Trade-off: energy export or security?

June 29, 2015 | 17:33

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The Vietnamese government has authorised state-run Vietnam National Coal and Mineral Industries Holding Corporation Limited (Vinacomin) and Dong Bac Corporation to export two million tonnes of coal in 2015, following a proposal by the Ministry of Industry and Trade.

According to the ministry’s (MoIT) estimate, Vietnam's total commercial coal output is likely to reach 40.03 million tonnes in 2015, 43.77 million tonnes in 2016, 50.38 million tonnes by 2020, and 57.49 million tonnes by 2030. 60-95 per cent of this volume is qualified for power generation.

On the basis of the ministry’s estimations on coal consumption and output tendencies, Vietnam will become a net importer as soon as in 2017. The disparity is expected to widen over time, with net imports almost quintupling in size by 2020, reaching an estimated 26.5 million tonnes. Based on statistical data currently available, Vietnam will need to import roughly 52 per cent of its annual domestic coal output to cover the rising energy demand.

Vinacomin deputy general director Nguyen Van Bien said that in the first six months of this year, the group estimated to have generated a revenue of VND45 trillion ($2.09 million), up 2.5 per cent from the same period last year.

"As the government requested the cessation of coal dust export in early 2015, we restricted exports to several hundred thousand tonnes of high-quality coke coal and coal dust to Japan. This figure is far lower than that of previous years," Bien disclosed.

Vinacomin aims to sell 38 million tonnes of coal in 2015, two million tonnes of which will be exported. Laos and Japan remain Vietnam's major export markets in this area. The group exported six million tonnes of coal in 2014, and 14 million tonnes in 2013.

Meanwhile, Dong Bac Corporation plans to sell 4.8 million tonnes of coal this year, 4.55 million tonnes of which will be sold at home and 250,000 tonnes will be shipped abroad, mostly in Japan, which imported 877.34 tonnes of Vietnamese coal worth $109 million in 2014.

By By: Thanh Huong

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