HANOI: Vietnam spent US$1.8bil 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% over the same period last year, while the value dropped by 7.7% due to lower coal import prices, which averaged US$105.18 per tonne.
This was down more than 20% from a year earlier.
The figures showed that Vietnam continues to have high demand for coal, as thermal power still accounts for a large portion of the national energy system.
This is although the country is taking bold steps to accelerate clean energy.
Indonesia is the largest coal exporter to Vietnam, accounting for more than 40% of the total import volumes in the first quarter, with the average price of US$82.9 per tonne.
This was much lower than Australia and Russia.
Vietnam imported 5.36 million tonnes from Australia at the average price of US$129.32 per tonne, making Australia the second largest coal supplier to Vietnam.
Russia came third with 1.44 million tonnes at the average price of US$142.27 per tonne.
With lower prices, importing coal from Indonesia became a prioritised choice of domestic plants.
Vietnam enjoys zero tariffs on coal imports from Indonesia, as both countries are members of the Asean Trade in Goods Agreement.
Vietnam 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, coal remains the important source of energy by 2030 and even to 2045 in some scenarios.
In February, Prime Minister Pham Minh Chính signed a decision on a plan to implement the Global Coal-to-Clean Energy Transition Statement.
This move considered decommissioning around 540 megawatts of ageing coal-fired capacity at Pha Lai and Ninh Binh if efficiency and emission reduction targets cannot be met. — Viet Nam News/ANN
