For more than a decade, Vietnam has been one of the biggest success stories in the global wood pellet market. Fueled by strong demand for renewable energy in Japan and South Korea, the country rapidly became Asia’s largest wood pellet supplier and the world’s second-largest exporter. …Vietnam’s expansion didn’t happen by chance. As Japan and South Korea sought alternatives to coal, wood pellets became an important component of their renewable energy strategies. …Today, however, the dynamics are changing. Policy shifts in Japan and South Korea are reshaping biomass incentives, creating new uncertainty for exporters that have become heavily dependent on a relatively small group of buyers. …Emerging suppliers across Southeast Asia are expanding production, while established exporters continue investing in efficiency and sustainability. At the same time, pricing pressures make it more difficult for pellet manufacturers to invest in facility improvements or environmental upgrades.