Regional Coal: Vietnam ups coal exports to China

Vietnam's coal exports to China during the January-June period increased 83 per cent as compared to the same period last year to reach 4.3 million tonnes, according to the Vietnam Coal Corporation (Vinacoal) as quoted by Asia Pulse Thursday.

The corporation said coal exports to China this year may reach 9 million tonnes, nearly 60 per cent of the country's coal exports.

The surge in coal exports to China is attributed to rising demands for coal in China to feed new thermo-power electric plants in Guangdong and Guangxi.

In addition, Vietnam's coal is cheaper thanks to short distances of transportation. Vinacoal said at this growth rate, China will become an important market for Vietnamese coal.

However, it is not easy for the corporation to maintain and expand its foothold in this market, as China also boasts great coal reserves and produces up to 80 million tonnes of coal each year. Vietnamese coal also faces competition from suppliers in Australia, Canada, Indonesia, Russia and North Korea.

Vinacoal has tried to tailor its sales policies for long-term Chinese customers, to raise its share in market to an estimated 40 per cent, compared to 30 per cent last year.

Starting from May this year, Vinacoal has also allowed its member businesses to ship coal to China across the border or from small ports in order to decrease pressure on major ports and speed up the delivery of coal to customers.(*)