VN imports $1.8 billion worth of coal in Q1, mainly for thermal power generation

VN imports $1.8 billion worth of coal in Q1, mainly for thermal power generation

The rise in coal imports reflects Việt Nam’s continued reliance on thermal power, despite efforts to boost clean energy.

The Duyên Hải 3 thermal power plant. Việt Nam spent US$1.8 billion to import nearly 17.3 million tonnes of coal in the first three months of this year. — VNA/VNS Photo Vũ Sinh

Việt Nam spent US$1.8 billion to import nearly 17.3 million tonnes of coal in the first three months of this year, most of which were used for thermal power generation, according to statistics from the General Department of Customs.

The import volume increased by 16.7 per cent over the same period last year while the value dropped by 7.7 per cent due to lower coal import prices, which averaged $105.18 per tonne, down more than 20 per cent from a year earlier.

The figures showed that Việt Nam continues to have high demand for coal, as thermal power still accounts for a large portion in the national energy system, although the country is taking bold steps to accelerate clean energy.

Indonesia is the largest coal exporter to Việt Nam, accounting for more than 40 per cent of the total import volumes in the first quarter, with the average price of $82.9 per tonne, much lower than Australia and Russia.

Việt Nam imported 5.36 million tonnes from Australia at the average price of $129.32 per tonne, making Australia the second largest coal supplier to Việt Nam. Russia came third with 1.44 million tonnes at the average price of $142.27 per tonne.

With lower prices, importing coal from Indonesia became a prioritised choice of domestic plants. Việt Nam enjoys zero tariff on coal import from Indonesia with Certificate of Origin (C/O) Form D as both countries are members of ASEAN Trade in Goods Agreement (ATIGA).

Việt Nam plans to produce about 37 million tonnes of 'clean' coal this year, while domestic demand is estimated at 50 million tonnes.

Under the National Power Development Plan VIII (PDP8), coal remains the important source of energy by 2030 and even to 2045 in some scenarios.

In February, Prime Minister Phạm Minh Chính signed Decision No 266/QĐ-TTg on plan to implement the Global Coal-to-Clean Energy Transition Statement, considering decommissioning around 540 MW of aging coal-fired capacity at Phả Lại and Ninh Bình if efficiency and emission reduction targets cannot be met. 

Statistics of the Vietnam Electricity showed that thermal electricity accounted for nearly 50 per cent of the total electricity output in 2020-24 period.

The total electricity output reached 72.2 billion kWh in the first quarter of this year, in which coal-fired power accounted for 56.5 per cent, hydropower 19.1 per cent and renewable energy 16 per cent.

A report by Statistical Review of World Energy in 2022 showed that Việt Nam is among the top three countries in Asean with the highest coal reserves (3.36 billion tonnes), alongside Indonesia (34.87 billion tonnes) and Thailand (1.06 billion tonnes).

Việt Nam imported a total of 63.82 million tonnes of coal in 2024, worth $7.63 billion. 

Bizhub