State budget revenue related to mineral exploitation in Vietnam includes: Value-added tax, corporate income tax, environmental protection tax on coal, land rental fees for activities inv
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INTRODUCTION
1 Rationale of the study
According to the 2017 Law on Management and Use of Public Property, mineral resources are considered public property owned by the people, with the State acting as the representative owner and having unified management State budget revenue from minerals serves as a financial instrument, reflecting the State’s ownership role over national resources and executing the State's function in managing the exploitation and utilization of resources by organizations and individuals State budget revenue related to mineral exploitation in Vietnam includes: Value-added tax, corporate income tax, environmental protection tax on coal, land rental fees (for activities involving mineral extraction or surface mining), resource tax, mineral exploitation environmental protection fees under the Ordinance on Fees and Charges, and payments for the right to exploit minerals In addition, resource tax represents the fundamental revenue stream This shows the critical need for studying and designing state budget revenue policies for mineral exploitation, as it directly pertains to national revenue management and shapes the impact of these activities on the economy and society in several respects: (1) managing state budget revenue; (2) encouraging investment and sustainable development; (3) ensuring community benefits and environmental protection
However, a comprehensive assessment reveals that current fiscal policies regarding mineral exploitation face several challenges in both theoretical and practical aspects
From a theoretical perspective: (1) There has been no clear and systematic publication outlining the objectives of state budget revenue
Trang 22 policy concerning mineral exploitation; (2) Existing research on state budget revenue policies for mineral exploitation in Vietnam has mostly focused on tax policies, lacking a comprehensive scope; furthermore, research on tax policies primarily emphasizes resource taxes, with little in-depth study on other related taxes such as value-added tax and corporate income tax; (3) There is no comprehensive research on fee policies related to mineral exploitation
From a practical perspective: (1) There remain significant limitations in the legal regulations governing resource taxes, including issues related to taxable subjects, tax rates, tax calculation methods, and taxable production volumes; (2) There are also constraints within regulations concerning the payment for mineral exploitation rights, as well as in the environmental protection fees for mineral exploitation
Thus, based on the aforementioned legal and practical grounds,
researching the dissertation topic “Improving State Budget Revenue Policies for Mineral Exploitation in Vietnam” is highly necessary
2 Research objectives
The general objective is to further develop the theoretical foundations of state budget revenue policies for mineral resource exploitation and to propose solutions for improving state budget revenue policies related to mineral exploitation in Vietnam
3 Research questions
Firstly, from a theoretical perspective, what issues need to be supplemented or clarified in state budget revenue policies for mineral exploitation in Vietnam? What areas should be further developed to align with current conditions and to adapt to the projected socio-economic
situation of the country in the near future?
Trang 33 Secondly, what are the experiences of other countries in formulating and implementing state budget revenue policies for mineral
exploitation? What lessons can Vietnam learn from these experiences?
Thirdly, what is the current state of state budget revenue policies for mineral exploitation in Vietnam? What achievements have been made,
what limitations still exist, and what are the underlying causes?
Fourthly, in the context of the country’s socio-economic situation, what goals, guiding principles, and solutions should be proposed to
improve state budget revenue policies for mineral exploitation?
4 Research methods 5 Scope of the study
The dissertation focuses on state budget revenue policies for mineral exploitation in Vietnam
Scope of the study:
Main content: The research covers state budget revenue policies related to mineral exploitation, including policies on specific revenues from mineral exploitation (resource tax, environmental protection tax, environmental protection fees, and payments for mineral exploitation rights) and general revenues from businesses engaged in mineral exploitation (value-added tax, export tax, and corporate income tax)
Spatial Scope: The dissertation analyzes state budget revenue policies in Vietnam, with reference to international experiences
Temporal Scope: The research examines the current state of state budget revenue policies, focusing primarily on the period from the implementation of the Resource Tax Law (2009) and the Mineral Law (2010) up to the end of 2023 Based on this analysis, the dissertation proposes solutions with a time frame extending to 2030 and a vision towards 2035
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6 New Contributions of the Dissertation
