Ministry of Industry and Trade answers hot issues about electricity and taxes

Ministry of Industry and Trade answers hot issues about electricity - tax - gasoline

Efforts to ensure electricity supply, speed up implementation of Power Plan VIII

According to information from the Ministry of Natural Resources and Environment, the capacity of hydroelectric reservoirs across the country is falling short of the dry season water storage standards, with some places even reaching dead water levels, making it difficult to operate and supply electricity.

Director of the Electricity Regulatory Authority (Ministry of Industry and Trade) Tran Viet Hoa said that the Ministry of Industry and Trade has issued many directives on the operation of fuel supply such as coal and gas for power generation. Entering the peak of the hot season, the Ministry also held a meeting with the Vietnam National Coal - Mineral Industries Group (TKV), Vietnam Electricity Group (EVN), Vietnam National Oil and Gas Group (PVN), and Dong Bac Corporation on the plan for electricity supply and operation of the national power system.

Entering the peak of the hot season, the Ministry also met with corporations to ensure electricity supply and operation of the national power system.

Regarding the issue of increasing electricity prices by 3%, Director Tran Viet Hoa said that the calculation to adjust the retail electricity price 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 of the electricity industry. When adjusting, the authorities calculated based on many factors, including minimizing the impact on the macro economy and people's lives. With this increase, EVN will reduce financial stress but still face many challenges in the coming time.

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

For specific projects, according to the provisions of the Planning Law, the list of important and priority projects of the electricity sector will be stipulated in the Planning Law. Therefore, with the newly approved planning, including coal-fired thermal power, gas-fired thermal power, medium and large hydropower plants, power grid projects from 220kV and above... there is a legal basis for implementation. With renewable energy sources, due to their small scale, they are not stipulated in the Electricity Plan VIII, but will be built into the planning implementation plan in the next steps.

Support the proposal to reduce car registration fees by 50%

Recently, the Ministry of Industry and Trade has coordinated with automobile manufacturing enterprises, associations such as VAMA, VAMI, and provinces with automobile manufacturing plants to report to the Government for consideration and proposal to reduce registration fees for automobiles; extend the payment deadline for special consumption tax as well as value added tax.

Deputy Director of the Department of Industry (Ministry of Industry and Trade) Nguyen Ngoc Thanh said that the Ministry of Industry and Trade's viewpoint is to support a 50% reduction in 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 clear decline in the automobile industry. In the first 4 months of the year, automobile production decreased by 19.3% compared to the same period last year.

Deputy Minister of Industry and Trade Do Thang Hai said: "Currently, automobile businesses are facing many difficulties. Without support from competent authorities and continued reduction of registration fees, many businesses are unlikely to be able to maintain their production and business activities."

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 cars is currently necessary and appropriate, contributing to stimulating consumption of domestically produced and assembled cars, supporting automobile manufacturing and assembling enterprises and distributors to sell their inventory.

Coordinate to solve difficulties and problems of Nghi Son

The Ministry of Industry and Trade confirmed that it had received a recent petition from Nghi Son Refinery and Petrochemical Company Limited (NSRP) sent to the Minister of Industry and Trade, Chairman of the State Capital Management Committee at Enterprises and PVN regarding the fact that the unit is facing the risk of ceasing operations due to cash flow shortage and failure to reach an agreement on financial restructuring.

Deputy Director of the Department of Petroleum and Coal (Ministry of Industry and Trade) Tran Thanh Tung said that the operation of Nghi Son Refinery and Petrochemical Plant plays an important role in supplying gasoline and oil to the country. Currently, in mid-May, the plant's operation is still stable.

Regarding the Nghi Son Oil Refinery's forecast to cease operations due to lack of cash flow, on April 19, 2023, the Ministry of Industry and Trade sent a document to the unit and at the same time sent it to PVN and foreign investors contributing capital to the project on the restructuring of NSRP. Accordingly, it affirmed that financial restructuring, organizational structure and safe and stable operation of the plant are internal issues of the enterprise, under the responsibility of Nghi Son and the capital contributors based on commitments, joint venture agreements, project documents and compliance with the provisions of Vietnamese law. Issues related to PVN's authority need to be reported to the State Capital Management Committee at enterprises for consideration and direction.

The representative of the Ministry of Industry and Trade said that Nghi Son Refinery and Petrochemical Plant, PVN and foreign investors need to proactively and actively coordinate to resolve Nghi Son's difficulties and problems, ensure the plant operates effectively, and ensure the supply output registered with the Ministry of Industry and Trade.

Deputy Minister of Industry and Trade Do Thang Hai said that Nghi Son Refinery and Petrochemical Plant accounts for 35-40% of the domestic petroleum supply market share but its operations are unstable, not to mention that during its operation, the plant has at least 30-45 days of maintenance each year. Meanwhile, in terms of commitment, Vietnam prioritizes the consumption of products produced at this plant.

Deputy Minister of Industry and Trade Do Thang Hai expressed: "Every time something happens to Nghi Son Oil Refinery, we lose sleep and appetite."

Deputy Minister of Industry and Trade Do Thang Hai said that NSRP is a joint venture company with members including PVN, Kuwait Petroleum International (KPE), Idemisui Kosan Japan (IKC) and Mitsui Chemicals Japan (MCI). The Ministry of Industry and Trade is very interested in closely following the production activities of the Plant, however, the Ministry of Industry and Trade is only the agency managing the domestic oil and gas sector, along with that, the Vietnamese enterprise only contributes 25.1% of the capital at the Plant, so the voice is only limited. Solving difficulties in Nghi Son Refinery and Petrochemical Plant is an internal problem of the plant, and the Government, Ministries, branches or any State management agency will only participate in accordance with the agreements of the parties that have made commitments. This is also a difficult point in handling the issue.

Regarding the situation of petroleum supply, Deputy Director of the Domestic Market Department (Ministry of Industry and Trade) Hoang Anh Tuan said that to ensure the domestic petroleum supply, the Ministry of Industry and Trade will closely monitor the implementation of the minimum total petroleum supply in 2023 by petroleum traders. At the same time, the Ministry will coordinate with the Ministry of Finance to manage petroleum prices, closely following the developments in world petroleum prices, in accordance with the developments in domestic petroleum supply and demand to ensure the harmony of interests among entities participating in the petroleum market.

At the press conference, Deputy Minister of Industry and Trade Do Thang Hai also discussed the implementation of the Government Inspectorate's conclusions related to the implementation of planning, investment in construction of power projects according to the VII planning and adjustments. The inspection conclusion pointed out the addition of hundreds of solar power projects without basis and requested a review to clarify responsibilities.

Regarding this, Deputy Minister Do Thang Hai affirmed that he will properly implement the conclusion of the Government Inspectorate and general regulations.

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