.68 million. Export prices ranged from US$133 to US$146.85 per ton.
The products are transported by sea, paid for in USD, and primarily serve the overseas market. This export activity not only contributes to the province's forestry product turnover but also promotes the formation of a relatively complete production-processing-export value chain.
According to the Nghe An Department of Industry and Trade, the fact that Nghe An, along with Ha Tinh, both recorded millions of USD in wood pellet export revenue shows that the North Central region is gradually becoming an important biomass energy production area of the country.
A path towards green and sustainable growth.
Wood pellets are biomass fuel products manufactured using a compression technology from sawdust, wood chips, and wood harvesting by-products. In the global trend towards renewable energy and carbon emission reduction, this type of fuel is increasingly being used in power generation, heating, and industrial production.
The outlook for wood pellet exports is considered positive in the medium and long term as demand in Japan, South Korea, and Europe continues to increase. However, to maximize efficiency, Nghe An needs to continue developing sustainable raw material areas, improving logistics and port infrastructure, and promoting certifications regarding the legality and sustainability of the product.
Once the production-processing-export chain is perfected, wood pellets will not only become a high-value export item but also a suitable direction for the green growth, circular economy, and sustainable development goals of Nghe An province and the North Central region.
Comments