Illustrative image (Source: VNA) Speaking at the conference held in Hanoi on January 11, Dung said Vinacominshould focus on two main tasks of coal exploitation and trading to ensurenational energy security. In addition, it should improve competitiveness forits products and protect the environment to contribute to the country’ssocio-economic development.
“In addition, Vinacomin must be one of the key State-owned enterprises inensuring coal supply to the economy. The group should not only produce coal butensure the competitiveness of exported coals, materials and operation forplants using coal,” he said.
He added that the electricity demand has been on the rise. Thermal power plantsaccount for 34 percent of total electricity plants in Vietnam.
In the near future, the number of thermal power plants will be higher as hydropowerplants have not increased while the development of renewable energy plants hasbeen slow.
“This year, the coal balance for local demand has been enough. However, thecountry will have to import 20 million tonnes of coal by 2020, 50 milliontonnes by 2025 and 80-100 million tonnes by 2030. This will be a big challengefor the economy in general and the energy sector in particular,” he said,adding that Vinacomin should be active in their coal exploitation and importsto meet local demand.
The Deputy PM also asked Vinacomin to improve the quality of exploration ofcoal and other natural resources. These will form a scientific foundation forexploitation planning and the prevention of environmental disasters.
He also required the group to improve the quality of investment projects toavoid losses. The coal sector should have solutions in place to protect theenvironment in coal exploitation, transport and usage. In addition, Vinacominshould concentrate on restructuring and reviewing its key products in eachinvestment period. It should also invest in technologies and human resources toincrease productivity and labour safety.
Vinacomin’s general director Dang Thanh Hai said it has set a target of 36million tonnes of coal this year, an increase of 1.5 million tonnes from 2016,while domestic coal consumption will be 34.5 million tonnes, and 1.5 milliontonnes for export.
It also targeted a turnover of 107 trillion VND (4.75 billion USD), posting a 6percent year-on-year increase.
Hai said the Government has allowed coal exports in the 2017-20 period to helpthe sector’s activity in production and trade.
He said the coal price for electricity production has been increased followingmarket prices. However, the costs of production, exploration, labour andenvironmental protection has also been higher, decreasing the sector’s profits,while increasing need for capital investment.
He said Vinacomin will produce coal according to the market’s demand, ensuringsuitable investments in coal, minerals, electricity, industries and supportservices.
“We will continue to complete restructuring which focuses on technology renewaland management mechanisms to reduce production costs and enhancecompetitiveness. The issues of salary, working conditions and welfare forlabourers would be also given attention,” he added.-VNA
VNA
