Conditions on petrol and oil retail agents in Vietnam

Conditions on petrol and oil retail agents in Vietnam​ (Source: internet)

1. What is a petrol and oil retail agent?

According to Clause 14, Article 3 of Decree 83/2014/ND-CP, petrol and oil retail agent means a trader that acts as an agent to retail petrol and oil at retail stations for the principal being a petrol and oil key trader or distributor or general agent to enjoy remuneration.

2. Conditions on petrol and oil retail agents in Vietnam

A trader that fully meets the following conditions may be granted an eligibility certificate by a provincial-level Industry and Trade Department to act as a petrol and oil retail agent (below referred to as agent):

- Being lawfully established; having registered for petrol and oil trading as specified in its enterprise registration certificate.

- There are petrol and oil retail stations that are under ownership or lease with lease duration of at least 05 years and granted the Certificate of Eligibility for Petrol and Oil Retailing according to Article 25 of Decree 83/2014/ND-CP.

- Having its managers and trading staff trained in fire prevention and fighting and environmental protection under current regulations and having training certificates.

(Article 19 of Decree 83/2014/ND-CP, amended by Decree 95/2021/ND-CP)

3. Rights and obligations of petrol and oil retail agents in Vietnam

Rights and obligations of petrol and oil retail agents are specified in Article 21 of Decree 83/2014/ND-CP including:

- To retail petrol and oil at their retail stations at retail prices set by petrol and oil key traders or distributors.

To trade in petrol and oil as agents for general agents or distributors or key traders and enjoy agent commissions.

- To sign a contract to act as a retail agent for one (1) general agent or one (1) distributor or one (1) key trader. If such general agent, distributor or key trader does not trade in bio-fuel, the retail agent may additionally sign to act as an agent for another general agent, distributor or key trader for trading only in bio-fuel.

- Not to additionally sign contracts to act as an agent for a general agent, distributor or key trader if having signed a contract to act as an agent for another general agent, distributor or key trader.

The agent must lie within the distribution system of a general agent, distributor or key trader and be subject to control by the latter.

- To take responsibility for volume, quality and announced prices of petrol and oil sold under regulations.

- To observe regulations on document recording and keeping suitable to their trading form of agency issued by the Ministry of Finance of Vietnam.

- To comply with regulations on fire prevention and fighting and environmental protection in the course of trading.

- To use trade names, logos, marks and trade indications of key traders or distributors under contracts signed in accordance with the Intellectual Property Law, apart from putting up their signboards under current regulations.

- To register working time of petrol and oil retail stations under their ownership with provincial-level Industry and Trade Departments that have granted certificates of eligibility for petrol and oil retail to such stations.

- To register their distribution systems with provincial-level Industry and Trade Departments of localities where they have their distribution systems.

To send information on their distribution systems to their principals that are petrol and oil general agents, distributors or key traders for registration of their distribution systems with a competent state agency.

- To build, apply, and maintain the effectiveness of, a quality control system.

Diem My

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