Fear of market disruption if gas import and export conditions are relaxed

Regulations to avoid unfair competition

The workshop was organized by the Vietnam Gas Association to provide comments on the draft Decree replacing Decree 87/2018 of the Government on gas trading. Currently, the Vietnamese market is trading in gas products: LPG (liquefied petroleum gas), LNG (liquefied natural gas), KTA (multi-component gas), CNG (compressed natural gas). According to many delegates attending the workshop, the draft Decree replacing Decree 87 on gas trading has some inappropriate provisions and needs to be amended to avoid unfair competition and imbalance in supply sources.

According to Mr. Tran Minh Loan - Vice President of the Vietnam Gas Association, the market currently has up to 30% of gas products originating from illegal decanting. Speculation and hoarding cause market disorder, causing inequality in business, also affecting 30 - 40% of the output of companies. "This shows that the issue of State management in controlling and trading gas in the market still has many loopholes, allowing illegal gas decanting facilities to run rampant; gas trading has many shortcomings, pushing the situation of illegal and fake gas decanting to flourish more and more and become difficult to control", Mr. Loan emphasized.

Many opinions say that some regulations in the draft decree on gas business are not suitable for the new context.

On the business side, Mr. Tran Anh Khoa - Source and Market Development Department of PetroVietnam Gas Corporation (PVGAS) said that the draft stipulates the rights and obligations of gas export and import traders that the enterprise must have a wharf or a wharf lease contract, have a gas tank or a gas tank lease contract... If following this regulation, there are currently many LPG traders who can become LPG import and export traders because they do not need to own facilities such as wharfs, warehouses, distribution systems, filling stations, LPG cylinders. In addition, renting an LPG warehouse with a wharf is currently quite easy.

There should be regulations against buying and selling gas cylinders of unknown origin...

Mr. Khoa and some businesses participating in the workshop informed: Currently, there are about 47 import-export traders and there will be many more traders in the gas sector. This will lead to the risk of imbalance in the supply of goods in the market and unfair competition. For gas trading, the draft also does not stipulate the capacity of storage tanks, so becoming a major LNG import-export trader will be easier because it is possible to rent small storage tanks with a capacity of about 40 - ^50m3 .

"Thus, LNG import-export traders cannot demonstrate the role of key source suppliers," Mr. Khoa wondered and suggested that LPG import-export traders, in addition to having tanks, must directly participate in the business of selling bottles with their own brand and have a distribution system.

Ms. Nguyen Thi Nguyet Dung - Director of PV GAS LPG Southern Region, proposed to add the regulation: "Do not buy or sell LPG cylinders of unknown origin, not in accordance with the contract signed with LPG cylinder traders". "Do not collect, transport, possess, buy or sell LPG cylinders of traders without contracts with agents; do not buy or sell LPG cylinders circulating on the market owned by LPG cylinder traders".

According to Ms. Dung, the reason for such a change is because the collection of empty cylinders at the dealers is having many shortcomings. Many gas dealers are being fined after collecting “miscellaneous cylinders” from customers left at the store. These are cylinders from traders who do not have contracts with the dealers and the dealers are trying to contact these traders to return the cylinders. However, during the time of contacting to return the cylinders, they are being fined.

Ms. Dung suggested: Violations in the gas business need to be clearly defined in terms of the level of punishment. For example, how will a store be punished if it keeps less than 10 cylinders, and how will it be punished if it keeps 11-20 cylinders? It is not possible to punish 1 cylinder the same as 40-50 cylinders. This will make it difficult for agents when they promote consumers to use gas cylinders from traders with contracts and collect gas cylinders from traders without contracts.

Source link: https://thanhnien.vn/lo-roi-loan-thi-truong-neu-noi-long-dieu-kien-xuat-nhap-khau-khi-185230923152130461.htm