Vietnam to join Extractive Industries Transparency Initiative
(VOV) - Nguyen Quang Vinh, the Vietnam Chamber of Commerce and Industry (VCCI)’s Sustainable Development Business Office Director, believes the Extractive Industries Transparency Initiative (EITI) would only benefit Vietnam’s natural resources management and promising mineral, gas, and oil industries.
The industrial sector employs more than 400,000 people, and contributes 11% of Vietnam’s gross domestic product and 25% of its state budget.
Consultancy and Development Institute Deputy Director Pham Quang Tu cited the US’s Revenue Watch Institute when highlighting Vietnam lags in 43rd out of 58 surveyed nations on the Natural Resource Management Index (NRMI).
Vietnam’s low NRMI is attributed to oversight failures and shortcomings in inspection and supervision.
EITI International Board Chair Clare Short said the extractive industry is widely regarded as a powerful driver of socioeconomic development. Transparency is thus essential. She recommended Vietnam involve itself in the EITI as soon as possible.
International and local experts attending the dialogue also affirmed the importance of the EITI. The initiative calls for greater openness in mining company revenues and government taxes levied on mining companies.
As of August 2013, just 39 nations had committed to implementing the EITI (23 as official members and 16 as candidates).