Amid energy shock from Iran, Vietnamese government scraps import tariffs on petroleum products

As tensions rise in the Middle East and uncertainty over global energy supplies grows, the Government of Vietnam has temporarily reduced import tariffs on certain petroleum products to 0%.
According to local media including VnExpress on the 10th, the Government of Vietnam issued Decree No. 72 the previous day, revising the Most Favored Nation (MFN) import tariff rates on petroleum products and related feedstocks. Under the decree, the MFN tariff on unleaded gasoline and gasoline blending components will be cut from 10% to 0%, while the rate on diesel and jet fuel will be lowered from 7% to 0%. Petrochemical feedstocks such as naphtha, reformate, and condensate will also be subject to a zero tariff. The measure will be in force from the 9th until the 30th of next month.
The move is intended to stabilize the domestic fuel market and expand supply at a time when conflicts involving the United States of America, Israel, and the Islamic Republic of Iran are heightening volatility in the international oil market. In particular, the closure of the Strait of Hormuz, a key chokepoint for global crude shipments, has disrupted the transport of about 20 million barrels of Middle Eastern oil, increasing supply pressure across Asia's refining industry.
Vietnam currently imports most of its petroleum products from Association of Southeast Asian Nations (ASEAN) member states and South Korea, where tariffs are already at 0% under a Free Trade Agreement (FTA). By lowering MFN tariffs, the government aims to diversify import channels so that petroleum products can also be sourced from countries without an FTA.
Data from the General Department of Vietnam Customs show that Vietnam imported about 9.9 million tons of petroleum products last year, worth 6.8 billion dollars. Crude oil imports totaled 14.1 million tons, valued at 7.7 billion dollars, with the State of Kuwait supplying roughly 80% of the volume.
Meanwhile, Prime Minister Pham Minh Chinh said that he agreed to expand cooperation on crude oil supplies during a phone call with Sheikh Ahmed Abdullah Al-Ahmad Al-Sabah, Prime Minister of Kuwait, on the same day. The Vietnamese government has already secured an additional 4 million barrels of crude oil as a short-term measure to stabilize supplies.
rejune1112@fnnews.com Reporter Kim Jun-seok Reporter