Better controls would reduce mining industry losses in Vietnam

The Vietnam’s government should strengthen institutions and policies as well as improve the transparency of mining activities as an effective way of reducing industry losses.

Speaking at a conference on the Extractive Industries Transparency Initiative and Viet Nam’s Ability to Participate in the Initiative held in Ha Noi deputy director of the Constancy on Development Institute Mr Pham Quang Tu said that transparency in the industry could help the country benefit more from mining.

Deputy head of the Viet Nam Chamber of Commerce and Industry’s Legal Department Mr Dau Anh Tuan said that the mining industry would tackle illegal exploitation in a bid to preserve oil and coal supplies.

Lax State supervision meant that illegal exploration and mining was occurring in many provinces by companies with little experience or knowledge of the industry, complained Tuan.

Mr Laiï Hong Thanh deputy chief of the office of the Natural Resources and Environment Ministry said according to the law on minerals, revenue from the sector was subject to a mineral tax. However, companies had been declaring false figures to authorities regarding their mining yields, except for oil which was monitored and controlled.

The EITI is an initiative based on a voluntary alliance between governments, companies, social and international organizations to enhance transparency in the mining sector.

The EITI is based on two main mechanisms. Mining companies must make comprehensive reports on expenditure for governments, while governments must publicize the revenue it receives from the companies. An independent agency then compares the data.

Over 30 countries were participating in the EITI as of May 2010. Over 50 of the worlds largest mining companies approve of the commitments outlined in the initiative. – Steel Guru

Tags: Vietnam mining industry