LEGAL FRAMEWORK FOR PETROLEUM TRADING 2025 – LATEST CONDITIONS, LICENSES, AND REGULATORY REQUIREMENTS
- Tiến sĩ Kinh tế Dương Thái Trung
- 3 days ago
- 4 min read
Petroleum trading is a conditional investment and business sector in Vietnam, strictly managed by the State to ensure fire and explosion safety, environmental protection, product quality, and the stability of national energy supply. Under Decree 83/2014/ND-CP, Decree 95/2021/ND-CP, and Decree 80/2023/ND-CP, petroleum traders must fully satisfy statutory conditions before commencing operations.
1. Who is a petroleum trader?
A petroleum trader is an enterprise conducting one or more of the following activities:
• Import and export of petroleum products• Production and blending of petroleum products• Domestic distribution of petroleum products• Wholesale and retail of petroleum products• Provision of depot, port, storage, preservation, and transportation services for petroleum products
These activities are subject to strict legal control and require the trader to obtain suitable licenses.
2. Conditions for petroleum trading
2.1. General conditions
All petroleum traders must meet the following mandatory requirements:
✓ Lawful business entityHolding an Enterprise Registration Certificate specifying “petroleum trading” or another relevant business line consistent with the enterprise’s operational model.
✓ Standard-compliant technical facilitiesThe enterprise must have:• Petroleum depots, storage tanks, and dispensing stations meeting technical standards• Specialized petroleum transportation vehicles (if engaging in transport/distribution)• Design, construction, and equipment meeting safety, environmental, and metrology standards
✓ Qualified personnelManagers and employees must be:• Trained in fire prevention and fighting (FPF)• Trained in environmental protection• Subject to periodic health checks under specialized requirements
✓ Compliance with fire/explosion safety and environmental rulesPetroleum facilities must:• Establish safe operating procedures• Conduct periodic inspections• Maintain FPF and environmental records as required by law
3. Model-specific conditions
3.1. General (master) petroleum agents
A general agent must satisfy:• Minimum depot/tank capacity of 2,000 m³• Ownership/co-ownership of petroleum transport vehicles, or lease for at least 5 years• A distribution system including at least 5 owned (or co-owned) retail outlets• At least 10 retail agent outlets within its system• Personnel fully trained in FPF and environmental compliance
3.2. Petroleum retail outlets
A retail outlet must:• Meet design standards under national technical regulations (QCVN) for petrol stations• Be fully equipped with FPF systems, anti-spill measures, and wastewater collection/handling systems• Employ staff holding FPF and environmental certificates• Obtain the Certificate of Eligibility for Petroleum Retail issued by the provincial Department of Industry and Trade
3.3. Small-scale petroleum retail equipment
Small-scale retail devices must:• Be metrologically inspected and certified• Meet fire and explosion safety standards• Obtain written acknowledgment of business notification before operation
4. Petroleum business activities under the law
✓ Petroleum import and exportIncluding direct import/export, temporary import for re-export, transit trade, and processing for export.
✓ Petroleum production and blendingEnterprises must have factories, testing laboratories, registered blending facilities, and ensure product quality standards.
✓ Domestic distributionImplemented through tiers including: distributors; general agents; retail agents; franchised/authorized retailers.
✓ Petroleum servicesIncluding depot/tank leasing; receipt and preservation; petroleum transportation services.
5. State management and petroleum price administration
✓ Supply managementThe Ministry of Industry and Trade allocates minimum total supply quotas to key traders to ensure market balance.
✓ Petroleum base price formulaThe base price includes world prices; regulated operating costs; regulated profit margins; import duty, excise tax, VAT; premium and port-delivery costs.
✓ Petroleum Price Stabilization Fund (BOG Fund)The Fund is established to: stabilize retail prices during major fluctuations; support flexible price management; and be accounted for and transferred transparently under legal regulations.
Petroleum trading is a specialized sector governed by a multi-layered legal framework, ranging from infrastructure, technical and fire safety conditions to distribution capacity and quality control. Any enterprise participating in the petroleum supply chain—from key importers, distributors, general agents, retail agents, franchised retailers, to transport, storage, and blending service providers—must fully satisfy the conditions under Decree 83/2014/ND-CP, Decree 95/2021/ND-CP, and Decree 80/2023/ND-CP.
In the context of increasingly tightened legal requirements, intensified inspections, and high penalty levels, full, timely, and continuous compliance is the decisive factor for safe and sustainable operations and for avoiding legal risks.
With a team of experienced lawyers and Industry-and-Trade specialists, Vietlink Law Firm is proud to be a dedicated legal advisor accompanying enterprises in all legal matters relating to petroleum trading.
We provide comprehensive, end-to-end professional legal services, including:
• Advising on petroleum business models suitable to each enterprise’s scale• Obtaining petroleum licenses across the chain: key trader/importer, distributor, general agent, agent, franchisee/authorized retailer, retail outlet, transportation, storage, blending• Reviewing technical facilities against national standards• Building compliance systems for safety, FPF, and environmental requirements• Representing enterprises in working with the Ministry of Industry and Trade, provincial Departments of Industry and Trade, and specialized authorities• Providing ongoing legal advisory services for petroleum enterprises, including support in inspections, audits, and violation handling
Vietlink Law Firm is committed to delivering optimal, accurate, and effective legal solutions, enabling petroleum enterprises to operate confidently within the legal framework and develop sustainably.
For detailed advice tailored to your business model, please contact Vietlink’s lawyers and specialists for prompt and full support.
================
VIETLINK LAW FIRM
📌 Head Office: Room P203, Giảng Võ Lake View Building D10, Giảng Võ Ward, Hanoi City
📌 Ho Chi Minh City Branch: 602, 6th Floor, No. 60 Nguyễn Văn Thủ Street, Đakao Ward, District 1, Ho Chi Minh City
📞 24/7 Direct Consultation Hotline: 0982 384 485 / 0983 509 365
📩 Email: hanoi@vietlinklaw.com
🌐 Website: https://vietlinklaw.vn
🔗 LinkedIn: Vietlink Law Firm
📸 Instagram: vietlink.lawfirm
📘 Facebook: Vietlink Law Firm
