Vietnam feasibility study - EITI

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To clarify the way of operation of the EITI Committee, most countries have established a Memorandum
to the Committee of EITI activities. Each member of the Committee shall sign into the memorandum
to indicate their commitment to the EITI, including:
• Commitment on rules and criteria of EITI;
• Way of operation and management of EITI program;
• Rights and obligation of each unit when signing the Memorandum;
• The description of way to create the EITI report;
• The way to administrator or commission an independent auditor.
step 3: determining the scope of the eItI program
Depending on the context of each country, the scope of the EITI programs in the countries are different.
Therefore, each country must determine the scope of its programs from an early stage. Here are six
issues that the country must consider in determining the scope of the EITI program:
• Theprocessofcomparison(intermsofdocumentsfromtherevenueresource)ortheauditprocess:
a basic decision on the scope of EITI program, that is, report of the EITI will be the comparison
between the payment and income source or decide to go deeper into the details and allows the
data on income and expenditure audited by international auditing standards (by an appropriate
audit firm).
• The companies’ report: It is the determination of what type of companies that will participate in
EITI report. As shown above, in Vietnam, we present the state-owned enterprises and enterprises
with foreign investment in oil and gas and mining coal, titanium, copper and iron are the first
enterprises to be involved.
• The limit on what expenditures and revenues must be disclosed: Each country decides for
themselves the limits on expenditures of the enterprise (corresponding to revenues of the state)
that should be reported in the EITI report.
• The degree of detail of published data in the EITI report. This is a requirement for specificity of
revenues and expenditures that should be presented in the report. While some countries only
reported total expenditures and revenues, a number of other national reporting requirements
give more detail about the account (e.g. source, line) revenue and expenditure.
• The report includes expenses and revenues at the central level or at the local level: Some countries
choose to report not only on the expenses that the company paid in the central state level, but
also requires the companies to report that the company paid at the local level.
• The report includes other industries: A handful of countries in the world decide the scope of
EITI programs not only in the field of minerals, but also in other sectors such as forest resources.
Some countries also expanded the EITI program with the chain of revenues from mining to
manufacturing.
step 4: develop the working schedule for eItI
Along with the establishment of the EITI programs Committee, countries should develop a clear
implementation plan for EITI. This plan requires political commitment and budget as in the box
below.
The Extractive Industries Transparency Initiative and the Implementation Perspective of Vietnam