The decrease in export price might partly be due to an increase in the number of producers particularly small scale ones those did not register with the government, so they did not show up in government registration records. Some of them have not upheld strict quality controls, produced low-quality product and consequently pushed the price down. Data from the General Department of Vietnam Customs shows that in 2020 there were 74 export companies, a slight increase from 72 in 2018. This figure does not include many small scale ones mentioned above. In 2020, 17 of the 74 enterprises were large-scale exporters (export volume over 50,000 tons per enterprise), and the export volume from these 17 enterprises accounted for over 23% of Vietnam’s total wood pellet exports. There were 10 medium-sized enterprises (export volume from 20,000 to 49,000 tons per enterprise), and the remaining 47 were small-scale enterprises exporting under 20,000 tons each (Figure 4).
Figure 4. Vietnam’s exporters by export volume, 2020
Data from the Vietnam Administration of Forestry in 2019, and from VIFOREST in 2021, show that there are about 80 wood pellet production factories in Vietnam, with a total capacity of nearly 4.5 million tons. These factories are mainly concentrated in the Southeast region, followed by the Northeast region (See Figure 5 on page 5).
Data from Figure 5 do not include small scale production facilities. Some interviewees estimated that the number of small-scale production facilities could reach as high as 300. However, this information has not been verified.
Figure 5. Distribution of wood pellet production factories within Vietnam
OVERC – Vietnam
OVERC was established in Vietnam, which has 17 FTA (Free Trade Agreement).
Vietnam is one of the countries with the most FTAs in the world.
Our main activities are manufacturing and distributing Wood Pellets, Plywood and Funiture.
Our wood source are made from plantation wood (Legal source/FSC).
Apart from that, our products have been exported to many countries around the world such as EU, Australian, Japan, Korea, etc.
OVERC Co.,Ltd would like to wish you all the best at this time.
For more information on our products, please visit our website at OVERC.VN – Renewable World.