Vietnam seeks to secure coal, LNG from Australia

Vietnam has reached an agreement with Australia for long-term supplies of minerals, especially coal and liquefied natural gas (LNG) for production of energy and fertilizers in the former.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Australian Minister for Climate Change and Energy Chris Bowen will sign a memorandum of understanding on boosting cooperation in energy and mining in the presence of the two countries’ prime ministers later this week.

At a meeting on Tuesday, the two ministers shared the view that the two countries still hold great potential in bilateral energy cooperation, particularly renewable energy.

Bowen stressed the role of offshore wind and Australia’s strengths in the supply of fuels like coal, gas and LNG.

For his part, Dien highlighted Vietnam’s large energy demand as the country plans to double its electricity generation capacity to 160 gigawatts by 2030, as well as its natural potential to produce solar and wind power.

Dien expressed hope that the Australian side would support Vietnam in exploiting and processing minerals and training the renewables workforce, helping the latter to reach its net zero emissions target by 2050.

For these areas, Vietnam needs $14-16 billion a year in investment until 2030 and $18 billion a year between 2030 and 2050, Dien said.

At a meeting the same day, Dien and Austalian Minister for Trade and Tourism Don Farrell stressed the importance of trade in coal, minerals, and LNG to increase bilateral trade. They agreed to promote cooperation in these areas.

Australian agencies are processing papers for importing Vietnamese passion fruit and will consider imports of pomelo from the Southeast Asian country. Meanwhile, Vietnam is considering Australia’s petition to export plums and blueberries.

Dien is accompanying Vietnamese Prime Minister Pham Minh Chinh, who is in Melbourne to attend a summit commemorating 50 years of the ASEAN-Australia relationship and pay an official visit to Australia at the invitation of his counterpart Anthony Albanese.

Australia is a major coal supplier for Vietnam, accounting for 44% of total coal imports.