What conditions do petroleum traders need to meet in Vietnam?

What conditions do petroleum traders need to meet? (Illustration)

(1) The enterprise is established in accordance with the law.

(2) Having a dedicated wharf located in Vietnam's international port system, ensuring the reception of petroleum tankers or other means of petroleum transport with a tonnage of at least seven thousand tons (7,000 tons), belonging to business ownership or co-ownership or lease for five (05) years or more.

(3) Having a warehouse for receiving imported petrol and oil with a capacity of at least fifteen thousand cubic meters (15,000 m3) to directly receive petrol and oil from petrol tankers and other specialized petrol and oil transport vehicles, owned by enterprises or hire them for use by petrol and oil traders for five (05) years or more.

Previously, Decree 83/2014/ND-CP of Vietnam also stipulates: After three (03) years from the date of issuance of the license for petroleum export and import, one must own or co-own with the contributed capital. at least fifty-one percent (51%) for the warehouse system, enough to meet at least one-third (1/3) of traders' reserve needs.

Therefore, the new regulation has eliminated the case where petrol and oil transport vehicles are jointly owned.

(4) Having domestic means of transportation of petrol and oil owned by enterprises or leased to use by petrol and oil traders for five (05) years or more.

Compared with the provisions of Decree 83/2014/ND-CP of Vietnam, the new regulation also removed the case of domestic petroleum transport vehicles under co-ownership.

(5) Having a petrol and oil distribution system: at least ten (10) petrol and oil retail stores owned or rented with a lease term of five (05) years or more, of which at least five (05) store is owned by the business; at least forty (40) general petrol and oil trading agents or petrol retail agents or petrol and oil retail franchisees under the trader's distribution system.

Compared with the previous regulations, Decree 95 removes the case where petrol and oil retail stores are jointly owned by enterprises. Meanwhile, the provisions on "lease term from five (05) years or more, of which at least 05 shops are owned by enterprises" and the object of "traders who receive petrol and oil retail rights under merchant's distribution system".

(6) The main trader of aviation fuel is not required to have a distribution system specified in item (5) but must satisfy the following additional conditions:

- Having a means of transport, aeronautical refueling and refueling vehicle in accordance with regulations and standards for aviation fuel products owned or leased with a lease term of five (05) years or more.

Previously, Decree 83/2014/ND-CP only stipulates that there must be a vehicle for refueling aircraft owned or co-owned by the trader.

- Having a receiving warehouse at the airport with equipment and facilities meeting the standards of aviation fuels owned or rented with a lease term of five (05) years or more. (New content)

- Having a qualified testing laboratory owned or hired to check the quality of aviation fuel products according to national and international standards according to current regulations. (New content)

In addition, it should be noted that the new regulation has changed the name of petrol and oil import and export traders (previous name) to petrol and oil wholesalers. Thus, from 2022, petrol and oil import and export traders are collectively referred to as petrol and oil key traders.

Decree 95/2021/ND-CP of Vietnam takes effect from January 2, 2022.

Bao Ngoc

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