Vietnam's Ministry of Industry and Trade is in the process of drafting a new Decree to replace the current Decree No. 83/2014/ND-CP governing petroleum business.

It says over the past decade, the petroleum market has evolved under market mechanisms with state oversight. Notably, domestic petroleum prices align with global trends, fostering market competition and ensuring adequate supply for national needs. 

Howeve,r recent global conflicts and market uncertainties, such as the Russia-Ukraine conflict and Middle East tensions, have significantly impacted energy security worldwide, influencing oil prices and supply dynamics.

In response, regulatory frameworks governing petroleum business require review and enhancement to address current and future challenges effectively. 

Embracing Digital Transformation

While some strides have been made in digitizing petroleum operations, there is a need to accelerate digitalization efforts to align with Industry 4.0 standards. Enhancing digital capabilities among petroleum traders can boost operational efficiency and aid regulatory bodies in more effectively managing the petroleum market. 

The proposed Decree also aims to reduce state intervention in setting gasoline prices, fostering a competitive pricing environment based on market mechanisms. By allowing traders to determine selling prices within specified parameters, the Decree seeks to enhance market dynamics and promote fair competition while ensuring compliance with regulatory guidelines. 

Enhancing Transparency and Accountability

Efficient utilization of the gasoline price stabilization fund is crucial, necessitating a transparent and accountable mechanism for fund allocation and expenditure. Aligning fund management practices with legal provisions will enhance regulatory oversight and ensure proper fund utilization in line with established guidelines. 

The new Decree emphasizes the importance of harmonizing consumer, user, and business interests in the petroleum sector. By reducing state intervention, promoting competition, and incorporating new regulations tailored to industry realities, the Decree aims to create a more competitive and responsive environment for petroleum businesses. 

The proposed Decree on petroleum business represents a pivotal step towards enhancing market efficiency, promoting fair competition, and ensuring sustainable petroleum supply for domestic consumption.