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(Last updated: 8 Jul 2011)
Trends and opportunities
The market
As one of the fastest growing economies in Asia, Vietnam’s economic boom has lifted the contribution of mining to the country’s GDP and boosted the share of mining-related FDI accounted for by the country.
Increasing involvement by foreign companies has helped to improve the country’s relatively underdeveloped mineral wealth.
Vietnam’s rich mineral reserve, which includes bauxite, remains largely untapped. Until recently, mining activity has primarily involved small-scale, local operations. Extraction has focused on non-metallic minerals, notably coal and construction materials.
Foreign investment in mining has been minimal, constrained by what was, until relatively recently, an uncertain regulatory framework. The Prime Minister appears to be playing a direct role in approving foreign investments, reflecting the sensitivity surrounding foreign participation in on-shore mining activities.
Australian interest in Vietnam’s mining sector is small but growing.
The industry is dominated by the state-owned Vietnam Coal and Minerals Industries Corporation (Vinacomin). Under Vinacomin there are two groups of companies: coal and minerals.
Coal
Vietnam has huge coal reserves, concentrated in the northern area in Quang Ninh province and the Red River Delta basin.
The coal-mining industry is owned and operated by state coal mining company Vinacomin, which operates on most of the coal mines in Vietnam. There are 27 open mines and 30 underground mines.
Currently development is stable, satisfying domestic demand and in balance with exports. The government plans to encourage new investment by upgrading and expanding current production, and increase exploitation from 40MT in 2010 to about 60MT by 2025.
Vietnam is seeking to increase production of its deeper anthracite reserves with high quality grade and expand its power sector. Purchase of heavy mining equipment from Australia has enabled the expansion of existing underground mines and development of new underground mines.
Minerals
The market is dominated by Vietnam National Minerals Corporation (VIMICO) under Vinacomin.
Major mineral projects include:
- Sin Quyen - Lao Cai Copper Complex Project, capacity of 10,000 tonnes to be increased to 30,000 tonnes/year
- Thai Nguyen Zinc Refinery Plant project with the capacity 10,000 tonnes/year
- Lao Cai Cast -Iron Refining Plant project with the capacity 30,000 tonnes/year
- Phu Yen Diatomite Filter Aid Powder Plant project
- Tien Giang Brick Plant project, the beginning capacity is 12 millions pieces
- Thach Khe iron ore mine is operated by Vinacomin, Vietnam Steel Corp and others
- Lam Dong and Daknong bauxite alumina complex project under Vinacomin
Opportunities
Opportunity areas in the Vietnam mining industry include:
- Coal refining and processing technology, underground coal mining
- Bauxite mining and alumina processing plant equipment
- Equipment and machinery for coal processing
- Consultant services, technical engineering and processing design
- Sample analysis technology and services
- Minerals processing technology in general
- Mining equipments and machinery: mining pump, drilling services, material handling systems, spare and replacing parts
- Mining software
- Coal export to Vietnam
Competitive environment
Local and private groups: Cavico Group, Hoa Phat Group, Vietnam Steel Corporation, Viet Phuong Group.
Foreign mining companies: Asian Mineral Resources, Nui Phao Vica, Triple Plate Junction, Ban Phuc Nickel.
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