Vietnam is considering a special resolution to let licensed coal producers raise output by no more than 15% above their approved capacity, multiple local media outlets reported, as the government moves to shore up energy security amid geopolitical tensions, volatile fuel imports, and rising domestic power demand.

The proposal, submitted by the Ministry of Agriculture and Environment, reflects growing concern that instability in global energy markets, particularly risks linked to the Middle East and key shipping routes such as the Strait of Hormuz, could disrupt fuel supplies.

Domestic electricity demand is rising quickly alongside the recovery and expansion of manufacturing, while imported fuel remains exposed to price swings, logistical constraints, and supply uncertainty.

The ministry said domestically produced coal remains a crucial baseload energy source for maintaining stable power system operations, supporting industrial output, and safeguarding national energy security.

If approved, the measure would help secure coal supplies for electricity generation and other core industries, while improving the country's energy resilience.

The government is therefore weighing a dedicated resolution that would create a special mechanism to simplify procedures for short-term increases in coal mining capacity, allowing supplies to be added more quickly during periods of peak demand.

According to the ministry, although Vietnam's legal framework for geology and mineral resources is broadly complete, companies seeking even modest output increases must still go through multiple administrative steps, including investment approvals, environmental assessments, and amendments to mining licenses.

Those procedures often take considerable time, preventing existing mining capacity from being mobilized promptly. Authorities said most of the proposed adjustments would not materially change the nature of mining projects. They would not extend mine boundaries, raise licensed reserves, alter mining technologies, or significantly increase environmental impacts. The main obstacle lies in administrative procedures rather than a lack of resources or mining capacity.

The proposal partly follows recommendations from the Vietnam National Coal and Mineral Industries Group (TKV). The enterprise, accounting for a bulk of Vietnam's coal output, churned out 9.65 million tonnes of coal in the first quarter this year, with March's volume 1.2% beyond the target at 3.57 million tonnes.

Relatively favorable weather supported production, but rising fuel prices pushed input costs upward, TVK said in its statement.

Vietnam's coal output amounted to 45.65 million tonnes in 2025, 3.93% higher than a year ago, showed data from the General Statistics Office of Vietnam.

In submissions to ministries, TKV identified four underground mines that could raise production by no more than 15% above licensed levels. These mines are currently licensed to produce 1.5-2.5 million tonnes of raw coal a year.

The four mines have stable geological conditions, synchronized infrastructure and equipment, and comply with labor safety and environmental protection standards, according to the reports.

Allowing them to produce more would help supplement coal supplies for power generation in 2026-2027, in line with the prime minister's directive to proactively secure energy supply.

The move comes as pressure builds on Vietnam's power system. By the end of 2025, the country's installed generation capacity had reached about 88 GW, of which coal-fired capacity accounted for nearly 28 GW, or more than 30%.

Even as renewable capacity has expanded rapidly, actual power output remains highly reliant on weather conditions, leaving coal-fired plants with a central role in providing baseload electricity and stabilizing the grid, especially during the dry season and peak demand periods.

Vietnam's total electricity output in 2025 was estimated at more than 320 TWh, while peak demand exceeded 54 GW. As a result, even a relatively small disruption in coal supply could place significant strain on the national power system.

Under the draft resolution, only legally operating mines with valid licenses would qualify, and any increase would be capped at 15% above licensed capacity. Applications would be handled under simplified procedures based on previously approved investment, environmental and technical assessments.

However, requirements on labor safety, environmental protection and financial obligations would remain unchanged.

The proposed resolution would stay in force until the end of 2027, giving authorities greater flexibility to counteract global energy volatility while reinforcing the nation's long-term energy resilience through optimized use of existing mining assets and infrastructure, and converting licensed capacity into actual output more efficiently.

Iran and the US have agreed by mid-week on a two-week conditional ceasefire with provision for the temporary reopening of the Strait of Hormuz, a crucial maritime channel. But analysts noted the initial agreement "doesn't change the situation in the sense that Iran is still in control", Bloomberg reported, adding that it still required "ships to essentially seek permission".

Nevertheless, hours after the announcement of the ceasefire, Iran closed the Strait of Hormuz again in response to Israel's continuing attacks on Lebanon, injecting uncertainty into the energy supply chain.