Vietnam Export Import Service & Investment Joint Stock Company (Vicosimex) was issued the investment certificate No. 31121000020 dated February 21, 2008 by the People's Committee of Thua Thien Hue Province on an investment project for the construction of the open cut mine in Phong Dien District, Thua Thien Hue Province on an investment project for the construction of the open cut mining in Phong Dien District, Thua Thien Hue Province. The company was issued mineral license No. 604 / GP-BTNMT dated March 24, 2008 at Hoa Binh white sand mine in Phong Dien and Phong Binh communes, Phong Dien District, Thua Thien Hue Province. In which:

- Area of exploitation region: 85.13 ha;

- Exploitation reserve: 3,702,644 tons;

- Mining capacity: 185,125 tons / year;

- Exploitation duration: 21 years from the signing date.

On September 17, 2014, the Ministry of Natural Resources and Environment issued a Decision No. 1972 / QD-BTNMT approving the grant of mining rights for quartz sand of Hoa Binh area that belong to Phong Binh Phong Dien Districts, Thua Thien Hue Province with the amount of VND 23,533,841,000, the annual amount payable is VND 1,961,153,000 and has been paid in 12 years from 2014.

Status of payment of mining rights o Vicosimex is as follows:

- Year 2014: Company did not paid, People's Committee of Thua Thien Hue Province did not allow the exploitation with the reason that sand products after processing of Vicosimex Company was not deep processed.

-- 2015: The Company paid VND 500 million, People's Committee of Thua Thien Hue Province only allowed to exploit with the output of 40,000 tons / 185,125 tons (Official Letter No. 6920 / UBND-CT dated December 08, 2014). It was only possible to pay the amount equivalent to the allowable yield.

 - 2016 and 2017: The Company has paid the full amount of VND 1,225,728,000 per year, although the People's Committee of Thua Thien Hue Province has only allowed to exploit with the output of 50,000 tons / 185,125 tons.

Regarding sand casting and sand products of Vicosimex Company. The products are highly appreciated about their value and efficiency. Official Letter No. 9764 / BCT-CNNg dated October 12, 2012 of the Ministry of Industry and Trade has certified that sand molds products are basic industrial products needed for the mechanical, foundry, metallurgy  and  other industries; The Official Letter No. 1896 / BCT dated March 06, 2013 of the Ministry of Industry and Trade has certified that sand molds are products in accordance with the provisions in Section 18 - List of deep processed products in the Official Letter No. 4139 / UBND-CN dated September 23, 2011 of the People's Committee of Thua Thien Hue Province; the Document No. 05 / BXD-VLXD dated January 16, 2014 of the Ministry of Construction, Official Letter No. 430 / BCT-CNNg dated January 16, 2014 and the Official Letter No. 9136 / BCT-CNNg dated September 13, 2015 of the Ministry Industry and trade confirmed that molds and sand powder are mineral resources that have been deeply processed into other products, thus increasing the value of natural resources.

The People's Committee of Thua Thien Hue Province (although not being authorized) only allows for much lower exploitation than the license No. 604 / GP-BTNMT dated March 24, 2008 of the Ministry of Natural Resources and Environment based on the reason is not true that the Company's products are not deeply processed, which is the reason the Company can not collect enough to pay the amount of mining rights as regulated. This leads to the decision of the Tax Department of Thua Thien Hue Province made a decision to enforce the implementation of tax administrative decision to the Company. This unreasonable case has caused a lot of difficulties for Vicosimex Company in recent years. Particularly:

On May 30, 2016, Thua Thien Hue Department of Taxation issued a Decision No. 1943 / QD-CT on the blockade of bank accounts of Vicosimex Company at BIDV Bank, Da Nang Branch.

On November 25, 2016, Vicosimex Company has an Official Letter No. 178 / VIC to the Ministry of Finance and General Department of Taxation requesting the termination of coercive collection of mineral mining rights. After many times of working and with the help of the Vietnam Chamber of Commerce and Industry - Da Nang Branch, the General Department of Taxation issued an Official Letter No. 130 / TCT-QLN dated January 12, 2017 on suspension of coercion grant of mineral mining rights. According to Official Letter No. 130 / TCT-QLN, such suspension is awaiting the opinion of the People's Committee of Thua Thien Hue Province and the Ministry of Natural Resources and Environment.

On August 16, 2017, the Tax Department of Thua Thien Hue Province has issued Announcement No. 5333 / TB-CT on debt and fine for late payment of mining rights, totaling is VND 4,459,473,710.

To help Vicosimex overcome difficulties, the Company recommended to the Government and the Ministry of Natural Resources and Environment:

1. 1. To Consider and comment in writing to the People's Committee of Thua Thien Hue Province so that Vicosimex can exploit annual sand yields according to the capacity specified in the Mineral Mining License No. 604 / GP-BTNMT dated 24 / March 2008 of the Ministry of Natural Resources and Environment.
2. To give comments to the Ministry of Finance and the General Department of Taxation so that the General Department of Taxation can issue a written notice to the Tax Department of Thua Thien Hue to write off the grants for mining rights in 2014 and 2015 and fine for late payment. Allowing Vicosimex Company to transfer the surplus amount of mining rights (calculated according to the capacity allowed by People's Committee of Thua Thien Hue Province) of 2016 and 2017 for the following years.

Responded unit: Ministry of Natural Resources and Environment; General Department of Taxation - Ministry of Finance; People's Committee of Thua Thien Hue Province