This was shared by the Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) – Pham Tan Cong at the Workshop on Contributing Opinions to the Draft Law on Geology and Minerals organized by VCCI in collaboration with the National Assembly's Committee for Science, Technology, and Environment on June 14.

On June 14, VCCI coordinated with the National Assembly's Committee for Science, Technology, and Environment to organize a workshop to gather opinions on the Draft Law on Geology and Minerals.

At the workshop, Chairman Pham Tan Cang shared that Vietnam has average natural resource potential on a global scale. In terms of natural capital index, we rank 79th in the world. The minerals in which Vietnam has strengths include antimony, bauxite, chrome, coal, manganese, petroleum, phosphorus, and rare earths. According to 2022 statistics, the mining sector contributed approximately 2.8% to GDP, ranking around 70th in the world. However, the proportion of raw mineral exports remains quite high, accounting for about 8% of total trade value.

"The contribution of the mining industry to the economy in recent times is undeniable. However, we must frankly acknowledge the fact that our mining industry has not yet fully developed its potential. We have mainly focused on extraction without sufficient technology and capacity to invest in processing many types of metallic minerals. Some strategic minerals, such as rare earths, have not been exploited to bring economic and diplomatic benefits to the country. Deep and underground mining of many minerals still faces numerous difficulties," Chairman Pham Tan Cong shared.

Chairman of VCCI - Pham Tan Cong Delivered Remarks at the Workshop

According to Chairman Phạm Tấn Công, resource management of minerals holds significant importance for the development of each country worldwide. Resources serve as an economic advantage but can also have adverse effects on a nation's development. Among resource-rich countries globally, some leverage these resources for prosperity, while others remain mired in poverty, violence, and inequality. The key difference lies in the governance structure of resource management.

Drawing lessons from this, our Party and State place great emphasis on institutional development in the resource extraction sector. The Mineral Law was first enacted by the National Assembly in 1996, relatively early compared to many other legal fields.

Recently, the Politburo issued Resolution 10-NQ/TW in 2022, outlining strategic directions for geology, minerals, and mining industry development until 2030, with a vision towards 2045. This document is crucial in refining our governance framework for the mining industry. The resolution sets numerous goals, aiming for Vietnam to establish an advanced, modern mining industry by 2045, integrated with a circular economy model and green economy, comparable to advanced countries in Asia. Achieving this requires particularly focused institutional development, with the Law on Geology and Minerals playing a pivotal role in this endeavor.

The workshop attracted a diverse range of delegates representing business associations, enterprises, experts, and regulatory agencies

At the same time, it was noted that the Mineral Law of 2010 has been in effect for over 13 years, yielding many positive results but also requiring amendments and supplements.

Firstly, there is the issue of mineral mining rights auctions. This was introduced in the 2010 Mineral Law with expectations of enhancing transparency in this sector. However, over the 13 years of implementation, the number of mineral mines auctioned has been very low. At the central level, only 10 mines were auctioned out of a total of 441 licenses issued. At the local level, there were 827 cases of auctions out of more than 3,000 licenses. Moreover, auction prices consistently exceeded the starting prices by 20% to 40%, with some cases going as high as two to three times the starting price. Therefore, in this amendment of the Mineral Law, the issue of mine auctions requires significant attention.

Secondly, financial matters related to minerals need to be addressed. The issue of upfront fees for mineral mining rights, collected before mines begin operations and based on estimated data from exploration results, shifts all risks onto businesses. This lack of transparency and financial instability, including uncertainties related to resource taxes and environmental protection fees, makes businesses and banks hesitant to invest in large-scale mineral projects or associated processing projects.

Many Issues Raised by the Draft Law at the Workshop

Thirdly, concerns about property rights in mineral mining are also significant for many businesses. This includes issues such as mortgage rights over mineral mining rights, handling violations related to mining capacity, permitted extraction volumes, monitoring production to prevent tax and fee losses, and combating illegal mining activities. These are matters that directly impact the rights and obligations of businesses and require careful consideration.

"VCCI has been deeply involved with the drafting agency in the process of preparing this Law on Geology and Minerals. We sincerely appreciate the Ministry of Natural Resources and Environment's proactive approach, attentive listening, and spirit of collaboration in addressing challenges for businesses. At the same time, we highly commend the responsible working spirit of the Committee for Science, Technology, and Environment, which has organized multiple rounds of consultations to gather feedback from various stakeholders, ensuring the draft law is of the highest possible quality," shared Chairman Pham Tan Cong.

Alongside this, the workshop aimed to encourage delegates representing businesses and experts to actively contribute high-quality opinions. These inputs will assist the drafting agency in researching, incorporating feedback, and further refining the Draft Law for submission to the National Assembly in the near future.

Summary of the Draft Law Presented by the Drafting Agency Representative - Ministry of Natural Resources and Environment at the Workshop

Following the remarks by the Chairman of VCCI, at the workshop, the representative of the drafting agency from the Ministry of Natural Resources and Environment also presented a summary of the content of the Draft Law on Geology and Minerals.

The workshop also heard constructive suggestions and refinements to the Draft Law from representatives of businesses, experts, etc. Many opinions expressed that while the Draft Law on Geology and Minerals has somewhat reflected the desire for innovation in regulations to meet the demands of economic and social development trends, there are aspects that need further improvement alongside the positive aspects.

Specifically, some provisions on the management of mineral activities in general, upfront fees for mineral mining rights, and auctions of mineral mining rights have not fully complied with the provisions in Article 4, Clause 1 of the Draft Law. The provision in Article 51, Clause 1 of the Draft Law regarding priority for organizations and individuals conducting mineral exploration to submit applications for mineral mining licenses...

In conclusion, Mr. Le Quang Huy - Central Party Committee Member, Chairman of the National Assembly's Committee for Science, Technology, and Environment, highly valued the contributions of delegates participating in the workshop and expressed the desire that during the process of drafting and refining the Draft Law in the upcoming period until it is approved by the National Assembly, further feedback from the business community and experts will continue to be received.