The International Energy Association Coal Mid-Year Update 2024 has found that Vietnam is on track to become the fifth biggest importer of coal in the world. Vietnam’s coal imports were up 38.6 percent in terms of volume and 14.5 percent in terms of value by the end of June.
The report notes that this is on the back of reduced hydropower output.
Hydropower output looks to be down this year as a result of the state power authorities prioritising using coal and saving water in Vietnam’s reservoirs to use when coal power producers reach capacity.
Just 15 percent of Vietnam’s power came from hydro from January to April of this year, compared to 25 percent for the same period last year came from hydro. At the same time it has been reported that about 64.6 percent of Vietnam’s electricity came from burning coal in April, whereas in 2023, on average, coal was responsible for just 46 percent of Vietnam’s electricity supply.
This goes in hand with power shortages last year that cost Vietnam’s economy an estimated US$1.4 billion.
See also: Electricity in Vietnam: Foreign Investor Cheat Sheet 2024