Vietnam has suffered intermittent power shortage crises in the past two years, prompting the country's coal-fired power plants to import more coal to meet high demand for electricity generation.
Vietnam imported a total 34.55 million tonnes of coal over the first eight months of 2023, rising 54.8% from a year earlier, while its coal exports slumped 63.8% year on year to 315,000 tonnes, showed data from General Department of Customs, Ministry of Finance of Vietnam.
In August alone, the country imported 4.99 million tonnes of coal, up 68.5% from the previous year yet down 8.1% month on month; export volume came in at 54,400 tonnes, down 51.4% on the year and 2.3% from July, data showed.
During this summer, the El Nino weather pattern caused severe drought across Vietnam, leading to a significant depletion of water reservoirs. Most lakes were only at half their average levels, severely limiting hydropower generation. As a result, sudden power outages occurred in industrial parks in northern Vietnam, causing disruptions in factory production.
The growth in coal imports in Vietnam was primarily driven by the increasing demand in domestic thermal power utilities. Coal-fired power generation is expected to remain the major source of electricity in Vietnam's power sector for the foreseeable future, as it will continue to rely on coal to meet the majority of its energy needs.
According to the latest energy plan by the Vietnam's government, coal imports are projected to reach approximately 73 million tonnes by 2030. By 2035, intakes are expected to further increase by about 12 million tonnes, reaching a peak of 85 million tonnes. However, by 2045, imports may decrease to 50 million tonnes.
This indicates that Vietnam's coal imports will continue to rise in the coming years, with a substantial increase expected this year, potentially surpassing 50 million tonnes once again.
Source: sxcoal
