Coal-Fired Power Supplies About Half of Vietnam’s Electricity: What Manufacturers and Exporters Should Prepare For
Published: October 23, 2026
Electricity remains a critical input for Vietnam’s manufacturing sector. As industrial activity and economic demand grow, coal-fired power continues to play a major role in the country’s electricity mix.
According to Vietnam Electricity (EVN), coal-fired power generation reached approximately 132.91 billion kilowatt-hours (kWh) during the first nine months of 2026, representing roughly half of the electricity generated across the national system during the period.
On October 23, Reuters published an analysis examining the relationship between Vietnam’s export-oriented manufacturing growth, rising electricity demand, and continued reliance on coal-fired power. Citing Ember data, the analysis reported a 15% year-on-year increase in coal-fired generation during the first nine months of 2026.
For manufacturers and exporters, this is more than an energy-sector issue. Energy management can affect operating costs, production continuity, and the environmental information required by international supply-chain customers.
1. Electricity Demand Is Growing Alongside Industrial Activity
Vietnam’s Ministry of Industry and Trade reported that electricity generation and imports across the national power system reached approximately 266.58 billion kWh in the first nine months of 2026, an increase of 9.65% year on year.
Commercial electricity sales to the industry and construction sectors reached 122.18 billion kWh, up 8.32%. These figures highlight the importance of industrial electricity consumption within the wider economy.
When a factory expands capacity, adds shifts, or accepts additional orders, its electricity demand may rise accordingly. Energy management should therefore be part of production planning rather than treated solely as a fixed overhead.
However, nationwide consumption figures do not establish how much an individual factory’s electricity bill has increased. Actual costs depend on tariffs, operating hours, production processes, and equipment efficiency.
2. Why Does Coal-Fired Power Remain Significant?
In information published on October 15, 2026, EVN reported that the national power system generated approximately 266.2 billion kWh of electricity during the first nine months of the year, up about 9.5% year on year. Coal-fired power contributed approximately 132.91 billion kWh.
EVN also stated that relevant organizations were coordinating to secure sufficient coal supplies for thermal power plants during the final months of 2026 and prepare fuel supplies for the 2027 dry season.
Reuters identified lower hydropower output associated with below-normal rainfall as one factor contributing to increased coal-fired generation. Its analysis also discussed the broader relationship between export-oriented manufacturing growth and rising electricity demand.
These figures do not, by themselves, demonstrate that Vietnam is facing an imminent electricity shortage. EVN reported that the power system had met demand during the period covered and that preparations for subsequent months were underway.
Businesses should instead monitor electricity availability, their actual energy costs, and environmental requirements relevant to their export markets.
3. What Does This Mean for Manufacturers and Exporters?
There are three areas worth monitoring.
First, energy efficiency affects production costs.
Continuous production lines, industrial cooling, compressed-air systems, furnaces, and other high-load equipment can consume substantial amounts of electricity. Measuring consumption by production line or product can help factories identify potential savings.
Second, international buyers may request more emissions information.
Some international supply chains, particularly buyers with environmental reporting or emissions-reduction programs, may request information about energy sources and manufacturing emissions when assessing suppliers.
Requirements vary by buyer, industry, and market. Manufacturers should confirm the specific information requested rather than assume that every exporter must meet the same standard.
Third, supplier profiles should contain verifiable data.
Where buyers request environmental or energy information, suppliers should be able to provide actual figures, a clear calculation method, and supporting documentation. Businesses should avoid describing products as “green” or “low-carbon” without adequate evidence.
4. Four Practical Steps for Factories
1. Measure electricity consumption.
Compile electricity bills and monitor consumption by month, shift, or production line. Where practical, calculate electricity use per unit of output.
2. Review energy-intensive equipment.
Assess compressed-air systems, motors, industrial cooling, furnaces, and equipment left running outside production hours. Prioritize improvements whose savings and payback periods can be measured.
3. Check export customers’ requirements.
Ask buyers what environmental indicators, energy data, and reporting methods they require. Even when no formal request has been made, maintaining basic energy records can help a supplier prepare for future assessments.
4. Evaluate suitable energy options.
Depending on the factory’s location, roof area, load profile, and investment conditions, businesses may assess rooftop solar for on-site use, energy-management systems, or equipment-efficiency improvements. Technical feasibility, costs, and applicable regulations should be reviewed before implementation.
5. Do Not Confuse Coal Dependence With an Imminent Power Shortage
A high share of coal-fired generation shows that coal remains important in Vietnam’s electricity mix. It does not automatically prove that electricity prices will rise, that factories will experience shortages, or that exporters will lose orders.
Those outcomes require separate evidence, including actual electricity tariffs, local supply conditions, production costs, and individual customers’ requirements.
A more practical response is to measure and manage energy use while monitoring relevant policy changes and market expectations.
Conclusion
During the first nine months of 2026, coal-fired power supplied approximately half of Vietnam’s electricity generation, while electricity demand across the economy continued to increase.
For manufacturers, suppliers, and exporters, this is a useful opportunity to improve energy efficiency, strengthen energy-data records, and prepare for environmental information requests from international buyers.
Factories do not need to make major investments simply because of one report about the electricity mix. The priority is to understand actual consumption, evaluate investment returns, and respond to specific market requirements.
Sources:
- Vietnam Electricity (EVN), “Proactively securing coal supplies for power generation in remaining months of 2026 and in 2027,” October 15, 2026.
- Vietnam Ministry of Industry and Trade, Q3 2026 regular press briefing, covering industrial production, trade, and energy data.
- Reuters, “US tariff war is fueling Vietnam's coal boom,” October 23, 2026. This is an analysis article, not a Vietnamese government policy announcement.
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