World Trade Organization (WTO) we do not commit to open the petroleum market, however, according to the general trend of the market, in the future the domestic petroleum market needs to integrate with the world petroleum market. At that time, foreign enterprises will have the opportunity to enter the domestic market to participate in the petroleum business. In order to survive in a free competitive environment, domestic enterprises will have to find ways to improve their competitiveness through reasonable pricing policies and attentive services. Surely then, consumers will enjoy more competitive prices and better quality products. When more and more enterprises enter the market, enterprises compete with each other, to attract customers, they must lower product prices, improve the quality of goods and services. Like the Japanese and Chinese petroleum markets, due to the provision of cheap petroleum according to market decisions and stable supply, petroleum business in these two markets is very fierce.
For Vietnamese enterprises, in order to proactively integrate into the international environment, it is necessary to improve the management mechanism and innovate the organizational model in a streamlined and modern direction. In addition, it is necessary to establish capital mobilization plans for long-term investment needs to create strengths in business infrastructure when our country truly opens up for integration. In the immediate future, enterprises need to establish a long-term and stable distribution system. A strong distribution system along with good price quality and service will be the factors that ensure Vietnamese petroleum enterprises to improve their competitiveness in the domestic and world markets before integration.
According to the Ministry of Industry and Trade, the implementation of Decree 55/2007/ND-CP on gasoline and oil trading over the past two years has contributed to shifting the trading of this special commodity to a market mechanism with State management, ensuring the supply of gasoline and oil for the domestic market in all situations, and gradually organizing
and develop a planned gasoline and oil distribution system, linking responsibility from gasoline and oil import and export businesses to agents and retail stations.
However, due to the recent unusual fluctuations in the world market and after the transfer of all petroleum products to the market mechanism, some contents of Decree 55 are no longer suitable. In addition, from the first quarter of 2009, in addition to the supply from imports, there will be additional supply from domestic oil refining, so additional regulations are needed to ensure that the trading process from different sources has equal competitive conditions.
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In recent times, especially in 2008, some enterprises, during difficult times, have delayed import schedules and have not actively participated in stabilizing the market; on the contrary, when business conditions are favorable, they have increased import schedules, making it difficult for enterprises to seriously implement the work of ensuring supply. Decree 55 only stipulates that enterprises importing gasoline and oil must import according to the minimum quota assigned annually and that production enterprises must register their annual production plans. Therefore, it is necessary to supplement regulations on registration and implementation of import and production in a shorter period of time rather than quarterly.
Regarding the regulation of gasoline and oil prices, Decree 55 of the Ministry of Finance - Industry and Trade establishes a mechanism for enterprises to self-adjust their selling prices when the average world price in a certain period of time before (from 15 to 20 days) fluctuates within a certain range (from 15% to 20%) 70 . In reality, world prices fluctuate very complicatedly in both time and range (the Prime Minister has allowed the establishment of a Gasoline and Oil Price Stabilization Fund), so it is necessary to amend Decree 55 in the direction of the Ministry of Finance - Industry and Trade to guide the mechanism for enterprises to self-adjust their selling prices in accordance with fluctuations in the world market in each period, within the corresponding period of time prescribed for compulsory circulation reserves.
70 Compiled from Nhan Dan Newspaper website: http://www.nhandan.org.vn/tinbai/?top=37&sub=152&article=141542
Regarding import tax on gasoline and oil, to stabilize the business situation of enterprises, domestic selling prices and budget revenue, it is proposed to stabilize the import tax rate on gasoline and oil for a certain period of time (possibly at least for one quarter) and move towards applying an absolute import tax rate (on liters and kilograms of gasoline and oil).
Thus, to put domestic gasoline and oil production and business into operation under a full market mechanism, with State management, ensuring harmony of interests of the State, enterprises and consumers, maintaining relative stability, increasing the quality of forecasting and planning..., it is necessary to supplement and adjust the management mechanism of gasoline and oil production and business to closely follow reality.
2.3. Use existing fuel economically
With the current rapid increase in oil prices, our country needs to immediately implement a strategy to use fuel economically and reasonably in both production and consumption as many countries are applying, such as: First, adjusting the economic structure through the construction of low-carbon production sectors (ie economic sectors that use less fuel). Second, it is necessary to adjust the fuel consumption structure through diversifying supply and using other energy sources so that the economy does not become too dependent on oil such as: gas, wind power, solar power, nuclear hydropower, biofuels, etc.
