Removing financial policy obstacles for mining enterprises

Speaking at the workshop, Mr. Dau Anh Tuan, Deputy General Secretary, Head of the Legal Department of VCCI, said: The mining industry plays an important role in the Vietnamese economy , not only providing essential input materials for many basic industries such as: Metallurgy, energy, construction materials, but also being a large source of revenue for the state budget.

“Vietnam possesses many types of minerals with strategic value, including rare earths, tungsten, and bauxite. These are elements that play a key role in the global supply chain of high technology, renewable energy, battery production, semiconductor chips, and defense,” Mr. Dau Anh Tuan informed.

Mr. Tuan emphasized that the current financial obligations of mineral enterprises in Vietnam are many times higher than the average level of many other countries, creating great risks for competitiveness and investment attraction.

Photo caption — Mr. Dau Anh Tuan, Deputy Secretary General, Head of the Legal Department of VCCI spoke at the workshop.

Therefore, it is necessary to have a comprehensive assessment of current policies in the mineral industry, and at the same time, have open and frank dialogue between relevant parties to correctly determine the level of tax and financial burden, thereby building harmonious policies to promote sustainable development for the industry.

Mr. Bui Ngoc Tuan, Deputy General Director of Deloitte Vietnam Tax Advisory Services, commented that the biggest problem lies in the simultaneous application of resource tax and mineral exploitation rights fee, creating a situation of "tax on tax".

“Vietnam’s mining industry is currently burdened with total tax and fee obligations of up to 25% of revenue, much higher than the average of 5-10% in Australia, the US or Malaysia. In particular, corporate income tax is up to 50% for tungsten and rare earth mining, twice as high as the standard rate of 20%,” said Mr. Bui Ngoc Tuan.

This reality shows that it is necessary to soon review and perfect financial policies to remove barriers for businesses and promote deep processing.

In particular, according to feedback from the business community, the total financial obligations are currently much higher than international practice, accounting for up to 30-40% of revenue. Meanwhile, countries with developed mining industries such as Australia, Canada, and Indonesia often only apply a flexible royalty tax mechanism, combined with corporate income tax, with a significantly lower total revenue.

The overlap between resource tax and licensing fees is increasing costs, reducing the competitiveness of Vietnamese enterprises, creating legal risks and reducing investment incentives for efficient exploitation and deep processing in the mineral sector. In particular, efficient exploitation and deep processing are the consistent orientations in Resolution 10-NQ/TW of the Politburo on the strategy for mineral development to 2030, with a vision to 2045.

According to Mr. Phan Chien Thang, Deputy General Director of Masan High-Tech Materials Company, mineral exploitation and processing cannot be simply scooped up and sold, but must go through a process of technology investment. However, the procedures for granting mineral exploitation licenses face many difficulties for businesses, sometimes taking years, causing businesses to lose investment opportunities.

In addition, the tax fees that mineral enterprises have to pay are too high, "the total tax fees, not including corporate income tax that enterprises have to pay, account for 24 - 26% of revenue", Mr. Phan Chien Thang said and said that, to realize Resolution 10-NQ/TW of the Politburo, it is necessary to simplify administrative procedures, making the licensing process more convenient. In addition, the tax and financial policy for mineral enterprises needs to be stable, so that enterprises can operate with peace of mind and invest in technology for production and business.

From the above analysis, Mr. Nguyen Tien Chinh - Head of the Science and Technology Department - Vietnam Mining Science and Technology Association said: Tax and fee policies must be reasonable, ensuring revenue for the budget. At the same time, it is also necessary to ensure and encourage investors to exploit mineral resources effectively, in order to "nurture" revenue sources and ensure the interests of residents in mineral-rich areas, and develop the mineral exploitation industry sustainably.

Institutional improvement, especially in the field of resource finance, requires consensus, transparency and science. In particular, it is necessary to ensure harmony between the interests of the state - enterprises - society, in line with the spirit of sustainable development as oriented in important documents of the Party and the State.

Source: https://baotintuc.vn/kinh-te/thao-go-vuong-mac-ve-chinh-sach-tai-chinh-cho-doanh-nghiep-khai-khoang-20251015150248415.htm