The demand for Wood pellets in the world rises, which leads to an increase in the manufacturing investment in this field in Vietnam. The investment in the production of wood pellets is reflected in both domestic investment and foreign investment.
Vietnam Wood and Forest Product Association (VIFOREST) said that from 2016 to now, Vietnam has continuously received foreign investment projects in this product. In which, there are 7 investment projects in this product with a total investment capital of over US$48.83 million from the investors in different countries. Specifically, South Korea has 3 projects, its total investment capital of US$32 million; Japan has 2 projects, its investment capital of US$13,673 million; Sweden has 1 project, its investment capital of US$1 million; Taiwan has 1 project, its investment capital of US$2.159 million. Most FDI projects in wood pellets focus on investing in raw material centers such as Phu Tho, Ha Tinh, Thanh Hoa, Binh Duong, and Quang Binh.
Along with the projects of FDI enterprises is the increase in the investment of domestic enterprises. According to the incomplete statistics of the Vietnam Administration of Forestry, combined with survey information of the VIFOREST, there has been about 80 factories of wood pellets in the whole country so far, with a total design capacity of about 4.7 million tons per year.
This data does not include small-scale factories. However, there are many factories that only produce about 70-75% of their designed capacity, or the newly invested factories in 2020 have not been operated yet. The factories of wood pellets in Vietnam tend to increase in the past 2-3 years. Before 2017, there were only about 20-25 factories of this product with their capacity of nearly 1 million tons per year, so far the number of factories has increased more than 3 times.
Currently, there are 80 factories of wood pellets in Vietnam which are distributed across three regions of the country. In which, the South east has 33 factories, accounting for 41% of the total volume and 46% of the total capacity; the Northeast has 15 factories, accounting for 19% of total volume and 18% of total capacity; the North Central has 9 factories, accounting for 11% of total volume, 8% of total capacity; the Central Coast has 13 factories, accounting for 16% of total volume, 22% of total capacity; the Red River Delta has 6 factories, accounting for 8% of total volume and 3% of total capacity.
In order to invest in a methodical and modern factory of wood pellets, according to experts, it is necessary to spend US$2-3 million for a factory with a capacity of 10,000 – 12,000 tons per month.
Post time: Jan-04-2022