Nghiên cứu quản lý ngân sách nhà nước từ hoạt động khai thác than trên địa bàn tỉnh quảng ninh theo hướng phát triển bền vững tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING
HANOI UNIVERSITY OF MINING AND GEOLOGY

NGUYEN THI THUY HUONG

RESEARCH ON THE MANAGEMENT OF THE STATE BUDGET
FROM COAL MINING OPERATIONS IN QUANG NINH
PROVINCE TOWARDS SUSTAINABLE DEVELOPMENT

Major: Economic Management
Code: 9.31.01.10

SUMMARY OF PH.D OF ECONOMICS DISSERTATION

Hanoi - 2019


Venue of completion: Hanoi University of Mining and Geology.

Scientific Supervisor:

Assoc. Prof. PhD. Do Huu Tung

Reviewer 1: Prof. PhD. Nguyen Ke Tuan
Reviewer 2: Assoc. Prof. PhD. Nguyen Van Dinh
Reviewer 3: Assoc. Prof. PhD. Nguyen Trong Hoan

The thesis will be defended at the Board of Examiners of Hanoi
University of Mining and Geology at
....................................................................................................................
....................................................................................................................

....................................................................................................................
on (date) ......, 20..., (time) .......

The dissertation could be found at:
1. National Library of Vietnam.
2. Library of the Hanoi University of Mining and Geology.


INTRODUCTION
1. Rationale
Coal mining and processing is a heavy industry with high economic value and in Vietnam,
localities with a large amount of coal reserves like Quang Ninh have more potential to grow and
improve the levels of income and living standards. (At present, there is a huge coal mining and
processing area in Quang Ninh province, spreading across such localities as Dong Trieu, Uong
Bi, Hoanh Bo, Ha Long and Cam Pha, including 24 open-cast mines/ surface mines and 49 pit
mines). However, besides the great benefits for economic development and national energy
security, the exploitation, processing and use of coal also triggers adverse impacts on the
environment, ecology, and society. Therefore, this industry is not only under the management
of Quang Ninh administration but also under a tight and effective macroeconomic policy
enforced by the ministries and administrations at all levels.
In fact, over the latest years, in Quang Ninh province, the coal mining process has directly
changed the surrounding environment, broken the natural balance, and caused environmental
pollution. Industrial waste water from coal industry pollutes surface water, affecting rivers,
streams, and lakes in coastal areas. For groundwater sources, due to excavation and exploitation,
freshwater aquifers such as some irrigation reservoirs in Dong Trieu area are degraded and
depleted, which affects the quality of water for agricultural production. The air quality of mining
areas is being polluted due to dust, toxic gases, explosive gases, and noise, etc.
Consequently, pollution from the mining industry greatly influenced the activities of
other economic sectors. The problem of leakage of coal resources in underground mining is still
very large, only leakage due to technology gap are about 25%, including the losses due to other

causes can be up to 40% of geological reserves. In addition, many social issues also appear
along with the development of coal mining activities in the province. Labor safety issues are not
really guaranteed; workers' life in the industry are gradually improving but still at a low level;
the pervasiveness of the industry to the development of other social issues (such as education,
health, ...) is not high.
Therefore, the development of the coal industry in a sustainable manner is an urgent
issue that Quang Ninh province has been raised and concerned over the past years with key
issues, such as efficient extraction, processing, and use, problems of environmental pollution
and reconstitution due to extracting and processing, job creation and social responsibility
implementation in the coal region, etc.
Among the policy solutions to ensure the development of the coal industry in a
sustainable manner by the Quang Ninh provincial government, the solution on managing the
state budget for coal is important, because of the following reasons:
- The primary strategy of coal mining companies is profit maximization, so they often
overlook sustainable development goals. If there is no state and local management of mining
activities, the sustainable development goals are difficult to be achieved.
- As one of the state management tasks for the coal industry, the management of the
state budget from coal mining activities contributes to the orientation of activities of coal
mining enterprises according to the approved local development plans.
- The management of the state budget from coal mining activities contributes to
generating revenues for the state budget, thereby creating a financial source for return
investment to ensure conditions for the development of mining activities in a sustainable way.
As mentioned, although coal mining companies must ensure the implementation of the
regulations and principles of economic development and environmental protection, businesses
often will not be very interested in environmental protection. Many businesses pretend to
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participate in waste treatment or have no resources to implement this process systematically that
can ensure consistency throughout the region and local communities. Therefore, investment

from the local government plays an important role.
- Besides, the management of state budget from coal mining activities also contributes to
financing for investment in social issues, such as developing human resources for coal industry
and other conditions to ensure the social and economic life of the people in the coal mining
areas.
In recent years, the management of state budget from coal mining activities in Quang
Ninh province has not been completed; the effectiveness of managing revenue sources and
spending activities is not high, which averts the comprehensive objectives of sustainable
development for coal mining. In the coming time, when the adverse changes from the market
are forecasted to make the coal industry less profitable and sustainable, it’s necessary to
conduct research and find solutions to improve the state budget management from coal mining
activities in the province.
Stemming from the above-mentioned practical requirements, the author has selected the
topic: "Research on the management of the State budget from coal mining operations in
Quang Ninh province towards sustainable development". The main objectives of this study
are to find major solutions with scientific and practical bases to improve the state budget
management from coal mining activities in Quang Ninh province, thereby contributing to
promoting the development of the local coal industry towards sustainable development.
2. The overall purpose and objectives of this study
2.1 The overall purpose
Studying this content, the thesis aims to base on the theory and analysis of the situation
of state budget management from coal mining activities in Quang Ninh province to propose
orientations and solutions to complete the management process. The proposed solutions will
help ensure the sustainable development objectives of the coal industry in the province in the
future.
2.2 Main research objectives
To accomplish the above goal, the thesis research process aims to implement the following
tasks:
Firstly, the study will provide a literature overview of research issues related to the
following topics: public finance, public assets, sustainable development of economic sectors

