Vietnam Wood Pellet Exports Hit Record Volume in 2025: What Buyers Need to Know

Vietnam's wood pellet export industry reached record volumes in 2025, with total exports estimated at over 4 million metric tons — a 35% year-on-year increase driven by accelerating renewable energy mandates in South Korea and Japan, and sustained residential heating demand in Europe.

South Korea remains the dominant destination, absorbing roughly 60–65% of Vietnam's total pellet exports. Korean power utilities and independent power producers (IPPs) are compelled to source biomass under the country's Renewable Portfolio Standard (RPS), which was introduced in 2012 and has steadily raised the mandatory renewable energy percentage that grid-connected generators must meet. Wood pellets — co-fired with coal at existing power plants — represent the most commercially viable path for Korean utilities to satisfy that obligation at scale.

Japan is the second-largest destination, accounting for approximately 20–25% of exports. Japan's Feed-in Tariff (FIT) biomass power programme, established under the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources, provides a 20-year guaranteed tariff for dedicated biomass power plants and co-firing facilities. This long-term revenue certainty has driven significant Japanese investment in biomass generation capacity, and Vietnam — with geographic proximity and growing certified supply — has emerged as a key supplier.

European demand, while smaller in absolute tonnage, is structurally important because it commands higher prices due to ENplus A1 quality requirements and sustainability compliance obligations under the EU Renewable Energy Directive (RED II/III). Vietnamese exporters who have invested in ENplus certification and FSC chain-of-custody can access this premium market tier alongside volume Asian sales.

For procurement teams, the practical implications are these: Vietnamese supplier capacity is expanding but becoming increasingly differentiated by certification. Suppliers with ENplus A1, ISO 9001, FSC CoC, and ISO 14001 are able to serve all three markets and will maintain pricing power. Uncertified supply is increasingly confined to price-sensitive spot transactions, and is becoming harder to route into EU markets as sustainability verification tightens.

Annual contract volumes continue to grow. Leading Vietnamese exporters are now signing agreements in the range of 50,000 to 200,000 metric tons per year with single buyers. If you are structuring a supply agreement for 2025–2026, the time to secure certified tonnage is now.