Import-Export Department (Ministry of Industry and Trade) Coal industry has a trade deficit of 6.7 billion USD in 2022

DNHN - The coal industry's trade deficit in 2022 is USD 6.7 billion. This information was released by the Import-Export Department (Ministry of Industry and Trade) in its 2022 report on imports and exports.

Coal is a vital input in the production of electricity, metallurgy, and numerous other economic activities. Before 2015, Vietnam imported very little coal, primarily coke for metallurgy. However, since 2015, Vietnam has been required to import coal, in an increasing volume. In particular, beginning in 2020, the amount of imported coal increased dramatically, reaching 54.81 million tonnes (nearly eight times more than in 2015), primarily thermal coal for power plants (due to Vietnam's coal production). only fluctuates at 40 million tonnes per year, which is insufficient to meet domestic demand.

According to the Vietnam Coal and Mineral Industries Group (TKV), coal imports pose numerous difficulties for businesses. Vietnam has become a net importer of coal, and this trend is accelerating. Specifically, the lack of proactive supply, combined with the price volatility resulting from the market mechanism, has an impact on the production and business costs of businesses.

Imported coal consists primarily of anthracite and semi-anthracite, bitumen, and bitumen coal used to generate electricity. The coal consumption demand of the global economy has increased gradually, particularly since March 2022, when tensions between Russia and Ukraine erupted, causing the coal supply to fall short of demand and the world coal price to continue to rise.

In the meantime, domestic demand for coal remains exceptionally high, particularly for electricity production during the hottest months of the year. Despite a decline in coal imports, the average price of imported coal increased by 82% between 2021 and 2022, propelling import turnover to a high level.

The report citing data from the General Department of Customs indicates that in 2022, imports of all types of coal into the United States will total nearly 32 million tonnes worth $7.16 billion, a 12% decrease in volume but a 60% increase in value compared to 2021.

Vietnam predominantly imports coal from Australia, Indonesia, and Russia. While Australian coal imports increased, Indonesian and Russian coal imports decreased.

In particular, Australia is the largest supplier of coal to the United States with 17 million tonnes (representing 54.8% of total imports from all countries) valued at $4.29 billion, up 9% in volume and 102% in value compared to 2021.

Imports from Russia reached 2 million tonnes with a value of USD 590 million, a 38% decrease in volume (due to Russia-Ukraine tensions) but a 12% increase in value. The volume and value of coal imports from China increased by 28% and 63%, respectively, while imports from Malaysia increased by 17% in volume and 73% in value.

PV