Coal imports into Vietnam have trebled since 2021, according to the International Energy Agency, as a boom in factory manufacturing has ramped up energy demand, triggering power blackouts at times as well as overshadowing the country's commitment to reach net-zero carbon emissions by 2050. (Nikkei montage)

Vietnam set to join top five coal importer club despite green goals

Supply chain shifts away from China see power grid creaking, solar capacity unused

LIEN HOANG, Nikkei staff writer

December 27, 2024 06:00 JST

HO CHI MINH CITY -- With a net-zero carbon target looming in 25 years and a commitment made to maximize renewable energy, Vietnam has proven an attractive location in recent years for marquee investors like Apple and Lego that are keen to build factories that are green -- as well as a safe distance from the crosshairs of U.S.-China trade disputes.

But now, the one-party state's environmental ambitions have become a victim of that success. Booming energy demand and creaking power transmission grids have seen Vietnam ramp up its use of coal so much that this year the country will likely for the first time have become one of the world's top five coal importers, according to the International Energy Agency (IEA), displacing Taiwan.