On September 22, in Ho Chi Minh City, the Vietnam Gas Association coordinated with the Vietnam Gas Corporation to organize a workshop "Contributing ideas for innovation on the Decree on State management in the Gas sector".
The workshop focused on four groups of issues: Source management; circulation and distribution management; direct consumption management and price management.
At the Workshop, businesses contributed many important opinions to the Draft Decree replacing Decree 87/2018/ND-CP (Decree 87) of the Government on gas business.
Signing of gas supply contract
Commenting on the draft, Mr. Hosokoji Yu - Chairman of Binh Minh Gas Retail Company, General Director of Sopet Gasone Company Limited said that in Vietnam, there are currently no specific regulations on the terms required in gas supply contracts for customers.
This is also a major reason why consumers use illegally refilled gas cylinders that do not meet safety standards without knowing it, leading to a high risk of fire and explosion in the home.
Therefore, Mr. Hosokoji Yu said that signing a gas supply contract between suppliers and consumers is necessary.
"There needs to be specific regulations on the content of gas supply contracts. This is to clearly define the responsibilities of gas suppliers and consumers, and at the same time raise awareness of safe gas use," said Mr. Hosokoji Yu.
In addition, there must be mandatory security procedures when supplying gas to consumers. This will help limit the transportation of dangerous goods on the road. At the same time, it will limit people who do not have knowledge about safety in transporting and installing gas for customers...
Need to increase standards for gas trading enterprises
Mr. Tran Anh Khoa - Source and Market Development Department of PetroVietnam Gas Corporation (PV GAS) said that the Draft Decree replacing Decree 87 on gas trading has some inappropriate regulations that cause businesses to have an imbalance in their supply sources, leading to unfair competition.
Specifically, according to the Draft, there will be many LPG (liquefied petroleum gas) traders who are qualified to become LPG importers and exporters. Meanwhile, LPG importers and exporters do not clearly demonstrate their role as key traders in the LPG distribution system chain.
“When there are too many traders involved in importing and distributing LPG to the market, it can easily lead to problems such as imbalance in the market supply, abnormal price increases/decreases, market disruption, and unhealthy competition,” said Mr. Khoa.
According to him, when LPG prices fluctuate in a negative direction (prices decrease), some traders will not import goods, causing a shortage of goods.
On the contrary, when prices increase, traders will increase imports, leading to a surplus of goods, especially for small-scale import-export traders without long-term LPG import contracts, it will be very difficult to maintain the balance of import-export goods.
However, the peculiarity of the LPG market is that the selling price is adjusted monthly and the State does not intervene in the selling price of traders. Therefore, when the world LPG price tends to decrease sharply, there will be a situation of dumping goods, cutting losses and vice versa.
Therefore, Mr. Khoa proposed that the Ministry of Industry and Trade must have regulations on minimum capacity for LPG and LNG (liquefied natural gas) tanks. LPG import-export traders must directly participate in the business of selling LPG cylinders, that is, owning LPG cylinders, owning their own brands and having a distribution system.
According to Mr. Tran Minh Loan - Vice President of Vietnam Gas Association, the Decree on State management in the business sector needs to have more specific and practical regulations.
"Regulations must ensure conditions for businesses to compete fairly; ensure consumers use services safely and effectively..." - Mr. Loan said.
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