Removing Financial Bottlenecks for Vietnam’s Mining Sector Sustainable Growth

Ha Noi, October 15, 2025 – The Vietnam Chamber of Commerce and Industry (VCCI) today hosted a workshop titled “Financial Policies for the Mining Industry” in Ha Noi.

The event gathered a large number of representatives from central ministries, research institutes, mining associations, consulting firms, and leading mining enterprises. The workshop addressed current challenges, shared policy recommendations, and explored ways to refine Vietnam’s financial framework to unlock resources and foster sustainable development in the mining sector.

In his opening remarks, Mr. Dau Anh Tuan, Deputy Secretary General and Head of the Legal Department at VCCI, emphasized that the mining industry not only makes significant contributions to Vietnam’s GDP and state budget but also serves as a vital foundation for key sectors such as energy, new materials, defense, and high technology.In this context, financial policy plays a “backbone” role, directly influencing the competitiveness and long-term sustainability of the industry. However, Mr. Tuan noted that Vietnam’s financial obligations remain substantially higher than international norms, posing risks that may undermine competitiveness and investment attraction.

According to Mr. Bui Ngoc Tuan, Deputy General Director of Tax Advisory Services at Deloitte Vietnam, Vietnam’s mining sector currently bears a combined tax and fee burden of around 25% of total revenue - much higher than the 5–10% average in countries such as Australia, the United States, or Malaysia. Particularly, corporate income tax rates can reach 50% for tungsten and rare earth extraction, double the standard 20% rate.

Mr. Phan Chien Thang, Deputy General Director of Nui Phao Mining Company, shared that mining enterprises are currently subject to more than 14 different taxes and fees, which together account for nearly 30% of total revenue. Many charges overlap — for instance, both the resource tax and the mining rights fee are levied on the same taxable base. Meanwhile, other policies such as export duties, VAT, and resource taxes remain inconsistent with the Government’s orientation to encourage deep processing. “This results in a form of double taxation on the same value of extracted resources,” Mr. Thang emphasized.

Echoing this concern, Dr. Nguyen Tien Chinh from the Vietnam Mining Science and Technology Association proposed merging the resource tax and the mining rights fee into a single levy managed by the Ministry of Finance. He also recommended introducing conditional incentives, such as lower resource taxes for enterprises investing in deep processing or recovering associated minerals — an approach that could both enhance efficiency and promote sustainability.

VCCI will compile all recommendations from the workshop into a comprehensive policy proposal to be submitted to the Government and the National Assembly, serving as a reference for future amendments to Vietnam’s mining sector legal framework.

Such reforms, they concluded, will enable Vietnam’s mining industry to accelerate technological innovation, enhance sustainability, and become a key driver of economic growth - thereby strengthening the country’s global competitiveness.