and coal mineral industry, the status of state budget, and state budget management procedures.
Through the analysis of domestic and foreign documents, the thesis will produce a synthesis of
what research questions have been answered and identifies the research gaps that this study will
try to fill in.
Second, the study will determine the theoretical framework for research on state budget
management from coal mining activities towards sustainable development. In particular, this
thesis will be focusing on clarifying: concepts, objectives, principles, evaluation criteria,
content, and factors affecting this management.
Thirdly, the dissertation will synthesize and analyze the sustainable development
processes that some other countries and some other localities in Vietnam have experienced to
draw lessons for Quang Ninh province in managing the state budget from coal mining activities.
Fourth, this study will analyze the status of coal mining activities towards sustainable
development in Quang Ninh province.
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Fifthly, from the theoretical issues that have been clarified, the thesis will analyze the
situation of state budget management from coal mining activities in Quang Ninh province
towards sustainable development. Thereby, the thesis will evaluate to highlight the
shortcomings, limitations and causes of shortcomings and limitations in the state budget
management from coal mining activities in the province.
Sixthly, on the basis of the conclusions from practical analysis, the thesis will propose
orientations and solutions with scientific and practical bases to improve the management of
state budget from coal mining activities in Quang Ninh province towards sustainable
development.
3. Research questions
To accomplish the research goal, the thesis will focus on research and answer the
following questions:
- What is the content of state budget management from coal mining activities towards
sustainable development?

- How is the status of state budget management from coal mining activities in Quang
Ninh province in the direction of sustainable development in the period of 2010-2017? What are
the shortcomings and limitations? What causes those weaknesses?
- What measures should be taken to improve the state budget management from coal
mining activities in Quang Ninh province in the direction of sustainable development in the
coming time?
4. Research subject and scope of this study
4.1 Research subject
This dissertation examines the state budget management from coal mining activities in
Quang Ninh province towards sustainable development.
4.2. Scope of this study
- Content: The research focuses on investigating the management of the state budget
from coal mining activities in Quang Ninh province in the direction of sustainable development
according to the state budget management cycle mainly under the perspectives of the
administrations at all levels, from the central to local governments.
- Site: The study is conducted in Quang Ninh province.
- Time: The author collected secondary data in the period of 2010-2017 and primary data
collected from January 2018 to April 2018. Proposals and solutions proposed in this study are
applicable from 2025 to 2030.
5. Scientific significance and practical value of research results
5.1. Achievements and new contributions of the study
Firstly, the dissertation was built on the legal documents, especially the State Budget
Law of 2002, 2015, as well as the characteristics of the coal industry and the management of the
state budget for coal mining activities, to develop the specific content of state budget
management from coal mining activities towards sustainable development. Specifically, the
content of this management procedure still includes estimating, executing estimates, settling
and inspecting, monitoring and supervising budget revenues and expenditures that has been
built specifically for coal mining activities.
Secondly, the dissertation develops its own set of criteria used to assess the state budget
management from coal mining activities towards sustainable development based on the

objectives and contents of this management work.
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Thirdly, the dissertation evaluates and highlights the shortcomings and limitations in the
state budget management from coal mining activities in Quang Ninh province that follows the
direction of sustainable development in the period of 2010-2017. These are new conclusions,
never published in any research.
Fourth, the thesis has proposed new solutions, focusing on completing shortcomings,
limitations, causes of shortcomings and limitations pointed out in the state budget management
from coal mining activities in Quang Ninh province towards sustainable development in the
period of 2010-2017.
With the above research results and new contributions, the dissertation is the first project
to assess the state budget management in particular for the coal mining industry of Quang Ninh
province in the period of 2010-2017. The proposed solutions are new and updated, assessing the
actual situation in Quang Ninh province in the present and in the future.
5.2. Scientific significance
The study adds and clarifies the research framework on state budget management from
coal mining activities towards sustainable development based on the system of legal documents
and overview of previous domestic and foreign studies on this problem, namely:
Firstly, 04 contents of state budget management from coal mining activities towards
sustainable development are identified, including: (i) Budget revenue and expenditure
estimations from coal mining activities; (ii) Complying with state budget revenue and
expenditure estimates from coal mining activities; (iii) Settlement of state budget revenues and
expenditures from coal mining activities; (iv) Inspecting and monitoring state budget revenues
and expenditures from coal mining activities.
Secondly, the study has built a system of criteria to evaluate the state budget
management from coal mining activities towards sustainable development.
Thirdly, the dissertation analyzes the impact of three factors on state budget
management from coal mining activities towards sustainable development, including: (i)

Macro-environmental factors; (ii) Factors belonging to local and local governments; (iii)
Factors belonging to coal mining enterprises and budget users.
5.3. Practical values of research results
The dissertation evaluates the achievements, shortcomings, and limitations of the state
budget management from coal mining activities in Quang Ninh province towards sustainable
development in the period of 2010-2017. The study provides some solutions to the state budget
management from coal mining activities in Quang Ninh province towards sustainable
development until 2025. Therefore, the results of the study can be used as references for
agencies to plan and implement state budget management practices for coal mining activities in
general in Quang Ninh province in particular. At the same time, the dissertation can also
become a reference for further research on this issue.
6. The layout of the dissertation
In addition to the introduction, conclusion, table of contents, abbreviations list, list of
references, appendices, the dissertation is structured in 04 chapters:
Chapter 1: Overview of research projects related to the dissertation topic.
Chapter 2: Rationale and practical experience on state budget management from coal
mining activities towards sustainable development.
Chapter 3: Analysis of the status of state budget management from coal mining
activities in Quang Ninh province towards sustainable development.
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Chapter 4: Direction and solutions to complete the state budget management from coal
mining activities in Quang Ninh province towards sustainable development.

Chapter 1
OVERVIEW OF LITERATURE RELATED TO THE DISSERTATION TOPIC
1.1. Overview of published studies related to the dissertation topic
1.1.1. Overseas studies
1.1.1.1. Studies related to public finance, public assets, public financial management, and

public asset management: 4 projects.
1.1.1.2. Studies related to sustainable development of economic sectors and coal mining
industry
a) Studies on sustainable economics and sustainable development: 5 projects.
b) Studies on resource economics and mine economics: 5 projects.
1.1.1.3. Studies related to the state budget and state budget management: 5 projects.
1.1.2. Studies in the country
1.1.2.1. Studies related to public finance, public assets and state budget management: 3
projects.
1.1.2.2. Studies related to sustainable development of economic sectors and coal mining
industry
a) Theoretical studies of sustainable development: 4 works.
b) Studies on sustainable development in the field of mineral resources and coal mining:
4 projects.
1.1.2.3. Studies related to the state budget and state budget management: 10 projects.
1.2. The conclusions are drawn from an overview of research related to the topic
1.2.1. The contents were agreed in the published works that the thesis can inherit and develop
1.2.1.1. For group of studies abroad
Overall, the author has not encountered any research on sustainable development of coal
industry, especially the state budget management for coal mining activities towards sustainable
development in Vietnam as well as in any region. In the opinion of some experts, there is a
literature gap in this field, which the author will try to fill in through this research.
1.2.1.2. For the group of studies in the country
Research efforts conducted by domestic authors are summarized in the following main
points:
- Concepts, functions, principles of sustainable development;
- Sustainable development of some areas: sustainable development of economy,
humanitarian development, sustainable development of environment and technology,
sustainable development of culture;
- Develop management mechanisms and policies for coal mining activities so that

