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HANOI - Vinacomin, Vietnam's state coal miner, plans to increase production by 15% this year to meet the rising demand from the power sector amidst electricity shortages caused by high temperatures. The company, officially known as Vietnam National Coal - Minerals Industries Corp, aims to produce 39.7 million tonnes of coal in 2023, according to CEO Dang Thanh Hai, as reported by Vietnam News Agency.

As a major manufacturing center in Southeast Asia, Vietnam has been grappling with power supply issues, leading to periodic blackouts in industrial parks and residential areas. This situation has revealed underlying structural and bureaucratic challenges within the country. Coal-fired power plants remain the primary source of electricity in Vietnam, accounting for over half of the total power output in the past two weeks alone.

To meet the growing demand, Vietnam has witnessed a significant increase in coal imports, which rose by 39.9% to 17 million tonnes during the first five months of this year, based on government customs data.

Despite the reliance on coal, Vietnam has set long-term goals to transition away from this fossil fuel. The country aims to cease the construction of new coal-fired power plants after 2030 and eliminate coal usage for power generation by 2050. However, the recent surge in coal consumption is expected to pose a temporary setback to its carbon emissions reduction ambitions.