Hanoi (VNS/VNA) - New policies are in the making to allow foreign firms to gaingreater footing in Vietnam's petrol retail market, according to theMinistry of Industry and Trade (MoIT).

GovernmentDecision 83/2014/ND-CP, for the first time, considers giving the green light todomestic petrol retail firms to sell up to 34 percent of their shares toforeign buyers. The sales must also be inspected and approved by the MoITbefore taking effect. 

Inrecent years, as domestic firms pushed for equitisation many have becomepart-owned by foreign firms including the Vietnam National Petroleum Group(Petrolimex) with 8 percent owned by foreign partners, PetroVietnam OilCorporation (PVOIL) 20 percent and Nghi Son Refinery and Petrochemical 34 percent. 

TranDuy Dong, head of the MoIT's domestic market department, said while the countryencouraged foreign firms to invest in the domestic market, the Government mustreserve the role of market management, explaining the MoIT must inspect andapprove sales of shares by domestic firms. 

The34 percent ceiling posed little threat to national energy security as domesticfirms would still control the businesses, said expert Dr Dinh Trong Thinh.Meanwhile, having foreign firms in the petrol market is one of the fastest waysfor Vietnam to build a market economy. 

VuVinh Phu, former deputy director of Hanoi’s Department of Industry and Trade,said the 34 percent ceiling allows firms to attract foreign investments andalong with them, modern technologies to improve the quality of products andservices while maintaining control of the market.

Phusaid there was a need to improve transparency and fairness to encourage foreignfirms and the Government must ensure a level playing field for all. He alsocalled for petrol prices to be adjusted more frequently (down to a 10-day cycleor fewer compared to the current 15-day) to better reflect the internationalmarket's price movement./.