VIETNAM COAL IMPORT

SHUN SHING INTERNATIONAL GROUPPrepared by: Nguyen Minh DucMobile: +84 983 23 08 79

Vietnam coal import opportunitiesCONTENTS

Market overview

Conclusion

Domestic demand

Import opportunity

Production capacity

Export capacity

Reference

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• The first 4 shipments of Coal from Indonesia/Malaysia arrived to Vietnam in 2011.

• Mining exceed the scheme of Government, and exporting to much.

• The price for domestic is much lower than for export. So all companies tend to export than supply local market.

• Main import/Export: VINACOMIN, PVCOAL, EVN

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OverviewVietnam coal

Production cap.Vietnam coal

TOTAL CAPACITY

Figure

PRODUCTION STATUS

Place of mining: Quang Ninh Province- Uong Bi- Dong Trieu- Pha Lai- Hon Gai- Cam Pha

Type of products:

Companies:- Vinacomin

Production capacity

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YEAR TOTAL CAP. MIL MTS

2012 45 – 47

2015 55 – 58

2020 60 – 65

2025 66 – 70

2030 > 75

Domestic demandVietnam coal

1Fired coal power plan (46 plants).Invest by governence companies: EVN, Vinacomin, Petro Vietnam...

Fired coal power plant

Many plants.

Metallurgy

3Cement – Fertilizer - Paper.

Others

- Located in the South and Middle of Vietnam

- Type of importing coal: Bituminous Coal, Heat value: 5.000-6.000 Kcal/kg

- Port of importing: Ho Chi Minh City, Cai Mep – Vung Tau.

- Importers: Vinacomin, Coalimex, PV Coal, ENV. Then they will distribute

- Direct users: Steel plants, Plants using boiler

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Domestic demand

YEAR TOTAL DEMAND FIRED COAL POWER

2012 32.9 – 33.7 14.4 – 15.2

2015 56.2 – 60.7 33.6 – 38

2020 112.4 – 120.3 82.2 – 98.8

2025 145.5 – 177.5 112.7 – 144.7

2030 220.3 – 270.1 181.3 – 231.1

Export volume

• Higher in price than domestic• Highest quality

YEAR CAP. MIL MTs

2011 16.8

2012 13.5

2015 5

2020 3

Import opportunitiesVietnam coal

Other difficulties for importing with big volume such as:- Financial mater- Higher price than domestic- Consumption habit- Shortage of big ports- Shortage of warehouse

Limited resources

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Compete in importing

Vietnamese govement is focusing on some coal sources e.g. - Australia, - Indonesia- Malaysia- Russia- China

Target sources

Not easy to Import from other countries, even that from countries which plentiful of coal such as Australia, Indonesia as many countries with high demand are importing from these.

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Import opportunitiesVietnam coal

3Price of coal for electronic industry is lower about 57%-63% than coal production cost. The government will increase to balance with other industries and export price.

Price of coal for electronic will be higher

There are about 46 fired coal power plants with total consumption annually about 77mil MTs. In which, about 25 plants use domestic coal with total demand is 29mil MTs, 21 plants have to import with total demand is 48mil MTs.

Increasing importing

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Domestic source is too small for supplying for demand as demand for coal will increase very fast for next years

Coal import will increase very fast

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Import volume

• Forecasted by Vinacomin.YEAR CAP. MIL MTs

2012 8.2

2015 12.5

Import volume

• Calculated by Vietnam coal plan 2020.

YEAR CAP. MIL MTs

2012 0.2 – 1.4

2015 6.2 – 7.7

2020 55.4 – 58.3

2025 82.5 – 110.5

2030 > 148.3

Vietnam Coal Industry plan 2020 (Vietnam Prime minister decision, 09/01/2012)

Coal industry development strategy is to import (VnEconomy, 24/2/2012)

Should be ten year later Vietnam have to import (Vietnam economic forum, 16/06/2011)

Coal import, a strategic duty but much challenges (Vinacomin news, 30/12/2011)

More articles....

Reference

COAL IMPORT TO VIETNAM, A GOOD OPPORTINUTY.

VIETNAM WILL IMPORT COAL MASSIVELY IN NEXT YEARS.

Conclusion

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