The Continued Importance of Coal in Power Generation

Prime Minister Pham Minh Chinh, in Notice No.245/TB-VPCP dated June 26, has instructed relevant entities to prioritize the provision of sufficient domestic coal for power generation and other industries. PM Chinh emphasized the need for the coal industry to demonstrate greater dynamism and innovation, ensuring a steady supply of coal and aiming to increase production by 10 to 15 percent.

Vietnam National Coal and Mineral Industries Group (Vinacomin) reported that nearly 21,000 million tonnes of coal were supplied to power plants in the first six months, accounting for almost 55 percent of the contracted volume and representing a significant increase of over 115 percent compared to the same period last year. Vinacomin, a state-run entity, plans to further increase coal supply for power production by approximately 500,000 tonnes in July. Additionally, Vinacomin and Dong Bac Minerals Mining Corporation collaborated with Electricity of Vietnam (EVN) to provide an additional one million tonnes of coal beyond the contracted volume.

During the past six months, Vinacomin has already supplied around 18.7 million tonnes of coal to thermal power facilities. The group expects the total coal supply for the year to reach approximately 39.7 million tonnes, reflecting a year-on-year increase of about 15 percent. The National Load Dispatch Centre predicts that coal demand will continue to rise until the end of July, decrease during the rainy season, and then rise again starting in November. Insufficient water supply to major hydropower reservoirs in the northern region, combined with the ongoing heatwave, contributes to the high demand for coal-based electricity.