Vietnam not to Open Petroleum Distribution Market for Foreigners
Vietnam’s petroleum market will still be off limits for foreign investors, even after the country’s World Trade Organization (WTO) membership, state media quoted WTO commitments as saying.
To date, the petroleum market is under the control of the Government through 10 state-run importers and distributors.
At present, the government fixes the selling price of petroleum products and losses from sales of several products such as diesel oil and kerosene are compensated by the state coffers, a company said.
However, the government is loosening its grasp on the distillated fuel market, with more autonomy given to petroleum importers, now permitted to import and sell petroleum products in the country with floating prices.
Under the proposal, the government will considerably reduce oil sales subsidies from 2007 and put subsidies to an end by the end of 2008.
Vietnam is estimated to spend VND12 trillion (US$750 million) on subsidizing sales of estimated 13 million metric tons of petroleum products this year, higher than last year’s VND10 trillion.
Without any refineries, Vietnam now totally relies on imported petroleum. Its first Dung Quat oil refinery is underway in central Quang Ngai province.
Youth Online
Vietnamese
