Vietnam boosts fossil fuel imports for power generation amid shortage concerns

Vietnam has been ramping up imports of fossil fuels, mostly to feed power generators, since the start of this year, as the country strives to wipe out concerns about electricity shortages that have lingered since last year.

The country imported 55.9 million tons of fossil fuels, including coal, crude oil, petroleum products, and liquefied gas, in the first seven months of this year, up 18.73% year-on-year, data from the government-run General Statistics Office shows.

The total included 39.73 million tons of coal, up 34.4% year-on-year; 8.01 million tons of crude oil, up 15.5%; 6.29 million tons of petroleum products, up 2.7%; and 1.86 million tons of liquefied gas, up 24.5%.

The imported fuels were valued at $16.34 billion, rising 8.41% from the same period last year.

Of the sum, $5.01 billion was spent on importing coal, a rise of 15.5% year-on-year; $5.05 billion on crude oil, up 19.1%; $5.09 billion on petroleum products, up 4%; and $1.2 billion on liquefied gas, up 31.4%.

The import value of fossil fuels accounted for 7.67% of the country’s total imports in the seven-month period.

According to the General Department of Vietnam Customs, between January and June, Indonesia was Vietnam’s largest coal provider, with 14.34 million tons worth $4.79 billion; followed by Australia with 8.2 million tons valued at $1.38 billion.

The Southeast Asian country also spent $3.73 billion on importing 6.1 million tons of crude oil from Kuwait, up 23.2% year-on-year in volume.

The imports were designed to fuel thermal power plants across the country, also among the fastest-growing economies in Asia, during the peak dry season (April-June), as hydropower plants were storing water for later generation.

Vietnam suffered short-lived yet critical power shortages in early summer last year, triggering indignation from households and factories, mostly in the northern region, which is home to the country’s largest hydropower plants.

The government, which is committed to carbon neutrality by 2050, has since repeatedly vowed not to allow a reoccurrence of electricity shortages under any circumstances.

State utility Vietnam Electricity (EVN) is about to finish construction of a new 500-kV transmission line to transfer power from the central region to the north, where major manufacturing plants are located.