Vietnam to Restrict Coal Export by Raising Tax

Coal export tax rate would be expected to surge from the current 15 percent to 20 percent in a bid to restrict export of the fossil fuel, the Vietnam Ministry of Finance (VMF) said on June 28, 2011.

VMF's proposal was made after the Vietnam Coal and Mineral Industries Group (Vinacomin) imported 9,500 tons of low-quality coal from Indonesia to supply power thermo-electric plants in Vietnam, making the country to become a coal importer for the first time.

According to Vinacomin, the country would annually import 10 million tons of coal by 2012, which would increase to 100 million tons per year by 2020. Meanwhile, the country expects to annually export two million tons by 2012 and around 20 million tons by 2020.

In the first five months of 2011, Vinacomin exported 6.64 million tons of coal worth 638 million, down 25 percent year-on- year.