Theoretical Contributions: The dissertation contributes to the development and expansion of the theoretical framework on mineral resources and state budget revenue policies for mineral exploitation These theoretical contributions build upon previous research by further clarifying principles for the formulation of state budget revenue policies, the content of revenue management, evaluation criteria, and the factors influencing state budget revenue policies for mineral exploitation The theoretical framework developed in this dissertation can serve as a reference for future research and as a valuable resource for policymakers and administrators
Practical Contributions: The dissertation provides a comprehensive analysis of the current state of state budget revenue from mineral exploitation in Vietnam It identifies the approaches used by other countries in implementing revenue policies for mineral exploitation and evaluates the strengths and weaknesses of revenue collection efforts related to this activity in Vietnam over recent years Based on this analysis, the dissertation proposes recommendations to improve the effectiveness and efficiency of state budget revenue policies
7 Structure of the Dissertation
In addition to the Introduction, Conclusion, and References, the dissertation is structured into four chapters
Chapter 1: LITERATURE REVIEW RELATED TO THE TOPIC 1.1 Published Scientific Studies Related to the Dissertation Topic
1.1.1 Studies on General State Budget Revenue Policies for Mineral Exploitation
Trang 55 “Fiscal Regime of Vietnam's Mining Industry: Evaluation and Recommendations for Improvement” – A study on the fiscal regime for Vietnam's mining industry by Nguyen Anh Tuan (2015), published in Resources Policy, evaluates state budget revenue policies in Vietnam’s mineral resource exploitation industry The author analyzes the tax and fee structure in the mining industry in Vietnam, particularly in the granite and bauxite sectors The study assesses the effectiveness of state budget revenue policies on the productivity and profitability of mining companies It also recommends improvements to state budget revenue policies, such as increasing taxes and fees on mineral products, applying environmental taxes, providing more favorable conditions for small and medium-sized mining companies, and enhancing supervision and enforcement of mining activities
Boakye Yiadom, P (2020), in “Fiscal Regime Design and Natural Resource Exploitation: The Case of Petroleum and Mining in Developing Countries” published in Resources Policy (68, 101783), examines the challenges faced by developing countries in managing state budget revenues from natural resource exploitation, including issues of transparency and corporate accountability The study provides policy recommendations to improve revenue management efficiency, such as implementing effective tax and fee policies to enhance transparency and fairness, while ensuring these policies are appropriate for the economic and legal conditions of developing countries
Nguyen Hoang Minh, Vu Van Thong, & Nguyen Duc Dat (2018) in “State Budget Revenue Policies for the Exploitation and Utilization of Mineral Resources in Vietnam” published in Journal of Science and Technology (56(3B), 209-218), analyze the state budget revenue policies for the exploitation and use of mineral resources in Vietnam The authors
Trang 66 emphasize the importance of strengthening management, supervision, and control of resource exploitation and usage activities Additionally, they suggest increasing the implementation of taxes and fees on these activities to enhance state budget revenues
Le Xuan Truong, Le Quang Thuan, and Tran Thanh Thuy (2015), in their book Current Status and Opportunities to Improve Revenue Management Efficiency from Mineral Exploitation in Vietnam (Hanoi Publishing House, 2015), compare Vietnam's tax and revenue policies for mineral resources with those of several other countries The authors also evaluate the current implementation of tax and other revenue policies in Vietnam, identifying shortcomings and suggesting improvements
1.1.2 Studies on Specific Revenues from Mineral Exploitation
“Taxation of Mineral Resource Extraction in the Arctic: A Comparative Study of Alaska, Canada, Greenland, Norway, and Russia” by Laura-Elina Manninen (2018), from the University of Lapland, Finland, provides an overview of tax policies related to mineral resource extraction in the studied countries, including tax calculations and collection methods The dissertation evaluates the advantages and disadvantages of these tax policies and offers recommendations for optimizing tax policies for mineral resource extraction in the Arctic region
Nguyen Thi Phuong Anh & Tran Dinh Thi (2017), in “Evaluating the Effectiveness of Environmental Tax Policies in the Mining and Mineral Processing Industry in Vietnam” published in Journal of Science and Technology (55(2B), 147-154), assess the impact of environmental tax policies on Vietnam’s mining and mineral processing industry using economic impact assessments and simulations of various scenarios The study concludes that proposed environmental tax mechanisms would help
Trang 77 reduce the negative environmental impacts of mining and processing activities while also increasing state budget revenues
Le Xuan Truong and Pham Thien Tung (2016), in “Improving Vietnam’s Resource Tax Laws to Ensure Both Budgetary Goals and a Favorable Business Environment” published in Journal of Financial Accounting Research (156, July 2016), highlight several inconsistencies in Vietnam’s resource tax laws For example, the tax calculation regulations outlined in Circular 105/2010/TT-BTC may lead to misunderstandings about the Resource Tax Law or different interpretations regarding the determination of taxable values Moreover, certain aspects of monthly resource tax declarations and annual tax settlements are insufficiently clarified
