Vietnam's finance ministry plans to revise import tariff rates on petroleum products and crude oil to help stabilise the domestic market and safeguard national energy security, according to an article published on the ministry's website.
The ministry is proposing to reduce the most-favoured-nation (MFN) import tariff on selected petroleum products to 0pc to help diversify supply sources and secure import volumes. The MFN rate is the baseline import tax a country applies equally to all trading partners unless a free trade agreement provides a lower preferential rate.
Under the proposal, the decree would take effect from the date of signing until 30 April 2026, with the government to review the situation and extend the measure if needed.
Most of Vietnam's oil product imports currently come from Asean countries and South Korea, with tariffs already at around 0pc under existing free trade agreements. But imports must include a valid certificate of origin (C/O) to qualify for these preferential rates. Given the current market tightness, FTA-partner stock levels are limited and some cargoes may not carry the required documentation — prompting the push to lower the MFN tariff to facilitate quicker sourcing from a broader range of suppliers.
The US–Iran war has disrupted around 20mn b/d of crude shipments, severely affecting Asia-Pacific, which relies heavily on Middle Eastern crude, according to the finance ministry. Vietnamese refiners are also facing difficulties maintaining operations because of the increasing risk of insufficient crude supply and existing crude contracts may become unfulfilled.