Saving energy is not only an urgent requirement for our country but also a global concern. In the current situation, besides actively finding alternative energy sources, we still need to save the maximum amount of existing gasoline. This saving needs to come from the awareness of each individual, group, household as well as in agencies and enterprises...
2.3.1. Saving fuel in production and business
For manufacturing enterprises in general : One of the necessary things is to improve technology and increase the efficiency of machinery. Besides
Therefore, we must know how to save input costs and use fuel resources reasonably to save most effectively. Specifically for each industry as follows:
For the transportation industry : It is necessary to reduce fuel consumption standards, management costs, extend vehicle depreciation time, rationalize transportation processes, increase two-way transportation capacity to reduce the rate of empty vehicles... Research and perfect regulations on management and organization of transportation types to promote the superiority of each type of vehicle, harmoniously develop transportation types... avoid the situation where there are many transportation enterprises but they are fragmented, small-scale and operate overlappingly... leading to a high rate of empty vehicles, causing waste and affecting the economic efficiency of society 71 .
For cement production and business : Improve the quality of clinker 72 thoroughly.
Save on consumption norms of main materials such as coal, electricity, gasoline, refractory bricks, etc. Improve technology to use coal instead of oil. Increase capacity of machinery and equipment, extend machine running time: rationalize the process of buying and selling materials, circulating cement to reduce costs of transit and loading and unloading through warehouses.
For steel production and business : Similar to cement, it is necessary to strictly manage the quality of input materials to reduce material consumption and establish reasonable standards for raw materials and inventories.
Coal industry : Production is focused on increasing mine capacity and reducing management units. Increase useful time, reduce machine downtime, rationalize material supply and apply cost-saving measures through investment in each type of coal mining.
Electricity industry : Optimize the operation of low-cost power sources (hydropower, coal-fired thermal power, gas turbines, steam turbines), while minimizing the mobilization of oil-fired power sources to improve economic efficiency. Continue to strive.
71 Market Price Newspaper, September 2006 issue.
72 Clinker: a product of sintering at 1450 degrees Celsius of limestone, clay and some coefficient-adjusting additives such as bauxite, iron ore, sand... The quality of clinker will determine the properties of cement.
Reduce fuel and electricity consumption in production compared to the assigned plan; limit inventory of materials, especially gasoline, oil, grease, electric cables, iron and steel and some construction materials. The new trend that is currently being researched and applied is to use solar energy to replace conventional electricity. This will reduce the role of gasoline in this industry compared to the present.
Offshore fishing : The State has proposed credit solutions such as handling credit loans for building offshore fishing vessels, assigning banks to implement, and extending debt for fishermen. The Ministry of Finance is guiding debt reduction for fishermen. In the long term, it is necessary to re-instruct production organization in the direction of coordinating between seafood exploitation and fishing logistics services to save fuel and preserve after exploitation. Strengthening the investigation of marine resources, improving the capacity to forecast fishing grounds to help fishermen reduce fuel costs for finding fishing grounds. Promoting fisheries extension, support, and training for the fishing industry to improve the technical, professional and management level of officers, crew members and ship owners. In addition to solutions from the State, fishermen themselves also need to make more efforts in awareness to change their careers, reorganize production in the direction of linking production and services to increase the value of exploited seafood, fishing efficiency and save costs, reduce product prices to increase income and profits. 73
2.3.2. Saving fuel in consumption
In consumption, saving gasoline is a common awareness of each individual and each group in order to effectively use the country's resources. For agencies, it is necessary to closely inspect and monitor the number of cars and motorbikes equipped by the State to ensure that they are sufficient for the unit's needs. In addition, it is resolute to not let the situation of using public vehicles for private purposes occur. In addition, it is necessary to strictly manage the State budget spent on the use of public vehicles.
73 Compiled from the Journal of Trade and Price Market from 2004 - 2007.
over the annual budget usage limit for each unit. For individuals and households, it is necessary to promote awareness of fuel saving, for the benefit of individuals and the whole society. Although means of transport are indispensable for the travel needs of each person, consumers can still save fuel by choosing a vehicle that consumes less fuel, checking and maintaining the vehicle periodically, using the vehicle reasonably... In addition, it is possible to choose a suitable alternative means of transport such as: using buses instead of motorbikes (especially suitable for workers, students...), or shuttle buses for employees (for companies, factories far from urban areas)... is also one of the feasible solutions to save fuel.
