The Ministry of Industry and Trade responds to pressing issues regarding electricity and taxes.

Báo Tài nguyên Môi trường•19/05/2023

The Ministry of Industry and Trade responds to pressing issues regarding electricity, taxes, and petroleum products.

Efforts to ensure electricity supply and accelerate the implementation of the Power Development Plan VIII.

According to information from the Ministry of Natural Resources and Environment , the water levels in hydropower reservoirs nationwide are currently below the standard for dry season storage, and in some places, the water level has even dropped to the dead storage level, causing difficulties in electricity supply and operation.

According to Tran Viet Hoa, Director of the Electricity Regulatory Authority (Ministry of Industry and Trade), the Ministry of Industry and Trade has issued numerous directives regarding the operation and supply of fuels such as coal and gas for power generation. As the peak of the hot season approaches, the Ministry has also held meetings with the Vietnam Coal and Mineral Industry Group (TKV), the Vietnam Electricity Group (EVN), the Vietnam National Oil and Gas Group (PVN), and the Northeast Corporation on the plan for electricity supply and operation of the national power system.

As the peak of the hot season approaches, the Ministry has also held meetings with corporations to ensure electricity supply and the operation of the national power grid.

Regarding the 3% electricity price increase, Director Tran Viet Hoa stated that the calculation for adjusting retail electricity prices was based on Decision 24 of the Prime Minister, and the Ministry of Industry and Trade agreed to the lowest increase among the proposed adjustments from the electricity sector. When making the adjustment, the relevant authorities considered many factors, minimizing the impact on the macroeconomic situation and people's lives. With this increase, EVN will alleviate some financial strain but will still face many challenges in the future.

Regarding the implementation of the recently approved Power Development Plan VIII, Hoang Tien Dung, Director of the Electricity and Renewable Energy Department (Ministry of Industry and Trade), stated that this plan is an important legal basis for the Government to implement the upcoming power generation and grid system.

For specific projects, according to the Planning Law, the list of important and priority projects in the electricity sector will be stipulated in the Planning Law. Therefore, with the recently approved plan, including coal-fired power plants, gas-fired power plants, medium and large hydropower plants, and power grid projects of 220kV and above, there is now a legal basis for implementation. Regarding renewable energy sources, due to their small scale, they are not included in the Power Plan VIII, but will be developed in the plan's implementation in subsequent stages.

I support the proposal to reduce vehicle registration fees by 50%.

Recently, the Ministry of Industry and Trade has coordinated with automobile manufacturers, associations such as VAMA and VAMI, and provinces with automobile factories to report to the Government for consideration of proposals to reduce vehicle registration fees; and extend the deadline for paying excise tax as well as value-added tax.

According to Nguyen Ngoc Thanh, Deputy Director of the Industry Department (Ministry of Industry and Trade), the Ministry of Industry and Trade supports a 50% reduction in vehicle registration fees in 2023. Within its duties and powers, the Ministry of Industry and Trade will coordinate with the Ministry of Finance to discuss this policy due to the significant decline in the automotive industry; in the first four months of the year, car production decreased by 19.3% compared to the same period last year.

Deputy Minister of Industry and Trade Do Thang Hai stated: "Currently, automobile businesses are facing many difficulties. Without support from competent authorities and further reductions in registration fees, many businesses may not be able to maintain their production and business operations."

According to the Ministry of Industry and Trade, continuing to apply the policy of supporting the reduction of registration fees for domestically produced and assembled automobiles is necessary and appropriate, contributing to stimulating consumer demand for domestically produced and assembled automobiles, and supporting automobile manufacturers, assemblers, and distributors in selling off their inventory.

Coordinate efforts to resolve difficulties and obstacles in Nghi Son.

The Ministry of Industry and Trade has confirmed receiving a recent petition from Nghi Son Refinery and Petrochemical Company Limited (NSRP) addressed to the Minister of Industry and Trade, the Chairman of the State Capital Management Committee at Enterprises, and PVN, stating that the company is facing the risk of ceasing operations due to a cash flow shortage and the inability to reach a financial restructuring agreement.

According to Tran Thanh Tung, Deputy Director of the Department of Oil, Gas and Coal (Ministry of Industry and Trade), the Nghi Son Refinery and Petrochemical Plant plays a crucial role in supplying petroleum products to the country. Currently, in mid-May, the plant's operations remain stable.

Regarding the Nghi Son Refinery's projected shutdown due to cash flow shortages, on April 19, 2023, the Ministry of Industry and Trade sent a document to the unit, as well as to PVN and foreign investors contributing capital to the project, concerning the restructuring of NSRP. Accordingly, it affirmed that the financial restructuring, organizational structure, and safe and stable operation of the refinery are internal matters of the enterprise, and are the responsibility of Nghi Son and the contributing parties to resolve, based on commitments, joint venture agreements, project documents, and in compliance with Vietnamese law. Issues falling under PVN's jurisdiction need to be reported to the State Capital Management Committee for Enterprise Review and Guidance.

Representatives from the Ministry of Industry and Trade stated that the Nghi Son Refinery and Petrochemical Plant, PVN, and foreign investors need to proactively and actively coordinate to resolve difficulties and obstacles at Nghi Son, ensuring the plant operates efficiently and guarantees the production volume registered with the Ministry of Industry and Trade.

According to Deputy Minister of Industry and Trade Do Thang Hai, the Nghi Son Refinery and Petrochemical Plant accounts for 35-40% of the domestic petroleum market share but operates unreliably, not to mention that the plant undergoes at least 30-45 days of maintenance each year. Meanwhile, Vietnam prioritizes the consumption of products manufactured at this plant under its own commitments.

Deputy Minister of Industry and Trade Do Thang Hai expressed: "Every time something goes wrong at the Nghi Son Refinery, we lose sleep over it."

Deputy Minister of Industry and Trade Do Thang Hai stated that NSRP is a joint venture company comprising PVN, Kuwait International Petroleum Company (KPE), Idemitsu Kosan Company of Japan (IKC), and Mitsui Chemicals Company of Japan (MCI). The Ministry of Industry and Trade is closely monitoring the plant's production activities; however, the Ministry is only the domestic oil and gas management agency. Furthermore, the Vietnamese enterprise only holds a 25.1% stake in the plant, thus its voice is limited. Resolving the difficulties at the Nghi Son Refinery and Petrochemical Plant is an internal matter for the plant, and the Government, ministries, or any other state management agency can only participate according to the agreements already made by the parties involved. This is also a key challenge in addressing the issue.

Regarding the fuel supply situation, Deputy Director of the Domestic Market Department (Ministry of Industry and Trade) Hoang Anh Tuan stated that to ensure domestic fuel supply, the Ministry of Industry and Trade will closely monitor the implementation of the minimum fuel supply for 2023 by key fuel trading companies. Simultaneously, the Ministry will coordinate with the Ministry of Finance to manage fuel prices, closely following global fuel price fluctuations and aligning them with domestic fuel supply and demand to ensure a balance of interests among all market participants.

At the press conference, Deputy Minister of Industry and Trade Do Thang Hai also discussed the implementation of the Government Inspectorate's conclusions regarding the planning and construction of power projects according to Plan VII and its adjustments. The inspection report pointed out that the addition of hundreds of solar power projects was unfounded and recommended a review to clarify responsibilities.

Regarding this matter, Deputy Minister Do Thang Hai affirmed that the conclusions of the Government Inspectorate and general regulations will be implemented correctly.

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