Paradox Export – Import of coal?

Entry and the “progress”

Coal exports are showing signs spike, become commodities with the strongest growth among all export items of Vietnam. The latest statistics of the General Administration of Customs showed that the export of coal from the first to reach 709 624 tonnes 15/5, with a turnover of 106.73 million, up 375 % in value over the same period in 2016. Notably, if in previous years, China’s largest coal import markets of Vietnam, the past few months, China has lagged, “give” the throne for water other.

Leading in coal consumption market of Vietnam is Japan. Only 4/2017 as of June, exports to this market reached 256 367 tonnes, equivalent to 35.4 million, up to 2390 % {2488 turnover compared to the same period last year. Followed by Malaysia 2nd of coal consumption in Vietnam, also spike 266531af99d4f947484cd5b653b2f0cc22158b0a0a4cac3011fdd3235a943e7d} {1261 in volume and 266531af99d4f947484cd5b653b2f0cc22158b0a0a4cac3011fdd3235a943e7d} {3651 turnover compared to the same period, reaching 95 317 tonnes, equivalent to 24.2 million USD. No. 3 is the Laotian market with 44,817 tonnes worth USD 3.8 million (May 4, 2016 while Vietnam does not export coal to Laos). Other markets such as Korea,

In reverse, coal imports despite a drop in volume but the value increased dramatically. Specifically, as of 15/5 NK 5.213 million tons equivalent reached 547.93 million, down 2.95 % in value over the same period last year. Coal import market of Vietnam is still Indonesia, Australia, Russia, China … Coal imports into Vietnam in the past 4 months since Australia was nearly 1.4 million tons, down 3.8 %; Indonesia is 1.6 million tons, up 93.4 %; Russia is 762,000 tons, down 45.9 % … compared to May 4, 2016.

In fact, the coal exports rose sharply in both volume and value, and increased in all markets due to export coal undertakings. Le Quoc Phuong, deputy director of the Center of Information Industry and Trade (MOIT), said last year, coal difficulties due to fuel prices minerals generally weaker, especially the markets largest importers Vietnam-China’s coal import stop, even discounted, should not we export almost was. That led to GDP growth decreased, life officers and employees hard … Faced with that situation, the Government has a policy to boost exports to drive growth of the industrial sector, GDP growth, exports , solve problems for the coal industry. In addition, another reason given by MOIT is because coal prices rose 54, 4 % in the first 5 months of 2017 made strong growth in export coal. This is also the general trend of coal prices on the price of commodities, the world is dependent on oil prices, while coal prices rose to 63.3 NK} %, accompanied by an increase in imports.

The issue of economic efficiency

Import export which also much more! This seems to be a paradox because logically, why must import the things you are, even while export. But in the opinion of some experts, the market economy today, this is a normal story that countries have and more. For example, China mining 266531af99d4f947484cd5b653b2f0cc22158b0a0a4cac3011fdd3235a943e7d} 50 {total coal output of the world but still imports large coal} 10 {266531af99d4f947484cd5b653b2f0cc22158b0a0a4cac3011fdd3235a943e7d exploit coal in the world.

Discuss this paradox, Truong Duy Nghia, Chairman of the Scientific and Technical heat Vietnam said: “Thoughts with coal but to enter, or re-export of coal and imports must, in my opinion is not sufficient. The problem of this story according to Nghia located in economic efficiency.

Nghia said, compared to the price, export coal with coal imported not vary much. Meanwhile, coal imports are categories that are not produced in the country, while coal export surplus medium, medium used with low efficiency. In fact, though the heat of coal imported coal not produced domestically but easy to burn, burn out, less ash. While the coal ash imports (eg coal from Indonesia, Australia) only 8} {266531af99d4f947484cd5b653b2f0cc22158b0a0a4cac3011fdd3235a943e7d also Vietnam’s coal used in power plants is very high from 32-40 {266531af99d4f947484cd5b653b2f0cc22158b0a0a4cac3011fdd3235a943e7d}, ie 4-5 times coal imports. “As much ash will cause major consequences, especially environmental issues. But the most important technical perspective on a purely professional, too much ash will be difficult to burn, do not burn masterpiece is, consuming coal, “Mr. Nghia said. Not only that,

We can say, to solve immediate challenges for the coal industry, enabling the export is a solution. But in the future, the demand for coal of Vietnam will be very large. Forecasts to 2030, coal power accounted for 54 {266531af99d4f947484cd5b653b2f0cc22158b0a0a4cac3011fdd3235a943e7d} total power output, so will need 130 million tons of coal for power stations, while domestic coal provides only 40 million tons, and the rest to NK (about 100 million tons) without any other energy sources instead. Not to mention, according to Nghia, the coal import to Vietnam is not necessarily easy when Vietnam’s sea ports are shallow water harbor, large ships can not access coal imports. If only ship carrying coal by 3 thousand tonnes as at present, will not be effective, but must be transported by ship 10 thousand tons or more.

Hence, the problem existing between coal exports and shortage of coal in the long term is still a difficult problem. Mr. Nghia stated opinion, want to improve the quality of domestic coal to imported coal for blending with domestic coal to improve combustion, reducing carbon in ash for building materials such as roller compacted concrete, the dam large hydro, adobe bricks … and to NK was the need to build coal transshipment port to port offshore coal unloading it into smaller vessels and then transferred to a factory.