The central purpose of the current research is to provide strategic guidelines for the expansion of wood pellet business in Vietnam. As a research method, the Cynefin framework was adopted that can classify complicated business situations and can be applied for problem-solving processes. This research selected a set of four key issues for business sectors and evaluated their predictability, causality, and types of practices. Then, the issues were classified as belonging to one of the following: simple, complicated, complex or chaos. It was found that the key issues were either complicated or chaos areas. The suggested strategic guidelines for the successful expansion of the business include appropriate selection of raw material suppliers, vestablishment of optimal production system, effective management of combined logistics and overseas market development. Detailed action plans for the proposed strategy include (i) additional factories in Northern Vietnam to secure smooth supply of raw materials, (ii) order of Total Engineering for effective production system at the additional factories, (iii) strategic partnership with logistics companies, and (iv) forward integration through entry to Japanese market. The present research might be significant in that it applied the Cynefin Framework to solve problems of businesses and suggested a set of action plans for the expansion of the wood pellet business.