VietNamNet Bridge - Formosa Ha Tinh and Vedan Vietnam have asked for permission to import coal instead of doing it through Vinacomin, the nation’s biggest coal miner.

Vedan Vietnam on October 13 sent a dispatch to the Prime Minister, Ministries of Finance, Industry & Trade and the General Department of Customs (GDC), asking to allow them to import coal themselves to serve their production, instead of authorizing Vinacomin to import coal as per a government decision released in 2014.

Prior to that, Formosa also sent a document to GDC asking to allow it to import coal itself to run the thermopower plant in Nhon Trach 3 Industrial Zone in Dong Nai province.

Formosa said that the enterprise has many years’ experience in importing coal and it can find stable suppliers, and high-quality products at reasonable prices, so there is no need to import coal through Vinacomin and the Dong Bac Coal Corporation.

Vietnam, a big coal exporter, began importing coal in 2013.

Nguyen Thanh Son, a renowned coal expert, commented that the proposal is reasonable and that it needs to be considered by state management agencies.

Son stressed that importing coal is not a conditional business field. There are more than 100 coal import companies in Vietnam and there is no reason for state agencies to prohibit Formosa and Vedan to import coal.

An analyst commented that Formosa and Vedan have their reasons to come forward and import coal themselves instead of relying on Vinacomin, saying that the domestic coal is more expensive than imports.

“If enterprises have to import coal through Vinacomin or Dong Bac, they won’t have many choices. Meanwhile, only enterprises best know what kinds of coal they need and what prices they will accept,” the analyst said.

“More importantly, enterprises won’t be able to take initiative in their production if the coal import depends on others,” he added.

Vietnam, a big coal exporter, began importing coal in 2013. Since then, Formosa has been one of the five biggest coal importers with the import volume even higher than that of Vinacomin and Dong Bac.

Bui Quang Tin from the HCMC Banking University agrees that it is the right of enterprises to import materials to serve their production and the activity in no way violates the Enterprise Law.

“The two enterprises are privately run enterprises with no capital contribution from the state,” he said. 

The expert also cited laws as saying that there is no legal provision which forces enterprises, including Formosa and Vedan, to buy goods from the partners like Vinacomin and Dong Bac.

He went on to say that instead of forcing private companies to import coal through Vinacomin or Dong Bac, it would be better to let coal companies to operate under the market policy.

“If two enterprises hold the right to import coal, this would create a monopoly,” he said.

Chi Nam