A fuel truck reloads at a depot in Hanoi. Fuel traders may no longer need to own their own trucks starting from next year. VNA/VNS Photo

 

Several regulations on fuel trading activities should be removed, said the Ministry of Industry and Trade (MoIT) in a draft plan to streamline the legal framework and business operations for 2025.

 

According to the ministry, in consideration of the Vietnamese Government’s socio-economic development targets and priorities, including improving the business environment and enhancing national competitiveness, MoIT supports streamlining all fuel trading-related activities under its jurisdiction.

 

Out of 642 relevant regulations, 69 -- representing 10.75 per cent of the total -- have been listed as outdated or inappropriate and should be removed starting next year.

 

Once the regulations are removed, fuel traders would no longer need to have a fleet of fuel trucks. The MoIT argued that transporting fuel from a depot to many retailers is a normal business function, and traders can outsource that function to other companies. Previously, they were required to own and operate their own fleets for at least five years before applying for a trader licence.

 

Several other requirements regarding storage facilities, petroleum transportation means and petroleum testing laboratories have also been suggested for removal.

 

According to the ministry, the requirements were no longer appropriate for the industry’s current business environment. Requirements should instead align with today’s business practices, so removing unneeded rules would reduce administrative procedures and simplify operations.

 

The removal would be implemented along with a draft decree on fuel trading.

 

The MoIT has requested feedback from other ministries and government agencies, including the Government Office, the Central Advisory Council on Administrative Procedure Reform and the Vietnam Chamber of Commerce and Industry, before September 10.

 

From 2020 to early 2024, the MoIT reduced or simplified just 20 out of 662, or just over 3 per cent of all regulations under its management. They included reducing five requirements for petroleum agents, three administrative procedures in the chemical sector and six requirements on investment conditions for chemical production.

 

The ministry has said it will continue to research and review legal documents to further simplify or remove altogether outdated regulations while listening to complaints and suggestions regarding fuel trading activities in the domestic market. VNS