Besides Australia and Indonesia - Vietnam’s primary coal suppliers, importing coal from Laos is also under consideration. According to a memorandum of understanding signed in July 2023, Vietnam plans to import approximately 20 million tons of coal from Laos each year, depending on market conditions and mutual needs.

During a recent visit to Laos, Minister of Industry and Trade Nguyen Hong Dien highlighted Vietnam's substantial coal import requirements. Conversely, increasing coal exports is also a key goal for Laos. The Minister stated that Vietnam's coal demand is expected to range between 60 and 100 million tons annually from 2025 to 2030. He is ready to facilitate connections between Vietnamese and Lao corporations to enhance trade cooperation. Vietnamese companies are also encouraged to prioritize contracts for Lao coal to meet domestic electricity production needs.

However, Minister Dien noted that a significant challenge is the high cost of Lao coal. He emphasized the need to find solutions to reduce costs for importing coal into Vietnam. “The key is to ensure that the price is reasonable,” he said, suggesting that Lao coal prices should be competitive with global prices to be viable. The Minister urged Lao coal producers to optimize their production processes and invest in conveyor systems for cross-border transport to reduce mining, production, and transportation costs.  He also recommended that Laos’s Ministry of Energy and Mines advise the Lao government to eliminate the 10% export tax on coal. “This tax was implemented to generate revenue for Laos but effectively increases the selling price,” Minister Dien said.He added that thissituation leads to unsold coal, resulting in losses for both the government and businesses.

In Quang Tri Province, the La Lay International Border Gate plays a crucial role in coal transportation, directly facilitating the coal trade between Vietnam and Laos. Coal imported from Laos through La Lay will be delivered to ports such as Chan May and Thuan An in Thua Thien Hue, or to the Cua Viet port. Minister Nguyen Hong Dien emphasized that coal trade is a matter of significant interest to both governments. By importing coal from Laos, Vietnam not only benefits but also ensures a stable electricity supply domestically. Therefore, Vietnam is committed to facilitating the transportation of goods from Laos, especially through border gates to ports within Vietnam. Furthermore, he proposed that Laos invest in upgrading and expanding existing roads from Laos to La Lay and Lao Bao to enhance transportation capacity. On the Lao side, Minister of Energy and Mines Phosay Sayasone affirmed that his ministry will instruct relevant departments to work with their Vietnamese counterparts to resolve issues affecting the projects. In addition to coal exports, Minister Sayasone expressed a desire for increased cooperation in the energy sector. He suggested that Vietnam establish a framework for electricity pricing from Laos after 2025 and connect a 500 kV power line from Laos to Vietnam.

In response, Minister Nguyen Hong Dien revealed that the Electricity of Vietnam (EVN) is currently seeking approval from the EVN Member Council on the draft pricing framework before reporting to the Ministry of Industry and Trade. The Ministry will then review and submit the proposal for approval by the Prime Minister. The new pricing framework for electricity imports from Laos is expected to be issued by the beginning of the second quarter of the year.