Vietnam National Coal-Mineral Industries Group (Vinacomin) received the approval by the Prime Minister for the increase in coal prices to its four major customers in the cement, electricity, paper, fertiliser and industries, said the group.
The group will make the final decision on detailed increase levels to be harmonised with the demand and supply in the domestic market instead of the proposal submitted by Finance and Industry Ministries in November.
Coal prices applied to paper, fertiliser and cement industries will be adjusted in accordance with the fluctuation of market prices while the price applied to the electricity industry will be increased in parallel with the adjustment timetable of electricity prices.
The prime minister also required finance and trade ministries to keep a close watch on the effect of increased coal prices on production and to apply measures to stabilise the domestic market by authorities in case of negative impacts.
In a meeting on October 20 last year, the group negotiated the higher prices with representatives of the four other industries. Under the November proposal, the price increase would take place in two stages with the first rise of 20 per cent starting in January 1 and the second move beginning in the third quarter this year.
Coal prices charged to the Viet Nam Cement Corporation would also rise by a further 20 per cent, starting on January 15, under an agreement reached by the corporation and Vinacomin on Thursday, said deputy general director Vu Van Hiep.