Transparency in Resource Management

Dr Vo Tuan Nhan, Vice Chairman of the National Assembly Committee on Science, Technology and Environment, said that the implementation of EITI in Vietnam may meet some difficulties. Specifically, it is obliged to comply with some EITI principles, some information confidentiality in the oil industry. Therefore, the workshop offered opportunities to have information and international material as well as propose specific solutions for real circumstances in a country promoting the value of extractive industries in economic growth and creating more wealth for the society.

 

Professor Le Van Khoa said to operate extractive industries on the right track and with highest efficiency, benefits must be harmonised among three stakeholders, namely the State, businesses and people. Therefore, it is necessary to strengthen institutions and policies and boost transparency of extraction information. In addition to recent efforts like amending and supplementing the Laws on Petroleum and Mineral Law, Vietnam should also consider researching and engaging in joint global actions in implementing EITI in extractive industries.

 

EITI realisation is widely recognised by international experts and managers. And, the implementation of EITI will obviously bring more practical benefits such as increased transparency and active element to fight against corruption, improve public awareness of the process of converting minerals into money, build greater creditability, clarify licensing, enhance management, and initially overcome existing shortcomings and limitations of extractive industries in our country today. On the other hand, EITI also promises to be a good tool to help Vietnam realize the advocates of state policies more transparent environment in the mining industry. Besides, the participation of EITI could be a good tool which helps Vietnam concretise its policies on the real situation as the EITI itself is a solution for a more transparent environment in the mining industry.

 

That is in theory. But in practice, underground collection and commission are the factor that causes the biggest loss in this industry. And, a few companies support transparency. Accordingly, a survey by CODE in 21 directly involved entities, including 16 mining companies, showed that only a few large enterprises with foreign investment favour transparency. Meanwhile, private small companies are usually reserved.

 

Dau Anh Tuan, Deputy Director of Legal Department under the Vietnam Chamber of Commerce and Industry (VCCI), said: Extractive operations in Vietnam are lack of transparency because the distribution of interests is unequal. Many local businesses even falsify mineral outputs, causing a huge loss in minerals as well as tax incomes for the State. He also pointed out that local governments should look back on management and expenditure of payments made by mining businesses. Many companies say they pay all fees and charges but they do not know how authorities use them. For example, they say they pay all environmental fees but when the environment is polluted, businesses are considered the source of problem while their payments for handling such issues are used furtively for other purposes.

 

Therefore, before this circumstance, it is necessary to boost transparency and accelerate early application of EITI to step up this process. And, EITI is no longer a sole concern of government or business but a common concern of the society and civil organisations. And, transparency will benefit all of society, the State and enterprises. Transparency will help allocate resources in the best way and fight corruption, Tuan said.

 

It is clear that EITI is considered a helpful measure for a resource-rich country like Vietnam to better manage its resources as well as ensure more positive contribution of extractive industries to socioeconomic development process. To date, 35 countries in the world implement EITI and 50 top international extractive companies and hundreds of the civil society organisations and mining associations support EITI

implementation.