Vietnam's reliance on coal-fired generation increased in March on stronger electricity demand, with coal output dwarfing other power sources while the Middle East conflict intensified energy security concerns.
The southeast Asian nation's coal-fired output was at 16.09TWh last month, up by 44pc from February — marking its sharpest month-on-month increase in two years and underscoring a push to secure stable power supplies since the outbreak of the war in late February. Coal-fired output was also up by 1pc on the year in March, and accounted for 56pc of total generation, the highest since mid-2025, according to data from state-owned utility EVN. The month-on-month jump was amplified by the nine-day lunar new year holiday in February.
Vietnam's heavier reliance on coal-fired generation is in line with earlier directive to government departments and utilities to bolster coal stocks and prepare for a harsher dry season ahead. The country has been active in the seaborne coal market lately, even though the US/Israel–Iran conflict has pushed up delivered costs across the wider energy basket, boosting seaborne coal prices and making alternatives such as imported LNG expensive. With gas-fired capacity limited, coal-based power continues to anchor Vietnam's electricity system as the country's economic growth trajectory also supports power demand. Vietnam likely imported 4.1mn t of thermal coal in March, up from 2.8mn t in February, but down from 5.2mn t a year earlier, data from analytics firm Kpler show.
Output from gas-fired utilities totalled 2.1 TWh, up 7pc on the year, the data show. Gas- and gasoil-fuelled turbines together accounted for about 7pc of total electricity generation. This represents only a small share of installed capacity, underscoring its limited role in meeting demand growth.
Hydropower output rose to 4.96TWh in March, up 11pc on the year and also higher than February's 4.08TWh, the data show. Wind power output edged down on the month in line with typical seasonal patterns, while electricity imports increased modestly but continued to account for a limited share of total supply.
Quarterly mix
Coal-power output was little changed on the year at 40.64TWh in the January-March quarter, with the 14-22 February holiday weighing on coal burn and industrial and residential power demand. Coal-fired generation during the quarter was up from 30.22TWh in the fourth quarter last year, the data show.
The increase in coal-fired generation was reflected in the country's recent demand for seaborne coal. It likely imported 10.29mn t of thermal coal in the first quarter, up from 8.31mn t in October-December 2025, according to Kpler estimates.
The country's hydro-fired generation rose to 14.92TWh in the first quarter, up from 13.76TWh from a year earlier, the data show.
