Government urges competitive coal market

The Government has assigned the Ministry of Industry and Trade (MoIT) to build a development roadmap for a competitive coal market as there are new coal suppliers.— Photo dautu.vn The Government has assigned the Ministry of Industry and Trade (MoIT) to build a development roadmap for a competitive coal market as there are new coal suppliers. The State would gradually reduce its control in the market while ensuring supply and demand balance. Deputy minister Hoang Quoc Vuong held a meeting with the Viet Nam National Coal and Mineral Industries Group (Vinacomin) and Dong Bac Corporation in the northern province of Quang Ninhon on Thursday to study the roadmap to ensure national energy security for socio-economic development. The ministry would submit the proposal to the Government for approval with an aim to have a coal market which ensures local households’ consumption, prices follow supply and demand and export markets are actively built. Following the meeting, the ministry would also work with coal consumption households to resolve the industry’s difficulties. It would submit documents to the Government instructing Electricity of Viet Nam (EVN) and Viet Nam National Oil and Gas Group (PetroVietnam) to continue buying coal from Vinacomin and Dong Bac Corporation this year. The ministry would also allow the export of coal that does not depend on quota to help Vinacomin and the corporation balance their finances. Vuong said coal demand has been diversified. EVN and PetroVietnam have developed several thermo-power plants…... [read more]

Coal industry wants to boost exports to lower inventoryVan Nam Vang Danh coal mine in the northern province of Quang Ninh - PHOTO: VAN NAM HCMC – The coal mining industry, a major contributor to the nation’s GDP growth, plans to export more coal than approved for this year in a bid to reduce huge inventories. The industry’s revenue is forecast to reach VND110 trillion (US$4.8 billion). The Government inspected three major business groups – Vietnam National Coal and Mineral Industries Group (Vinacomin), Vietnam Textile and Garment Group (Vinatex), and Vietnam Electricity Group (EVN) – in the first half of this year, Minister and Chairman of the Government Office Mai Tien Dung said at the Cabinet teleconference on Monday. Data of the Prime Minister’s working group, which is headed by Minister Dung, shows Vinacomin has come up with workable solutions to achieving its growth target. Vinacomin turned out 13.3 million tons of coal in January-June, up 8.5% year-on-year and representing 54% of the full-year plan. It promised to meet its respective revenue and profit targets of VND110 trillion and VND2 trillion in all of 2017. However, Minister Dung said the group’s coal inventories are still large, at 9.3 million tons. “Prime Minister Nguyen Xuan Phuc asked Vinacomin to take drastic measures to turn the coal mining sector into a highly competitive industry, ensure national energy security and fuel economic growth,” said Dung. He said the Ministry of Industry and Trade had proposed the Government let Vinacomin export more coal than…... [read more]

The Viet Nam Petroleum Association (VINPA) has sent a document to the Ministry of Finance (MoF) in support of the ministry’s proposal to increase the environmental protection tax on oil and gas consumption. — Photo infonet.vn The Viet Nam Petroleum Association (VINPA) has sent a document to the Ministry of Finance (MoF) in support of the ministry’s proposal to increase the environmental protection tax on oil and gas consumption. However, VINPA said the proposed increase from the current VND3,000 to VND8,000 per litre of petroleum was too high and instead suggested a rise to VND5,000 per litre. The association also proposed an environmental tax of VND3,000 on diesel (compared to the current VND1,500), an increase in the tax on aviation fuel from the current VND3,000 to VND5,000 per litre, and on mazut from VND900 to VND3,000 per kilo. The association said the environmental protection tax on oil and gas consumption would ensure responsibility of organisations and individuals in protecting the environment while following the global integration process. VINPA’s chairman Phan The Rue affirmed that the association’s proposed tax increase was suitable with the country’s economy, ensuring State budget collection and national energy security as well as the benefit to consumers. MoF’s deputy minister Tran Xuan Ha said at the National Assembly (NA) meeting earlier this month that the increased level of the environmental protection tax would be decided by the NA’s Standing Committee. Ha said the collection from the tax increase would…... [read more]

