Lots of Opportunities for Vietnam’s Mining Industry

Facts show that the demand for increasing export market has led to the urgent demand of Vietnam for machinery and mining. According to statistics, in the first two years of 2012, Vietnam exported 102.3 tonnes of ore and minerals which constituted a value of US$24.8 million, up 34.4 percent against the same period last year. Domestic and global demand for minerals still maintains at high level, especially from developing countries. With the interests of investors in mining industry, Vietnam is expecting to expand its export market to China, Japan, South Korea, India, Malaysia, Thailand and Singapore.

 

In addition, the passing of Mineral Law which took effect on 1 July 2011 consolidated confidence and interest of foreign mining companies and investors in the long-term prospects of Vietnam in this industry. The market share of mining industry in FDI amounts in Vietnam has also increased significantly. Statistics shows that the number of enterprises involved in mining industry has soared from 427 (in 2000) to nearly 1,400 by now, of which enterprises operate mining for construction materials make up approximately 1,200 SMEs. This is the opportunity for Vietnamese enterprises in this industry.

 

At the workshop, a vast majority of experts judged that Vietnam had huge potential for developing its mining industry. This is also one of the fastest-growing and most stable markets in relation to execution, construction and mining in Asia. The exploitation of solid minerals and fossil coal in Vietnam has witnessed rapid growth during five recent years. Vietnam’s rich reserves of bauxite, gold, vonfram and rare earth elements are yet to be widely exploited. Last year, the value gained from minerals and production of products from such minerals nearly reached US$25 million.

 

About the prospects of coal industry, attendees at the workshop believed that stronger demand for electricity and coal boosted further development of the coal industry. However, due to the fact that hydropower resources are nearly fully exploited and gas resource, limited, Vietnam will have to rely more on coal-fired thermo-electricity factories during coming years. Electricity industry is forecast to the largest coal-consuming industry in the period of 2010-2014. Vietnam is also considering increasing production of high-quality anthracite for reserve purpose and thereby creates a buffer for heavy mining, machinery, technology and related services.

 

Mr Tran Xuan Hoa, Chairman of the Board of Member of Vietnam National Coal-Mineral Industries Holding Corporation (VINACOMIN) and Chairman of Vietnam Mining Science and Technology Association, said that results achieved in our country’s mining industry in recent years were attributed to many reasons, but the most basic cause was that we bravely conducted research and applied advanced science and technology into mining production in order to improve labour productivity, output while reducing loss of resources, ensuring labour safety and protecting the environment. The newly applied technology has also helped diversify products and improve the value of mineral commodities, which helps generate huge benefits for mining enterprises and the national economy. Mr Hoa emphasized that with improved human resources, every product of the mining industry had much higher intellectual content and science and technology were becoming the forces which directly created wealth and spiritual value for the society.

 

However, attendees also believe that since the global and national economic contexts are facing heaps of challenges and has not escaped recession due to prolonged financial crisis prior to 2010, particularly the influence of the public debt issue in European countries, the mining industry cannot avoid such common obstacles. Besides, our mineral mining industry still has weaknesses if sustainable development and socio-economic effectiveness aspects are considered. Preparation and implementation of strategy and planning for minerals have many limitations, which cause severe consequences for management, certification, investment, exploitation and use of minerals. Massive certification and exploitation continue to lead to unwanted consequences for people’s life, the environment and the landscape.

 

So as to make the best of the above situation, efforts need to be made by local authorities and enterprises. Reports presented at the workshop also bring out experience and lessons learnt from technology applied in exploitation of open-cast and underground mines, construction of mines, usage of minerals, M&E and safety issues, etc.

 

Regarding the strategy for development of minerals of Vietnam in the coming time, Mr Tran Xuan Hoa affirmed that in the following years, due to development demand of the economy, Vietnam’s mining industry needed to continue to conduct research and exploit such important types of minerals as copper in Sin Quyen, iron in Thach Khe, bauxite in Dak Nong and Lam Dong, coal in the Red River Delta and a number of new oil and gas mines on the continental shelf. In addition, because many types of traditional minerals have started to enter an exploitation phase which is not as advantageous as earlier, it is necessary that scientists and technical officials take a step ahead and think of scientific and technological solutions in order to improve the effectiveness of Vietnam’s mining industry.