Regional Coal: Viet Nam poised to become world's fifth-largest coal importer
Saturday, August 3 2024 - 08:23 AM WIB
Viet Nam is set to become the world's fifth-largest coal importer by 2024, driven by strong electricity demand and a shortage of hydropower, according to the International Energy Agency’s (IEA) mid-year Coal Report released in July 2024.
In 2023, Viet Nam imported 51.16 million tonnes of coal, costing approximately $7.1 billion. This marks a significant increase of 61.4% in volume and a 0.7% rise in value compared to the previous year. The surge in imports is attributed to robust electricity demand and lower hydropower output, which have intensified the need for coal.
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The country's coal consumption continued to rise in the first half of 2024, with imports reaching 33.43 million tonnes by the end of June, a 38.6% increase from the previous year. The expenditure on these imports amounted to $4.15 billion, showing a 14.5% year-on-year increase.
Over the past decade, mainland China, India, Japan, South Korea, and Taiwan have dominated global coal imports, highlighting Asia's significant role in the coal trade. However, Viet Nam's rapid growth in coal imports is positioning it to join these major importers.
Despite increasing imports from Laos and recent cancellations of coal-fired power projects like the Song Hau 2 plant, Viet Nam's energy demands continue to drive its coal import needs. This development further solidifies Asia's dominance in the global coal market, even as the world moves towards renewable energy sources.
Editing by Reiner Simanjuntak