Wood charcoal market in Vietnam

Earlier Report Observations

From 2018 to 2020, wood charcoal production in Vietnam remained steady at 414 thousand tons annually. The state-owned Vietnam National Coal-Mineral Industries Group (TKV) consistently met and exceeded its production targets despite operational challenges, supported by rising domestic demand for coal in the power sector. While the pandemic impacted the broader coal industry in 2020, the wood charcoal market volume expanded to 312.4 thousand tons, and its value increased to $181.1 million.

The market's value continued to climb from 2021, as global coal prices surged due to Asia's economic recovery and geopolitical tensions. This pushed production value up, and TKV supplemented domestic output with imports from Australia and Indonesia for blending. In 2022, the Ministry of Finance raised the export tax on wood charcoal from 5% to 10%, yet exports remained strong, fueled by increased demand from Europe and Asia seeking to reduce reliance on Russian gas. Simplified export procedures further facilitated trade. By 2023, export volumes reached new highs, particularly to Japan and the Philippines, even as average export prices softened. Domestic consumption for power and industries stayed robust, and TKV maintained active production, while growing consumer preference for green and sustainable products began influencing the charcoal segment.

Looking ahead to 2024, the government approved a long-term development strategy for the coal industry, aiming to restructure enterprises and build a competitive market. TKV projected significant revenue growth and planned to ramp up output to meet rising domestic and global demand, the latter shaped by ongoing energy market volatility and geopolitical conflicts.

Production wood charcoal in Vietnam

In kind, 2017-2020, K t

Vietnam was one of the world's leading producers of wood charcoal from 2017 to 2020, ranking 29th globally by production volume.

Top producers of wood charcoal, 2017-2020

World map of production of wood charcoal, 2017-2020

In 2020, Vietnam produced 414.0 K t of wood charcoal, showing virtually no change from the previous year. The largest decline occurred in 2018 at 0.0%, while the largest increase was also recorded in 2018 at 0.0%.

Annual dynamics of production in Vietnam in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, Vietnam's wood charcoal output was valued at 239.6 M $ US, marking a 7.8% increase compared to 2019. Over the 2017-2020 period, production grew by 19.1%, with a compound annual growth rate of 6.0%. The highest value was recorded in 2018 at 241.6 M $ US, with the largest decline in 2019 at 8.0% and the largest increase in 2018 at 20.1%.

Annual dynamics of production in Vietnam in value, 2017-2020, M $ US

Exports wood charcoal from Vietnam

Exports in kind, K t

Following a two-year advance, wood charcoal exports from Vietnam declined in 2020, amounting to 110.2 K t, which represents a 12.4% decrease year-over-year. Between 2017 and 2020, exports increased by 5.2%, equating to an annualized growth rate of 1.7%. The peak was reached in 2019 at 125.7 K t, with the largest increase also occurring in 2019 at 10.6%.

Annual dynamics of product's exports from Vietnam in kind, 2017-2020, K t

From 2017 to 2020, South Korea, Japan, and China were the key partners for Vietnam's wood charcoal exports in kind, accounting for 43.7%, 10.3%, and 9.4% of exports, respectively. Together, they represented 63.5% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Vietnam in kind, 2017-2020

Exports in value, K $ US

After a two-year gain, Vietnam's wood charcoal exports declined in 2020, with exports valued at 63 766 K $ US, down 5.5% compared to the previous year. Between 2017 and 2020, exports increased by 25.3%, equating to an annualized growth rate of 7.8%. The highest value was recorded in 2019 at 67 481 K $ US, and the largest increase occurred in 2018 at 30.4%.

Annual dynamics of product's exports from Vietnam in value, 2017-2020, K $ US

Over the 2017-2020 period, South Korea, Japan, and China remained the leading destinations for Vietnam's wood charcoal exports in value terms, with shares of 43.8%, 10.3%, and 9.7%, respectively. Combined, they accounted for 63.8% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Vietnam in value, 2017-2020

Imports wood charcoal to Vietnam

Imports in kind, K t

In 2020, Vietnam imported 8.4 K t of wood charcoal, reflecting a slight improvement of 2.3% compared to 2019. Over the 2017-2020 period, imports decreased by 48.5%, with a compound annual decline rate of 19.9%. The lowest value was recorded in 2019 at 8.4 K t, while the peak was in 2018 at 16.8 K t, with the largest decline occurring in 2019 at 50.0%.

Annual dynamics of product's imports to Vietnam in kind, 2017-2020, K t

From 2017 to 2020, Indonesia, India, and China consistently held leading positions in Vietnam's wood charcoal imports in kind, with shares of 54.1%, 9.4%, and 9.4%, respectively. Together, they accounted for 72.9% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Vietnam in kind, 2017-2020

Imports in value, K $ US

In 2020, Vietnam's wood charcoal imports amounted to 5 278 K $ US, showing a 16.9% increase compared to 2019. Over the 2017-2020 period, imports decreased by 37.2%, with a compound annual decline rate of 14.4%. The lowest value was recorded in 2019 at 4 516 K $ US, while the peak was in 2018 at 8 975 K $ US, with the largest decline occurring in 2019 at 49.7%.

Annual dynamics of product's imports to Vietnam in value, 2017-2020, K $ US

During 2017-2020, Indonesia, China, and India were the main sources for Vietnam's wood charcoal imports in value terms, accounting for 54.1%, 9.7%, and 8.8% of imports, respectively. Combined, they represented 72.6% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Vietnam in value, 2017-2020