MOIT VIETNAM | Laos to Export 11 Million Tons of Coal to Vietnam in 2024

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Laos to Export 11 Million Tons of Coal to Vietnam in 2024

23rd February 2024 post by MOIT Vietnam

On February 23, the People's Committee Office of Quang Tri Province  announced that provincial leaders recently visited Sekong Province, securing several key economic cooperation agreements.

The Kaleum coal mine in Sekong Province has an estimated reserve of approximately one billion tons

The Kaleum coal mine, located in Kaleum District, Sekong Province, is approximately 120 kilometers from the international border gate at La Lay in Dakrong, Quang Tri. From there, the coal is transported to Central Vietnam's ports such as Chan May and Tien Sa, which represent the shortest route for Laos to export coal globally.

Phonesack Group, the operator of the Kaleum coal mine, announced that in 2024, the mine will produce around 22.6 million tons of coal, with 19 million tons earmarked for export. Of this, 11 million tons are destined for the Vietnamese market.

In response, Quang Tri and Sekong have committed to facilitating the extraction, transportation, and export of coal from Sekong through the Salavan and Savannakhet provinces to Vietnam via the international border gates of La Lay and Lao Bao-Densavan.

Phonesack Group has requested that the authorities of both sides expedite the construction of a coal conveyor system to transport coal from Laos to Vietnam, crossing the border at the La Lay international gate. The proposed conveyor, spanning 5.5 kilometers across the border, is expected to handle 25-30 million tons of coal annually.

Quang Tri Province is directing local companies to implement the coal conveyor project on the Vietnamese side, and has requested Sekong and Salavan to advocate with Lao authorities to expedite the installation of the conveyor on the Lao side.

Currently, National Route 15D is severely congested and in a state of disrepair. Consequently, Sekong Province has requested that Quang Tri urgently devise a plan to upgrade and repair the 12 kilometers linking the La Lay international border gate to the Western branch of National Route 15. Additionally, Sekong has proposed extending the customs clearance hours at the La Lay border gate to 9 PM daily to facilitate the import of coal.

Quang Tri Province has also authorized Phonesack Group to study and propose an investment project to upgrade the 12 kilometers of National Route 15D to enhance coal export volumes to Vietnam by road.

Mr. Vo Van Hung, Chairman of Quang Tri Province, indicated that the province has submitted a request to the Prime Minister, urging the central government to focus resources on improving infrastructure at the La Lay international border gate, expanding the 12 kilometers of National Route 15D, and coordinating with Lao authorities to extend the customs clearance time at the La Lay border gate.

Lãnh đạo tỉnh Quảng Trị thăm mỏ than Kaleum - Ảnh: LÊ TRƯỜNG

Trade activities at the La Lay border gate (Quang Tri) - La Lay (Salavan, Laos) are more vibrant than ever. In 2023, an average of 300-400 vehicles crossed the border daily, with coal transport vehicles accounting for 80% of the traffic. The import-export turnover reached nearly $250 million, a 132% increase, while state budget revenue surged to 575 billion VND, marking a 189% increase compared to 2022. Approximately,  2 million tons of coal were imported from Laos to Quang Tri in 2023.