Vietnam increases coal, oil imports

Vietnam has become an importer of coal, oil and gas, but experts have warned against a high reliance on imports.

Coal imports on the rise

Nguyen Ngoc Hung from the Institute of Energy said at a recent workshop on the nation’s energy development programing for 2021-2030 that Vietnam has been increasingly reliant on energy imports in recent years, with a sharp fall in coal exports and sharp increase in imports.

Vietnam increases coal, oil imports

In the seventh national power development plan (Plan 7), the Ministry of Industry and Trade (MOIT) pointed out that the total coal demand for electricity production in 2016-2030 is 1.4 billion tons, of which 735 million tons would be from domestic sources, while 650 million tons would be from imports.

Because of the difficulties in domestic exploitation, especially in the development of new mines, the domestic output is not enough to satisfy domestic power plants which use anthracite.

In 2018, Vinacomin and Dong Bac Corporation began importing coal and mixed it with domestic coal to provide to power generation plants.

The coal Vietnam imports is low-quality coal used for electricity production, while the coal Vietnam exports is high-quality coal that Vietnam still doesn’t need to use.

In the seventh national power development plan (Plan 7), the Ministry of Industry and Trade (MOIT) pointed out that the total coal demand for electricity production in 2016-2030 is 1.4 billion tons, of which 735 million tons would be from domestic sources, while 650 million tons would be from imports.

Regarding the gas supply, MOIT said in 2010-2019, the gas output exploited ashore to serve consumers is 8.5-10.2 billion cubic meters a year, basically satisfying the demand of gas-fired power plants.

Under the plan, large gas fields such as Ca Voi Xanh would be put into exploitation in 2024, and B Block gas field in 2023. So, the gas output to be exploited ashore in 2020-2030 would be 11-16 billion cubic meters a year.

 

Under the adjusted Plan 7, the total capacity of gas-fired power plants by 2030 would be 27,000 MW.

Because of the decline of the gas fields in the eastern part of the southern region, after 2022 (the gas output would be decreasing rapidly from 11 billion cubic meters in 2022 to 3 billion cubic meters in 2030), Vietnam would have to import LNG for power generation. LNG imports are estimated to reach 10 million tons per annum by 2030.

Reliance

Head of the Central Economic Committee Nguyen Van Binh spoke about his concerns about energy imports at a high-level energy forum held on July 22.

Binh said domestic supply sources are not enough to satisfy demand. The oil and gas reserves in the nearshore area are getting exhausted. The coal reserves are still high, but the exploitation conditions are becoming more difficult.

It is estimated that reliance on energy imports would be 33-37 percent by 2025 and 50-58 percent by 2035. 

Luong Bang

Vietnam to lift monopoly, electricity prices to be determined by market

Vietnam to lift monopoly, electricity prices to be determined by market

The Ministry of Industry and Trade (MOIT) has received many questions related to electricity pricing, including retail prices for household use and price adjustment frequency.

Electricity projects progressing slowly, Vietnam warned of power shortage

Electricity projects progressing slowly, Vietnam warned of power shortage

An electricity shortage did not occur in 2010-2019, but it may face a problem in 2021-2025 as a series of electricity generation projects have been going slowly.

 
 

Other News

.
ASEAN pushes forward with 5G connectivty cooperation
ASEAN pushes forward with 5G connectivty cooperation
BUSINESSicon  17/10/2020 

As ASEAN chair this year, Vietnam is playing a crucial role in further cementing joint activities within the bloc via boosting the application of high technologies to adapt to Industry 4.0, which is sweeping throughout the region.

Real estate stocks await cash flow
Real estate stocks await cash flow
BUSINESSicon  17/10/2020 

Domestic and foreign capital flow is expected to bolster real estate shares after the COVID-19 pandemic as many investors are paying attention to the industry.

Many hoteliers intend to divest capital due to heavy losses
Many hoteliers intend to divest capital due to heavy losses
BUSINESSicon  16/10/2020 

Over the past eight months, hotel room tariffs have plunged and hotel room occupancy rates have remained low, forcing several hoteliers to divest capital with many financially weak hotels in the local market being put up for sale.

Meeting expectations of the corporate bond market
Meeting expectations of the corporate bond market
BUSINESSicon  16/10/2020 

A new government decree tightens conditions on the issuance of corporate bonds. However, before the decree came into effect, enterprises flooded the market with new issuances.