2.4. Ensuring domestic petroleum reserves
It is necessary to have state and business reserves to ensure energy security and participate in regulating supply and demand when the market has unusual fluctuations. Countries around the world are currently actively increasing their petroleum reserves. In the US, the amount of petroleum reserves is equal to 100 days of average consumption. Japan attaches importance to oil reserves to stabilize energy supplies and to stabilize the market when the world market has price fluctuations or prices.
Domestic oil prices have increased unreasonably. Japan's current reserves are equivalent to 173 days of consumption. In Vietnam, gasoline reserves are only 35 days. 74
According to information from the Ministry of Industry, Vietnam only has commercial oil reserves of petroleum importing enterprises with a total capacity of over 1 million m3 concentrated in Quang Ninh, Hai Phong, Ho Chi Minh City, Can Tho and Da Nang. Regarding circulating reserves, Decree 55 stipulates that enterprises must ensure reserve levels.
circulation by 20 days, supply according to plan in both quantity and type and gradually increase to at least 30 days by 2010. To ensure safety and energy security in the new situation and in accordance with the pace of economic growth, many experts
74 Ministry of Finance website: http://www.mof.gov.vn/Default.aspx?tabid=612&ItemID=24839 , looked up April 9, 2009
The proposal is to increase the current reserve level to 30 days and to at least 35 days by 2015. 75 After 2015, the reserve level must be increased by two days each year.
In addition to the commercial reserves of enterprises, strategic reserves are formed according to Decision 93/QD-TTg of the Prime Minister on approving the "Planning for the development of the system of receiving warehouses, transit warehouses, and distribution warehouses for gasoline and oil nationwide until 2010" . However, the above national reserves are only used in cases of storms, floods, natural disasters, and force majeure and have not yet met the goal of stabilizing the domestic gasoline and oil market price for a long time. Therefore, in the long term, according to experts, Vietnam must consider planning, zoning, determining the goals and scale of national gasoline and oil reserves in different stages (balanced with reserves in circulation); determining the reserve area; total capital and capital sources; assigning work among ministries and branches... Next is
Complete the National Petroleum Reserve Management Regulation 76 for the purpose of price stabilization
Domestic gasoline prices, accordingly, need to pay attention to plans to increase and decrease reserves, rotate gasoline in warehouses; plans to develop and modernize infrastructure...
The Ministry of Industry said that within the framework of cooperation between ASEAN+3 countries (including China, Japan and South Korea), developed industrial countries all believe that it is necessary to build a petroleum reserve system to ensure energy security for countries and deal with negative fluctuations caused by the global petroleum crisis. Japan and South Korea have developed a program to assist other countries (including Vietnam) in building strategic petroleum reserves 77 . Vietnam is also considering a policy to call for foreign investment to invest capital and technology in building petroleum reserves, because this field is still quite new to Vietnam.
75 Nhan Dan Newspaper Website: http://www.nhandan.org.vn/tinbai/?top=37&sub=152&article=141542
76 Regulations on management of national petroleum reserves, issued together with Decree 10/CP-TTg.
77 Vietnam Economic Times, February 2008.
The management of petroleum in Vietnam is still facing difficulties because we do not have enough tools. Specifically, here, reserves for circulation and price stabilization. This depends on the country's potential, and cannot depend on enterprises. Countries, in addition to strategic reserves, all have petroleum reserves to deal with price fluctuations. In case of high prices, the reserves will be released to achieve stable prices for a certain period of time. However, Vietnam has almost no reserves for price management. Currently, circulating reserves mainly depend on enterprise reserves. According to regulations, enterprises must reserve about 10%, this number is equivalent to about 3 days of sales circulation of the enterprise, a rather fragile number in the face of the whole market demand and very unlikely to participate in price stabilization.
There are many countries in the world that have to import petroleum, but thanks to their strong potential, they have reserves and reserves become an effective tool to participate in price stabilization. In Vietnam, this is almost non-existent due to our limited potential. Domestic reserves are placing great hope on the construction of oil refineries. Obviously, when petroleum is marketized, with the situation of imperfect competitive market factors, there are still many shortcomings in both capacity and potential, many difficulties will arise. At times like these, an administrative measure is acceptable. However, in the long term, this cannot be repeated forever if we want to have a real market economy and are calling on countries to recognize Vietnam as a market economy.
2.5. Search for alternative energy sources
According to EIA's prediction, from now until 2030, the proportion of oil consumption in the world's total energy consumption will decrease to 33% (compared to the current level of 38%), during the same period, coal consumption will increase from the current 24%.
currently up to 27%, renewable fuels can reach 8-9%. On the other hand,