It is reported that Vietnam’s fuel distribution network has 13 top level distributors, 300 general agencies and 10,000 retail agencies. Set out below are the key licensing conditions and key rights and obligations of each level of fuel distribution network in Vietnam.

1.             Top level distributor -     Fuel importers

1.1.         Key licensing conditions:

•             Having special berths at international ports of Vietnam which can receive oil tankers of at least DWT 7,000 tons;

•             Having fuel storage facility of at least 15,000 m3 which can directly receive fuels from tankers or other transportation means;

•             Having at least 10 filling retail stores and 40 retailing agents; and

•             Having a Fuel Import and Export Licence issued by the Ministry of Industry and Trade (“MOIT”).

1.2.         Key rights and obligations:

•             Import a minimum reserve amount of fuel as instructed by the MOIT;

•             Maintain a minimum reserve of 30 supply days according to its annual sale plan until 2025;

•             Directly selling fuel to industrial users and to qualified general agents or retail agents;

•             Registering its distribution network with the MOIT;

•             Distributing fuel through its controlled units such as affiliates, branches, storage facilities, retail stores or through the agency network;

•             Establishing a price stabilization fund according to Decree 84; and

•             Deciding fuel retailing price to be applied in its distribution network.

2.             Top level distributor -Fuel producer

2.1.         Key licensing conditions:

•             Having a fuel producing facility in compliance with approved master plan;

•             Having a qualified testing lap; and

•             Having a Fuel Producing Licence issued by the MOIT.

2.2.         Key rights and obligations:

•             Produce and maintain a minimum reserve amount of fuel as instructed by the MOIT;

•             Maintain a minimum reserve of 30 supply days according to its annual sale plan until 2025;

•             Importing material for producing fuels subject to approval by the MOIT;

•             Selling fuel through its distribution network or selling fuel to other top level distributors;

•             Distributing fuel through its controlled units such as affiliates, branches, storage facilities, retail stores or through the agency network;

•             Establishing a price stabilization fund according to Decree 84; and

•             Deciding fuel retailing price to be applied in its distribution network.

3.             Middle level distributor - General Agent

3.1.         Key licensing conditions:

•             Having a storage facility of at least 5000 m3;

•             Having at least 5 filling retail stores and 20 retailing agents which are under control of the General Agent; and

•             Having specialized transportation means.

3.2          Key rights and obligations:

•             Signing agency contract with only one top level distributor;

•             Purchasing fuel with distributors within its distribution networks;

•             Selling fuel to end-users at a price not exceeding the retail price decided by the top level distributor; and

•             Establishing a distribution network including fuel retail agent and filling retail stores and registering the same with the top level distributor and the relevant authority.

4.             Middle level distributor - Fuel Retail Agent

4.1.         Key licensing conditions:  Having filling retail stores.

4.2.         Key rights and obligations:

•             Signing agency contract with only one General Agent or one top-level distributor;

•             Purchasing fuel with distributors within its distribution networks; and

•             Selling fuel to end-users at a price not exceeding the retail price decided by the top level distributor.

5.             Bottom level - Filling retail store

5.1.         Key licensing conditions:

•             The location of the filling retail store must comply with approved master plan; and

•             Having a Certificate of Satisfaction of Business Conditions for Fuel Retailing Store by the relevant provincial Department of Industry and Trade.

5.2.         Key rights and obligations:

•             Being controlled by a middle level or top level distributor including retail price.