The Prime Minister has approved a master plan on restructuring enterprises under the Electricity of Vietnam (EVN) in the period 2017-2020.  Under the plan, the EVN will be developed into a strong economic group to maintain a key role in ensuring power supply for socio-economic development, national energy security, as well as national security and defence. The PM approves EVN business restructuring project The EVN is expected to play a key role in developing the country’s power industry in a rapid and sustainable manner with high competitiveness and effective international integration. Its key business lines will include power generation, transmission, distribution and trading, power import-export, as well as investment in and management of investment in power projects. It will be also in charge of managing, operating, maintaining and upgrading power generation, transmission and distribution facilities and providing investment project making and management consultancy. The EVN will still remain the one-member limited liability company in which the State holds 100 percent of charter capital.  It will include subsidiary companies such as the Son La, Hoa Binh, Ialy, Tri An, Tuyen Quang, Se San and Huoi Quang-Ban Chat hydropower companies, the Electric Power Trading Company, the Power Information Centre and several electricity project management units. It will hold 100 percent of charter capital at the National Power Transmission Corporation, the Northern Power Corporation, the Central Power Corporation, the Southern Power Corporation, the Hanoi Power Corporation, the Ho Chi Minh City Power Corporation, and the National Load Dispatch Centre. It will also hold…... [read more]

Under the plan, the EVN will be developed into a strong economic group to maintain a key role in ensuring power supply for socio-economic development, national energy security, as well as national security and defence. The EVN is expected to play a key role in developing the country’s power industry in a rapid and sustainable manner with high competitiveness and effective international integration. Its key business lines will include power generation, transmission, distribution and trading, power import-export, as well as investment in and management of investment in power projects. It will be also in charge of managing, operating, maintaining and upgrading power generation, transmission and distribution facilities and providing investment project making and management consultancy. The EVN will still remain the one-member limited liability company in which the State holds 100% of charter capital.  It will include subsidiary companies such as the Son La, Hoa Binh, Ialy, Tri An, Tuyen Quang, Se San and Huoi Quang-Ban Chat hydropower companies, the Electric Power Trading Company, the Power Information Centre and several electricity project management units. It will hold 100% of charter capital at the National Power Transmission Corporation, the Northern Power Corporation, the Central Power Corporation, the Southern Power Corporation, the Hanoi Power Corporation, the Ho Chi Minh City Power Corporation, and the National Load Dispatch Centre. It will also hold more than half of charter capital at the power engineering consulting joint stock companies 1 and 2, the power generation corporations…... [read more]

The PM approves EVN business restructuring project (Illustrative image. Source: VNA) Hanoi (VNA) – The Prime Minister has approved a master plan on restructuring enterprises under the Electricity of Vietnam (EVN) in the period 2017-2020.  Under the plan, the EVN will be developed into a strong economic group to maintain a key role in ensuring power supply for socio-economic development, national energy security, as well as national security and defence. The EVN is expected to play a key role in developing the country’s power industry in a rapid and sustainable manner with high competitiveness and effective international integration. Its key business lines will include power generation, transmission, distribution and trading, power import-export, as well as investment in and management of investment in power projects. It will be also in charge of managing, operating, maintaining and upgrading power generation, transmission and distribution facilities and providing investment project making and management consultancy. The EVN will still remain the one-member limited liability company in which the State holds 100 percent of charter capital.  It will include subsidiary companies such as the Son La, Hoa Binh, Ialy, Tri An, Tuyen Quang, Se San and Huoi Quang-Ban Chat hydropower companies, the Electric Power Trading Company, the Power Information Centre and several electricity project management units. It will hold 100 percent of charter capital at the National Power Transmission Corporation, the Northern Power Corporation, the Central Power Corporation, the Southern Power Corporation, the Hanoi Power Corporation, the Ho Chi Minh…... [read more]

At a meeting with Vinacomin on June 19, the working group, appointed by the Prime Minister, said it is very important to resolve the stockpile as Vinacomin’s growth contributes significantly to the country’s overall economic growth. To meet the GDP growth target of 6.7% in 2017, the Government wants to boost the growth of the oil, gas and mining sectors. At the meeting, Mai Tien Dung, head of the working group, minister and chairman of the Government Office, said that the PM wants Vinacomin to pay attention to five issues closely related to the group’s operations and the overall economic growth target of the country. Foremost, Phuc wants Vinacomin to deal with its stockpile of 9.3 million tonnes of coal. “This is the biggest obstacle in the way of Vinacomin’s growth and business efficiency,” said Dung. Secondly, the PM has asked the group to draw up measures and propose policies to the Government to cut prices so that Vietnamese coal can compete against imported coal. Currently, imported coal (coded 4B) is priced at roughly VND1.5-1.6 million (US$66.6-71.1) per tonne, but the same Vietnamese coal is roughly VND2 million per tonne. “If we do not handle it well, there will be huge competition pressure. This requires Vinacomin to put more efforts into restructuring, revamping and reducing costs,” Dung said. Thirdly, Vinacomin must improve its investment efficiency by speeding up profitable projects, and closely supervising projects that are going slow. The…... [read more]

