Vietnam wants to increase coal imports from Laos

Vietnam wants to increase coal imports from Laos to meet domestic consumption needs by initiating the process of developing a trade agreement on coal procurement and cooperation with that country.

Minister of Industry and Trade Nguyen Hong Dien at a meeting to implement the development of a trade agreement on coal trading cooperation with Laos.

On the morning of August 27th, Minister of Industry and Trade Nguyen Hong Dien chaired a meeting with corporations and general companies in the energy and mineral sectors to discuss cooperation in coal trading with Laos.

In recent times, corporations and businesses have made efforts to import coal from Laos to Vietnam in accordance with the intergovernmental agreement and government directives. However, the volume of coal imported to date remains modest, not commensurate with the needs and potential of the two countries.

In order to resolve difficulties and obstacles and promote coal trade cooperation between the two countries in accordance with the directives of the Government leaders, Minister Nguyen Hong Dien requested that the relevant units develop a cooperation agreement on coal trading with Laos.

To provide a basis for drafting the cooperation agreement, the Minister requested that relevant units, corporations, and general companies submit comprehensive assessment reports on the coal trading needs between the two countries and the conditions ensuring smooth and compliant implementation.

The agreement focuses on three main issues: import volumes that can be adjusted according to actual demand; methods of purchasing and allocating imported coal from Laos to key corporations and companies.

The Department of Oil, Gas and Coal is the lead agency responsible for urgently gathering opinions from relevant ministries, sectors, and localities to finalize the draft agreement for submission to the Government, ensuring quality and timely completion.

Although Laos has large coal reserves that Vietnam could import, trade between the two sides remains limited. The Department of Oil, Gas and Coal stated that cooperation in coal trading with Laos has faced many difficulties in recent times.

The reason is that limited transportation infrastructure and high transportation costs lead to high prices for imported coal from Laos, making it uncompetitive compared to domestically produced coal or coal imported from other countries.

The Ministry of Industry and Trade expects that the implementation of the trade agreement on coal purchase and sale cooperation with Laos will ensure a stable coal supply for Vietnam.

In July of this year, the Vietnamese Ministry of Industry and Trade and the Lao Ministry of Energy and Mines signed a Memorandum of Understanding on cooperation in the coal sector for five years. According to the agreement, Laos plans to export approximately 20 million tons of coal annually to Vietnam, depending on market demand and conditions.

To ensure sufficient coal supply for electricity production in 2024, investors in coal-fired power plants are responsible for arranging 74.307 million tons of coal, of which approximately 26.1 million tons are designed to use imported coal.

According to statistics from the General Department of Customs, Vietnam's imports of all types of coal in 2023 reached over 51 million tons, equivalent to more than 7.1 billion USD, an increase of 61.4% in volume and 0.7% in value compared to 2022.

Of these, Australia is the largest supplier of coal to Vietnam, with imports reaching 19.9 million tons (accounting for 38% of total imports) worth 3.3 billion USD. Indonesia is the second largest supplier of coal to Vietnam, with approximately 19.3 million tons worth about 2.1 billion USD, and Russia is third with 4.4 million tons worth about 847.6 million USD.

Between 2025 and 2030, Vietnam is expected to import approximately 60-100 million tons per year.

Source: https://baodautu.vn/viet-nam-muan-tang-nhap-than-tu-lao-d223432.html