Vietnam feasibility study - EITI

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According to calculations, oil and gas reserves of Vietnam can only be available within next 30 years.
Therefore, it is necessary that Vietnam should strengthen its exploration activities to increase the
reserves for its long-term development.
I.2 - OvervIew Of THe eXTracTIve InDusTrY In vIeTnam
I.2.1 Introduction of the extractive industry
The organizational EI sector started rather long ago with opencast coal mining activities. According to
Dai Nam record books by the Nguyen dynasty, the operation and exploitation of large-scale coal mining
began in 1839. King Minh Mang approved the decision to open a coal mine in Dong Trieu district,
Quang Ninh province. At that time, mining technology was very rough, based mainly on manpower.
In the late 19 th century, the Nguyen dynasty ceded some mining areas to French mining companies (in
Hon Gai and Cam Pha districts). Until 1954, the French were conducting coal mining on an industrial
scale. Mining technologies were imported from Europe with some equipment and motor vehicles.
The following period from 1954 to 1975 marked the transformation of the EI with the management
by the Democratic Republic of Vietnam. In 1955, after French withdrawal, the Vietnam government
took over mining areas. The EI sector was soon reorganized. Many exploiting and processing mineral
enterprises were established to serve the needs of national construction. At the same time, with the
help of the socialist countries, especially the former Soviet Union, a large amount of survey activities,
geological and mineral exploration, including oil and gas, had been completed. Several important
mines such as Tinh Tuc tin and Trai Cau iron mine were discovered and operated.
After 1975, geological survey and exploration of deposits of minerals have been deployed in the
whole territory of Vietnam. To date, geological and mineral maps have been created at 1/500.000 and
1/200.000 scales, covering the entire area of the territory. Nearly 70% of the territory is mapped at
1/50.000 scale. The survey has discovered many places of mineral potential. The mining technology
has been gradually modernizing. Human resources in the mining sector have also been better trained.
Products supply raw materials and fuel for the metallurgical industry, construction, and export.
In 1989, the State Assembly (now the Standing Steering Committee of the National Assembly)
promulgated the Ordinance on Minerals. After that, the National Assembly adopted the Law on
Minerals in 1996, which was then complemented and revised in 2005. The Law on Petroleum was
firstly promulgated in 1993 and then amended in 2000 and 2008. At present, Vietnam has sufficient
and detailed legal documents on mineral resources and petroleum.
I.2.2 exploration, exploitation and process the mineral resources
exploration activities
In regard to mining activities, according to the statistical results, in the period from September 1996
to the end of 2009, 640 exploration projects of over 20 different minerals were evaluated and licensed
by the former Ministry of Industry and MONRE. Furthermore, after the amended Law on Minerals came
into effect, from October 2005 to the end of 2009, 350 exploration projects of normal building minerals
were licensed by the Provincial People’s Committees. Some foreign invested enterprises also explored
some minerals such as gold, wolfram ore, nickel, and titanium. To date, most of these explored mines
are being operated.
Regarding oil and gas exploration activities, after defeating the French in 1954, with the assistance of
the Soviet Union, the North carried out a large amount of works in surveying and exploring geology
and minerals, including oil and gas. On the 27 th of November in 1961, the Geological Federation No.
36 under the General Department of Geology was established to carry out oil and gas exploration in
The Extractive Industries Transparency Initiative and the Implementation Perspective of Vietnam