Charcoal, wood pellets – “Hot” woods on the export market

While many of our commodities such as rice, seafood, agricultural products are facing difficulties in export, some products such as charcoal, wood pellets … are being preferred by foreign customers.
Great demand
In the area of Phung Hiep canal, Dong An hamlet, Tan Thanh commune, Nga Bay town, Hau Giang province, there are hundreds of charcoal kilns in operation. This is considered as the largest source of charcoal in the country, up to thousands of tons of charcoal is burned from acacia, eucalyptus, etc.
Along with this area, many other localities such as Thanh Hoa, Nghe An, Vinh Phuc, Bac Kan … are becoming the “addresses” for many charcoal export businesses to find. The price of each ton of export charcoal is about $ 580-600 USD / ton.
According to Nguyen Tuan Viet – General Director of VietGo Company – an export consultant, charcoal is supplied to two main areas: Asia and the Middle East . The most popular kind of charcoal is burned from natural forest wood.
There are two kinds of charcoal – white charcoal and black charcoal. Along with black charcoal is the simplest product from natural wood burning process, Vietnam white charcoal is also popular in many markets. If the black charcoal still produces smoke, smells of burning, white charcoal has been removed almost all impurities and is considered as clean charcoal, very popular in Japan and Korea market. In addition, charcoal from sawdust are also preferred by Middle Eastern countries.
In the world, Laos, Cambodia and Africa also burn natural forests. Recently, however, due to Ebola outbreaks, goods from Africa were banned, including charcoal. Asian and Middle Eastern countries still have a demand for charcoal to serve grilled dishes, so they are importing to Asia, including Vietnam.
In addition, Vietnam has become a temporary importer for charcoal products from Laos and Cambodia – two countries with good charcoal but not easy to export directly to the Middle East. With the advantage of cheap transportation, Vietnam is emerging as a noteworthy exporter of charcoal.
Remove the barrier
Sharing the difficulties of exporting charcoal, Mr. Viet said: Vietnam’s charcoal is difficult to compete with charcoal products of other countries in terms of price. For example, if compared to Laos, the labor cost in Vietnam is high, so it is difficult to compete with Lao charcoal prices. At present, the price of charcoal in Laos fluctuate from 3.5 to 4 million per ton. Meanwhile, the price of charcoal in Vietnam is 6 million per ton.
In addition, the export tax rate for charcoal is now 10%, which further increases the cost of export. The price of our products is difficult to compete with products of other countries. If these barriers are overcome, the competitiveness of these products will be even greater.