The coal industry has an essential role for production activities, particularly in the energy sector. In the past five years, coal production has been volatile, especially in 2013, the world production of coal has increased sharply. However, this figure has been reduced in 2015. This is also the sharpest decline since the IEA began its statistical year in 1971.
Vietnam coal industry has a small scale and complicated geological conditions. Over the past few years, open-cast exploited coal output has still remained the key role and represented about 55-60% of the total coal mining volume of the whole industry. Vietnam coal industry is facing many difficulties, business efficiency is reduced due to factors such as the price of domestic coal is decreased, production costs are increasing when the coal mining exploitation increasingly exhausted. That requests enterprises to boost investment in pit mining, along with an increase in taxes and fees. Vietnam coal is hardly competitive with imported coal due to the higher price but lower quality.
Asia is the largest producer of coal in the world, followed by North America, Europe, and the CIS. China and the United States are two countries having a very strong coal industry with large reserves of coal, modern mining technologies and appropriate development policies, especially in some countries that restrict exports, focusing on energy production and other domestic industries.
Coal, one of the most stressed commodities in the context of the price of mineral resources are affected. Both thermal coal and metallurgical coal have fallen sharply over the past few years, even though thermal power generation accounted for about 41% of the world’s total, while metallurgical coal is still important in steel production. In the first quarter of 2018, thermal coal prices continued to rise sharply after a rebound in 2016. It is expected to continue to rise in 2018 due to strong demand from leading importers in Asia such as China, India, Japan, Korea.
From a coal-exporting country, by 2013, Vietnam has started importing coal with the ascending output. By the end of the first quarter of 2018, imported coal output reached x, xxx thousand tons (increased 1.9%) and export turnover reached xxx million USD (up 9.5% over the same period). Coal prices in Vietnam are subject to a lot of pressure from taxes and high fees in production costs. The business results of the coal industry in the past few years have not had many mutations even tended to decrease. However, by 2017, the situation was more positive.
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Ankur Gupta, Head Marketing & Communications