Submission to the Government of Vietnam for the issuance of a Decree replacing the Decrees on petroleum business activities

Submission to the Government of Vietnam for the issuance of a Decree replacing the Decrees on petroleum business activities​ (Image from the Internet)

On December 19, 2024, the Government of Vietnam issued Resolution 241/NQ-CP regarding the Plan for implementing Resolution 937/NQ-UBTVQH15 supervising the specialized implementation of policies and laws on energy development during the period 2016-2021.

Submission to the Government of Vietnam for the issuance of a Decree replacing the Decrees on petroleum business activities

For the short-term tasks to be completed before the end of 2025, the Government of Vietnam has requested the Ministry of Industry and Trade to take the lead, in coordination with relevant ministries, central authorities, local authorities, and agencies to execute the following contents:

- Submitting the Government of Vietnam to issue a Decree replacing the Decrees on petroleum trading in accordance with the directive of the Government Standing Committee in Notification 172/TB-VPCP dated October 14, 2023, in order to meet practical requirements and state management tasks, harmonizing the interests of the state, citizens, and businesses in the second quarter of 2024. Establish a mechanism binding the responsibility of petroleum-producing enterprises, ensuring minimum production thresholds and supply commitments.

- Reviewing and completing the electricity price mechanism to encourage and promote the strong development of renewable energy sources, including waste electricity and biomass electricity; resolving outstanding issues of previous wind and solar power projects. Urgently developing and implementing a mechanism for bidding and auctioning to select investors for electrical works ensuring transparency, harmonizing interests, and risk-sharing among parties.

- Researching and reporting to authorities on legislating the retail electricity price management under the spirit of "eliminating all barriers to ensure transparent energy prices determined by the market"; gradually reducing towards eliminating cross-subsidization of electricity prices among customer groups, regions, appropriate to the electricity market development level; establishing an appropriate pricing mechanism for electricity import and export with regional countries. Completing the electricity transmission price mechanism to attract investment into the grid according to each geographical area; separating business operating costs from public utility activities, social costs, and enterprise management costs.

- Researching and completing the competitive market development mechanism for coal and gas. Calculating and determining the gas power price mechanism to ensure the investment efficiency of power projects, especially gas-power project chains using domestic gas.

- Formulating policies on restructuring the national petroleum reserve sources in line with market-circulating products; measures to ensure adequate petroleum supplies, avoiding disruptions across all segments, markets, including additional assigned production volumes and products in line with market demand, particularly during the maintenance period of refineries.

- Researching, reviewing, and completing mechanisms and policies regarding investment in infrastructure systems for coal depots, transshipment ports, and coal transportation and reserves. Issuing guiding documents for investors in coal-fired power plants concerning long-term imported coal purchase mechanisms from mine owners (or mine owner's representatives) in compliance with Vietnam’s legal regulations and international practices, ensuring stable, long-term coal sources for power production at competitive, transparent prices and diversifying imported coal sources.

- Researching, developing, and completing policies and legislation on renewable energy development, focusing on mechanisms for: offshore wind power based on impact assessments and national defense and security assurance; self-produced, self-consumed rooftop solar power, rooftop solar in government buildings, residential, public works, and industrial zones. Promptly issuing development mechanisms for wind power, rooftop solar power for the northern region to mitigate power shortages right in 2024 and the subsequent years.

More details can be found in Resolution 241/NQ-CP dated December 19, 2024.

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