According to The Star article published on March 7, 2023, the Industry and Trade Minister of Vietnam is asking a trio of power giants to keep the supply of coal stable at all costs in 2023, as the mineral is essential for power generation and fertiliser production.
In his meeting with state-owned heavyweights on March 3, Minister Tran Hong Dien called on Vietnam Electricity, Vietnam Oil and Gas Group and Vietnam National Coal and Mineral Industries Group (TKV) to keep a close watch on coal supply.
He said under no circumstances should the supply be disrupted as coal is an essential mineral that thermal power stations and fertiliser factories cannot go without.
If a coal shortage occurs, it will deal a heavy blow to the economy, he said.
To keep coal shortages at bay, the minister urged the trio to act in line with a governmental directive and the ministerial instructions on the provision of coal.
He also ordered that coal suppliers and purchasers comply strictly with the contracts they both agreed to. Otherwise, they would be held responsible for any damage arising from their failure to fulfil the contracts.
He also called on the trio to find new coal exporters, especially those who have signed a free trade agreement with Vietnam, to boost coal imports.
Some potential candidates in this regard include Indonesia, South Africa and Laos.
Specifically, he called for extensive research into Lao policies on coal exports and the construction of routes allowing Lao coal to be transported into Vietnam at the lowest cost. He also suggested coal warehouses be built near the Lao border to reduce mileage.
Vietnamese coal importers have been urged to move into top gear to be well-prepared for the import targets set for this year. The same goes for coal producers, who must toil away to keep pace with their targets.
TKV and Dong Bac Corp (DBC) are tasked with improving capacity to churn out sufficient coal for electricity generation.
They have also been asked to build intermediate warehouses in the central and southern provinces so that coal in transit can be temporarily stored before being shipped to thermal power plants.
The minister also asked the inspectorate of the Construction Ministry to carry out regular checks on the companies to ensure their construction works take place as requested.
According to the Department of Oil, Gas and Coal in the Industry and Trade Ministry, about 57.9 million tonnes of coal is be brought to the market in 2023, of which 44.7 million tonnes will be domestically produced and 13.2 million tonnes imported from abroad.
Meanwhile, Vietnam’s total coal consumption is expected to reach approximately 57 million tonnes during the same period, with 46.2 million tonnes being used for electricity generation, 2.5 million tonnes for fertiliser production and 8.3 million tonnes for other uses.
