Vietnam Sets Special Operating and Financial Rules for State Mining Group TKV
Vietnam has introduced a special framework allowing TKV to coordinate mineral operations and sales across its corporate group. The rules cover coal, bauxite, alumina, aluminum, copper cathode and other important minerals, while establishing specific treatment for unsuccessful exploration and investment costs.
Centralized management of mineral resources
Vietnam’s government has issued Decree No. 325/2026/ND-CP, dated August 18, 2026, establishing special operating and financial-management rules for the Vietnam National Coal and Mineral Industries Group, known as TKV or Vinacomin. According to the Government Electronic Newspaper, the decree takes effect on October 5, 2026, and applies from the 2026 financial year.
The framework gives TKV a coordinating role across its group of companies in surveying, exploration, extraction, processing and use of coal, bauxite and other strategic or important minerals. It also covers certain infrastructure serving multiple mines or regions. TKV will organize and coordinate subsidiary operations with the stated goals of improving the group’s overall business performance and ensuring that mineral resources are used economically and efficiently.
TKV becomes the central sales and pricing coordinator
For mines licensed directly to TKV, the group will manage the full chain from surveying and exploration to extraction, processing and product sales. It may hire subsidiaries operating within the TKV internal market to conduct mining under contracts and in accordance with the law. TKV will act as the principal sales entity for products extracted from these licensed mines.
Where mining licenses are held by subsidiaries, TKV will coordinate the same stages through contracts and annual business coordination plans. These arrangements are intended to align resource management, mining technology, processing and sales. The decree also authorizes TKV to decide and adjust prices for goods and services within the group, including internal purchase and selling prices, except where the state sets a specific price.
Product contracts cover domestic and overseas markets
Under annual coordination plans, TKV will sign purchase and sale contracts with subsidiaries for coal, bauxite ore, aluminum hydroxide, alumina, aluminum, copper cathode and certain other important minerals after extraction or processing. Prices will be agreed by the parties on the basis of official economic and technical norms and a reasonable profit. TKV will then organize sales in both domestic and overseas markets. Subsidiaries must cover their own costs and remain responsible for cost controls and operating results, while TKV will compensate production stages through internal transaction prices.
The decree also establishes special accounting treatment for certain exploration and investment losses. Costs for surveys or exploration that cannot proceed to a project may be charged against after-tax profit when reserves are insufficient for industrial mining, suitable technology or environmental remedies are unavailable, or planning and policy changes prevent development. The same treatment may apply to failed or high-risk investments affected by revised planning or policy decisions when those costs are not deductible for corporate income tax. TKV and participating subsidiaries may also record workers’ mid-shift and nutritional meals as operating expenses in accordance with labor law and their collective agreements or internal rules.