VietNamNet Bridge – Besra Group, the gold mining company operating at the Phuoc Son and Bong Mieu mines, will have its investment license revoked if it violates the law, Vietnamese economists have said.

The Ministry of Finance, in an effort to help Besra Group’s Phuoc Son and Bong Mieu Gold Exploitation Companies ease difficulties, canceled the decision to force the two companies to pay VND250 billion worth of export tax arrears.

However, ignoring the goodwill shown by the government of Vietnam, Besra, instead of resuming operation and paying other kinds of taxes and fees to the local authorities, has been deliberately delaying payments.

Therefore, the Quang Nam Taxation Agency has decided to block Phuoc Son’s accounts. The invoices issued by the company are no longer valid, the agency said, adding that this action aimed to help collect overdue tax sums from the company.

After failing to persuade the Quang Nam provincial taxation agency to free it from tax debts, Besra announced the temporary halt of production activities at Bong Mieu and Phuoc Son gold mines.

It has proposed to exempt some kinds of taxes and fees over the last few years, worth VND300 billion.

Bui Ngoc Son, MA, from the Economics and Politics Research Institute, commented that it is unreasonable for enterprises to shout for help and claim tax incentives just because they have to take a loss.

He went on to say that any businesses which operate in market economies must take responsibility for their operations, and that they must be dissolved if they cannot perform well, rather than ask for government support.

“I cannot find any reason for the government to save the gold miner. What would happen if it collapses?” he said.

To prove his view, the expert recalled the case of three US automobile manufacturers. In 2005-2006, three US leading manufacturers’ proposal for government support was rejected by President Bush, who said that it was not the state’s business to rescue unprofitable enterprises and that enterprises had to find solutions to rescue themselves.

However, in 2008, when the global economic crisis broke out, President Obama agreed to rescue the manufacturers when they asked for help again. This was because the bailout was necessary for the sake of the entire nation.

As for the Besra case, the enterprise has not made any considerable contribution to Vietnam’s economic development, except the creation of 1,000 jobs.

Tran Xuan Vinh, deputy head of the Quang Nam province’s National Assembly’s Deputies Delegation, also thinks that Vietnam does not need to encourage foreign investment in gold exploitation, because gold is a non-renewable natural resource.

“All the businesses operating in the Vietnamese territory must obey Vietnamese laws and fulfill their duties, including tax payments and the environmental protection,” he said.

Dat Viet