HCMC – Vietnam is planning to import coal from Laos to address its growing domestic energy demands, the Ministry of Industry and Trade (MOIT) said on August 27.
The ministry is drafting a trade agreement with Laos to secure coal imports. This move follows Vietnam’s existing practice of purchasing electricity from its neighbor.
On August 27, Minister of Industry and Trade Nguyen Hong Dien met with energy and mineral company leaders to discuss the proposed agreement. The goal is to ensure a stable coal supply for Vietnam and support the development of Laos’ coal industry.
Vietnam’s 2024 electricity generation plan requires over 74.3 million tons of coal for its coal-fired power plants. While domestic coal will cover part of the demand, the country expects to import around 26 million tons.
According to the General Department of Vietnam Customs, the country imported more than 51 million tons of coal worth over US$7.1 billion last year. Australia was the largest supplier, with 20 million tons, followed by Indonesia and Russia.
Despite Laos having substantial coal reserves, trade between the two countries faces challenges, according to the Oil, Gas and Coal Department at the MOIT. High transportation costs and limited infrastructure have made Laotian coal less competitive.
To enhance energy cooperation, MOIT stressed the need for supportive policies from Laos and encouraged Vietnamese companies to invest in coal mining in Laos.
The ministry said the planned trade agreement would help Vietnam ensure a stable coal supply and secure up to 20 million tons annually from Laos in the future.
