Compiled by Vũ Hoa

HÀ NỘI — Việt Nam’s mining industry is entering a pivotal stage as the drive for economic development increasingly goes hand in hand with environmental protection and social welfare.

With the Law on Geology and Minerals 2024 coming into effect on July 1, 2025, the sector is expected to enter a new era of transparency, efficiency and sustainability. Yet experts stress that for the law to become an effective management tool, it requires collective commitment from regulators, enterprises and the community.

According to the Department of Geology and Minerals of Việt Nam, the new law serves as the highest legal framework governing all geological and mineral activities. It embodies the Party and State’s stance on managing, exploiting and utilising resources efficiently and economically, providing a strategic foundation for long-term industry development.

One of its key breakthroughs is the clearer classification of minerals and the introduction of integrated strategic planning. Significantly, it also decentralises power to localities in licensing and oversight, helping to shorten administrative procedures and enhance the accountability of local governments.

Rising compliance costs

While the law is seen as a solid legal basis, challenges remain on the ground. Chief among them are compliance costs, particularly for small- and medium-sized enterprises (SMEs).

CEO of Thạch Nhất Co Ltd Nguyễn Lộc R said businesses supported the stricter provisions on environmental standards, safety and planning.

“In principle, we welcome these regulations. But in practice, investing in waste treatment technology and modern machinery to meet the new standards requires significant capital that is beyond the capacity of most SMEs,” he said.

Many firms are left with the stark choice of taking out loans to upgrade or risk being pushed out of the market. While decentralisation is a positive step, administrative procedures remain complicated, and re-licensing older projects under the new law could present a major hurdle, according to Lộc.

“We hope the Government will introduce supportive policies or flexible transition mechanisms to give businesses sufficient time and resources to adapt,” Lộc said.

From a community perspective, the law must also deliver genuine transparency.

Nguyễn Thị Hiên, a resident of Đông Hải Commune in the north-eastern province of Quảng Ninh, said: “The law mentions environmental protection, but what we really want is meaningful participation in monitoring — from the initial environmental impact assessment to the operational phase.

"There must be transparent, public mechanisms for communities to access information and raise timely concerns. Otherwise, there is a risk of projects being pushed through without proper oversight, as has happened before.”

From a scientific and legal standpoint, experts argue that consistency across laws is crucial.

Dr Phan Tùng Lâm from the Việt Nam–China International Commercial Arbitration Centre pointed out that the biggest challenge would lie in aligning the new law with other regulations, such as the Land Law, Environmental Protection Law and investment and construction rules.

“Overlaps and contradictions between legal documents can create loopholes in management and barriers for businesses,” he said. “A project might be licensed for mining but then face obstacles in land-use conversion or environmental compliance. The core issue is to establish effective inter-sectoral co-ordination, with detailed and coherent guiding regulations to ensure alignment.”

The need for effective governance is heightened by Việt Nam’s significant mineral potential. The country is home to an estimated 3.05 billion tonnes of bauxite in the Central Highlands, 2.6 billion tonnes of apatite in Lào Cai, and over 40 billion tonnes of limestone alongside 7 billion tonnes of clay for cement production. It also boasts substantial deposits of nickel (3.6 million tonnes), tungsten (100,000 tonnes, the third-largest globally), as well as lithium reserves in Quảng Ngãi and about 25 tonnes of gold.

Such resources could provide a powerful engine for growth — if managed in a way that balances economic, social and environmental interests.

Most experts and stakeholders agree that the law will only be effective if there is close co-ordination across government, business and society.

The State must refine institutions, issue clear technical standards and strengthen local management capacity. Enterprises, in turn, need to treat environmental protection as a non-negotiable obligation alongside social responsibility. Meanwhile, the media and local communities can play a vital role in ensuring transparency and accountability.

This collaboration should go beyond principle and take shape through specific mechanisms, such as community participation in project appraisal, open access to monitoring data, regular drills for incident response and public disclosure of violations and penalties.

The application of science and technology, particularly green solutions, will also be key to minimising impacts and restoring ecosystems after mining.

As Việt Nam moves forward, the Law on Geology and Minerals 2024 has the potential to become a true instrument of transparent governance, linking resource exploitation with environmental stewardship and long-term benefits for both the nation and its people. — VNS