The whole country has only 35 enterprises allowed to trade in gas.
The Ministry of Industry and Trade has just announced the list of gas exporters and importers; the list of gas distributors according to Decree No. 19 on gas trading.
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| The gas business is specifically regulated in Decree No. 19 of the Government... |
Specifically, only 8 enterprises are allowed to export and import gas, including: Northern Liquefied Petroleum Gas Trading Joint Stock Company, Tran Hong Quan Trading Company Limited, Hai Linh Company Limited, V-Gas Petroleum Joint Stock Company, Ho Chi Minh City Petroleum Company Limited, Petrolimex Gas Corporation, Southern Gas Trading Joint Stock Company, Hong Moc Production Service Trading Private Enterprise.
In addition, 35 enterprises also meet the conditions to distribute gas such as: Elf Gaz Da Nang Company Limited, Hoang Dong Private Enterprise, Ho Chi Minh City Petroleum Trading Company Limited, Petrolimex Da Nang Gas Company Limited, Vietnam Petroleum Equipment and Materials Joint Stock Company, Gia Dinh Petroleum TNN Company, Viet Xo Gas Joint Stock Company, Hanoi Petroleum Investment Company Limited, Nghe An Liquefied Gas Company Limited, Thang Long Trading and Development Joint Stock Company,
Previously, Decree 19 on gas business caused a lot of controversy when it set out a number of conditions that caused difficulties for small and medium-sized gas enterprises.
Decree 19, effective from May 15, 2016, stipulates that gas traders must meet the following conditions: The number of LPG cylinders owned by the trader with a total minimum capacity of 3,930,000 liters (equivalent to 150,000 12 kg LPG cylinders, previously regulated as 300,000 LPG cylinders) for LPG exporters and importers (regulated in Clause 2, Article 7); the total minimum capacity of 2,620,000 liters (equivalent to 100,000 12 kg LPG cylinders, previously regulated as 300,000 LPG cylinders) for LPG cylinder distributors.
Total capacity of LPG tanks is down to 300 m3(previous regulation was 800 m)3) for LPG cylinder distributors.
According to small and medium-sized gas enterprises, the above business conditions lead to the elimination of new small and medium-sized enterprises entering the market, especially many enterprises that have invested and operated legally and effectively.
A representative of a gas company said: "Small and medium-sized enterprises have suffered huge losses. We are not losing because of the market and customers, but with the conditions of Decree No. 19, we will disappear from the market. Please, the State, do not let large enterprises squeeze small enterprises to death."
Many business representatives present at the above conference said that, to meet the conditions of Decree No. 19, gas companies must spend 25-30 billion VND to invest in storage tanks and gas cylinders, with the purpose of being re-issued business licenses, which are not necessary for production and business use. It is estimated that the total amount of money that businesses must spend is up to 35 million USD just to apply for and maintain an unnecessary license.
Ms. Nguyen Thuy Trang, a business representative, said that Decree 19 pushes small and medium-sized enterprises to the risk of bankruptcy, and the consequences will be tens of thousands of unemployed workers. "The regulation will only make gas consumers pay more because the market lacks competition. Moreover, this regulation also goes against the Government's Resolution 35 on reforming administrative procedures for businesses," Ms. Trang said.
According to VnEconomy
