Conditions on petrol and oil general agents in Vietnam

Conditions on petrol and oil general agents in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is petrol and oil general agent?

Petrol and oil general agent means a trader that acts as a petrol and oil trading agent and, apart from selling petrol and oil at its petrol and oil retail stations, organizes a system of subsidiary agents for sale of petrol and oil for the principal being a key trader to enjoy remuneration.

(Clause 13, Article 3 of Decree 83/2014/ND-CP)

2. Conditions on petrol and oil general agents in Vietnam

According to Article 16 of Decree 83/2014/ND-CP (amended in Decree 95/2021/ND-CP), a trader that fully meets the following conditions may be granted an eligibility certificate by a competent state agency to act as a petrol and oil general agent (below referred to as general agent):

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

- There is a depot or reservoir with a minimum capacity of 2.000 m3 which is owned by the enterprise or leased from another petrol and oil trader with the lease duration of at least 05 years.

- There are vehicles for petrol and oil transport owned by the enterprise or rented from a petrol and oil trader with lease duration of at least five (05) years.

- The petrol and oil distribution system has: at least 05 petrol and oil retail stations under ownership or lease with lease duration of at least 05 years, at least 03 of which must be owned by the trader; at least 10 petrol and oil retail stations of agents or petrol and oil retail franchisees that have the Certificate of Eligibility for Petrol and Oil Retailing according to Article 25 of Decree 83/2014/ND-CP.

The general agent’s distribution system must be within the distribution system of a key trader and subject to control by such trader.

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

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

Specifically, Article 18 of Decree 83/2014/ND-CP (amended in Decree 95/2021/ND-CP) stipulates the rights and obligations of petrol and oil general agents as follows:

- To trade in petrol and oil as agents for key traders and enjoy agent commissions.

- To trade in petrol and oil as principals of petrol and oil retail agents in their distribution systems and pay commissions to such agents.

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

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

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

- To take responsibility for volume, quality and prices of petrol and oil sold in their distribution systems under regulations.

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

- 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 under contracts signed in accordance with the Intellectual Property Law, apart from putting up their signboards under current regulations.

- To inspect and supervise operations of agents in their distribution systems. To take joint responsibility for violations of these agents in petrol and oil trading activities in accordance with current laws.

- To inspect and supervise itinerary of petrol and oil transport vehicles from places of delivery or receipt to places of receipt or delivery.

- 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 key traders for registration of their distribution systems with the Ministry of Industry and Trade.

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

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