To complete financial policies for investment projects in national petroleum reserves in Vietnam (

To complete financial policies for investment projects in national petroleum reserves in Vietnam (Internet image)

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

On July 18, 2023, the Prime Minister of Vietnam issued Decision 861/QD-TTg approving the national planning of petroleum and gas reserves and supply infrastructure for the period of 2021–2030, with a vision to 2050.

To complete financial policies for investment projects in national petroleum reserves in Vietnam

Specifically, regarding mechanisms and policies in the planning of national petroleum and gas reserves and supply infrastructure, the Prime Minister has implemented the following solutions:

- Completing mechanisms and policies in the petroleum and gas fields in order to promote investment in the development of storage and supply infrastructure, mainly in the form of socialization, contributes to ensuring energy security.

- Priority is given to land and water surface funds for the development of infrastructure for the storage and supply of petroleum and gas, according to planning.

- Developing, promulgating, and perfecting reasonable mechanisms and policies to well perform the task of national reserve; developing mechanisms and policies to encourage enterprises to participate in the task of storing national reserve goods.

- Researching and perfecting financial mechanisms and policies for investment projects in the national petroleum reserve from the state budget.

- Researching, amending, supplementing, and updating legal documents in line with international practices and the country's development situation in the context of extensive international integration.

- Studying, amending, developing, and promulgating economic and technical standards and norms on petroleum and national reserve gas; perfecting legal policies on management, supervision, administration, and coordination of the use of national reserve petroleum and gas.

Orientation to develop petroleum storage and supply infrastructure in Vietnam

According to Decision 861/QD-TTg, the Prime Minister outlined the orientations for the development of petroleum storage and supply infrastructure in the period of 2021–2030, with a vision to 2050, as follows:

- Building a system of storing crude oil and petroleum products distributed corresponding to the demand for petroleum production and consumption of regions and localities; optimal cost of investment, management, and operation.

- Developing infrastructure to reserve crude oil and raw materials to ensure production stability. The scale and schedule of investment are suitable for the designed capacity and production plan.

- Developing a new petroleum storage system with a scale suitable to the consumption needs of each region and locality
in stages in areas with the advantages of deep-water seaports and favorable connections with the supply system, meeting the needs of commercial and national reserves.

- Renovating, upgrading, and replacing the existing system of petroleum pipelines; investing in new and modernizing petroleum and oil transport means (sea, river, road, and railway means of transport).

- Investing in depth, upgrade the technology system of the warehouse and pipeline system in the direction of automation. Applying technical advances to petrol and oil blending, using clean fuels, raising the level of fire safety and environmental sanitation, and applying information technology in warehouse management and exploitation.

- Synchronously developing waterway and road transport vehicles in the direction of modernity in accordance with traffic infrastructure, ensuring safety and efficiency.

- Developing a system of large-scale petrol and oil retail stores on new roads and in new urban areas, with a roadmap to reduce the number of small-scale petrol stations.

Integrating utility services (recharge, car repair and maintenance, vending, catering, grocery, overnight parking, etc.)
in the process of renovating, upgrading, and building new petrol stations.

More details can be found in Decision 861/QD-TTg, effective as of July 18, 2023.

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