Public-private-partnership in practice of extractive industry: contributing to sustainable development goals - a case of Nui Phao project - Viet Nam

摘要

The contemporary Vietnamese context is characterised by the tectonic government that has pledged priorities of stabilising the macro-economy, promoting economic growth, reforming administrative procedures, encouraging start-ups, tapping creativity and talents while rallying all possible resources for development. Furthermore, Viet Nam emphasised in several economic forums that its overarching goal is to promote a harmony of both people- and business-centred development. Hence, public-private partnerships (PPP) should be strengthened to promote comprehensive and inclusive connectivity, develop quality infrastructure, and enhance supply chain connectivity as well as next-generation trade and investment issues. Recent statements of leading international institutions such as UNDP, APEC and EU as well as relevant studies have pointed at the contribution potential of extractive industries towards the Global Sustainable Development Goals (SDGs). They also highlighted the need for a partnership between the public (governmental institutions at all levels) and private actors, the latter of who perceive SDGs as the main driver to obtain the social licence for their operations. This research interest derives from the practice of the Nui Phao Tungsten mine, which is characterised by a PPP process for SDGs. Nui Phao project was developing from 2005 to 2014 and has been in the operational phase from 2014. This paper aims on timely presenting new insights on PPP in the extractive industry on the recent context of the 17 SDGs claimed by the UNDP in 2015 and the call for PPP for responsible mineral sourcing by the EU in 2016 as well as the spirit of APEC Mining Policy Public Private Dialogue in 2017. The practice in the Nui Phao project shows how a PPP enabled a value chain in mining activities for the greater good of the communities and investors, but it has also made us aware of the problems it creates, particularly in the context of mining legitimacy in a transitional economy of Viet Nam. The public actor of the Nui Phao PPP has encountered difficulties in the management of and collaboration with the big-scale mines due to its limited resources and capabilities. In view of network theories, it shows that this was due to the complex and multi-layered governmental apparatus, especially at local level. Consequently, to some extent, the public actor neither encourages effective collaboration between stakeholders for SDGs nor maximizes the contribution of the mining sector to SDGs. In addition, the contradictory nature of mining operations and the SDGs has constrained effective collaboration between the mining company and other stakeholders, including the local authorities and communities. The lesson learnt from the Nui Phao project can be used as a catalyst to assist the national government and its functional ministries - industrial, environmental, science and technology, social affairs and others - to better align mining policies with the existing national development plans as well as to engage more systematically with industry and local governments to leverage investment for sustainable development. The experience from the Nui Phao project can also be a stimulus for local governments, communities, and the mass organizations to increase inclusive dialogue and cooperation as a way to unlock and maximize the mining sector's potential to contribute to a sustainable future development. This can also be useful for capacity building solutions for the existing public management network in Viet Nam.