Quy Hop mining area: Number of operating enterprises decreased by 6 times

Stone mining activities in Quy Hop. Photo: Dao Tuan

According to statistics, in Quy Hop district, there are 6 small industrial clusters, 6 concentrated stone processing areas, 1 craft village and 477 enterprises. This mining area also has 3 tin ore processing factories, 8 superfine stone powder processing factories, 152 stone processing workshops of all kinds, 15 stone art processing establishments...

The activities of enterprises, especially stone mining enterprises in Quy Hop, contribute up to 80% of the budget revenue for this locality. However, up to now, in the district, there are only about 60-70 enterprises operating effectively, the rest are either operating at a low level or only in name.

The reason for the "downfall" of mining enterprises in Quy Hop district is determined to be due to the impact of the domestic and world industrial stone market.

Many stone mining enterprises in Quy Hop have had to stop operations due to dwindling market demand and many policies tightening mining activities. Photo: Dao Tuan

Accordingly, 3-5 years ago, many countries in the Middle East had a great demand for importing white stone from Quy Hop, but now the market is saturated.

Besides, due to the impact of the global economic downturn, many domestic policies were issued to tighten investment, which also caused industrial stone mining activities to stagnate.

In addition, some new state regulations related to the field of mineral exploitation and processing also cause difficulties for businesses. Specifically, on May 12, 2017, the Ministry of Finance issued Circular No. 44/2017/TT-BTC regulating the price framework for calculating resource tax for groups and types of resources with similar physical and chemical properties, thereby raising the price framework for granting mining rights by 2.7 times compared to before, which has greatly affected the operations of businesses.

In Quy Hop, there are currently only 60-70 stone mining enterprises operating. Photo: Dao Tuan

The decline of the business system in Quy Hop district has greatly affected the local economy and pushed the district's budget revenue target far from reality.

According to the Resolution of the 20th Party Congress of Quy Hop district, term 2015-2020, by 2020 the budget revenue will reach 220 billion VND. However, based on the current situation, this target is likely to not be achieved, even though in 2018 Hop district is estimated to collect 140 billion VND, exceeding the annual plan.