exploitation activities are always under the control of managers.
- Develop a set of sustainable development indicators for Vietnam's mining industry
- Research the management of state budget revenues and expenditures in a number of
regions and localities across the country, in which there are a number of separate research
projects for a certain field (such as health, higher education), but there have no separate studies
for the coal industry.
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1.2.2. The problems have not been studied in the literature
Besides, the aforementioned rich documentation system still has some shortcomings and
differences compared with the author's thesis:
- No research has focused on the management of the state budget for a specific economic
sector towards sustainable development.
- There have been some studies on the state budget management of the localities, but these
studies focus on the state budget management in general of the localities and the contents of these
studies are not deeply focused on the state budget management for a specific sector or field.
- Recently, the State Budget Law and many new state programs and policies regulating
the coal industry have been greatly impacting the development of coal mining activities,
especially in the locality where coal reserves are available as much as Quang Ninh, making
further research necessary.
1.2.3. Main topics that the dissertation will focus on:
It can be affirmed that the dissertation topic is selected as "Research on the
management of the State budget from coal mining operations in Quang Ninh province
towards sustainable development" is completely new and not duplicated.
Thus, in order to achieve the research objectives, the dissertation focuses on researching
and solving the following main issues:
Firstly, based on the theoretical and practical basis of the state budget management,
build a theoretical basis for state budget management from coal mining activities at the
provincial level towards sustainable development.

Secondly, clarify the status of coal mining activities in Quang Ninh province towards
sustainable development.
Thirdly, analyze and evaluate the status of state budget management from coal mining
activities in Quang Ninh province in the direction of sustainable development in the period of
2010-2017. From there, point out the strengths and weaknesses, explain the causes of
weaknesses in this management, and create a basis for proposing complete solutions.
Fourthly, propose directions and solutions to improve the state budget management from
coal mining activities in Quang Ninh province in the direction of sustainable development for
the period of 2018-2025, with an projection to 2030.
Conclusion chapter 1
In chapter 1, the dissertation has categorized domestic and foreign research projects
related to the dissertation topic into 03 groups: (i) Studies related to public finance, public assets
and governance public financial and asset management; (ii) Studies related to sustainable
development of economic sectors in general and coal/mineral industry in particular; (iii) Staterelated studies regarding state budget management.
On the basis of analyzing and commenting on the research projects that have been
approached, the author has gained important knowledge on the dissertation topic. Among the
research projects accessible there are many studies closely related to the thesis, and the results
of these works are very important for the thesis to inherit and develop research direction for this
dissertation
Based on the content and results of the research projects related to the dissertation, the
author found that there are still some issues that need to be studied such as: coal mining in a
sustainable way, the topic of managing the state budget for sustainable coal mining activities
(concepts, contents, evaluation criteria, influencing factors, ...).
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Chapter 2
RATIONALE AND PRACTICAL EXPERIENCE ON MANAGEMENT OF STATE
BUDGET FROM COAL MINING ACTIVITIES FOLLOWING FOR SUSTAINABLE
DEVELOPMENT

2.1. Overview of the State budget
2.1.1. Concepts and characteristics of the State budget
2.1.1.1. Concept of State budget
The State Budget Law No. 01/2002 / QH11 passed by the National Assembly on
December 16, 2002 stipulates that the state budget is all state revenues and expenditures
managed and implemented by the competent state agency in one year to ensure the performance
of functions and duties by the State.
2.1.1.2. Characteristics of the State budget
2.1.2. State budget system
The state budget system is consisted of different levels of administrations that have an
organic relationship with each other in the process of implementing the revenue and
expenditure tasks of each budget level.

State budget
Provincial and city budgets
directly under the central
government (provincial
budget)
Union budget

Budget of districts, towns
and cities directly under the
province (district budget)

Local
budget

Budget of communes, wards
and townships (commune
budget)

Figure 2.1: Vietnam State budget system
Source: State Budget Law 2015
2.1.3. Classification of state budget management
The classification of state budget management is the delimitation of the scope,
responsibilities, and powers of local state agencies in the process of managing and
administering the state budget.
2.1.4. The role of the State budget
- A tool to mobilize financial resources and ensure the spending needs of the state
- A tool for macroeconomic regulation
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2.2. Coal mining activities in the direction of sustainable development
2.2.1. Concept of coal mining activities towards sustainable development
2.2.1.1. Coal mining activities
a) Concept of coal mining activities
b) Characteristics of coal mining activities
c) The role of coal mining activities
2.2.1.2. Coal mining activities in the direction of sustainable development
a) Concept and nature of sustainable development
Sustainable Development is the development that meets the requirements of the present,
but does not hinder the demand and living conditions of future generations on the basis of
harmonious economic and social development to constantly improve the quality of human life.
Sustainable Development emphasizes on the harmonious development of three pillars
that are the components of sustainable development: Economy - Society - Environment.
b) Definition of coal mining activities towards sustainable development
Coal mining activities towards sustainable development are the ones that promote
sustainable economic growth of the coal industry, at the same time increasing social justice and
protecting natural landscapes and the environment.
2.2.2. Characteristics of coal mining activities in the direction of sustainable development

