The eddy covariance technique provides valuable information on net ecosystem exchange (NEE) of CO2, between the atmosphere and terrestrial ecosystems, ecosystem respiration, and gross primary production (GPP) at a variety of CO2 eddy flux tower sites. In this paper, we develop a new, satellite-based Vegetation Photosynthesis Model (VPM) to estimate the seasonal dynamics and interannual variation of GPP of evergreen needleleaf forests. The VPM model uses two improved vegetation indices (Enhanced Vegetation Index (EVI), Land Surface Water Index (LSWI)). We used multi-year (1998–2001) images from the VEGETATION sensor onboard the SPOT-4 satellite and CO2 flux data from a CO2 eddy flux tower site in Howland, Maine, USA. The seasonal dynamics of GPP predicted by the VPM model agreed well with observed GPP in 1998–2001 at the Howland Forest. These results demonstrate the potential of the satellite-driven VPM model for scaling-up GPP of forests at the CO2 flux tower sites, a key component for the study of the carbon cycle at regional and global scales.