Thai billionaire, European brewer lose money in Sabeco investment deal
Thai billionaire, European brewer lose money in Sabeco investment deal
BUSINESSicon  16/10/2020 

The Sabeco price has seen a strong recovery in the last half a year, but is still at a low price. Both Thai billionaire and the big brewer Heineken have lost money because of the drop in Sabeco share price.

Investors lose billions of VND as land prices keep rising
Investors lose billions of VND as land prices keep rising
FEATUREicon  17/10/2020 

A lot of real estate traders have missed opportunities to make huge profits because they decided to postpone purchasing plans, hoping that prices would decrease further.

Salary increases in 2020 lowest in 10 years: survey
Salary increases in 2020 lowest in 10 years: survey
BUSINESSicon  16/10/2020 

Salaries increased by 6.5% this year at multinational companies (MNCs) and 5.2% at Vietnamese companies, and are forecast to increase by 7 per cent and 7.7% next year, according to the Talentnet – Mercer Total Remuneration Survey.

The right structural adjustments help Vietnam achieve long-term growth aspirations
The right structural adjustments help Vietnam achieve long-term growth aspirations
BUSINESSicon  17/10/2020 

No nation has escaped the threat of COVID-19 to lives and livelihoods, with many countries seeing cases resurge recently. 

State firms more resilient than foreign, Vietnamese private companies: survey
State firms more resilient than foreign, Vietnamese private companies: survey
BUSINESSicon  15/10/2020 

Business resilience is highly correlated with level of digitisation, the Business Pandemic Resilience Diagnostic conducted by Grant Thornton...

Pandemic a test of fire for Vietnamese enterprises
Pandemic a test of fire for Vietnamese enterprises
BUSINESSicon  15/10/2020 

The COVID-19 pandemic has been a test for Vietnamese businesses as many have been and will be struggling to recover for the foreseeable future. 

Five expy projects unlikely to attract private investors
Five expy projects unlikely to attract private investors
BUSINESSicon  15/10/2020 

Although the National Assembly Standing Committee has given its approval to switch three of the eight subprojects of the North-South Expressway from the public-private partnership (PPP) format into wholly State-invested, 

Only 5% FDI projects in Vietnam use high technologies
Only 5% FDI projects in Vietnam use high technologies
BUSINESSicon  15/10/2020 

Vietnam is home to 32,539 valid foreign direct investment (FDI) projects with registered capital of a combined US$381 billion, of which US$233 billion has been fully disbursed.

The Vietnamese brain will decide
The Vietnamese brain will decide
FEATUREicon  16/10/2020 

"Vietnamese have nothing but brains to develop the country in the future." 

Stable outlook expected for Vietnamese dong
Stable outlook expected for Vietnamese dong
BUSINESSicon  16/10/2020 

While Vietnam is at risk of being listed as currency manipulator by the US, such a risk appears low, as the US will likely continue to reduce its dependence on Chinese exports by reorganizing its supply chain with other partners.

Vietnam banking sector to suffer in 2020 before rebounding in 2021
Vietnam banking sector to suffer in 2020 before rebounding in 2021
BUSINESSicon  15/10/2020 

Fitch Solutions expected credit growth to weaken to 7% in 2020 from 13.7% in 2019, but the growth is predicted to pick up to 12% one year later.

Realising revised growth ambitions
Realising revised growth ambitions
BUSINESSicon  15/10/2020 

Vietnam’s fourthquarter economic outlook is brighter on the back of a rise in domestic consumption and public investment.

Businesses line up for further support
Businesses line up for further support
BUSINESSicon  15/10/2020 

Continued facing with massive woes, the business community in Vietnam is in dire need of the government’s assistance for investors and enterprises to struggle through the global health crisis and grabbing new business

Infrastructure development at the centre of PPP decree direction
Infrastructure development at the centre of PPP decree direction
BUSINESSicon  16/10/2020 

Further clarifying the legal framework for infrastructure development via wider participation of private investors is expected to help the country attract more funding into the industry.

Gov’t support aids automobile industry
Gov’t support aids automobile industry
BUSINESSicon  14/10/2020 

The domestic automobile industry was forecast to thrive, given the Government’s supports in tax policies for imported automobile components coupled with the increasing income of citizens.

Digital economy and fintech see growth amid COVID-19
Digital economy and fintech see growth amid COVID-19
BUSINESSicon  15/10/2020 

The Prime Minister’s Economic Advisory Group met with the local fintech firm MoMo in HCM City on Monday.

 
 
 
Leave your comment on an article

OR QUICK LOGIN