A petrol station of PetroVietnam Oil Corporation in the southern province of Tiền Giang. – Photo PVOILHanoi (VNS/VNA) - The Ministry of Industry and Trade (MoIT) has proposed theGovernment to allow petrol and oil businesses to transfer stakes to foreigninvestors, but not exceeding 35 percent.
Theproposal is part of the draft revision and supplement of several articles inthe Government’s Decision No 83/2014/ND-CP on petrol and oil trading,creating favourable condition for foreign investors to participate in petroland oil distribution in Vietnam.
Ina report submitted to the Government, the MoIT said petroleum is a strategiccommodity, greatly affecting people’s living and energy security, so it hascalculated carefully the appropriate time to allow foreign investors to takepart in the local distribution network.
WhenVietnam joined the World Trade Organization (WTO) in 2007, petroleum was afield that the country did not commit to opening up so that domesticenterprises had the opportunity to grow, build facilities and keep an importantposition in the domestic petroleum distribution system.
“Today,after 13 years, Vietnam has opened its doors to foreign investors to invest inmost important areas such as electricity, oil and gas, and aviation,” theMoIT said in the report.
Theministry said the Prime Minister has just approved the participation of foreigninvestors in a number of large State-owned enterprises, includingPetroVietnam Oil Corporation with 35 percent and Vietnam NationalPetroleum Group with 20 percent. This participation has significantlycontributed to improving corporate governance, raising efficiency andcompetitiveness.
Theministry said that the foreign investors’ participation is expected to helpdomestic enterprises attract capital, technology and business managementskills./.
VNA
