Coal imports rise to record levels
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Vietnam’s coal imports surged to a record high in the first half of the year, showing its rising reliance on coal-fired power plants.
They rose 53.8 percent year-on-year to 31.57 million tons, according to Vietnam Customs. The imports, mostly from Australia, Indonesia, and Russia, exceeded local production by 25 percent.
Vietnam turned from a net coal exporter to an importer five years ago as the number of its coal-fired power plants rose to meet the surging power demand from one of the world’s fastest-growing large economies. Its GDP growth last year was 7 percent.
Though the government has been seeking to reduce the reliance on coal and encourages the construction of solar and wind power plants, coal plants accounted for 36.1 percent of the electricity generated last year, according to the Vietnam Energy Association.
The Ministry of Industry and Trade has warned of shortages between 2021 and 2025 after the construction of new plants fell behind schedule.
In a plan it is drafting, the ministry has ruled out building coal-fired power plants after 2030, when it will prioritize renewables and liquefied natural gas.
Questions & Answers
Q.Why has Vietnam seen such a significant increase in its coal imports?
Why has Vietnam seen such a significant increase in its coal imports?
Coal imports have surged due to Vietnam's rising reliance on coal-fired power plants. These plants are needed to meet the increasing power demand from one of the world's fastest-growing large economies, which saw 7% GDP growth last year.
Q.What is the primary source of Vietnam's imported coal?
What is the primary source of Vietnam's imported coal?
The majority of Vietnam's coal imports originate from Australia, Indonesia, and Russia. These countries supply the coal needed to supplement local production, which was exceeded by imports by 25%.
Q.When does the Ministry of Industry and Trade plan to stop building new coal-fired power plants?
When does the Ministry of Industry and Trade plan to stop building new coal-fired power plants?
The Ministry of Industry and Trade has ruled out building new coal-fired power plants after 2030, according to a plan it is currently drafting. After this date, the focus will shift to prioritising renewables and liquefied natural gas.
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