The Ministry of Planning and Investment (MPI) has proposed the Government to reduce coal exports to China, saying that the high export volume will cause negative impacts on the country's thermal power development strategy and lead to a drain of natural resource.
The MPI said in a monthly report sent to the government that the retreating price is also another negative factor. The price of coal exported to the foreign market has reduced to US$24 a ton in the first four months of this year, much lower than the average US$37 in the same period last year.
The Government needs to direct the Vietnam National Coal and Mineral Industries Group (Vinacomin), the nation’s largest coal producer, not to ship too much at such a low price to China, the ministry said, warning that coal exports to the foreign country have been surging.
Vietnam's export earnings from trade with China increased by 22 per cent in the four-month period, but largely thanks to coal and rubber items. Fossil-coal shipment to China reached 8.7 million tons in the period, a rise of 70.4 per cent on-year and equal to almost two-thirds of the annual target.
The Ministry of Trade (MoT) forecasts that Vietnam’s coal export value to China this year would fetch US$450 million, up 21.6 per cent against last year.
The MPI said that the current situation was causing an "adverse impact" on the country's thermal power development strategy.
Recently, Vinacomin has signed an agreement on implementing a coal export plan with the Tiangchang Investment Co. Ltd, of China’s Guangxi province and the Marubeni Corp. of Japan. Accordingly, China’s southern provinces will import around five million tons of coal, mainly anthracite, from Vietnam in the next 3-5 years with a view to meet the region’s increasing demand for energy.
According to the MoT, Vietnam’s key export items to China are materials and fuels including crude oil, rubber and coal, of which the export values make up 52.62 per cent of Vietnam’s total exports to the Chinese market.
SGT
Vietnamese
