MOIT said because of the impact from the global  economic recovery and the Russia-Ukraine conflict, coal demand has increased and a supply shortage exists. 

The selling coal prices in the world market and transport costs are getting higher. These have caused difficulties in importing coal to Vietnam and affected the efficiency of enterprises using coal imports.

In January-July 2022, the total volume of coal provided to power plants was 25.26 million tons, equal to 57.87 percent of the yearly plan and 95.12 percent of the same period last year.

The supply in the remaining months of the year is predicted to be in accordance with signed contracts. Coal for power plants is expected to reach 43.99 million tons in 2022, including 36.84 million tons from Vinacomin and 7.15 million tons from Dong Bac Corporation.

MOIT concluded that the amount of coal provided by the two coal mines to power plants so far this year was below expectations.

The reason was the shortage of workers in the coal industry in the first two months of 2022, as a consequence of Covid-19. However, the situation has improved as workers have returned to work since March.

At the same time, coal import shortages exist because of the Russia-Ukraine conflict, causing coal prices to increase sharply.

Meanwhile, the pricing of mixed domestically exploited and imported coal has gone slowly and some enterprises have not prepared coal sources for mixing.

Some power plants have not strictly implemented coal procurement contracts they had signed before, MOIT said.

Most coal-fired power plants have signed coal procurement contracts for the medium and long term. However, many plants have not fulfilled their commitments on the amount of coal (they have not received enough coal as contracted), which has caused difficulties to Vinacomin and Dong Bac Corporation in forecasting and preparing production plans, and providing coal to generate electricity and expand coal mines.

The plants named by MOIT include Quang Ninh, Hai Phong, Nghi Son 1 and Pha Lai Thermal Power Plants.

Luong Bang