- Sustainable coal mining activities are the development of economic control, ensuring
the quality of growth.
- Sustainable coal mining activities aim to balance and harmonize economic, social and
environmental aspects, between short-term and long-term goals and benefits in the development
process.
- Sustainable coal mining activities require high responsibility and fairness of benefits
for entities involved in coal mining activities.
- Sustainable coal mining activities are based on appropriate principles, thoroughly
understood and strictly followed in the development process.
2.3. Managing the state budget from coal mining activities towards sustainable
development
2.3.1. The concept of managing the state budget from coal mining activities towards
sustainable development
- State budget management is the process of applying management tools and methods to
create and use monetary funds of the state government at all levels to serve the implementation
of national and local socio-economic objectives.
- Management of state budget from coal mining activities towards sustainable
development is the process of provincial government to apply management tools and methods
to mobilize budget revenues according to the law from coal mining and use. That budget is
invested again to ensure sustainable development in the economic, social, and environmental
aspects of the locality, especially in areas where coal mining activities take place.
2.3.2. The goal of managing the state budget from coal mining activities towards sustainable
development
- Ensuring the implementation of the budget law in coal mining activities.
- Ensuring the implementation of sustainable development objectives in coal mining
activities.
2.3.3. Principles to manage the state budget from coal mining activities towards sustainable
development
8

- Compliance with laws, policies and regulations of the state.
- Principles of budget balance.
- Principles of transparency and democracy in state budget management.
- Principles of honesty, accuracy.
- Hierarchy principle.
- Principle of specialization in management activities.
2.3.4. Model of state budget management apparatus from coal mining activities towards
sustainable development
The division of powers and responsibilities among the agencies managing provincial
state budget expenditures is shown in the following figure:

National
Assembly

Ministry of Finance

Government

Ministry of
Planning and
Investment
Provincial People’s
Council

Provincial
People’s
Committee

Department of

Finance

Department of
Planning and
Investment

People’s committee at commune,
district, and province levels

Coal mining enterprises

Investors, contractors (budget users)

Figure 2.2: Model of state budget management apparatus from coal mining
activities
Source: Author's synthesis
2.3.5. Content of managing the state budget from coal mining activities towards sustainable
development
2.3.5.1. Making estimates of state budget revenues and expenditures from coal mining activities
a) Revenue sources and budget spending tasks ensure coal mining activities towards
sustainable development
(i) State budget revenues from coal mining activities
Sources of state budget revenues from coal mining activities include taxes and fees.
9


Firstly, tax revenue includes: natural resource tax, value-added tax, corporate income
tax, export tax, environmental protection tax.
Second, revenue from fees
- Fees for granting investment certificates, construction permit fees, fees for other

administrative procedures, mineral exploration costs must be returned by the State for
investment, ...; Environmental protection fee.
(ii) The task of spending the state budget from coal mining activities towards
sustainable development
The content of state budget spending for sustainable development purposes of coal
mining activities at the provincial level is basically as follows:
- Expenses for investment in infrastructure development in service of coal mining
activities.
- Expenses for protection, renovation and maintenance of coal and pit mines.
- Expenses for the science and technology development in coal industry.
- Expenditure for developing human resources in coal industry.
- Expenses for investment in environmental protection projects in the coal industry.
- Spending on local cultural and social issues, coal mining activities take place.
b) Requirements for state budget revenue and expenditure estimates from coal mining
activities towards sustainable development
- The estimate must be built on the basis of the local socio-economic development plan
and positive content returned to socio-economic and environmental issues.
- Estimates must contribute to service and promote the development of coal mining
activities of enterprises.
c) Bases for estimating state budget revenues and expenditures
- Local socio-economic development tasks.
- Specific tasks of the coal industry in the locality.
- Decentralization of state budget management, ratio of state budget revenues.
- The current regime, criteria and norms of state budget revenues and expenditures.
- Directive of the Prime Minister on the development of socio-economic development
plans and the following year's budget estimates, the Ministry of Finance's guiding circulars on
the making of state budget estimates and guiding documents of the ministries.
d) Order of making state budget revenue and expenditure estimates
The order of estimating state budget revenue and expenditure from coal mining activities
in the direction of sustainable development is regulated by the State Budget Law. Budget

revenue and expenditure estimates from coal mining activities towards sustainable development
are built together with local budget revenue and expenditure estimates.
2.3.5.2. Abide by the state budget revenue and expenditure estimates from coal mining activities
a) Organize the apparatus to implement state budget revenue and expenditure estimates
from coal mining activities towards sustainable development
b) Directing the observance of state budget revenue and expenditure estimates from coal
mining activities towards sustainable development
(i) Complying with state budget collection from coal mining activities.
(ii) Executive expenses for coal mining activities.
2.3.5.3. Settlement of state budget revenues and expenditures from coal mining activities
Budget settlement is the last stage of a budget cycle. It is a summary of the process of
implementing the annual budget estimation, in order to evaluate the entire operating results of a
10


budget year, thereby drawing the advantages, disadvantages and lessons learned for the budget
cycles. Next book.
2.3.5.4. Inspecting, examining and supervising state budget revenues and expenditures from
coal mining activities
- The agency responsible for implementation.
- Purpose of inspection, inspection and supervision.
- Contents of inspection, inspection and supervision
- Forms of inspection, examination and supervision of the implementation of budget
revenues and expenditures.
2.3.6. Criteria for evaluating the management of the state budget from coal mining
activities towards sustainable development
2.3.6.1. Group of criteria for evaluating the implementation of the budget law in coal mining
activities
a) Group of criteria for estimating budget revenues and expenditures from coal mining
activities: suitability, feasibility and flexibility.

b) Group of criteria for assessing budget revenue and expenditure estimates from coal
mining activities
- Group of criteria for evaluating budget revenues from coal mining activities.
- Group of criteria for budget expenditure evaluation for sustainable development of coal
mining activities.
c) Group of criteria for evaluating, inspecting and monitoring the implementation of
budget revenues and expenditures from coal mining activities
2.3.6.2. Group of criteria to evaluate the effectiveness, efficiency, appropriateness of managing
the state budget from coal mining activities towards sustainable development
a) Effectiveness of management
b) Effectiveness of management.
c) The appropriateness of management.
2.3.6.3. Group of criteria for evaluating coal mining activities in the direction of sustainable
development
a) Group of criteria for economic evaluation
b) Group of criteria for social assessment
c) Group of criteria for environmental assessment.
2.3.7. Factors affecting the management of the state budget from coal mining activities
towards sustainable development
2.3.7.1. Factors belong to local conditions and local government
First, the socio-economic development strategies of the local government.
Second, local natural conditions.
Thirdly, the status of local socio-economic development.
Fourth, the local government’s availability of public financial resources.
Fifth, the capacity of the local government in managing the state budget
Sixth, management capacity of local tax authorities and customs.
2.3.7.2. Factors belong to coal mining enterprises and budget users
a) Factors belonging to coal mining enterprises
b) Factors belonging to the budget users
2.3.7.3. The macro-factors