The Vietnam National Coal Mineral Industries Group (Vinacomin) must cut costs to become competitive and find buyers for its stockpile of 9.3 million tonnes of coal, Prime Minister Nguyen Xuan Phuc’s working group said. A worker of the Vietnam National Coal and Mineral Industries Group (Vinacomin) at a production line. At a meeting with Vinacomin on June 19, the working group, appointed by the Prime Minister, said it is very important to resolve the stockpile as Vinacomin’s growth contributes significantly to the country’s overall economic growth. To meet the GDP growth target of 6.7 percent in 2017, the Government wants to boost the growth of the oil, gas and mining sectors. At the meeting, Mai Tien Dung, head of the working group, minister and chairman of the Government Office, said that the PM wants Vinacomin to pay attention to five issues closely related to the group’s operations and the overall economic growth target of the country. Foremost, Phuc wants Vinacomin to deal with its stockpile of 9.3 million tonnes of coal. “This is the biggest obstacle in the way of Vinacomin’s growth and business efficiency,” said Dung. Secondly, the PM has asked the group to draw up measures and propose policies to the Government to cut prices so that Vietnamese coal can compete against imported coal. Currently, imported coal (coded 4B) is priced at roughly 1.5-1.6 million VND (66.6-71.1 USD) per tonne, but the same Vietnamese coal is roughly 2 million VND per tonne. “If we do not handle it…... [read more]

At a meeting with Vinacomin on Monday, the working group, appointed by the Prime Minister, said it is very important to resolve the stockpile as Vinacomin’s growth contributes significantly to the country’s overall economic growth. To meet the GDP growth target of 6.7 per cent in 2017, the Government wants to boost the growth of the oil, gas and mining sectors. At the meeting, Mai Tiến Dũng, head of the working group, minister and chairman of the Government Office, said that the PM wants Vinacomin to pay attention to five issues closely related to the group’s operations and the overall economic growth target of the country. Foremost, Phúc wants Vinacomin to deal with its stockpile of nine million tonnes of coal. “This is the biggest obstacle in the way of Vinacomin’s growth and business efficiency,” said Dũng. Secondly, the PM has asked the group to draw up measures and propose policies to the Government to cut prices so that Vietnamese coal can compete against imported coal. Currently, import coal (coded 4B) is priced at roughly VNĐ1.5-1.6 million (US$66.6-71.1) per tonne, but the same Vietnamese coal is roughly VNĐ2 million per tonne. “If we do not handle it well, there will be huge competition pressure. This requires Vinacomin to put more efforts into restructuring, revamping and reducing costs,” Dũng said. Thirdly, Vinacomin must improve its investment efficiency by speeding up profitable projects, and closely supervising projects that are going slow. The PM also wants Vinacomin to actively work with provincial…... [read more]

A worker of the Vietnam National Coal and Mineral Industries Group’ controls a production line. — VNA/VNS Photo Minh Duc The Viet Nam National Coal Mineral Industries Group (Vinacomin) must cut costs to become competitive and find buyers for its stockpile of 9.3 million tonnes of coal, the Prime Minister Nguyen Xuan Phuc’s working group said. At a meeting with Vinacomin on Monday, the working group, appointed by the Prime Minister, said it is very important to resolve the stockpile as Vinacomin’s growth contributes significantly to the country’s overall economic growth. To meet the GDP growth target of 6.7 per cent in 2017, the Government wants to boost the growth of the oil, gas and mining sectors. At the meeting, Mai Tien Dung, head of the working group, minister and chairman of the Government Office, said that the PM wants Vinacomin to pay attention to five issues closely related to the group’s operations and the overall economic growth target of the country. Foremost, Phuc wants Vinacomin to deal with its stockpile of nine million tonnes of coal. “This is the biggest obstacle in the way of Vinacomin’s growth and business efficiency,” said Dung. Secondly, the PM has asked the group to draw up measures and propose policies to the Government to cut prices so that Vietnamese coal can compete against imported coal. Currently, import coal (coded 4B) is priced at roughly VND1.5-1.6 million (US$66.6-71.1) per tonne, but the same Vietnamese coal…... [read more]




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