MOIT VIETNAM | Vietnam Aims to Import 20 Million Tons of Coal from Laos Each Year

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Vietnam Aims to Import 20 Million Tons of Coal from Laos Each Year

21st July 2023 post by MOIT Vietnam

Vietnam and Laos have recently signed a Memorandum of Understanding (MoU) to strengthen their cooperation in the coal sector. Vietnam will now import an additional 20 million tons of coal annually from Laos for the next five years, contributing to its energy security.

The MoU, signed by the Ministry of Industry and Trade and the Ministry of Energy and Mines of Laos, aims to support Vietnam's transition towards cleaner and more sustainable energy sources while ensuring its energy needs are met. For Laos, this agreement presents an opportunity to effectively exploit and leverage its coal resources, contributing to its socio-economic development.

To ensure the smooth implementation of the MoU, both countries have assigned technical authorities to complete the internal procedures promptly. This will enable the practical and effective execution of the agreement.

Laos has emerged as an important supplier of coal, ores, and minerals to Vietnam in recent times. Last year alone, Vietnam imported 1.8 million tons of ores and minerals from Laos, with a total value of $78.2 million. In the first half of this year, Vietnam imported over 900,000 tons of ores and minerals worth $31.6 million from Laos.

In addition to minerals, Vietnam and Laos have collaborated on various energy projects, including hydroelectric projects, grid linkage, and electricity imports from Laos. Currently, Vietnam has 220 kV power lines connected to Laos, with plans to import at least 3,000 MW of electricity from Laos by 2025 and 5,000 MW by 2030, as agreed upon by the two governments. The Prime Minister has already approved the importation of electricity from various Lao projects, with a total capacity of 2,689 MW in the current period.