Approval of Vietnam Coal Industry Development Strategy until 2030, with a vision towards 2045

Approval of Vietnam Coal Industry Development Strategy until 2030, with a vision towards 2045 (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On January 16, 2024, the Prime Minister of Vietnam issued Decision No. 55/QD-TTg approving Vietnam Coal Industry Development Strategy until 2030, with a vision towards 2045.

The approved Vietnam Coal Industry Development Strategy until 2030, with a vision towards 2045, includes the following key contents:

Viewpoints on the development of the Vietnam Coal Industry until 2030, with a vision towards 2045

- Developing the coal industry based on efficient and resource-saving exploitation, processing, and utilization of the country's coal resources; managing imports and exports in a reasonable manner in relation to domestic production, consumption, and national energy security.

- Enhancing exploration and evaluation of domestic coal resources and reserves to provide reliable resource foundations for sustainable investment in the coal industry.

- Developing a sustainable and efficient coal industry in a coordinated and compatible manner with the overall development of other sectors of the domestic economy; diversifying investment methods in coal exploitation and business. Maximizing internal resources and expanding international cooperation to research, deploy, and apply scientific, technological, and modern industrial revolution achievements, especially in the management of exploration, mining, screening - processing, transportation, and use of coal.

- Implementing coal trading based on a market mechanism under state management, harmonizing with the global coal market; gradually transforming the coal market towards complete competition and compliance with international market practices.

- Developing the coal industry in connection with environmental protection and improvement, promoting cleaner production and a circular economy, adapting to climate change, reducing greenhouse gas emissions, and aligning with international commitments that Vietnam participates in; harmonizing with tourism development; minimizing impacts on cultural conservation areas; actively contributing to the cause of economic and social development; linking with the tasks of strengthening and enhancing national defense and security; ensuring safety in production.

- Studying efficient foreign investments in coal mining (imported Vietnamese coal) and bringing it back to Vietnam for use to gradually reduce the amount of imported coal; proactively seeking stable and long-term coal import markets with large volumes to ensure competitive and efficient prices; and meeting the development needs of domestic sectors according to each stage of development.

- Expeditiously constructing a large-scale system of ports, warehouses, and coal transshipment centers. Properly reserving coal to meet the requirements of production activities, especially electricity production.

Objectives and orientations for the development of the Vietnamese Coal Industry until 2030, with a vision towards 2045 in Vietnam

(1) Exploration and mining of coal

- Focus on upgrading existing coal resources through exploration; intensifying exploration of new mines to ensure that exploration work is always one step ahead. Striv to complete the exploration work to the bottom layer of the Northeast coal basin and completing the exploration work to the bottom layer of the An Chau coal basin to verify and upgrade the coal reserves to ensure sufficient reliability according to regulations for exploitation design.

- Innovate and apply advanced technologies for exploration and mining of coal, especially in areas at great depths and with complex geological conditions. Improving the quality of resource evaluation and assessment work for coal.

- Actively seek partners both domestically and internationally to study and invest in selecting appropriate technologies and exploration methods for the Hong River coal basin until 2030. Strive to complete the exploration of a part of the area and survey and assess the resources of the Hong River coal basin in the period from 2031 to 2045.

- Concentrate on developing and maintaining large-scale underground mines according to the criteria of "Green Mine, Modern Mine, High-Output Mine, Safe Mine"; Develop sustainable mining output; ensuring safe, efficient, and resource-saving coal exploitation; enhance mechanization and modernization in coal mining; increasing the clean coal recovery ratio in underground mining.

- Invest in research projects/experiments in coal mining at the Hong River coal basin to select appropriate mining technologies.

- Encourage localities with small coal reserves to invest in mining to serve local demand; focusing on the exploitation of coal mud as fuel and fertilizer for the agricultural and forestry sectors.

- Promote foreign investment opportunities for exploration and mining of coal (imported Vietnamese coal) to ensure efficiency and compliance with legal regulations.

- Strive to achieve an annual production of about 45–50 million tons of commercial coal (excluding coal mud) by 2030 and gradually reducing it in the period from 2031 to 2045 (reaching about 38–40 million tons by 2045).

- Strive to put the experimental mining in the Hong River coal basin into operation before 2040 to move towards industrial-scale mining before 2050 (if the experiments are successful).

(2) Regarding coal screening and processing:

- Develop coal screening and processing activities with the aim of increasing the concentration of coal screening and processing in the industry as a whole; diversify products to meet the appropriate coal demand according to the market in each stage.

- Maintain and upgrade existing coal screening plants and processing centers, in combination with reasonable maintenance of coal mining clusters; invest in the construction of new centralized coal screening plants in each region to ensure the requirements for coal processing.

- Domestic coal processing should be combined with imported coal blending to maximize the variety of coal types for electricity production; promote research and application of scientific and technological advancements to diversify products according to the market, meet environmental protection requirements, and reduce greenhouse gas emissions.

- Carry out coal screening and processing activities at local mines that are suitable for consumption needs and project capacities; construct centralized coal mud processing facilities with advanced technology; prioritize the production of products with quality suitable for the agriculture and forestry sectors; and meet environmental protection requirements.

(3) Regarding the coal market:

- Establish a coal market with multiple sellers and buyers, diversify coal sources (domestic production, blending, imports, etc.) and coal supply channels to meet the needs of consumers by 2030, and strive to operate a fully competitive coal market in various market segments after 2030.

- Complete the research and pilot application of appropriate international coal price indices as a reference for import coal prices according to the specific conditions of Vietnam as approved by the Prime Minister.

- Export and import coal in accordance with market demand and government directives to ensure maximum fulfillment of domestic coal consumption needs, especially for electricity production, including considering coal reserves.

(4) Regarding safety and environmental protection:

- Implement the criteria for "Safe - Modern - Environmentally Friendly" mines; enhance the application of scientific and technological advancements to effectively control risk factors in coal production.

- Develop the coal industry into a circular economy adaptable to climate change; promote sustainable, harmonious, environmentally-friendly development that benefits communities and other economic sectors; prevent pollution, desertification, and water depletion; ensure the flow of rivers; protect groundwater; prevent land subsidence, landslides, etc. Research efficient exploitation and utilization of mine waste rocks to promote circular economic development and environmental protection.

- Environmental protection in the coal industry is linked to the target of reducing greenhouse gas emissions to "0" by 2050.

(5) Regarding the development of infrastructure for coal production and business:

- Construct new and improve existing facilities according to the appropriate land use requirements of each mining, screening, and processing project, ensuring landscape, environment, disaster prevention, and efficient coal production to meet flexible land development needs in the future.

- Organize a transportation system suitable for coal production capacity in each region with modern, environmentally friendly, and economically efficient technology.

- Upgrade, expand, and construct new domestic ports in coal production areas to serve coal export, import, and blending with advanced, modern, environmentally friendly technology.

- Research and upgrade existing specialized ports for consuming households to enable direct coal import and transshipment for vessels with suitable tonnage when centralized ports have not been established in the regions.

- Focus on developing coal export and import infrastructure; expedite the construction of large-scale port systems, reserve warehouses, and coal transshipment facilities by region, with appropriate port types, technical infrastructure, synchronized logistics services, advanced technology, modernity, and environmental friendliness to serve coal export, import, and blending to meet domestic coal consumption needs, especially for electricity production.

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