The Government is considering issuing a dedicated resolution to introduce a special mechanism allowing simplified procedures for increasing coal mining capacity, in a move aimed at quickly supplementing fuel supplies for electricity generation and industrial production during peak demand periods.
The proposal, submitted by the Ministry of Agriculture and Environment, comes amid rising concerns over energy security due to evolving global geopolitical tensions.
At the same time, domestic electricity demand continues to rise rapidly alongside the recovery and expansion of manufacturing activities.
Given the risks associated with imported fuel supplies, domestically produced coal remains a key base energy source supporting the stable operation of the national power system.
According to the ministry, while the legal framework governing geology and mineral resources is relatively comprehensive, businesses seeking to increase mining capacity in a short period must still complete multiple procedures related to investment approval, environmental assessment and adjustments to mining licences.
These procedures often take considerable time, meaning existing production capacity cannot be mobilised promptly, even when the proposed increase is relatively small.
Authorities noted that most proposed adjustments do not fundamentally alter the nature of mining projects. They do not expand mine boundaries, increase licensed reserves, change mining technologies or significantly increase environmental impacts. As a result, the main bottleneck lies in administrative procedures rather than resource availability or mining capacity.
The proposal for a special mechanism partly stems from recommendations by the Vietnam National Coal and Mineral Industries Group (TKV).
According to reports submitted to relevant ministries, the group has identified four underground coal mines capable of increasing production beyond the capacity stated in their licences by up to 15 per cent. The mines – Lộ Trí, Mông Dương, Khe Tam and Hà Lầm – currently have licensed production capacities ranging from 1.5 million to 2.5 million tonnes of raw coal per year.
The mines have stable geological conditions, synchronised infrastructure and equipment, and meet labour safety and environmental protection standards. Allowing higher output would help quickly supplement coal supplies for electricity generation during the 2026-2027 period, in line with the Prime Minister’s directive to proactively secure energy supply.
The proposal comes as Việt Nam’s power system faces increasing pressure. By the end of 2025, the country’s total installed power capacity had reached about 88,000MW, with coal-fired power accounting for nearly 28,000MW, or more than 30 per cent of the total.
Although renewable energy capacity has expanded rapidly, actual electricity generation remains highly dependent on weather conditions. Coal-fired power plants therefore continue to play a key role as baseload sources, ensuring system stability, particularly during the dry season and periods of peak demand.
Total electricity output in 2025 was estimated at more than 320 billion kWh, while peak demand exceeded 54,000MW. Under such conditions, even a minor shortage of coal supply could place significant pressure on the operation of the national power system.
Under the draft resolution, higher production would apply only to legally operating coal mines with valid licences, with output increases capped at 15 per cent above licensed capacity.
Applications for capacity adjustments would follow simplified procedures, relying on previously approved assessments related to investment, environmental impact and technical requirements.
However, requirements on labour safety, environmental protection and financial obligations would remain unchanged.
The proposed resolution is expected to remain in effect until the end of 2027 to help authorities respond more flexibly to fluctuations in global energy markets and ensure stable fuel supply for power generation.