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According to the Ministry of Industry and Trade, business conditions of gas tanks led to the elimination of small and medium-sized enterprises, which are new participants of this market. Photo: internet.

Reject the provisions on gas tanks

The Ministry of Industry and Trade has just completed a draft decree to replace Decree No. 19. In a report of the Ministry of Industry and Trade Decree No. 19/2016 / ND-CP (came to effective on 15/05/2016) has positively contributed to gas business markets, especially markets of liquefied petroleum gas (LPG) in recent past time.

The provided provisions of the Decree are aiming to build a gas business market with transparency, fair competition and equality in order to develop the gas market in Vietnam, also to stabilize and observe the movement in the international market.

However, "after applying, there are several issues that need to be considered and evaluated ", the Ministry of Industry and Trade stated.

After consulting Ministries, MOIT is planning to amend and supplement 6 points in the direction of removing difficulties for enterprises.

Firstly, MOIT proposed for rejecting the regulations that the key traders must own gas tanks and LPG gas cylinders, removing the condition of the business scale such as owned facilities, the number of LPG gas cylinders. Specifically: remove the provisions of conditions on gas tanks and LPG gas cylinders for gas export, import and distribution traders as per provisions of Article 7 and Article 9 of Decree No. 19/2016 / ND-CP

The reason is the prescribed conditions for exporters and importers who must have a total warehouse capacity of at least 3,000 m3 tanks for LPG; 60,000 m3 of LNG; 200,000 m3 for CNG, the quantity of LPG gas cylinders for a minimum total capacity of 3,930,000 liters, in Article 7 and Article 9 is too large.

The above business conditions led to the elimination of small and medium-sized enterprises who are new participants into the market, especially enterprises with insufficient investment and operation processes.

This will cause damage to the aforementioned enterprises. The fact that if these enterprises want to continue the business, they must meet the above conditions means that on average, enterprises will be forced to invest from tens to hundreds of billions of VND to have the gas storage system to be eligibly certified as an export, import and distribution trader without the need to use for production and business.

Secondary, MOIT proposed for rejecting the conditions of LPG cylinders filling stations, gas filling stations into transport, gas stations which are owned by for export, import and distribution traders of gas.

Thirdly, this agency also recommended removing the type of gas distribution traders, general agents of liquefied petroleum gas and instead of that, the draft decree will not prescribe different levels as before and streamline forms of gas traders.

Specifically, the draft decree will only have the following types of traders: export or import gas traders; gas production and processing traders; buying and selling gas traders and bottled LPG retail stores.

Gas business will not have to set up a distribution system

According to the Ministry of Industry and Trade, the provisions of setting up a distribution system as Decree 19 invisibly impeded enterprises, incompatible with the Enterprise Law and the spirit of Resolution No. 35 / NQ-CP of the Government on supporting and development of enterprises by 2020.

The establishment of the distribution system or not is due to the autonomy of the business which is based on the scale and capacity to establish their own insurance of compliance with regulations on agent setting up as prescribed by Commercial Law, it is not necessary for all gas traders to set up their distribution system as per the Decree.

With this spirit, the State will not interfere too deeply into the legal business activities of enterprises. The goals of amendment of Decree 19 is to create a legal framework for business activities in the gas field which can be conducted in a transparent way, based on the the establishment of a fair competition business environment, which ensures the harmony of interest between parties and ensuring safety in gas business activities.

Therefore, in order to meet the above objective, the Ministry of Trade and Industry proposed to remove the regulations of setting up gas distribution system for gas traders. It is the fourth proposal.

On the other hand, the gas commodity is input energy which serves production and business activities as well as people's daily life.

However, according to law, this item is not required to circulation reserve. It is just (liquefied petroleum gas) in the list of goods and services which apply price valorization as per Law Price.

Thus, the fifth proposal of MOIT was removing the regulations of gas circulation reserves specified in Article 49 of Decree 19.

The sixth proposal is adding some regulations related to the safety of storing gas facilities (gas tank, gas storage, gas pipelines); safety for filling stations, gas stations; safety in gas transportation and forwarding; safety of LPG cylinders retail stores; safety of repair and production facilities of LPG cylinders; prescribing the conditions for the testing facilities and LPG cylinder repairing, production facilities; certificate of eligibility for these facilities.

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In order to limit the situation of unauthorized appropriation, scrambling for LPG cylinders; damaging LPG cylinders by sharpening or sawing which occurs frequently cause unsafe, fire, affecting people's life when using gas, when conducting revision of Decree 19, a separate regulation chapter on the safety management of gas business activities will be added.

On this basis, the MOIT will also strengthen the post-inspection test for gas traders and increase the decentralization for local forces to inspect and supervise traders in this field. Thereby, traders will enhance responsibility in the gas business and ensure the safety of people's life and the interests of consumers.