Vietnam’s government is making a significant move to overhaul its petroleum trading regulations, with Prime Minister Lê Minh Hưng setting a deadline of November 10, 2026, for the Ministry of Industry and Trade to submit a draft decree. This initiative aims to improve fuel distribution, enhance market transparency, and strengthen supply security in the country.
The directive, issued on October 21, mandates the ministry to work closely with relevant government departments to finalize the proposed regulations. Key aspects of the reform include reducing the number of major petroleum traders, enhancing their capacity to secure supplies and maintain reserves, and establishing clearer responsibilities to prevent fuel shortages.
A major component of the proposed changes is the restructuring of the pricing mechanism. The draft framework allows petroleum businesses to determine and announce retail prices within their networks using a government-established pricing formula. This shift from the current system of periodically published benchmark prices is designed to make the market more responsive to actual conditions.
Additionally, the government plans to streamline the distribution network by cutting unnecessary intermediaries and reducing operating costs, aiming for greater efficiency and transparency. Traders will be required to declare price adjustments to authorities, who will monitor compliance and oversee market developments to ensure stability.
To safeguard against market manipulation, speculation, and unjustified price increases, the proposed regulations include provisions for state intervention when necessary. The Ministry of Industry and Trade is also tasked with developing plans to ensure adequate petroleum supplies and coordinating with other agencies to prevent disruptions.
This comprehensive reform is intended to bolster Vietnam’s petroleum regulatory framework, promoting a more market-oriented system while maintaining state oversight to protect consumers and national energy security.