Firstly, the State's objective of developing coal industry.
11


Secondly, laws, policies and regulations on state budget revenues and expenditures;
financial management framework of coal mining enterprises.
Third, the stability of the economy, the coal industry market.
Fourth, the impact of economic globalization
2.4. Practical experience at home and abroad for managing state budget from coal mining
activities towards sustainable development and lessons learned for Quang Ninh province
2.4.1. Experience in managing the state budget of some countries
2.4.2. Experience in managing the state budget of some localities in the country
2.4.3. Lesson learned for Quang Ninh province in managing the state budget from coal
mining activities towards sustainable development
Firstly, different countries have different socio-economic development processes,
different methods of budget creation, but they all attach great importance to administrative
reform in the field of budget management.
Secondly, it is necessary to recognize the role of economic analysis in forecasting for the
management of budget revenues and expenditures in order to develop socio-economic in a
comprehensive and solid manner.
Thirdly, strict measures should be implemented to manage revenues and expenditures on
all stages of the budget cycle.
Fourthly, it is necessary to determine the priority objectives in state budget spending for
sustainable development of coal mining activities.
Fifthly, inspection and supervision should be strengthened to contribute to good
implementation of financial discipline.
2.5. Research Methods
2.5.1. Approach to study research topics and hypotheses
2.5.2. Methods of collecting and processing information and data
- Methods of collecting secondary information and data.

- Methods of collecting information and primary data.
- Methods of processing information and data.
2.5.3. Research methods
- Methodology.
- Methods of analysis - synthesis.
- Methods of statistical research - comparison.
2.5.4. General research framework
The general research framework of the dissertation is shown in the following figure:

12


Factors affecting the
state budget
management from coal
mining activities at the
provincial level in the
direction of sustainable
development

Contents of state
budget management
from coal mining
activities at the
provincial level in the
direction of sustainable
development

Prepare state budget
revenue and

expenditure estimates
from coal mining
activities

Macro-factors

Factors belong to local
and local government

Implementation of the
state budget revenue
and expenditure
estimates from coal
mining activities

Objectives of state
budget management
from coal mining
activities at the
provincial level in the
direction of sustainable
development

Ensure the
implementation of the
law on local budget
management in coal
mining activities

Settlement of state

budget revenues and
expenditures from
coal mining activities

Factors belong to coal
mining enterprises and
budget users

Inspection, inspection
and supervision of
revenues and
expenditures of state
budget from coal
mining activities

Ensure
implementation of
sustainable
development
objectives in coal
mining activities

Figure 2.3: Dissertation research framework
Source: NCS construction

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Conclusion chapter 2
In chapter 2 "Theoretical basis and practical experience on state budget management

from coal mining activities towards sustainable development" has been systematized in details.
From these contents, some basic conclusions can be drawn as follows:
- Sustainable coal mining activities aim to balance and harmonize economic, social and
environmental aspects of coal mining activities.
- The management of the state budget from coal mining activities towards sustainable
development has specific characteristics, but in essence still must comply with the regulations
and principles of the state budget management in general. Most importantly, the basic contents
of this management still include: Estimating; Executing estimates; Settlement; Operation
Inspection, and Supervision.
- Factors affecting the state budget management from coal mining activities towards
diversification can be internal or external.
- The system of criteria for evaluating the state budget management from coal mining
activities towards sustainable development is also very diverse, depending on the evaluation
objectives, and that is a very important basis for researching and proposing solutions in thesis.
- Practical experience on measures and solutions to manage state budget of the countries
and some localities in the country allows to draw many lessons learned for the state budget
management from coal mining activities towards sustainable development in Quang Ninh
province.
Chapter 3
ANALYSIS OF THE SITUATION OF STATE BUDGET MANAGEMENT FROM
COAL EXPLOITATION ACTIVITIES IN QUANG NINH PROVINCE LOCATION BY
SUSTAINABLE DEVELOPMENT
3.1. Assessing the status of coal mining activities in Quang Ninh province towards
sustainable development
3.1.1. Status of resources and coal reserves in Quang Ninh
3.1.2. Status of exploration and resource management
3.1.3. Current status of coal mining activities in the direction of sustainable development
3.1.3.1. Assessing the status of coal mining activities towards sustainable development
according to economic criteria
a) Production value, added value in coal industry development

b) Operation results of coal mining enterprises
Although it is not possible to conclude directly on the efficiency of state budget
management from coal mining activities towards sustainable development of the province, the
actual results of business activities of coal mining enterprises are not positive, where
weaknesses stay in the above management.
c) The capacity level of the economy in supplying coal and raw material demands
The application of the contracting mechanism and coal exploitation and exploitation
screening contracts helps create a level playing field and driving force for companies to emulate
and develop.
3.1.3.2. Assessing the status of coal mining activities towards sustainable development
according to social criteria
a) Labor in the coal industry
b) Situation of localization of coal industry human resources
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c) Income situation of coal industry workers
d) Proportion of laborers working in hazardous and dangerous environments
3.1.3.3. Assessing the status of coal mining activities towards sustainable development
according to environmental criteria
a) Classification of environmental impacts in coal mining
To study systematic environmental impacts, the dissertation proposes a system of
classifying environmental impacts in mining.
b) Impact of coal mining on environmental components in Quang Ninh
In this section, the dissertation generalizes the status of the environment in Quang Ninh
coal mine due to the impact of coal mining in turn according to natural components such as:
lithosphere, hydrosphere, atmosphere, environmental incidents.
3.2. Analysis of the state budget management situation from coal mining activities in
Quang Ninh province towards sustainable development
3.2.1. Prepare state budget revenue and expenditure estimates from coal mining activities

