The Vico Quang Tri Investment and Mineral Joint Stock Company (Vico Company) was issued an Investment Certificate No. 30121000052 dated August 11, 2009 by the People's Committee of Quang Tri Province and was issued a Certificate of Investment by the Quang Tri Department of Planning and Investment amended the investment’s registration No. 0280166337 dated November 17, 2016. The Vico Company also issued a Mining License No. 1178 / GP-BTNMT by Ministry of Natural Resources and Environment on June 20, 2011 for a period of 29 years from the date of issuance.
The Vico Company invested in a quartz sand processing factory in Hai Lang District, Quang Tri Province with a total investment capital of 100 VND billion. The factory with advanced technology has been in operation since December 2016 and since then, Vico has successfully signed many long-term contracts to supply the processed white sand of the factory. Although the factory's products priories to the domestic market, finding domestic customers is still difficult due to low domestic’s demands. Therefore, the Vico Company has actively researched the way out for the product by coordinating with domestic and foreign partners to promote and gain access to foreign markets to export products based on regulations allowed by Law. Over a period of one year, the company's factory has confirmed its ability to supply white processed sand to meet needs of customers in the markets of Korea, Thailand, Taiwan, Philippines, Japan. The quality is stable and create good reputations with customers and partners.
The white sand processed by the factory of Vico Company complies with the requirements of the Circular No. 04/2012 / TT-BXD of the Ministry of Construction on " export guideline of minerals forconstruction materials", meeting the export standards stipulated in the Circular and being an industrial raw material for glass production, glass household appliances, molds for manufacture of industrial machines, automobiles, solar glass, electronic products, sodium silicate in industry and foodstuffs ... The white sand processed by the Vico Company is not belonging to the group of sand materials for construction such as saline sand, construction sand (raw mineral) as the provisions of the Circular 04/2012 / TT-BXD.
Recently, the Vico Company has received a notice from the General Department of Customs on stopping sand exports through the Official Letter No. 7406 / TCHQ-GSQL dated 10 November, 2017 of the General Department of Customs, Customs clearance for export of minerals is white silica sand. As soon as it was announced, the Vico Company organized an assessment of the impact and risk of the ban and found that the ban would cause serious damages and consequences for business and survival of not only the Vico company, but also many partners, customers, great impact on the economic sector, local, national and regional economy ...
The ban on sand exports including white sand processed directly affects the main income of many exporters in general and the Vico Company in particular. The ban caused serious damages to Vico and businesses in the mining industry, pushing businesses to risk bankruptcy because of the possibility of fines and contract compensation, not only that also damages to services provided such as banks, transportation, construction contractors, seaports ... have invested in services provided by trust in prospects of the white sand exports.
The ban affects the economic and the social stability, loosing opportunites to call for investmenst, economic developments and increased budget revenues. For the Vico Company, although the company has just been in operation since December 2016, the company's export volume is 183,880 tons, bringing the export turnover about VND 122.8 billion and total tax cost that the company has paid is VND60.4 billion to the local budget. It is expected that if the signed contracts can be completed based on the capacity permitted by the Ministry of Natural Resources and Environment, the Vico Company will bring about VND 329.15 billion in annual export turnover, The state budget contribution amounted to VND 126.3 billion (in which the export tax was VND 98.7 billion).
Vico is currently creating jobs and stable income for 95 direct employees and more than 150 indirect employees in the Hai Lang District, the Quang Tri Province. Together with the company's activities are developments of mechanical repairation, equipment transport, cuisine and many other services .... If the ban takes a long time, the Company is forced to cease operations and gradually going to bankruptcy, losing a large source of revenue as the Company is the one of the largest contributors to the Quang Tri Province, and meanwhile, it also loses many other benefits that the Company brings as policy support, job creation, resulting in the cause of socio-economic instability and sequence in the locality.
In addition, the Vico Company said that the ban on white sand exports may adversely effect the investment environment of production and business of many foreign enterprises who are having trade relations with Vietnam. As mentioned above, processed white sands are considered as an irreplaceable industrial raw material for many important industries. Vietnam's processed white sand is in the supply chain of many big companies and corporations in the world such as Samsung, LG, Doosan, Huyndai, Kia, Hankuk Glass in Korea, Saint Gobain in France, Nippon Glass Glass in Japan, Union Glass, Ocean Glass in Thailand ... Therefore, issued a ban on the export of the white sand in addition to stop activities of enterprises who are exporting this item, also caused the importation of the white sand from Vietnam is a passive situation, forcing them to find alternative sources of supply from other places, while market redirection takes time. Suddenly customers will turn away from the Vietnamese market because of concerns about similar instability in the policy.
Facing the risk of bankruptcy due to the export ban on white sand. Because of the survival of the Vico Company in particular and many enterprises are operating legal exploitation and processing of white sand in the whole country in general, theVico Company proposed the Prime Minister to consider:
- To allowe continuing export of white sand as stipulated in the Circular No. 04/2012 / TT-BXD of the Ministry of Construction currently applied;
- Duration of pending a clear and specific policy of the Government on the export of sand, including the silica sand, the Company shall propose the Prime Minister to direct the Ministry of Construction, the General Department of Customs and the Customs Departments continue to clear the export of processed white sand to export standards according to the Ministry of the Construction's Circular No. 04/2012 / TT-BXD, avoiding damage to the enterprises as compensation. usually contract;
- In case of ceasing the export of all kinds of sand, enterprises should request the Government to assess the shortcomings and harms of the export of processed white sands so that the requirements and roadmap are set out. This will allow enterprises to complete the contracts signed with their foreign partners and to orient their production and business activities in the condition of not exporting all kinds of sand. Before the assessment concludes officially, the Government will allow the continuation of the export policy in accordance with Circular No. 04/2012 / TT-BXD of the Ministry of Construction.
