The Vietnam National Coal, Mineral Industries Holding Corporation (Vinacomin) has petitioned the Vientam government to reduce the coal export tax from 20% to 10% this year to help the corporation avoid further losses.
As of last month, coal stockpiles had reached 8.5 Mt, according to Nguyen Van Bien, deputy general director of Vinacomin. Despite this, Bien said, Vinacomin had incurred losses of VND8 trillion (US$380 million) every year on average for several years, because it sells coal for power production at below market prices under a Government subsidy program.
Importers still wanted to buy coal from Vietnam but offered buying prices lower than the production cost, said Bien. "As a result, Vinacomin dare not continue signing new export contracts because we're afraid of suffering further losses.”