A view of Hà Tu coal mine in Hạ Long City, Việt Nam. — VNA/VNS Photo

HÀ NỘI — The amended Law on Geology and Minerals marks a major milestone, establishing a new legal framework for the sustainable development of Việt Nam’s mining industry with a strong focus on promoting deep processing to increase added value.

The revised law is expected to provide a significant boost for investment in high-tech and deep-processing projects. While it addresses many issues at the principle level, business experience shows that technical bottlenecks remain, requiring clear and detailed subordinate regulations to prevent disruptions during implementation.

Following the law’s approval, Phan Chiến Thắng, deputy general director of Masan High-Tech Materials, said enterprises welcomed the new provisions but remained concerned about coherence and feasibility in enforcement. He stressed that licensing procedures for mining and processing, particularly for strategic minerals, need to be meaningfully simplified.

Tax and fee regulations should also be aligned with policies encouraging deep processing, avoiding frequent changes that increase risks for long-term investors. Businesses expect decrees guiding the law implementation to clearly define streamlined and transparent procedures so that incentives under the law can be realised.

From an operational standpoint, Trần Văn Thủ, a representative of Apatit Việt Nam One Member Limited Liability Company, highlighted the complex geological characteristics of apatite ore, where boundaries and ore types often fluctuate. He suggested subordinate regulations should allow greater flexibility, enabling enterprises to manage extraction proactively within licensed areas.

Instead of suspending production to adjust licences for minor changes, companies could submit annual status assessment reports. This approach would help maintain stable production, ensure supply security and allow regulators to more accurately assess financial obligations.

Representing the business community, the Việt Nam Chamber of Commerce and Industry (VCCI) has highlighted several core issues that need clarification during the drafting of implementing documents. According to Đậu Anh Tuấn, VCCI deputy secretary general and head of the Legal Department, transparency in granting mining rights and deep-processing projects is a key concern.

While the law prioritises projects committed to deep processing, implementing decrees must clearly define what qualifies as deep processing and advanced technology. Transparent bidding mechanisms are needed, whereby investors are granted mining rights together with obligations to complete the full value chain from extraction to processing, ensuring fair competition and attracting capable investors. Provisions on non-auction areas should also be strictly controlled to avoid discretionary practices.

Another long-standing concern is overlapping financial obligations. The coexistence of mineral exploitation licensing fees and natural resource tax is widely seen as duplicative, placing a heavy burden on enterprises. VCCI has urged authorities to consider harmonising or adjusting these charges in line with international practice and to provide clear rules for special cases such as mine returns or temporary suspension. — VNS