In the first quarter of the year, Vietnam brings in approximately $1.8 billion in coal imports, primarily for thermal power production.

Vietnam's thirst for coal has led it to import significant volumes from various countries, with a surprising leader in the coal market - Indonesia. Let's dive into why this Southeast Asian nation dominates Vietnam's coal imports.

Natural Partners: The geographical proximity between Indonesia and Vietnam allows for efficient and cost-effective shipping, making Indonesia an ideal partner for coal imports.
Export Powerhouse: Indonesia is the world's largest global thermal coal exporter, supplying not only Vietnam but also other countries in the region [3].
Reliable Supply: With Vietnam's increasing reliance on coal for baseload power and rapid growth in metal processing industries, Indonesia has been able to meet the growing demand for coal in large quantities [4].
Price Advantage: Historically, Indonesian coal has been competitively priced compared to other significant exporters, especially for the lower-calorific thermal coal grades preferred in Vietnam's power sector.

In 2024, Vietnam imported 24.5 million tons of coal from Indonesia in just 11 months, marking a 42% increase year-on-year and confirming Indonesia as the top supplier [4].

Comparing Coal Prices from Indonesia, Australia, and Russia

While the most recent average prices for 2025 are not available, here is some context regarding coal pricing from these countries:

Indonesia

Indonesia's new Coal Reference Price (HBA) has caused some contention due to perceived lack of transparency [2].
Historical Price Range: Indonesian coal typically ranges between $60 and $130 per ton, depending on quality and market conditions.

Australia

Pricing: Australian coal commands higher prices due to its higher energy content and lower impurities.
Recent Range: Australian thermal coal export prices have varied widely, ranging from about $100 to $300 per ton, depending on global demand and geopolitical factors.

Russia

Pricing: Russian coal prices fluctuate due to sanctions and market access restrictions.
Historical Range: Russian thermal coal exports to Asia have been priced competitively, often slightly below Australian prices but above Indonesian coal.

Below is a summary table outlining the typical price ranges for these countries:

| Country | Typical Price Range (USD/ton) | Notes ||-------------|-------------------------------|--------------------------------------------|| Indonesia | $60 – $130 | Lower grades; new HBA benchmark in 2025 || Australia | $100 – $300 | Higher grades; more volatile pricing || Russia | $80 – $150 | Competitive, varies with sanctions |

Note: These are indicative ranges, as actual prices vary by grade, shipping costs, and market conditions.

The Big Picture

Indonesia's dominance as Vietnam's coal supplier underscores the significance of geographical proximity and price competitiveness.
Coal prices from these countries differ based on coal quality, market demand, and geopolitical factors, with Indonesian coal generally being the most competitively priced for lower-grade thermal coal.

The Duyên Hải 3 thermal power plant. Việt Nam spent US$1.8 billion to import nearly 17.3 million tonnes of coal in the first three months of this year. - VNA/VNS Photo Vũ Sinh

In terms of energy needs, the geographical proximity between Indonesia and Vietnam makes Indonesia an ideal partner for coal imports, contributing to Indonesia's dominance as Vietnam's major coal supplier.
In the ASEAN region, Indonesia is the world's largest global thermal coal exporter, supplying Vietnam, among other countries, due to its reliable supply and price advantage.
As Vietnam continues to rely heavily on coal for baseload power and metal processing industries, a significant average of 2030's coal imports is expected to come from Indonesia, given its cost-effective shipping and competitive pricing.
In the sports world, the average cost of Indonesian coal, particularly for lower-calorific thermal coal grades, could potentially fuel economic growth and investment opportunities, much like the adrenaline rush one gets from an exciting game.