Vietnam’s coal production for December 2024 is projected to be 3.29 million tons, with an estimated total of 43.75 million tons for the entire year, according to Vietnam’s General Office of Statistics. This represents a year-on-year decrease of 2.7 percent compared to 2023, though overall production remains strong.
Vietnam’s coal production is a critical component of the country’s energy and industrial sectors, supplying domestic demand for electricity generation, cement production, and other industries. The country has substantial coal reserves, primarily located in the Quang Ninh Province, which is the centre of Vietnam’s coal mining activities. State-owned Vinacomin (Vietnam National Coal and Mineral Industries Group) is the leading player in coal mining, overseeing exploration, extraction, and distribution.
Coal is the dominant energy source in Vietnam, with most production used for domestic purposes, particularly to fuel coal-fired power plants, which account for nearly half of the country’s electricity generation. The remaining coal is exported, primarily to markets such as Japan, South Korea, and China. Export volumes, however, have declined in recent years as domestic demand has risen.
Despite its economic importance, the coal industry faces challenges, including the depletion of high-quality reserves, rising production costs, and environmental concerns. Vietnam is gradually shifting its energy focus toward renewable sources such as solar and wind, aligning with global trends and its commitments to reduce greenhouse gas emissions.
The government’s Power Development Plan VIII (PDP8) outlines a gradual reduction in coal dependency for energy generation while ensuring sufficient coal supply for industrial use. Investments in modern mining technologies and efforts to improve efficiency and sustainability are key to the sector’s long-term development. While coal production remains vital to Vietnam’s economy, its role is expected to decrease as the country transitions toward a cleaner energy future.
See also: Coal Power in Vietnam: Industry Overview