Over the past years, budget revenue and expenditure estimates in Quang Ninh province
have been set annually. Therefore, the construction of budget revenue and expenditure estimates
has been carried out in accordance with the process of making, deciding and allocating budget
estimates.
- The estimation of revenues from coal mining activities in addition to complying with
the State Budget Law and documents of the Ministry of Finance, also comply with the
Resolution of the People's Council of Quang Ninh province on decomposition of revenue
sources and mid-spending tasks Budget levels in the current year.
- The work of making, allocating and assigning revenue and expenditure estimates to
ensure sustainable development of coal mining activities over time basically complies with the
State Budget Law and guiding documents. The People's Council made public and decided on
budget estimates, allocating provincial budgets before December 10 every year in accordance
with the provisions of the State Budget Law.
In order to supplement the content of determining the revenue and expenditure estimates
of the state budget from coal mining activities towards sustainable development in Quang Ninh
province, the dissertation uses sociological survey methods for 02 groups of survey subjects:
Officials and civil servants working at the Department of Finance; Officials and civil servants
working at the Tax Department.
3.2.2. Implementation of the state budget revenue and expenditure estimates from coal
mining activities
3.2.2.1. Organizational apparatus to implement state budget revenue and expenditure estimates
from coal mining activities towards sustainable development
The organizational structure of the implementation of revenue estimates and state budget
expenditures from coal mining activities towards sustainable development in Quang Ninh
province is shown in the figure:

15


Provincial People’s

Council

Provincial People’s
Committee

State
inspection

Provincial Tax
Department; Quang
Ninh Customs

Department of
Finance, Department
of Planning and
Investment, other
departments

State Treasury system

Coal mining
enterprises

Investor of projects
using state budget for
sustainable
development of coal
industry

Other related units

using State budget

Figure 3.3: Apparatus for estimating state budget revenue and expenditure from
coal mining activities towards sustainable development in Quang Ninh province
Source: Author's synthesis
3.2.2.2. Directing the observance of state budget revenue and expenditure estimates from coal
mining activities towards sustainable development
a) For state budget collection agencies from coal mining activities
b) For units using the investment budget for sustainable development of the coal
industry (investors of projects and agencies are responsible for implementing programs and
policies related to the development of the coal industry).
c) For Finance agencies
3.2.3. Settlement of state budget revenues and expenditures from coal mining activities
The settlement of budget revenues and expenditures shall be carried out at the end of the
budget year, based on the Ministry of Finance’s documents guiding the closing of the state
budget accounts at the end of the year and the elaboration and reporting of annual state budget
settlement.
3.2.4. Inspecting, examining and supervising state budget revenues and expenditures from
coal mining activities
The inspection and supervision of the implementation of state budget revenues and
expenditures must ensure sustainable development of coal mining activities in the province by
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specialized inspectors, state inspectors, tax agencies financial agencies, Department of Planning
and Investment, People's Council at all levels.
3.3. Overall assessment of state budget management from coal mining activities in Quang
Ninh province towards sustainable development
3.3.1. Assessment of the effectiveness, efficiency, appropriateness of the state budget
management from coal mining activities in Quang Ninh province towards sustainable

development
Criteria for effectiveness, efficiency, appropriateness of the state budget management
from coal mining activities in Quang Ninh province are relatively high in general. Through the
analysis results from survey data by SPSS 22 software, the effectiveness, efficiency and
appropriateness of state budget management to ensure sustainable development in coal mining
activities in Quang Ninh province have not been evaluated well.
3.3.2. The shortcomings and limitations in managing the state budget from coal mining
activities in Quang Ninh province towards sustainable development
Firstly, the planning of revenue from coal mining activities has not been properly
respected.
Secondly, the construction of budget revenue estimates from coal mining activities has
not had a solid basis, sometimes due to subjective and emotional factors.
Thirdly, the decision making process and allocation of budget revenue and expenditure
estimates is mainly made by the Department of Finance and Department of Planning and
Investment as advisors.
Fourthly, the budget allocation norms for coal industry development are based on the
input resource-based distribution method.
Fifthly, the allocation of environmental budget expenditures in the current budget of the
local economy is unclear, leading to inaccurate accounting of the environmental funding of the
coal industry.
Sixthly, the development of the coal sector is a large proportion of the total provincial
budget expenditure, and it is important to have no specific capital allocation norms.
Seventhly, the inspection and supervision of budget revenues and expenditures are still
formalistic, when detecting violations that have not been handled promptly, which only
involves prompting and withdrawing experiences.
Eighth, the combination of finance agencies at all levels is not strict in guiding,
inspecting, urging, and creating favorable conditions in observing budget revenues and
expenditures in coal mining activities.
3.3.3. The causes of existence and limitations in the management of state budget from coal
mining activities in Quang Ninh province towards sustainable development

3.3.3.1. Subjective causes
- The coordination between financial agencies, tax agencies, State Treasury, and related
administration units in developing budget revenue and expenditure estimates in coal mining
activities in the province is not good.
- Provincial People's Committee and Department of Finance have not regularly
reviewed, supplemented the list, and adjusted the fee levels for the area.
- The leadership and management capacity and implementation organization of local
authorities at all levels in some areas are still limited, not meeting the requirements.
- Some local budget managers have not been trained yet.
3.3.3.2. Objective causes
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- In the period of 2010-2016, they did not have regulations on medium-term expenditure
framework or at least a multi-year budget.
- Regulations on scope of state budget revenues and expenditures in general, budget
revenues and expenditures in coal mining activities in particular are not specific.
- Inadequate and timely regulations on inspection, examination, settlement and budget
disclosure.
- According to the current regulations, the state budget control mechanism has not yet
implemented according to the output results.
- Awareness of a poor coal mining business.
Conclusion Chapter 3
Chapter 3 refers to the actual state budget management from coal mining activities in
Quang Ninh province in the direction of sustainable development in the period of 2010-2017,
and some drawn conclusions are as follows:
- The contents of state budget management have been fully implemented by Quang Ninh
provincial authorities in accordance with the current regulations on state budget management.
- The management apparatus is organized from the province to the district and the
commune with the mechanisms of directing and coordinating the implementation relatively

smoothly while receiving the support and compliance from coal mining enterprises and units
that use investment budget for coal industry development.
- The management of the state budget from coal mining activities in Quang Ninh
province towards the direction of sustainable development gradually goes into order;
effectiveness, efficiency, appropriateness of state budget management are increasingly high.
- However, the management of state budget from coal mining activities in Quang Ninh
province towards the direction of sustainable development also reveals many limitations in
terms of the estimation of revenue and expenditure, the allocation of revenues and expenditures,
the organization of the revenue-expenditure settlement, and the work of inspection, supervision
and supervision of the state budget revenue and expenditure from coal mining activities.
- Limitations in the management of state budget from coal mining activities in Quang
Ninh province towards the direction of sustainable development derive from many reasons,
including subjective causes from the state management apparatus and objective causes from
mechanism, policy, to the awareness of coal mining enterprises and units that use investment
budget for coal industry development.
Chapter 4
ORIENTATION AND SOLUTIONS TO COMPLETE THE MANAGEMENT OF
STATE BUDGET FROM COAL EXPLOIT ACTIVITIES IN QUANG NINH
PROVINCE LOCATION BY SUSTAINABLE DEVELOPMENT
4.1. Orientation to improve the management of the State budget from coal mining
activities in Quang Ninh province towards sustainable development until 2025, with a
projection to 2030
4.2. Solutions to improve the management of the State budget from coal mining activities
in Quang Ninh province towards sustainable development
4.2.1. Complete the estimation of State budget revenues and expenditures from coal mining
activities
4.2.1.1. Improve the quality of budget revenue and expenditure estimates
18

