Mining to Vietnam
Trends and opportunities
With an economic growth rate forecast of 6.3 per cent in 2017 (IMF), Vietnam is forecast for steady growth from 2017 to 2020 at around 6.3 to 6.4
per cent (Source: BMI Q4 2016). The recently approved Vietnam
Power Development Plan 7 and the Vietnam Mining Development Strategy have
set out the clear objectives between 2016 to 2030 as follows:
- developing a sustainable national energy and mining industry
- diversifying and securing energy and resource supplies
- making refinery and downstream processing on minerals mandatory
- address political and environmental pressures to drive economic returns
to the nation
Vietnam’s key mineral endowment includes: coal, bauxite, rare earth,
tungsten, titanium, phosphate rocks and iron ore.
Coal remains one of the primary energy sources for the domestic market.
Vietnam turned from a net coal export country into net import country in
2016. With the rising energy demand and industry sector development, the
pressure will be on coal supplies. In 2017 Vietnam expects to produce
around 37 million tonnes of coal and an estimation of imported coal of over
11.7 million tonnes, mainly to supply the cement and power industry.
With the exception of coal, bauxite and titanium, most deposits discovered
to date have been found to be too small to be economically viable for most
international companies. Foreign investment in mining has been minimal,
constrained by high royalty, regulatory issues, investment and market
Australian interest in Vietnam’s mining sector is small but growing,
largely in the management and operations of local and international mines,
as well as the provision of Mining Equipment, Technology and Services
Vietnam has great coal reserves, concentrated in the northern area in Quang
Ninh province and the Red River Delta basin.
Vietnam has discovered more than 5000 new minerals and deposits, reviewed a
number of minerals and natural resources such as: oil and gas; coal,
titanium , bauxite, phosphate rocks, rare earth, copper, gold, iron ore,
mineral construction materials and some others.
Many of the open cut mines are depleting and trends are shifting toward
more advanced technologies and investments in underground mining.
The state-owned company, Vinacomin Group, which operates most of the coal
mines in Vietnam produced 37 million tonnes of coal in 2016.
There are 22 open cut mines ranging from those with small capacity of
hundred thousand tons up to three million tons and about 23 underground
mines ranging from small capacity up to 2.5 million tons, plus a number of
underground mine projects. Vinacomin is the owner and major shareholders of
minerals mining businesses including:
- Sin Quyen Copper Complex
- Lam Dong Alumina and Bauxite
- Nhan Co Alumina and Bauxite
- Ta Phoi Copper
- Thanh Hoa Chromite
- Thai Nguyen Zinc
- Thach Khe Iron ore
- Song Hong Energy Coal
- Binh Thuan Titanium.
Another major mining company, the military based Dong Bac Corporation,
produced five million tons of coal in 2016. The company also expanded
business into minerals including iron ore, manganese, copper and marble.
Mining Company Profile
Read a mining company profile on Nui Phao Mining (PDF).
Read a mining company profile on KAZ Minerals (PDF)
Vietnam is seeking to increase production of its deeper anthracite reserves
with high quality grade and expand its coal fired power sector. Specific
areas of opportunities include:
- Coal supply including power generation, steel production and other
- METS across the supply chain to local and international mining companies
- Mining education and training e.g. sustainable mining, mine safety,
environmental management and mineral processing.
- Transfer of The Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves ('the JORC Code') - a professional code
of practice that sets minimum standards for Public Reporting of minerals
Exploration Results, Mineral Resources and Ore Reserves.
Australian METS have been well received by the local industry. Local,
private and foreign mining operations and projects for both open cut and
underground mining include:
- Lao Cai Phosphate Rock mining
- Nui Phao tungsten mine and processing plant in Thai Nguyen province
- private mineral sand mines along the coast line in the South of Vietnam
from Vung Tau to Binh Thuan province
- various construction materials mines including lime stone, cement and
Trade and investment opportunities
- Hoa Phat Group: coking coal and iron ore trade and investments
- An Vien Group: Thermal coal investment
The industry is dominated by the state-owned companies (Vinacomin and Dong
Bac Corporation). Foreign competition from a METS perspective is largely
from China, Poland, Russia, Sweden and Germany.
Tariffs, regulations and customs
The Government of Vietnam issued the Decision No 403/QD-TTg on 14 March
2016 on approval for the adjusted Master Plan for Vietnam’s Coal Industry
Development to 2020 and vision toward 2030 which set the objectives and
development strategies for the industry.
Vietnam’s 2011 to 2020 Minerals Strategy, including its 2030 vision, is set
, as approved by the government. The key directions are:
- The new Mining Law has been effective since 2012 and legal documents
Directive No 02/CT-TTg
Decree No 15/2012/ND-CP
detailing the implementation of the mining law
- The Decree No 1084/2015/UBTVQH13 dated 10 December 2015 adjusted the
mineral royalty rates with the effective date from 1 July 2016 which set
Vietnam as one of the world highest mineral royalty countries.
Marketing your products and services
Australian companies need to keep regular contact with key market players
and identify projects at an early stage. Companies should also maintain
good relations with end-users and identify the right distribution channels.
For METS suppliers, local presence and services to customers is essential,
companies should consider setting up local representation and a sales
For mining contractors or construction contractors, the establishment of a
local operation is required when delivering services into the Vietnam
Complicated transaction systems, strong competition and a lack of
transparency in the procurement process are constraints to ease of business
within the sector. Language can also be a barrier to market entry.
Austrade in Vietnam provides Australian companies with in-market services
and connects with the potential industry contacts and customers.
Links and industry contacts
Government, business and trade
Department of Geology and Minerals of Vietnam
Mining Vietnam Exhibition and Conference
Ministry of Industry and Trade
Ministry of Natural Resources and Environment
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