Vietnam’s mining of hard coal and lignite recorded a 12.4 percent increase in January 2025 compared to the 2019 baseline, according to Vietnam’s Industrial Production Index. However, the sector saw a 4.2 percent decline compared to December.

Year-on-year, output fell sharply by 20.1 percent in January 2025 compared to January 2024.

Vietnam’s mining of hard coal and lignite plays a significant role in supporting the country’s energy needs, with coal being a key fuel for electricity generation and industrial production. The mining of these resources primarily takes place in the northern and central regions of Vietnam, with the Quang Ninh province being the largest producer of coal, particularly hard coal, which is used extensively in power generation and cement production. Lignite, or brown coal, is also mined in the central regions and used mainly in electricity generation due to its lower calorific value.

Vietnam is one of the largest producers of coal in Southeast Asia, with coal production playing a crucial role in the energy sector. The state-owned Vietnam National Coal and Mineral Industries Group (Vinacomin) oversees the majority of the country’s coal mining activities. The government has also made efforts to increase the efficiency of coal extraction and improve the domestic coal supply, which is vital for powering the country’s expanding industries and infrastructure projects.

However, the mining of hard coal and lignite faces several challenges. One of the main issues is the depletion of high-quality coal reserves, which has made it more difficult and costly to extract the resources. Additionally, environmental concerns, such as air pollution and land degradation, are major issues related to coal mining in Vietnam. The government is focusing on improving mining technologies, environmental management practices, and increasing investments in clean energy sources to diversify the energy mix.

Despite these challenges, coal continues to be a critical resource for Vietnam’s energy and industrial sectors. The government is also exploring the possibility of enhancing its energy security through the development of renewable energy, while maintaining coal production to meet immediate energy demands. As the country looks to balance energy needs with environmental concerns, the mining of hard coal and lignite will remain a key issue in Vietnam’s broader energy strategy.

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