Viet Nam is exporting more coal despite a warning from experts that the country could face a shortage of this fossil fuel from 2013.

The Viet Nam National Coal and Mineral Industry group (Vinacomin) has said the country will have to import coal for domestic consumption beginning in 2013, but it could not identify the sources of coal to be imported to Viet Nam.

According to Vinacomin's figures, by 2015 the country's coal demand will reach 94 million tonnes per year, including 67 million tonnes required for thermo-power plants while Viet Nam's coal production stands at 60 million tonnes.

Local demand will rise to 184 million tonnes, including 150 million tonnes for power plants, while domestic production will be only 70 million tonnes per year by 2020.

Companies with plants fuelled by coal such as steel refineries, glass manufacturers, fertiliser and chemical plants will also face challenges due to the coal shortage.

But to win contracts for coal imports is no easy task, even at a price three to four times as high as the prices offered for Viet Nam's coal Monday.

Sai Gon Tiep Thi (Sai Gon Marketing) newspaper says most proposals made by Vietnamese groups to import coal, to buy stakes in overseas mining companies or puchase coal mines abroad have been rejected. The proposals came from such groups as Electricity of Viet Nam Corp. and Viet Nam Oil and Gas group.

A leader from a big group who declined to be named was quoted by Sai Gon Marketing as saying that buyers from Thailand and China snatched away several contracts for coal imports shortly before they could be inked between Vietnamese groups and foreign coal mining companies. "They [Thai and Chinese firms] seemed to be willing to buy coal at any cost," he said.

Despite the coal shortages, Vinacomin's subsidiaries exported nearly 13.6 million tonnes of coal in the first seven months of 2009, a year-on-year increase of 7 per cent.

In addition, in March 2009, the Trade Ministry approved a plan to export 3 million tonnes of fine anthracite coal per year to China through the Van Gia transhipment area in coal mining Quang Ninh Province by directly signing contracts with Chinese companies.

Furthermore, illegal coal exports to China are also on the rise. At a meeting in late July, the Party Committee of Quang Ninh said most of the illegal coal exports in the northern provinces came from Vinacomin.

The company has punished a dozen of its personnel, including the director and deputy directors of Mao Khe Coal Co., for "not performing their responsibility in protecting State minerals".

The coal sector was pleased with the revenues of nearly $1.1 billion earned in domestic consumption and exports, and its contribution to the country's GDP.

In a recent report, Vinacomin says domestic coal demand in 2010 will be around 25 million tonnes, and Viet Nam will have an additional 20 million tonnes for export. The company said it planned to reduce its coal exports to 5 million per year in 2012.

Sai Gon Marketing says to stop the illegal coal exports and seek solutions to energy shortages, coal export must be stopped as soon as possible.