- Vietnam is set to surpass Taiwan to become the fifth-biggest coal importer in the world.
- While Vietnam traditionally relies on seaborne coal, it has intensified coal imports from Laos over the past two years and plans to increase this trade further.
Vietnam is set to surpass Taiwan to become the fifth-biggest coal importer in the world, the International Energy Agency (IEA) said in its July 2024 edition of the Coal Mid-Year Update report.
The IEA said mainland China, India, South Korea, Japan, and Taiwan have consistently ranked as the world’s top coal importers in the last decade, highlighting Asia’s dominant role in the global coal trade. This period witnessed the strong economic performances of mainland China and India and the stable results of South Korea, Japan, and Taiwan.
The IEA added that Vietnam’s growing demand for coal is driven primarily by its power sector. In the short term, the low availability of hydroelectricity and the strong growth in power demand will drive up the coal demand.
The agency attributed the issues to high power usage during intense heat wave caused by El Nino, along with the reduced rainfall and state utility Vietnam Electricity (EVN) conserving water at hydropower dams.
While Vietnam traditionally relies on seaborne coal, it has intensified coal imports from Laos over the past two years and plans to increase this trade further, the IEA added.
Besides, the IEA stressed the cancellation of Song Hau 2 coal-fired thermal power plant casted doubts over other coal-fired power projects in Vietnam.
Considering the significant import demand from China, India, Vietnam, and others, the IEA expects Indonesia to fulfil a large proportion of the demand.
According to Vietnam’s General Statistics Office, the country spent over $5.01 billion on importing nearly 39.73 million tons of coal in the first seven months of this year, up 15.5 per cent in value and 34.4 per cent in volume from the same period last year.
Also, from January to July, Vietnam’s clean coal output reached 27.39 million tons, down 1.3 per cent year over year, according to the General Statistics Office.
According to EVN, Vietnam’s total electricity generation reached 179.44 billion kWh in the first seven months of 2024, up 11.5 per cent year over year. Electricity sales hit 160.41 billion kWh, up 13.52 per cent.
Coal-fired thermal power reached 96.4 billion kWh or 53.7 per cent of the total. It was followed by hydropower with 40.9 billion kWh, or 22.8 per cent; renewables with 24.02 billion kWh, or 13.4 per cent (solar power of 16 billion kWh and wind power of 7.3 billion kWh); gas-fired power with 14.65 billion kWh, or 8.2 per cent; and imported power with 3.07 billion kWh, or 1.7 per cent.