Ministry of Industry and Trade explains the removal of Xuyen Viet Oil from the inspection list

Reasons for withdrawing Xuyen Viet Oil and Hai Ha from the inspection and examination plan

The Inspectorate of the Ministry of Industry and Trade explained that in May 2021, the Ministry issued a decision to adjust the inspection and examination plan. In particular, it withdrew from the inspection plan with Xuyen Viet Oil Company.

Specifically, on December 31, 2020, the Ministry of Industry and Trade issued Decision No. 3646/QD-BCT on the establishment of an Inspection Team to inspect compliance with legal regulations in petroleum trading in 2021 for a number of petroleum traders, including Xuyen Viet Oil Company, but not Hai Ha Company.

However, inspections of businesses were interrupted and could not be carried out due to the complicated developments of the Covid-19 pandemic, and the Government issued many directives on travel restrictions (from April to October 2021). Therefore, the Ministry of Industry and Trade could not organize inspection teams as planned.

At the same time, the Business License for Exporting and Importing Petroleum of Xuyen Viet Oil Company expired (in August 2021). Accordingly, the company submitted an application to the Ministry of Industry and Trade to review and reissue this license (in November 2021).

"At that time, the company met the conditions to be re-licensed as prescribed in Decree No. 83/2014/ND-CP and Decree No. 95/2021/ND-CP," the functional unit of the Ministry of Industry and Trade explained.

According to the Inspectorate of the Ministry of Industry and Trade, based on reports from units and updated information on the implementation of the inspection plan of the Ministry of Industry and Trade, the Inspectorate of the Ministry has compiled the request to adjust the 2021 Inspection Plan and reported to the leaders. After review, the leaders of the Ministry agreed and signed the Decision on adjusting the 2021 Inspection Plan of the Ministry of Industry and Trade (Decision No. 1392/QD-BCT dated May 13, 2021).

"Thus, the Ministry of Industry and Trade's issuance of the Decision on adjusting the 2021 Inspection Plan is completely objective and consistent with the actual situation," the Ministry affirmed.

The Ministry of Industry and Trade also said that the information that the Ministry issued Decision No. 3103/QD-BCT on inspecting compliance with the law on petroleum trading in 2022 with about 20 enterprises, but not Xuyen Viet Oil, is incomplete.

By 2022, the Ministry of Industry and Trade issued 4 decisions to inspect and examine compliance with the law in petroleum business for traders, including Xuyen Viet Oil Company.

At the end of the inspection process, the Ministry of Industry and Trade issued a Decision to administratively sanction Xuyen Viet Oil Company with a fine of VND 390 million and revoke its license to export and import gasoline for 1.5 months, from August 10 to September 13, 2022.

In 2023, continue to inspect a series of petroleum enterprises.

Meanwhile, the Domestic Market Department said that on July 24, the Ministry of Industry and Trade issued Decision No. 1896/QD-BCT on the establishment of an Inspection Team to inspect compliance with legal regulations on petroleum trading in 2023 for a number of key petroleum traders, including Xuyen Viet Oil Company, Hai Ha Company, and Thien Minh Duc Company.

Up to now, the inspection has been conducted with Xuyen Viet Oil Company.

Based on the inspection results and comparison with current regulations on handling violations, the Ministry of Industry and Trade has revoked the Petroleum Import-Export Business License of Xuyen Viet Oil Company.

The Ministry of Industry and Trade is implementing inspections of law compliance in petroleum business for the remaining enterprises.

The Inspectorate of the Ministry of Industry and Trade further informed: On December 23, 2022, the Ministry of Industry and Trade issued a Decision approving the 2023 Inspection Plan, according to which Xuyen Viet Oil was not included in the plan. However, performing the function of state management of the petroleum sector, in 2023, the Ministry of Industry and Trade conducted a surprise inspection of this company.

According to the report of the Domestic Market Department, on August 11, 2023, the Ministry of Industry and Trade issued Decision No. 2081/QD-BCT on revoking the Petroleum Import-Export Business License of Xuyen Viet Oil Company.

This decision was made based on the inspection results of Xuyen Viet Oil Company and on the consideration of aggravating circumstances of the company's failure to remedy violations after the 2022 inspection and repeated violations of regulations on the Price Stabilization Fund as reflected by the Ministry of Finance .

The situation of amending and supplementing two decrees on petroleum business

Regarding the issue of drafting a Decree amending Decree No. 83/2014/ND-CP and Decree No. 95/2021/ND-CP, the Domestic Market Department said that the Ministry of Industry and Trade has focused on amending and supplementing a number of regulations to remove difficulties and obstacles and encourage businesses to create sources to supply gasoline to the market, harmonizing the interests of the state, businesses and consumers.

Specifically, shorten the cycle of operating gasoline prices from 10 days to 7 days and adjust the time to review and announce the cost of bringing gasoline from abroad to Vietnamese ports, the cost of bringing gasoline from domestic refineries to ports, and the premium to calculate gasoline prices from domestic production sources from 6 months to 3 months to ensure more timely updates of prices and costs for businesses, creating motivation for businesses to create gasoline sources to supply the domestic market.

Amending regulations allowing petrol dealers to get petrol from a maximum of 03 sources to create competition in petrol discounts in the market, while increasing the initiative of petrol retailers in creating sources and supplying petrol to consumers.

Abolish the type of general retail agent for gasoline to reduce intermediaries in the gasoline distribution system.

Amending and supplementing regulations on cases of revocation of petroleum business licenses of traders, accordingly, for some cases of violation, depending on the level, the Decree stipulates the time allowed for traders to correct the violation within ninety (90) days. After this period, if the trader fails to correct the violation, the Certificate of eligibility for petroleum business will be revoked. The above regulation is aimed at avoiding sudden interruption of petroleum supply, especially in times when domestic petroleum supply is affected and scarce.

Supplementing regulations requiring retail gasoline stores to comply with regulations on electronic invoices and provide electronic invoice data according to the law to limit businesses from fraud, tax evasion, and causing losses to the state budget.

The Ministry of Industry and Trade is coordinating with relevant agencies to complete the draft amended Decree and soon submit it to the Prime Minister for consideration and promulgation.

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