Vietnam feasibility study - EITI

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to 16,000 billion VND 12 ). Of these, 560 million USD are determined as deficits from taxes and
rents; 300 million USD are related to payment of bonuses, interest, dividend and debt. Hence, the
EITI implementation plays a crucial role in enhancing capacity on accountability to all stakeholders
including the governmental authorities and the extractive companies. Furthermore, the EITI report
helps other bodies such as the National Audit Office, the parliament and civil society organizations to
monitor and oversee revenues generated from the oil and gas industry (EITI 3 , 2010).
Although the Nigeria EITI report still has some limitations, the quality of the report has continuously
increased and it partially helps against mitigating some negative impacts of the resource curse (Marie
Müller, 2010). Important factors leading to this success are strong commitment by government to
the EITI and against corruption and the active participation of civil society organizations and the
international community.
lessons from norway
Norway is a rich country in oil and gas resources. It is ranked as the 3 rd oil exporter and the 7 th oil
producer in the world. The proved oil and gas reserves are about 7.1 billion barrels and 2.05 trillion
m 3 , accounting for 0.5% and 1.1% of the world reserve, respectively. In 2009, Norway produced about
2342 barrels of crude oil per day, making up 2.8% of world production (BP, 2010).
Norway was accepted as an EITI candidate in February 2009. In June 2009, the Norwegian government
established a multiple stakeholder group and passed the Act on the EITI. The Act stipulates that all
extractive companies operating in Norway and the relevant governmental bodies are required to
report all taxes, licenses and royalties. After publicly tendering, Deloitte auditing company was chosen
to monitor all revenues generated from the extractive industry.
The EITI program of Norway focuses only on petroleum. In January, 2010, Norway disclosed its first EITI
report, in which the discrepancy of what companies paid to the government and what the government
received in 2008 was 1,659,700 Norwegian Krone (equal to over 300,000 USD). After the reconciliation
process, there were no-unresolved discrepancies.
v.6 - General cOmmenT
The EITI is an open and flexible initiative that is being applied worldwide. It has proved its effectiveness
in promoting transparency in the extractive industry. Although the EITI is rather new, it has rapidly
developed and is considered as a global standard on transparency in the extractive industry. The
EITI has been widely supported not only by governments but also by many international financial
institutions, giant extractive companies and the civil society organizations.
Some governmental agencies and extractive companies such as MOIT and PVN of Vietnam have
approached the initiative since the early period. However, so far, EITI remains as a new issue in Vietnam
and the implementation of this initiative has not yet been considered seriously.
*12: Based on exchange rate in March 2011, one dollar is equal to 20,000 VND
The Extractive Industries Transparency Initiative and the Implementation Perspective of Vietnam