Le Xuan Truong and Nguyen Dinh Chien (2019), in Improving Tax Policies for Mineral Exploitation in Vietnam (a 2019 research project of the Academy of Finance), summarize the roles of tax policies in mineral exploitation, including: 1) promoting the conservation of mineral resources; and 2) encouraging the exploitation and processing of minerals to serve the country’s socio-economic development The study also highlights limitations in Vietnam’s tax policies, such as unclear policy objectives and a lack of clarity regarding the role of tax policy within the broader context of state management policies for mineral exploitation
1.2 Overall Evaluation of Published Research Results 1.3 Research Gaps
From the literature review, the following research gaps have been identified:
First, research on state budget revenue policies for mineral exploitation has been of interest to many scholars globally, in both developing and developed countries However, conclusions on the impact
Trang 88 of such policies differ across various national studies In Vietnam, significant differences exist in tax determination, taxable subjects, and tax rate regulations compared to other countries
Second, in recent years, there have been a number of studies on state budget revenue policies for mineral exploitation in Vietnam However, most of these studies focus on tax policies without offering a comprehensive view Studies on tax policies primarily focus on resource taxes, with little in-depth research on other related taxes, such as value-added tax and corporate income tax
Third, in-depth studies on improving environmental protection fees in Vietnam are nearly absent Existing studies are limited to specific topics within research projects at the Academy of Finance, leading to several gaps, including: (1) Beyond the widely accepted “polluter pays” principle, no comprehensive studies have been conducted on environmental protection fee principles; (2) There is a lack of systematic research on factors influencing environmental protection fee policies and management; (3) There are no evaluations of suitable options for applying environmental protection fees to emissions in Vietnam
Chapter 2: THEORETICAL BASIS FOR STATE BUDGET REVENUE POLICIES FOR MINERAL EXPLOITATION
2.1 Theoretical Basis for Minerals and Mineral Exploitation 2.1.1 Theoretical Basis for Minerals
2.1.2 Theoretical Basis for Mineral Exploitation
Mineral exploitation exhibits the following characteristics: First, the diversity of minerals necessitates the use of various complex extraction methods, ranging from traditional mining techniques to advanced technologies Different minerals require specific technologies
Trang 99 and production processes This diversity demands unique technologies and production processes, and their application requires technical expertise and significant resource investment
Second, mineral exploitation increasingly requires advanced technologies The adoption of modern technologies not only enhances production efficiency and reduces operational costs but also offers environmental benefits Today’s modern technologies, such as automated machinery, advanced drilling and mining equipment, GPS positioning systems, and information technology, optimize the extraction and transportation processes These technologies not only reduce labor dependency but also mitigate the risks of accidents Additionally, advanced environmental management technologies help minimize negative environmental impacts, including waste and pollution management through methods such as water filtration, waste treatment, and water reuse, which help prevent land and water pollution, protecting the ecosystems and living conditions of local communities
Third, mineral exploitation carries a high risk of environmental pollution, including air and water pollution, land degradation, and landscape changes, disrupting ecosystems
2.2 Theoretical Basis for State Budget Revenues from Mineral Exploitation
State budget revenues from mineral exploitation involve the state's exercise of public power to redistribute a portion of the financial resources generated from mineral exploitation activities into the state budget, contributing to public spending needs and ensuring state management of mineral exploitation while fulfilling the state's functions and duties
2.3 Theoretical Basis for State Budget Revenue Policies for
Trang 10- Implementing the “user pays” principle
2.3.4 Criteria for Evaluating State Budget Revenue Policies for Mineral Exploitation
2.3.4.1 Qualitative Indicators
- Fairness - Transparency - Simplicity - The extent to which policy measures align with policy
objectives and principles
Trang 113.1.1 Socio-Economic Context of Vietnam from 2011 to 2023 3.1.2 Impact of the Socio-Economic Context on State Budget Revenue Policies for Mineral Exploitation in Vietnam
3.2 Current State of State Budget Revenue Policies for Mineral Exploitation in Vietnam
3.2.1 The Current State of Identifying and Improving the Objectives and Perspectives of State Budget Revenue Policies for Mineral Exploitation
To achieve comprehensive reform across the financial system, with a focus on the tax system, on May 17, 2011, the Prime Minister issued Decision No 732/QD-TTg approving the Tax System Reform Strategy for the 2011-2020 period Subsequently, the Ministry of Finance issued a plan to reform tax laws for the 2011-2015 period, alongside proposals to implement this strategy On April 23, 2022, the Prime Minister issued Decision No 508/QD-TTg approving the Tax System Reform Strategy