Vietnam’s trade ministry has rejected Petrovietnam (PVN) proposal to restrict or suspend imports of petroleum products that could be produced domestically during the coronavirus pandemic. PVN submitted the proposal in March, citing inventory surges in its Dung Quat and Nghi Son refineries due to low demand amid the health crisis.
According to Deputy Minister of Industry and Trade Do Thang Hai, PVN proposal had been carefully considered, but the ministry found it to be infeasible on several factors. According to the ministry, stopping petroleum imports could trigger retaliation from other countries on Vietnam’s imports. Besides, it also violated international commitments under trade agreements and as a member of the World Trade Organization.
In its proposal, PVN also requested that exports of crude oil-based products should be exempted from value-added taxes to help businesses in selling their goods in overseas markets.
