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Vietnam to remove 5% crude oil import tax from Nov 1

能源 | Energy Transition

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Vietnam to remove 5% crude oil import tax from Nov 1

Singapore — Vietnam will remove the import duty on crude oil for domestic refiner Binh Son Refining and Petrochemical Co. effective November 1, the government said in a statement Tuesday.

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Under the decision signed by Prime Minister Nguyen Xuan Phuc on September 16, the import duty will be cut to 0% from the current 5%, the statement said.

The government's decision follows numerous requests from BSR, the operator of the 148,000 b/d Dung Quat refinery, for the 5% duty to be removed.

BSR has said the duty negatively affects its profit and competitiveness against the 200,000 b/d Nghi Son refinery, which enjoys 0% duty for the Kuwaiti crude it processes.

In March, BSR chairman Le Xuan Huyen asked a group of visiting lawmakers to consider removing the duty on imported crude, according to BSR.

BSR imports crude oil mainly from Brunei to supplement its intake of domestic crude, though the company has in recent months raised its purchases of US crude. It will also be taking delivery of its first cargo of Nigeria's Bonny Light crude in October this year, according to BSR.

Vietnam imported 532,436 mt, or 3.9 million barrels, of crude oil for Dung Quat in 2018, Vietnam Customs data showed.

--Newsdesk-Vietnam, newsdesk@spglobal.com

--Andrew Toh, andrew.toh@spglobal.com --Edited by Nurul Darni, nurul.indriani.darni@spglobal.com