Gas trading still “disorderly” while legal framework is still loose

VCN - Gas trading activities have been adjusted according to Decree 87/2018/ND-CP of the Government and other relevant legal documents.

However, the legal framework still needs to be further improved to solve many shortcomings and inadequacies such as violations of regulations on trademarks and unfair competition.

Gas trading still “disorderly” while legal framework is still loose
The conference "Gas trading towards a comprehensive legal framework to promote business and develop the market" took place on the morning of November 30, 2021. Photo: NT

According to the Vietnam Gas Association, the system of legal documents on gas trading has been completed. However, in practice, gas trading activities today still have many shortcomings, such as unfair competition, violations of regulations and deception of consumers, causing economic and asset losses.

Typically, violations of regulations on trademarks of reputable enterprises in liquefied petroleum gas (LPG) can be mentioned. Some business units do not register their business or do business when they are not eligible.

Mr. Tran Minh Loan, Vice Chairman of the Vietnam Gas Association said that this partly resulted from "shortcomings" in the legal system.

“State management of business activities has difficulties and complications that need to be further considered, amended and supplemented so that the provisions of the law are appropriate and have the least obstacles to production and business practices, for example, the state management of trademark ownership rights of LPG bottles,” said Mr. Tran Minh Loan.

Ms. Nguyen Thi Hanh, representative of Totalgaz Vietnam Co., Ltd., emphasized that the act of producing anti-counterfeiting stamps and sealing fake stretch films attached to LPG bottles, each local management agency had sanctioned administrative violations based on different legal provisions.

Specifically, in Decree 98/2020/ND-CP stipulating penalties for administrative violations in commercial activities, production and trading of counterfeit and banned goods and consumer protection; Decree 99/2020/ND-CP stipulating penalties for administrative violations in the field of oil and gas, petroleum and gas trading; and Decree 99/2013/ND-CP stipulating penalties for administrative violations in the field of industrial property.

“The application of different legal provisions leads to completely different forms of additional sanctions and remedial measures,” said Ms. Hanh.

Regarding gas business management, Mr. Hoang Anh Tuan, Deputy Director of the Domestic Market Department (Ministry of Industry and Trade), said some LPG trading enterprises illegally appropriated LPG bottles of reputable enterprises, many LPG bottles which were appropriated, cut carrying ropes, grinded bottles, untested and put into circulation on the market tended to be more complicated and sophisticated, potentially causing unsafety, gas leaks, fires and explosions, threatening property and lives.

In addition, there are currently no specific regulations for enterprises trading LPG bottles, pouring LPG into bottles or exchanging and returning LPG bottles, or LPG bottle exchange agreements were not strictly implemented, leading to appropriating LPG bottles, which made it difficult to control business activities.

Deputy Minister of Industry and Trade Do Thang Hai said a number of policies should soon be reviewed and adjusted in time to suit reality; some regulations need to be replaced or adjusted to ensure feasibility.

Mr. Tran Minh Loan suggested that the management agencies should continue to amend, supplement and complete the provisions of the law on the management of LPG business activities and sanctions for violations; strengthen inspection and strictly handle violations.

“During the process of law-making, the association proposed to the competent authorities to pay more attention, discuss with the association and enterprises to handle difficulties and problems of enterprises so that the regulations are promulgated suitable with the reality of production and business activities as best as possible,” said emphasized Mr. Tran Minh Loan.

In order to strengthen sanctions, according to Ms. Nguyen Thi Hanh, there should be uniform guidance on applying a decree to handle acts of illegally pouring and trading in counterfeit branded goods in the gas business sector.

“If they have been administratively sanctioned but still commit acts again, they must be penalized for the crime of infringing on industrial property rights rather than continuing to sanction administrative violations and continuing to operate, even secretly operating during the suspension period,” Ms. Hanh said.

Annual LPG consumption in Vietnam is about 2.2-2.3 million tons, mainly serving civil and commercial demand. In which, Dinh Co Gas Processing Plant provides about 220,000-250,000 tons per year. Ca Mau gas processing Plant supplies about 130,000-150,000 tons per year. Dung Quat oil refinery Plant supplies about 480,000-500,000 tons per year. Imported sources are about 1.25 - 1.3 million tons per year.

The future gas development plan includes expanding search and exploration activities to provide more reserves and production output in potential, deep and offshore areas; gas industry development; prioritizing investment in technical infrastructure in service of liquefied natural gas (LNG) import and consumption; ensure the ability to import 8 billion m3 of LNG in 2030 and 15 billion m3 in 2045; strive to meet 70% of the national LPG market share.

By Thanh Nguyen/ Binh Minh

Related News

Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of handling administrative violations of the customs sector.
Crypto Assets should be managed rather than prohibited

Crypto Assets should be managed rather than prohibited

VCN – The issuance of legal regulations related to crypto asset management contributes to protecting investors, enhancing tax collection capabilities and improving the ability to control money laundering activities, according to experts.
Unify the way of handling administrative violations for imported vehicles

Unify the way of handling administrative violations for imported vehicles

VCN - The General Department of Vietnam Customs requests local Customs Departments; the Anti-Smuggling and Investigation Department; and the Post-Clearance Audit Department to review records and unify the way of handling administrative violations in specific cases related to imported vehicles according to their authority.
Perfecting the legal framework to promote upgrading the stock market

Perfecting the legal framework to promote upgrading the stock market

VCN - After receiving comments from affected subjects including organizations, individuals, and market members, the State Securities Commission has just completed a draft circular amending 4 circulars regulating: stock trading on the stock exchange system; clearing and settlement of stock exchanges; operations of securities companies and information disclosure on the stock market.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version