Vietnam accelerates coal imports as demand peaks in 2030

VCN- In order to meet coal demand for production, Vietnam is predicted to import about 50-83 million tons in the 2025-2035 period and gradually reduce it to about 32-35 million tons in 2045.
Illustration Photo: Nguyễn Thanh
Illustration Photo: Nguyễn Thanh

The Ministry of Industry and Trade has recently issued a draft Strategy for the development of Vietnam's coal industry. Currently, the coal industry consists of two main coal production units, namely Vietnam Coal - Mineral Industries Group and Dong Bac Corporation, accounting for about 95% of the total coal output of the whole industry.

The data shows that domestic coal consumption increased rapidly from 27.8 million tons in 2011 to 38.77 million tons in 2015 and about 53.52 million tons in 2021. Thus, the volume of coal consumed now rises more than twice as much as in 2011; in which, mainly coal for power production with an increase of nearly 4 times and accounts for a high proportion in the structure of coal-consuming households.

Vietnam is in need of primary energy especially since coal demand will be higher, peaking in the 2030-2035 period. After that, demand will gradually decrease as many coal-fired power plants will stop operating after 2035 which is in line with the energy sector development roadmap.

It is forecast that Vietnam's coal demand will range from 94-97 million tons in 2025 and peak at about 125-127 million tons in 2030. Thus, in the 2025-2035 period, coal demand will be up from 94 to 127 million tons/year, mainly due to more demand for power generation and economic sectors such as cement, metallurgy and chemicals. After that, coal demand will gradually fall, to about 73-76 million tons by 2045.

Meanwhile, domestically produced commercial coal only maintains about 45-47 million tons/year in the 2025-2035 period and gradually decreases to 42-44 million tons/year in 2045.

Therefore, to meet the demand for coal for production, Vietnam is expected to import about 50-83 million tons in the 2025-2035 period and gradually reduce it to about 32-35 million tons in 2045.

According to the Ministry of Industry and Trade, the potential of coal resources is limited. On the other hand, the limitation in exploration in addition to harder mining conditions due to deeper further mining sites lead to higher coal production costs and coal product prices.

Besides, the coal industry cannot suddenly increase mining output and depends heavily on natural factors. Mining enterprises also face a labor shortage due to the harsh environment and health effects. At the same time, the trend of energy transformation in the coal industry also requires reducing mining output or switching to products with fewer emissions.

In order to ensure the development of the coal industry, in terms of mechanisms and policies, the draft clearly states: The State organizes an investigation and assessment of the Red River coal basin and a number of other coal basins in the continental shelf of Vietnam to ensure requirements for exploration and development of coal mining projects; promulgate appropriate mechanisms and policies to attract more investment in coal exploration and exploitation abroad; seek and diversify sources of imported coal to Vietnam to serve domestic demand.

Localities with coal resources shall promulgate mechanisms and policies to support coal industry units in site clearance and resettlement for exploration and exploitation.

The Ministry of Industry and Trade proposed the Government direct and regulate the selling price of domestically produced coal in accordance with the market mechanism which covers actual production and business costs and ensures reasonable profit for sustainable development of enterprises; promulgate a coal price index in imported coal transactions in line with Vietnam's regulations and international practices.

Regarding the coal market in the period to 2030, most domestic coal will be given priority to power production to ensure national energy security, accounting for about 85-90% (equivalent to 39-42 million tons) of total coal production.

Vietnam is predicted to import the most coal about 80 million tons by 2030. During this period, Vietnam gradually forms a coal market with various sellers and buyers, diversify coal sources and charcoal providers.

By Thanh Nguyễn/ Thu Phuong

Related News

Quang Ninh Customs seeks solutions to promote import and export

Quang Ninh Customs seeks solutions to promote import and export

VCN - Quang Ninh Customs Department has made efforts to synchronously deploy solutions to accompany, support and resolve difficulties for businesses, contributing to improving import and export activities through the area.
Vietnam

Vietnam's daily import expenditure surpasses VND25,000 billion

VCN - From the beginning of the year to mid-October, on average, Vietnam spent more than USUS$1 billion (equivalent to more than VND25,000 billion) each day importing goods.
Vietnam - UAE trade grows to billions of dollars

Vietnam - UAE trade grows to billions of dollars

VCN - Updated by the General Department of Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) sees a year-on-year increase of more than US$1.4 billion to nearly US$5 billion
Revamping commodity management and trade protection

Revamping commodity management and trade protection

VCN - Completing commodity management policies combined with applying trade defense measures plays an important role in protecting the interests of businesses and the Vietnamese economy. Close coordination between management agencies not only helps prevent trade fraud but also creates favorable conditions for exporting businesses, minimizing risks from anti-dumping lawsuits.

Latest News

Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.

More News

Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Lao Cai Customs sees a triple-digit surge in export-import turnover

Lao Cai Customs sees a triple-digit surge in export-import turnover

VCN - Updated from the beginning of the year to October 24, total import and export turnover through Lao Cai Customs Department increased by 102%.
Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Logistics sector must embrace innovative trends to stay competitive

Logistics sector must embrace innovative trends to stay competitive

The Vietnamese logistics industry must adapt to new trends and enhance infrastructure to remain globally competitive, speakers said at an event in Ho Chi Minh City on October 31.
Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports are likely to achieve a record high of 62 billion USD in 2024, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.
UKVFTA greatly benefits Vietnam-UK trade: Experts

UKVFTA greatly benefits Vietnam-UK trade: Experts

The UK-Vietnam Free Trade Agreement (UKVFTA), signed into law three years ago, has clearly benefited trade cooperation between the two countries, particularly in the context of Vietnam’s exports to most other major markets declining due to geopolitical tensions and headwinds in the global economy, said experts at a conference in Hanoi on October 30.
Agricultural exports likely to exceed 60 billion USD amid challenges

Agricultural exports likely to exceed 60 billion USD amid challenges

With swift production recovery and continued growth, Vietnam's agricultural sector could potentially surpass the 60 billion USD export target, according to the Ministry of Agriculture and Rural Development (MARD).
Vietnam-Philippines trade likely to exceed 8 billion USD for first time

Vietnam-Philippines trade likely to exceed 8 billion USD for first time

With the current rising trend, trade between Vietnam and the Philippines is likely to exceed 8 billion USD for the first time to hit about 8.5 billion USD in 2024, with Vietnam’s surplus of more than 3 billion USD, according to the Vietnamese Trade Office in the Philippines.
Read More

Your care

Latest Most read
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - In recent years, Israel has always been Vietnam's leading tuna export market after the US and the EU. Therefore, the recent escalation of Israel-Iran tensions is affecting Vietnam's tuna exports to this market.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countr
Mobile Version