However, to establish and operate an exchange in line with its goals, many questions need to be answered, and a suitable roadmap must also be developed specifically soon.
Contribute to keeping gasoline prices at the lowest level compared to world prices
The petroleum business is considered a super profitable industry, a fertile land, a “golden goose” that attracts many investors . Therefore, at one point, the number of petroleum stores nationwide reached more than 18,000; 500 distributors and 38 petroleum trading enterprises.
However, the information that has "startled" many people is that since the beginning of the year, 16 petroleum distributors have returned their licenses and it is predicted that this wave will not stop. A series of negative cases in petroleum business have been exposed, such as Xuyen Viet Oil, Hai Ha Company, Thien Minh Duc Company, Trung Linh Phat Company...
To overcome the above shortcomings, experts believe that a new tool and business method is needed to make the market more transparent. That is to research and establish a petroleum trading floor to help distribution units access goods sources.
Economist - Associate Professor, Dr. Dinh Trong Thinh said that building a petrol trading floor helps ensure the interests of both buyers and sellers, and in the short term will contribute to keeping petrol prices at the lowest level compared to world prices.
"When listed, a business can buy from anyone if the price is reasonable and thus the position of the parties will change. Next, it will make the buying and selling of gasoline clear, public and transparent in terms of quantity, price and quality.
On the State side, it is clear that with such petroleum trading, the State will have relatively complete data to establish a database on petroleum, and at the same time have appropriate intervention instructions according to the State's management requirements. Thereby ensuring the State's orientation in the petroleum market but also ensuring that the petroleum trading market takes place in a close collusion manner and ensuring energy security, avoiding disruptions in supply," said Mr. Thinh.
Mr. Vu Vinh Phu - former Deputy Director of Hanoi Department of Trade - said that there is still a limitation, although the State controls prices and sets prices, prices still have to follow the world; because if the import is high, the price must be regulated high and when the market goes down, the price can be lowered.
Therefore, the establishment of a petroleum exchange will help gasoline prices be closest to world prices, and will increase and decrease according to daily, even hourly fluctuations. "They themselves know how to calculate profits and losses when trading every drop of their gasoline according to the market. They themselves know what to do to make customers come to them. From there, a perfectly competitive market will be born," said Mr. Phu.
Mr. Nguyen Xuan Thang - Director of Hai Au Phat Petroleum Company Limited - said that the petroleum trading floor needs to operate in the form of a petroleum trading market. In which, the seller will register and provide full information about the goods, including quantity, quality, certificate of origin, storage warehouse, and transaction price on the trading floor.
The buyer will base on the price and type of product to choose the quantity and type of product to buy. The State will manage the operation of the exchange, protect transactions on the exchange and collect taxes or fees corresponding to the amount of goods traded.
According to Mr. Thang, the main supply source of the petroleum trading floor is part or all of the imported volume of the main traders; part or all of the petroleum produced by the refinery; the amount of qualified petroleum circulating on the market; the petroleum source from the national reserve; the petroleum source converted from the Petroleum Price Stabilization Fund.
Establish an interdisciplinary research team to propose the establishment of a petroleum trading floor.
According to Mr. Nguyen Tien Thoa - former Director of the Price Management Department (Ministry of Finance), traditional petroleum trading is the buying and selling of goods for immediate delivery; while the trading methods on the exchange are for later delivery. This requires the use of complex calculation techniques. Therefore, Mr. Thoa believes that there needs to be a roadmap and appropriate steps and that a petroleum exchange should only be established and put into operation when all conditions have been prepared.
The necessary condition is to build and perfect a synchronous legal basis, in accordance with international practices on petroleum exchanges, financial and monetary policies, trading activities, management and supervision.
Speaking with Lao Dong, Ms. Nguyen Thuy Hien - Deputy Director of the Domestic Market Department (Ministry of Industry and Trade) - said that the proposal to establish a petrol exchange is quite new, so the Ministry will continue to consult with businesses and associations to seriously implement the Government's direction.
"In the immediate future, the Ministry of Industry and Trade is establishing an interdisciplinary team to study and propose establishing a petroleum trading floor. The Ministry will consider and study the establishment of a model suitable for Vietnam to report to the Prime Minister," Ms. Hien said.
