Vietnam Orders Emergency Coal Supply Measures After Indonesia's State Export Monopoly Takes Effect

On June 16, 2026, Vietnam's Ministry of Industry and Trade (MOIT) held a high-level meeting chaired by Deputy Minister Nguyen Hoang Long and issued a set of directives to address acute supply risks to imported coal for power generation. The meeting was triggered by Indonesia's new state-controlled export regime through PT Danantara Sumberdaya Indonesia (DSI), which began transitioning on June 1, 2026, and Middle East instability, against the backdrop of Vietnam's structural coal deficit — domestic output fell 4.2% year-on-year in the first five months of 2026, while the country needs 17–19 million tonnes of imported coal for power this year.

The diplomatic response: a direct letter to Indonesia

MOIT's Minister sent an official letter to the Indonesian Minister of Energy and Mineral Resources, requesting that Indonesia continue facilitating coal exports to Vietnam and maintain export volumes in 2026 and subsequent years, and prioritize implementation of coal purchase agreements already signed between enterprises of both countries .

Operational orders to coal importers and power producers

1. Urgently review all ongoing coal import contracts — proactively contact suppliers to update contract implementation status, delivery schedules, and identify potential risks .

2. Develop detailed contingency plans for scenarios where traditional imported coal sources are disrupted .

3. Diversify coal import sources to reduce dependence on a limited number of traditional suppliers (Indonesia, Australia, and Russia together supply over 86% of Vietnam's coal imports) .

4. Actively seek stable, long-term supply sources with suitable quality characteristics to prevent any risk of supply disruptions for power generation .

5. Study and adopt appropriate coal procurement contract structures that include risk mitigation clauses ensuring contracted volumes and priority delivery rights .

6. Proactively reach out for government support — MOIT, Vietnam Trade Offices overseas, and diplomatic missions stand ready to assist enterprises in connecting with suitable new partners .

All entities were also instructed to continue strictly implementing prior directives from the Government, Prime Minister, and MOIT regarding assurance of primary fuel supplies for electricity generation .

Why this matters: Vietnam's coal dependency and the Indonesian shock

Vietnam's annual coal demand exceeds 80 million tonnes, but domestic mining capacity is only 40–45 million tonnes per year, creating a structural deficit that the MOIT meeting was designed to address . The country requires 17–19 million tonnes of imported coal for power generation in 2026, representing 20–22% of total coal demand .

Indonesia is Vietnam's largest coal supplier, and the new export regime through PT Danantara Sumberdaya Indonesia (DSI) began transitioning on June 1, 2026, under Government Regulation No. 24/2026 . Under the new framework, all exports of coal, palm oil, and ferroalloys must eventually be routed through DSI, with full implementation by January 1, 2027 at the latest . During the transition period (June 1 to August 31, 2026), miners can still operate under existing contracts but must report all transactions through DSI . From September 1, 2026, DSI is planned to take over as the main export actor .

Indonesian coal miners have warned that buyers may shift supplies to other origins due to the uncertainty created by the new policy .

The broader energy security context

The June 16 MOIT meeting follows earlier government actions to safeguard fuel supplies. On March 5, 2026, Deputy Prime Minister Bùi Thanh Sơn instructed ministries and state energy companies to prepare contingency plans due to the escalating conflict in the Middle East . On March 10, 2026, MOIT issued Directive 06 requiring comprehensive solutions to ensure the supply of petroleum, electricity, and coal . Vietnam also activated a monitoring and early-response mechanism for domestic fuel supply on March 5, 2026 .

In April 2026, the Prime Minister ordered increased power imports from Laos and the study of floating power plants to avert shortages, particularly in northern Vietnam .

Sources

The evidence is drawn directly from MOIT's official English-language report of the June 16 meeting published June 17, 2026 , supplemented by independent reporting on the Indonesian DSI policy rollout and Vietnam's broader energy security measures .