Coal still being stuck unless keeping the current price rate

The coal industry in the country has a large inventory level. Photo: Nguyễn Hà

The Chairman of Quang Ninh People's Committee – Mr. Nguyen Duc Long said that the coal industry is facing many difficulties and server mainly for domestic consumption including Quang Ninh province. Hence, it causes bad impact on the general growth of the province.

Therefore, leaders of Quang Ninh province proposed to the Government to take more concern and remove difficulties in consumption for the coal industry. Indeed, although the management capacity has increased, the 397 Limited Company - DongBac Corporation and the Vietnam National Coal and Mineral Industries Holding Corporation Limited (Vinacomin) still remain 10.2 million tons of coal. It not only affects to the financial situation of enterprises but also affects the lives of about 10 thousand mining workers. In addition, Mr. Long proposed to resolve the problem of exporting coal and consider VAT of coal as soon as possible, etc.

Regarding to this issue, Minister of Industry and Trade – Mr. Tran Tuan Anh said that the Ministry of Industry and Trade has reported many times to the Government for considering removing difficulties for the coal industry, especially related to costs of domestic coal mining, environmental tax rates in order to help domestic coal be more competitive.

For export coal, the Ministry of Industry and Trade has also facilitated maximally. However, besides the difficulty about cost, leaders of the Ministry of Industry and Trade also said that another issue is about technical barriers of China in terms of phosphorus remains in coal. Therefore, the coal industry is currently looking forward to the domestic market. Mr. Anh stressed that if the coal price still keeps as today, the coal sector continues in difficulties.

Currently, the price of domestic coal is high due to input costs of coal production and mining. Additionally, the volume of imported coal from foreign countries to Vietnam increased rapidly so it put more pressure on the domestic coal industry.