Due to high import demand, the Minister of Industry and Trade proposed that Laos lower the price of coal from this country to Vietnam, to at least equal to the world price.
In addition to Australia and Indonesia - Vietnam's main coal import markets, coal imports from Laos are also being considered. According to the July 2023 memorandum, Vietnam will import about 20 million tons of coal from Laos each year, depending on actual market conditions and the needs of each side.
During a meeting during his working trip to Laos last weekend, Minister of Industry and Trade Nguyen Hong Dien said that Vietnam's demand for coal imports is very high. Conversely, increasing coal exports is also Laos' desire.
Minister Nguyen Hong Dien said that in the period of 2025 - 2030, Vietnam needs to import about 60-100 million tons of coal per year. The Ministry of Industry and Trade is ready to connect corporations and businesses of the two countries to increase cooperation in buying and selling. Domestic enterprises are also encouraged to give priority to signing contracts and commitments to buy and sell coal from Laos for domestic electricity production.
However, according to the Minister, the difficulty is that the price of Lao coal is still high, so it is necessary to find solutions to reduce the price to Vietnam. "The important thing is to have a reasonable price," he said, adding that the price of Lao coal must be at least equal to the world price to be competitive.
The Minister suggested that Lao coal mine owners restructure production processes and invest in conveyor systems to transport coal across the border to reduce mining, production and transportation costs.
He also asked the Lao Ministry of Energy and Mines to report to the Lao Government to remove the coal export tax (10%).
"This tax is issued to generate revenue for Laos but in reality it will increase the selling price," Mr. Dien said, adding that this leads to unsold coal, causing losses for both the government and businesses.
Minister of Industry and Trade Nguyen Hong Dien and Lao Minister of Energy and Mines Phosay Sayasone at the meeting. Photo: Ministry of Industry and Trade.
In Quang Tri, La Lay international border gate is an important border gate for coal transportation, directly serving the coal trade between the two countries. Coal from Laos to Vietnam through La Lay border gate will go to Chan May, Thuan An ports of Thua Thien Hue or Cua Viet port.
Minister Nguyen Hong Dien affirmed that coal trading is an issue of great concern to the two governments. Vietnam buying coal from Laos not only brings benefits to this country, but also contributes to ensuring domestic electricity supply. Therefore, Vietnam always creates conditions for transporting goods from Laos to Vietnam, especially through border gates, to ports in Vietnam.
At the same time, he also proposed that Laos invest in upgrading and expanding existing routes from Laos to La Lay and Lao Bao to improve transportation capacity.
On the Lao side, Lao Minister of Energy and Mines Phosay Sayasone affirmed that the Ministry will assign functional units to coordinate with specialized Departments and Bureaus of Vietnam to jointly remove difficulties for projects.
In addition to coal exports, Minister Phosay Sayasone wants the two sides to increase cooperation in energy. He proposed that Vietnam soon have a price frame for purchasing electricity from Laos after 2025, and connect a 500kV power line from Laos to Vietnam.
In response, Minister Nguyen Hong Dien said that Vietnam Electricity (EVN) is seeking opinions from the EVN Board of Members to approve the draft price framework before reporting to the Ministry of Industry and Trade. After that, the Ministry of Industry and Trade will review and report to the Prime Minister for approval. It is expected that in the first quarter of the second quarter, the price framework for purchasing electricity from Laos after 2025 will be issued.
Phuong Dung
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