- Improving the quality of forecasting to enhance the quality of financial revenue
estimation from coal mining activities.
- Control and estimate budget expenditure for coal industry development.
4.2.1.2. Innovating the method of planning investment capital for the coal industry
- Need to strengthen the coordination of sectors and units in planning investment capital
for the coal industry.
- Planning investment capital must ensure the timeliness of the plan.
- Balancing various types of state budget capital for investment in coal industry
development must ensure high feasibility.
- Updating and adjusting investment capital must be carried out to develop the coal
industry in a scientific way.
4.2.1.3. Nurture and expand revenues from coal mining activities
- Create a encouraging and open environment for coal mining enterprises.
- Enhancing mobilization of investment capital to develop coal industry.
4.2.1.4. Apply the budget estimation and allocation process based on the medium-term
expenditure framework based on outputs
4.2.2. Complete compliance with State budget revenue and expenditure estimates from coal
mining activities
4.2.2.1. Renovating the mechanism of managing tax and fee collection from coal mining
activities
- Enhancing the obligations and activeness of enterprises in self-calculation, selfdeclaration and self-payment of taxes into the state budget, taking responsibility before law
through the expansion and implementation of mass self-declaration mechanism.
- Reviewing, improving, and evaluating additional and complete the current tax
management procedures; researching and building a number of new processes to serve the
implementation of the mechanism of self-declaration and self-payment and real current tax
administration law.
- Renovating the mechanism of tax collection management in an association with
reforming tax administrative procedures to create a favorable environment for coal mining
enterprises, saving common costs of society.
4.2.2.2. Strengthen propaganda, raise awareness and responsibility of management objects

- For financial collection from coal mining activities.
- For investment spending for coal industry development.
4.2.2.3. Strengthening coordination between levels, sectors and units in managing budget
revenues and expenditures
- All levels, sectors and units need to coordinate in the management and administration
of budget revenue and expenditure estimates, ensuring full and timely mobilization of state
budget revenue sources in order to promptly meet the tasks spending in coal mining activities in
the province in the direction of sustainable development.
- Tax authorities work closely with authorities at all levels to check the implementation
of tax duties; review and strictly control declaration documents; timely monitor and urge tax
breaks to pay into the state budget; at the same time, subject to inspection and examination of
tax refunds, printing, management and use of invoices according to regulations to resolutely
handle violations.

19


- The tax industry needs to closely coordinate with the business registration and
investment certificate granting agencies to manage tax from the input stage, regularly compare
the number of operating coal mining enterprises, dissolved enterprises. .
- Promote and diversify forms of propaganda, tax law support for taxpayers and social
communities to improve compliance in tax law enforcement, strongly condemn evasion acts
tax, tax fraud, tax breaks, creating consensus of the coal mining business community, high
consensus of branches and levels in taxation.
- Tax authorities focus on leading and directing the urging of collecting tax debts and
coercing tax debts, assigning targets to collect tax debts to each unit and to each cadre, civil
servant, attaching the responsibility of tax officials and employees with the task of collecting
tax debts, limiting to the lowest the arising debts.
- The coordination between tax authorities and commercial banks in the area of
collection authorization has achieved significant achievements, helping the collection work in a

timely manner, creating favorable conditions for taxpayers and saving costs. for tax authorities.
- Department of Finance entered TABMIS for projects with timely plans for Treasury to
pay on time as prescribed.
- In the future, the provincial authorities need to have closer coordination between the
specialized agencies of the Provincial People's Committee and the media.
4.2.2.4. Strengthening publicity and transparency in managing budget revenues and
expenditures
Publicity and transparency are principles and requirements for state management
agencies in budget management. That is specified in the Constitution and the State Budget Law.
4.2.2.5. Completing the management of investment expenditures for coal industry development
from the state budget
a) It is necessary to have accurate investment decisions and decisions
b) Completing the appraisal of investment projects to develop coal industry
c) Complete bidding
d) Improve the quality of construction supervision of works and construction items
e) Strictly control the acceptance of works, work items, investment capital settlement
4.2.2.6. Promote the application of information technology in the implementation of State
budget management
Quang Ninh province has implemented information technology application in state
agencies' activities.
4.2.3. Completing the State budget revenue and expenditure settlement from coal mining
activities
In order to carry out the full and effective state budget settlement work to summarize
and re-evaluate the implementation of the budget as well as the budget and fiscal policy in the
budget year, it is necessary to implement
- State budget settlement must solve the problem of budget data.
- State budget settlement must show compliance in budget collection and spending,
explanation of settlement is not only data issues but also explanation of budget revenue and
expenditure management in progress. comply with the provisions of the law as well as meet the
requirements set out when deciding the budget.

