The Ministry of Industry and Trade receives opinions from experts and businesses
Lao Dong Newspaper has just published an article citing the opinions of the Vietnam Confederation of Industry and Commerce (VCCI) and businesses commenting on the draft Decree on petroleum business. In it, VCCI gives its views on traders distributing and buying with each other.
Article 17 of the draft stipulates the rights and obligations of gasoline distributors and does not allow distributors to buy and sell gasoline with each other. VCCI believes that it is "unfounded and goes against market rules".
Talking to Lao Dong Newspaper about this issue, Ms. Nguyen Thuy Hien - Deputy Director of the Domestic Market Department (Ministry of Industry and Trade) said that in the upcoming draft Decree on petroleum business to be submitted to the Government, the Drafting Committee will receive opinions from professional agencies, experts and business representatives. For controversial opinions, the Drafting Committee will present many options for consideration.
"In the next draft, we will submit an additional plan to allow traders to distribute petroleum that is bought and sold from each other as suggested by experts, scientists, and specialized agencies, for the Government to consider and decide. determine a plan suitable to reality, ensuring objectivity and science," Ms. Hien said.
A petroleum business in the South told Lao Dong that distributors are businesses with the right to freely compete. If they are not allowed to cross-buy from each other, it will not ensure the competitiveness of the market.
"During periods of fluctuating prices, thanks to cross-selling, distributors can share with each other the quantity and selling price. Restricting this right does not necessarily mean the market is stable," said the business leader. said.
Releasing gasoline that cannot be purchased from each other can be an anti-competitive practice
Appraising the content of the draft Decree on petroleum business, the Ministry of Justice pointed out many issues that need to be clarified, including related to the law on business competition.
Clause 1, Article 17 of the draft Decree stipulates that "petrol distributors are allowed to buy petrol and oil from key petrol and oil traders". However, these traders are "not allowed to buy and sell gasoline with each other".
"The above limitation will, in principle, limit the choice of petroleum supply sources for petroleum distributors, and may not be consistent with the State's policy on competition in Clause 2, Article 6 of the Law on Competition. 2018", the Ministry of Justice stated its appraisal opinion.
Clause 2, Article 6 of the Competition Law 2018 stipulates: "Promoting competition, ensuring the freedom of competition in business of enterprises according to the provisions of law".
With the above regulations, the Ministry of Justice also notes that the proposal in the petroleum decree for distributors mentioned above can be determined as an act that hinders competition in the market and is strictly prohibited as stated in Clause 1 of this Article. Point a, Clause 1, Article 8 of the Competition Law, which is "forcing, requiring, or recommending enterprises... to perform or not to produce, buy, sell goods, provide, and use services." specifically or buy, sell goods, provide, and use services with specific businesses".
Only allowing distribution traders to buy goods from key traders makes many petroleum businesses worry that it will give too much power to the key units, making them dependent on both supply and profits.
In case the draft Decree on petroleum trading does not allow traders to distribute and buy with each other, Mr. Nguyen Tien Thoa - former Director of the Price Management Department (Ministry of Finance) said that it is necessary to further specify the conditions. in the decree.
In particular, a mechanism for linkage, close connection, and mutual control is stipulated in the "vertical" petroleum supply system from focal traders, to distributors onwards through contracts. , through commitment.
At the same time, there is a registered supply system with higher responsibility in ensuring sources, sharing business costs, and reasonable discounts to ensure harmonization of interests between about 300 distributors and 32 traders. focal person.
On that basis, the Ministry of Industry and Trade can specifically guide the contents of commitments, monitor commitments for implementation, and avoid the situation of "suppression" of each other in business.