Vietnam feasibility study - EITI

20
MOF has the role to manage these revenues and implement their expenditure under supervision
of the government. Departments of Finance at local levels have similar responsibilities. MOF has
to propose the mechanisms and policies on financial management and exploitation to increase
state revenues from mining activities. In addition, MOF together with other related ministries
like MONRE and MOC have a role to advise the government about the use of state budget in
extraction activities.
• Ministry of Construction (MOC) guides and supervises the implementation of planned exploration,
mineral mining and processing of construction materials and raw materials for cement
production under the supervision of government. MOC is responsible to guide and evaluate
mining technology, mineral processing, construction materials, cement raw materials, building
material production and substances for construction material products technology. MOC also
has to evaluate investment projects in exploiting and processing construction materials and
raw materials for cement production in the fields of industrial supplies construction materials
as assigned by the Government. Furthermore, MOC has to implement technical regulations and
safety and occupational health regulations for mining, mineral processing and construction and
cement raw materials.
• The Provincial People’s Committees (PPC) have the responsibility to manage on behalf of the state
in mineral extraction activities as well as revenues in the localities. It is responsible for periodically
reviewing and reporting to central agencies on use and expenditure of revenues at local levels. In
addition, the PPC has the right to grant licenses to small mines, which are not included in national
mineral planning.
the role of extractive company in the extractive industry
The number of mining company has been sharply increasing with an average growth of 21.7% per
year. There were 427 extractive companies in 2000, which quintupled by 2008 (Table 4). Within the
period of 1988-2008, the number of FDI projects was 126 with a registered capital investment of
10,583.6 million USD.
The Extractive Industries Transparency Initiative and the Implementation Perspective of Vietnam
table 4. number of extractive company within 2000 – 2008
No Category 2000 2002 2003 2004 2005 2006 2007 2008
1 Coal 38 46 52 58 72 73 89 103
2 Gas-oil 2 2 2 6 6 9 11 15
3 Metal mineral 25 51 64 85 87 99 145 187
4 Stone and other minerals 362 780 911 1 044 1 112 1 188 1 447 1879
Total 427 879 1 029 1 193 1 277 1 369 1 692 2184
Source: GSO, 2009
The extractive industry of Vietnam is growing in scale, not only inside its homeland but also in
other countries such as Cambodia, Laos, Russia and Venezuela, particularly with oil and bauxite. For
example, in 2009, the Vietnamese government signed a memorandum of understanding (MOU) with
the Cambodian government with a worth 6 billion USD to invest in various projects, of these bauxite
exploitation in Modulkiri province worth 2 billion USD (Vietnam National Assembly, 2009).
The extractive company in Vietnam comprises three main players including the state and privately
Vietnamese and foreign invested enterprises. These players differ not only in business structure,
but also in type of minerals exploited. While some crucial minerals that help to stabilize the national
economy, like coal, oil, iron and gold are often given to the state-run business, others less important
ones are opened to both private and foreign investment.
• The state owned enterprise: it could be possibly divided into two sectors based on the company
scale, namely national and local. Most of the local state owned enterprise are small scale with low