- State budget settlement must report the effectiveness and efficiency of budget revenues
and expenditures.
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- The settlement data must be truthful, accurate and reflect the economic and financial
operations arising according to the budget index and the final settlement report in terms of
quantity and time.
- Implementing the settlement of investment capital with 100% of completed projects
put into use to determine the value of the project put into use.
- Focusing on directing and organizing the settlement and inspection, reviewing and
approving the previous year's budget settlement in accordance with the State Budget Law; to
perform 100% of the examination of settlement for units using the state budget.
- Implement the state budget disclosure from the construction of budget estimates,
budget compliance and budget settlement.
4.2.4. Complete inspection, inspection and supervision of State budget revenues and
expenditures from coal mining activities
Inspection and examination to promote positive factors; to prevent, detect and handle
violations in the course of performing the assigned tasks of subjects, contributing to perfecting
management mechanisms and policies and making measures to organize the subsequent
implementation to achieve results as desired.
- Performing inspection of all stages from planning, executing to collecting and spending
settlement.
- Strengthening the inspection of tax declaration dossiers, requesting coal mining
enterprises to explain or make additional declarations for tax declaration dossiers not in line
with the production and business situation.
- To improve the quality of tax inspections, it is necessary to apply synchronous
measures, but concentration is still a human factor.
- Improving the quality of appraisal of development investment cost estimates for the
coal industry to ensure effective budget spending, especially investment spending to ensure the

allocation of centralized resources, avoiding spreading.
- Strengthening internal inspection, promptly reorganizing the management, raising the
sense of responsibility of civil servants in public service, resolutely dealing with civil servants
who show signs of degradation about morality, lifestyle, and manifest negative harassment.
4.3. Some recommendations
4.3.1. Proposing to the National Assembly
- Synchronously, uniformly adjusting the provisions of the Law on Local Government
Organization, the Law on Public Investment and the State Budget Law in the direction of
expanding the more proactive rights for provincial authorities in developing spending norms.
- Decomposing revenue sources between the central and local levels in the direction of
leaving more revenue to the locality; There is adequate rewarding mechanism to encourage
local authorities to increase revenues.
- Unifying the method of planning according to the Law on Public Investment and
making budget estimates according to the State Budget Law.
- When approving the annual state budget estimates, the National Assembly should
consider cutting down the expenditures that have the least impacts on growth and focus on
ensure social stability in the locality, changing the way to reduce the average of all
expenditures.
- The annual revenue from import and export of the province is very large: this is 100%
regulated revenue of the central budget, so the province is not entitled to this revenue.
21


- For 100% centralized revenues, the locality is not rewarded even if there is an increase
in the revenue compared to the estimates.
4.3.2. Proposing to the Government
- The Government should review and adjust the system of regulations and norms for
state budget allocation applicable to localities, especially the allocation of norms for the coal
industry.
- Consolidate the financial-budget information system, the budget accounting system,

the accounting and treasury accounting system at all units that use the state budget in order to
provide a consistent and complete information ground for management officials about the state
budget management status
- Quickly issue documents to guide local budget management agencies when the central
government adjusts its policies.
- Apply early the performance measurement framework to assess and report the
strengths and weaknesses of the public financial management system in the localities.
- Increase the basic salary to ensure that officials and civil servants in the state
management apparatus are assured of their work.
- In recent years, the Government has repeatedly adjusted the minimum wage, a basic
salary applicable to cadres, civil servants and officials.
4.3.3. Proposing to the Ministry of Finance and the Ministry of Planning and Investment
- Strengthen the organization of intensive training and retraining in investment
supervision and evaluation for provinces and cities across the country and in Quang Ninh
province as the core to continue training and retraining for the team in accordance with the
actual conditions and promoting the effectiveness of the work.
- Examining the bases for calculating mineral resource tax according to:
+ Tax calculation volume: use the "net profit" target:
Net profit = Revenue from coal production - Investment cost of goods sold (cost price)
This indicator is easy to calculate because it is included in the annual financial
statements of mining enterprises. This criterion is used to calculate the coal resource tax until
the mine management researchers approach the "boundary analysis" method, then the ABB'A
area will be calculated accurately and used. It calculates the tax on coal more accurately than
the "net profit" target.
+ Regarding the coal resource tax rate: it can be expanded (rate / net profit) because the
Vietnam coal exhaustion index is still positive.
(+) Solid reserves (111 + 112 + 113) from 2016 are 2,218 TrT (mainly in Dong Bac coal
basin)
From 2006-2017, the average output is 42 TrT/year.
Vietnam coal exhaustion index is 2,218 TrT/42 TrT = 52,8 years

(+) Also: - Northeast: Resources are: 4,068 TrT
- Red River: Resources are: 42,010 TrT
Total = 46,078 TrT
With probability 0.1, it is possible to exploit 46,078 x 0,1 = 4,607 TrT
Time to exploit this resource is 4,607 TrT/42 TrT = 109 years

22


Conclusion chapter 4
Chapter 4 implements the final research purpose of the dissertation on managing the
state budget from coal mining activities in Quang Ninh province towards sustainable
development.
The solutions proposed in this chapter are based on two basic factors: (1) Limitations in
the management of state budget from coal mining activities in Quang Ninh province towards
sustainable development; (2) Actual conditions in Quang Ninh province.
In order to improve the effectiveness and efficiency of the state budget management
from coal mining activities in Quang Ninh province towards sustainable development, it is
necessary to synchronously implement 4 proposed solutions with a most suitable roadmap. :
Group 1: Completing the estimation of state budget revenues and expenditures from coal
mining activities;
Group 2: Completing the observance of state budget revenue and expenditure estimates
from coal exploitation activities;
Group 3: Perfecting the state budget revenue and expenditure settlement from coal
mining activities;
Group 4: Completing inspection, inspection and supervision of state budget revenues
and expenditures from coal mining activities.
At the same time, NCS proposed some recommendations to the relevant State
management agencies to determine the conditions for successful implementation of the
proposed solutions.

CONCLUDE
In the national socio-economic development strategy, energy is always identified as one
of the most important elements. Sustainable energy development and energy sub-sectors (coal,
electricity, oil and gas ...) are concerned about policies and guidelines. Among the policies to
ensure sustainable development of the coal industry, financial policy is essential but has not
been studied by many authors.
Coal mining activities in Quang Ninh province in recent years have achieved many
achievements, contributing greatly to ensuring national energy security, as well as contributing
to the socio-economic development of the locality. However, the rapid development of coal
mining has led to environmental impacts and social problems. In this situation, the state
management in general and the state budget management for coal mining activities in particular
in the province have been focused on promoting by the authorities at all levels, but the reality
shows that there are still many shortcomings, including limited access and restrictions, which
requires serious research to find complete solutions.
Determine the research direction of state budget management from coal mining activities
in Quang Ninh province towards sustainable development, the dissertation has focused on
researching, analyzing and evaluating the following issues:
First, the dissertation has generalized the theoretical framework for the study of state
budget management from coal mining activities towards sustainable development based on
practical knowledge that has been recognized in relevant scientific research projects, both at
home and abroad and a system of relevant legal documents. In particular, the dissertation
23