'In Japan, to deliver 8kg of gas, you need a certificate, but in Vietnam, you can transport a 45kg gas cylinder empty-handed'

Gas products including LPG (liquefied petroleum gas), CNG (compressed natural gas), LNG (liquefied natural gas)... are currently essential energy products in socio-economic life, contributing significantly to ensuring national energy security.

Despite the existence of a legal framework, the gas market still has shortcomings such as the appropriation of cylinders, illegal LPG decanting; the trade of smuggled and fake gas is still rampant, causing a high risk of fire and explosion. The Ministry of Industry and Trade is reviewing and amending Decree No. 87/2018/ND-CP to resolve the above issues.

Therefore, at the workshop "Contributing ideas to innovate the Decree on State management in the gas sector" on the afternoon of September 22, many important proposals on gas source management, distribution and price management were made.

Experts have made many new proposals on gas source management, distribution and price management. (Photo: Huy Le).

Mr. Tran Minh Loan, Vice President of the Vietnam Gas Association, said that there are many gas trading companies without clear control, causing fire and explosion safety; the management of key companies is not yet linked to the goal of ensuring energy security.

"The intermediary management is not good, legitimate businesses are not effective, many large businesses even have to leave the market," Mr. Loan suggested that upcoming regulations need to be fairer for healthy businesses.

Business representative, Mr. Tran Anh Khoa - PV Gas Source and Market Development Department - stated the current situation, there are about 47 import-export traders and many other traders in the LPG sector. This leads to an imbalance in the market supply and unhealthy competition.

For example, Vietnam's LPG demand depends on 62-65% of imported LPG sources. Without binding regulations on the import, storage and circulation of LPG for traders, it is easy to cause local surpluses and shortages.

In reality, there are times when there is a serious shortage of goods due to the scarcity of world LPG supply, and small-scale traders do not have long-term LPG import contracts.

Mr. Khoa added that having too many traders participating in the source distribution process will cause unhealthy competition due to abnormal price increases/decreases; thereby causing market disorder because the State has not intervened in traders' selling prices.

PV Gas representatives also recommended that the Ministry of Industry and Trade should have additional regulations on minimum capacity for LPG and LNG tanks. At the same time, tighten regulations requiring traders to have their own LPG brand and distribution system.

Commenting on the draft, Mr. Hosokoji Yu - Chairman of Binh Minh Gas Retail Company, General Director of Sopet Gasone Company (Japan) said that Vietnam does not have specific regulations on the terms required in gas supply contracts for customers.

That is the reason why consumers still use illegally filled gas cylinders that do not meet safety standards without knowing, leading to a high risk of fire and explosion.

"There needs to be a gas supply contract between the supplier and the consumer. This is to clearly define the responsibilities of the parties and at the same time raise awareness of safe gas use," he said.

Mr. Hosokoji Yu proposed that there should be mandatory security procedures when supplying gas to consumers. For example, in Japan, people delivering gas cylinders of 8kg or more to customers are required to have a security certificate and a certificate for transporting dangerous goods. Meanwhile, people delivering gas cylinders of up to 45kg in Vietnam do not have this certificate.

Vice President of the Vietnam Gas Association Tran Minh Loan said that after the workshop, there will be an official document reporting to the Prime Minister, the Ministry of Industry and Trade and relevant agencies to provide comments on the amendment of Decree 87 to build an effective legal corridor, towards a fair competitive business environment, sustainable development, protecting consumer rights and continuing to effectively contribute to the socio-economy and national energy security.

Source