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PM allows Formosa to import own coal

access_time Oct 28,2016 chat_bubble_outline 94 views

The Prime Minister has allowed Taiwanese firm Hung Nghiep Formosa Co., Ltd. (Fomosa), to import own coal for electricity production at its coal-fired thermal power plant located in the southern province of Dong Nai’s Nhon Trach 3 industrial park, according to newswire Vneconomy.


PM allows Formosa to import own coal


The reason for the approval is the thermal power plant’s important role in the Southern energy grid and Formosa’s factories as well as 17 other factories in Nhon Trach 3 IP. 

Besides, since the thermal power plant came into operation, it has used been importing coal for electricity production. 

The Ministry of Industry and Trade (MoIT) has issued guidance on implementing the PM’s directions. 

The MoIT also requested the General Department of Vietnam Customs to help Formosa deal with difficulties during the importing procedures.

On September 2, Dong Nai province’s Nhon Trach Customs Branch guided the company in completing procedures to import coal. However, the company was legally required to go through two major Vietnamese importers, Vietnam National Coal-Mineral Industries Holding Corporation Limited and Dong Bac Coal Corporation, and would only be able to import directly upon receiving the PM’s approval. 

Formosa requested importing its own coal because domestic coal is not only low-quality but also not suitable with the technology line of the plant. 

In addition, Formosa has vast experience in the import sector and has its own coal sources with high-quality and suitable prices.

Following Formosa, Vedan Vietnam Enterprise Corporation Limited (Vedan Vietnam) is the second 100 per cent foreign-owned company that submitted a proposal to the PM, the MoIT, the Ministry of Finance, and the General Department of Vietnam Customs to import coal for electricity production in its coal-fired boiler without going through domestic intermediaries. 

However, the PM has yet to give directions regarding Vedan’s proposal.

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