Vietnam’s alumina exports to India likely to record a steady growth of 26% in 2019

Vietnam started producing alumina in the year 2011 in the Central Highlands. Tan Rai alumina refinery worth $460 million, invested by state mining group Vinacomin started operation in February 2011 and export in March. Now, Vietnam has become one of the emerging alumina producing hubs on the shores of the South China Sea, with an increase in its offshore alumina sales over the last three years. 

Since, Vietnam’s lion share of total exports go to India, let us here analyse how it has been performing over the years. According to the international export-import data, Vietnam in 2019 is expected to ship 865,433 tonnes of aluminium raw material to India, up 26.15 per cent from 685,995 tonnes in 2018. In fact, as per the available data, Vietnam’s alumina exports to India had been recording a steady growth over the years. In 2017, the country’s export volume had pegged at 339,459 tonnes after recording a rise of 211 per cent from 108,989 tonnes in 2016, while in 2018, it grew by 102 per cent over the year.

Also, Vietnam reportedly generates maximum revenue from alumina exports to India, compared with the shipments to other countries. The global export-import data shows Vietnam in 2019 is expected to yield revenue of US$91 million from alumina exports to India.

In December 2017, Emirates Global Aluminium (EGA), one of the world’s largest aluminium producers, had signed a three-year alumina supply agreement with Vietnamese state-owned miner Vinacomin as the UAE sought to secure feedstock for its smelters. As per the agreement then, EGA would receive 300,000 tonnes of alumina per year, the first such long-term supply deal between the UAE and a Vietnamese alumina producer.