Vietnam's coal imports are reaching new heights.

Rising labor costs and political risks in China are benefiting Vietnam, as an increasing number of manufacturers are relocating to the country. Vietnam's economy was the fastest-growing in Asia last year, at close to 8%. Combined with positive demographics and a summer heatwave, this is leading to skyrocketing energy needs.

Coal imports have been rising strongly this year, with August imports nearly double what they were for the same month last year. This upward trend is expected to continue as domestic coal reserves dwindle and the country continues to build new coal-fired power plants. In fact, Vietnam's latest power development plan indicates that they will add 30 GW of coal-fired power plants by 2030. Additionally, the demand for metallurgical coal is projected to rise as the country expands its steel production capacity.

Coal, currently constituting 50% of the country's power generation, is poised to remain the cornerstone of Vietnam's economy.

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