Vietnam Raises Coal, Ore Export Duties to 20 per cent

The Vietnamese Ministry of Finance June 6 issued a decision on raising tariffs on coal and ores exports to 20 per cent, aiming to cut outbound shipments of fossil fuels and materials in order to meet the increasing domestic demand, the Lao Dong newspaper reported.

 

The new duty will officially take effect from June 16, the newspaper said. The tax of 20 per cent will be adopted for fossil coal, peat and similar solid fuels made from fossil coal.

 

The tariff will be also applied for metal ores like aluminum, tin and ores used for cement production. At present, duties on coal and metal ores exports are 15 per cent, and between 10 per cent-15 per cent, respectively.

 

Vietnam will need an additional 4,000 MW of electricity annually by 2025 to meet its economy’s demand. Thus, the country will require a large volume of coal each year for power production. According to the Ministry of Industry and Trade, the nation will need 37 million tons of coal in 2010, 94 million tons in 2015, 184 million tons in 2020 and 308 million tons in 2025. (Labor)