Fewer wood pellet exporters as Japan, South Korea cut imports
The number of wood pellet exporters in Vietnam fell from 152 in 2022 to 119 in May 2023 as exports to major markets Japan and South Korea reduced significantly.
In its January-June report, the Vietnam Timber and Forest Product Association (Viforest) noted that South Korea and Japan were the two largest export markets for Vietnam’s wood pellets, accounting for 95% of export revenue.
In the first five months of this year, export volume reached 1.57 million tons for revenues of $256.5 million.
During the same period, the country earned $96.11 million from exporting 652,273 tons of wood pellets to South Korea, down 45% and 41% year-on-year, respectively.
Corresponding figures for Japan were $151.06 million and 871,356 tons, down 19.7% and 5.7%.
The report said that prices rose sharply from $140 per ton in early 2022 to $180-190 per ton in late 2022 and early 2023, amid the Ukraine-Russia conflict. They cooled down to $110 per ton in June for exports to South Korea and $145-165 per ton for exports to Japan.
For the rest of this year, Vietnam’s export volume to the South Korean market is likely to reach 1-1.5 million tons. Vietnam is currently the main supplier of wood pellets to South Korea, meeting 80% of the total demand. However, South Korea has begun diversifying its supply, particularly from Russia. Before the conflict with Ukraine broke out, Russia was delivering three million tons of wood pellets annually.
The Japanese market is considered much more stable than the South Korean market with long-term orders of 10-15 years and exporting prices of $145-165 per ton. The demand for pellets in Japan is expected to grow strongly soon, from eight million tons at the moment to 20 million tons in 2030.
In June, Itochu Corporation, a Japanese multi-sector business, expressed its intention to plant a timber plantation and build a wood pellet factory in the central province of Binh Dinh, aiming to export one million units a year.
Kenji Tanaka, Itochu CEO for Asia and Oceania, said the project, in cooperation with Binh Dinh-based Phu Tai Bio-Energy Corporation, aimed to serve Japan’s growing demand for wood pellets, which is estimated to double in three years.
- Read More
Indonesia steps up support for textile industry
Indonesia’s President Prabowo Subianto held a close-door meeting with several ministers on Tuesday to discuss the current situation of Indonesia's textile industry, particularly focusing on textile giant Sri Rejeki Isman (Sritex).
Southeast Asia - Thu, October 31, 2024 | 6:01 pm GMT+7
Thailand speeds up plans to construct six new airports
Thailand’s Transport Ministry is accelerating development and construction projects on six airports with an aim to become the region's transportation hub.
Southeast Asia - Thu, October 31, 2024 | 6:00 pm GMT+7
Thailand develops eco-friendly seaport model
Thailand is striving to implement environmental protection and social sustainability solutions in developing the country’s major infrastructure projects, such as the development of Phase 3 of Laem Chabang Port, Thailand's only deep-sea port.
Southeast Asia - Thu, October 31, 2024 | 5:58 pm GMT+7
Indonesia intensifies oil palm cultivation to meet biodiesel demand
Indonesia is expanding its oil palm cultivation to increase crude palm oil (CPO) production as a raw material for 50% biodiesel (B50), according to the country’s Ministry of Agriculture.
Southeast Asia - Thu, October 31, 2024 | 5:56 pm GMT+7
Malaysia’s first domestic EV model opens for booking
The Malaysian multinational automotive company Proton's first electric vehicle (EV), the e.MAS 7, is now open for booking.
Southeast Asia - Thu, October 31, 2024 | 5:54 pm GMT+7
Thailand aims to become emerging leader in AI
Thailand is positioning itself as an emerging leader in artificial intelligence (AI) regulation and development, thanks to policies that support an approach that balances technological innovation with ethical considerations and workforce protection.
Southeast Asia - Thu, October 31, 2024 | 5:53 pm GMT+7
Vietnam PM calls for more investment from Qatar’s $475 bln sovereign wealth fund
Vietnamese Prime Minister Pham Minh Chinh has called on the Qatar Investment Authority (QIA), Qatar's sovereign wealth fund with total assets amounting to $475 billion as of 2023, to ramp up its investment in Vietnam.
Industries - Thu, October 31, 2024 | 4:43 pm GMT+7
FPT Retail earns $6.5 mln in Q3 profit, to expand FPT Shop chain
Vietnamese retail major FPT Retail made a profit after tax of VND165 billion ($6.52 million) in the third quarter of this year, while it incurred a loss of VND13 billion ($514,000) in the same period last year.
Companies - Thu, October 31, 2024 | 3:56 pm GMT+7
Germany’s PNE opens rep office for $4.6 bln offshore wind project in central Vietnam
Germany’s PNE AG, a leading developer of renewable energy projects, has shown its determination to proceed with a mega offshore wind power project in central Vietnam by opening a representative office there.
Energy - Thu, October 31, 2024 | 2:43 pm GMT+7
Saudi Arabian energy giant ACWA Power ready to invest $5 bln in Vietnam
Saudi Arabian private energy giant ACWA Power stands ready to invest up to $5 billion in Vietnam, a senior executive said Wednesday.
Industries - Thu, October 31, 2024 | 2:39 pm GMT+7
Effective M&A deal depends on thorough understanding, value addition potential: Kido exec
An effective M&A transaction depends on fully understanding the company being acquired in order to create added value, says Kido Group CEO Tran Le Nguyen.
Companies - Thu, October 31, 2024 | 1:22 pm GMT+7
No budget apartments in Vietnam, chronic supply-demand gap widens
Vietnam saw no supply or transaction of low-cost apartments priced below VND25 million ($988) per square meter in the third quarter, says a real estate report by the Ministry of Construction.
Real Estate - Thu, October 31, 2024 | 1:10 pm GMT+7
Vietnam steel major SMC remains bogged down with difficulties
Steel manufacturer SMC Trading Investment JSC has been actively selling assets to generate cash for debt repayment and maintain operations since the beginning of this year.
Companies - Thu, October 31, 2024 | 10:41 am GMT+7
Vinhomes’ earnings fall 39% to $777 mln in Jan-Sep
Vinhomes, the largest residential housing developer in Vietnam, booked a net profit of VND19,642 billion ($777 million) in the first three quarters this year, down 39.2% year-on-year.
Companies - Thu, October 31, 2024 | 9:58 am GMT+7
AI cannot replace customer service staff: MoMo exec
AI cannot replace customer service staff, but it can give them more time to prepare and provide better care for customers, says Thai Tri Hung, senior deputy general director and chief technology officer of e-wallet app MoMo.
Companies - Thu, October 31, 2024 | 8:11 am GMT+7
Vietnam property developer Novaland posts skyrocketing Q3 profit
Novaland, a leading real estate developer in Vietnam, reported its after-tax profit hit VND2.95 trillion ($166.62 million) in the third quarter of this year, a 21.6-fold rise year-on-year.
Companies - Wed, October 30, 2024 | 10:59 pm GMT+7