Vietnam is emerging as a vital hub for thermal coal imports as major buyers like China and India reduce their seaborne purchases. The decrease in these countries is attributed to strong domestic production and low industrial demand. This shift in demand is providing Southeast Asian economies, particularly Vietnam, the opportunity to negotiate better prices, benefiting major exporters such as Australia and Indonesia. In the first quarter of 2025, Vietnam’s thermal coal imports reached 9.4 million tons, reflecting a year-on-year increase of 6.8%.
This figure represents the highest quarterly total for the nation in recent months. Contrastingly, India and China collectively imported only 113.5 million tons of coal during the same period, the least seen since the first quarter of 2023. Vietnam showed a significant increase in thermal coal imports from Indonesia, which climbed by 40.7% year-on-year to reach 7 million tons in Q1. March saw the country importing 4.1 million tons, while April figures stood at 3.6 million tons.
Additionally, in the first four months of 2025, Vietnam imported a total of 24.44 million tons, up 18% from the prior year, with main suppliers including Indonesia, Australia, Russia, and Laos. With the Vietnamese government’s aim to achieve an 8% GDP growth in 2025, there is an increase in electricity demand, likely causing a surge in coal import activity. The Prime Minister has mandated ministries and energy companies to ensure coal supplies to meet this growing demand. While prices for thermal coal have softened due to the decline in spot buying from China, this has allowed Vietnam to secure more competitively priced cargoes.
As a result, buyers in Vietnam are increasingly shifting towards higher-quality branded cargoes, reflecting an adaptive strategy in a changing market.