Producing and exporting tablets in Vietnam Situation and some aspects that need attention

Vietnam has now become a major wood pellet producing country
second in the world, just behind the United States. wood pellet from Vietnam
mainly exported.

1 Statistics from the General Department of Customs
Statistics show that the export volume in 2020 will reach about 3.2
million tons. Nearly 100% of wood pellet from Vietnam are exported
exported to Japan and Korea. This is the source material
input for thermal power plants in these countries.
The demand for wood pellet in the world continues to increase,
about 250% over the next decade, reaching 36 million tons from
14 million tons in 2017, with the main expansion demand
weak in European countries, Japan and Korea.2 This
shows Vietnam's wood pellet production and export industry
South will continue to expand in the future.
This newsletter provides some initial information on the situation
manufactures and exports pellets from Vietnam. The
statistics on the volume and value of grouped exports
study by Forest Trends and composite wood associations
from statistical data of the General Department of Vietnam Customs. Numbers on supply and factories
production is quoted from the survey data of the General Department of Forestry in 2019 and from the survey
of the Vietnam Timber and Forest Products Association (VIFOREST) ​​in March 2021.

Source of input materials
Source of input wood for the production of pellets
Mainly used from wood by-products such as humus
saws, shavings, top branches of planted forest wood (acacia,
eucalyptus, rubber), scattered trees… Raw source
This material is put into the pressing process under high pressure
to create products. Some sources say the
Small-scale production facilities in the local buy
any source of raw wood from households to
manufacturing. These purchasing activities are usually
through a network of agents. Some business
large industry with a source of plantation forest materials, including
including forest resources with management certificates
sustainable forests (FSC).
Some aspects need attention
The industry of producing and exporting tablets has been newly developed in the last decade, mainly to
meet the demand for input materials for development needs
bioelectricity in Japan and Korea since the earthquake
earth and tsunami. Demand for tablets in different countries
This is continuously increasing, is the driving force for production activities and
Vietnam's tablet exports expand.
Vietnam's production and export of tablets is currently
hidden some problems. First, the source of input materials
unregulated, this leads to product quality
inconsistent, even poor quality products; thing
This pushes export prices down. Input materials
If not controlled, there is also a potential risk of affecting
forest resources, with possible input materials
collected from trees, small branches from the forest. Existing as well
In some information, there is a mixing phenomenon between
FSC certified raw materials and other sources in
some production facilities, although export products are declared
products are certified for sustainable forest management. The
This information should be fully verified in
next time.
Second, although it has become one of the important export products, production and export
tablets have not received the necessary regulatory attention. Currently production and export
develop in a spontaneous direction, strong whoever he or she does. Lack of management and supervision, self-development
method leads to inconsistent quality situation and some problems as mentioned above. Selling price with coins
The downward trend is a direct result of this cause.
Third, there is currently no mechanism to connect businesses and processing facilities in the industry, no voice
common in production and business activities, leading to unfair competition between
businesses. The competitive situation in terms of input materials, price competition, buyers, etc. has been and
is taking place among manufacturing facilities, especially small-scale establishments. Lack of connection also leads to love
lack of an agency representing production facilities, leading to a lack of channels to connect with agencies
management to have appropriate policies for the development of the industry.
July 2020 Production and export of tablets in Vietnam: Situation and some aspects that need attention
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Fourth, competition for input materials does not only occur with enterprises producing the same product
tablets, but also occurs between businesses that manufacture this item and businesses that manufacture these products
other products such as wood chips and plywood. Many signals show that in the future competition for raw materials
whether the input will take place more intense.
Fifth, many enterprises produce and export tablets, especially enterprises
small scale, do not understand information about export markets. Specifically, these businesses hardly
have access to information on the changing dynamics of export markets, mechanisms and policies
related to the product including requirements for quality, legality and sustainability. Short
Access to information about export markets is not only for businesses and production facilities
This company cannot take the initiative in production and business plans, but also faces risks in
does not meet the requirements of the export market.
Conclusion

Tablet production and export activities in Vietnam are relatively new and will continue to develop
thrive in the future. While expansion brings many benefits, both economically and socially,
The industry's activities have revealed a number of limitations, related to the input of wood materials, the development of
spontaneous development, unfair competition, lack of regulatory attention and lack of information
on the export market. Sustainable development of these activities in the future requires these restrictions
should be thoroughly resolved. This requires connection and cooperation between businesses of the same product
export and import of this commodity, and between these enterprises and enterprises producing these items
other goods using the same input wood source. Tablet businesses also need to be established
representative agencies, to connect with regulatory agencies, create a common voice and access information
Information on export markets, These are activities that need to be prioritized in the coming time.

Source: Foresttrend