The Vietnam National Petroleum Group (Petrolimex) also signed a memorandum of understanding on strategic co-operation with Japan's JX Nippon Oil and Energy to implement the Nam Van Phong oil refinery complex.
However, no foreign firms have been licensed to establish filling stations at specific locations. On the other hand, to set up a distribution system, they have to meet the standards set in Decree 83 on warehouses and number of agents, among others.
The MOIT said that foreign firms who wish to participate in the retail market must rely on the existing distribution network of domestic companies including PetroVietnam and Petrolimex as the master plan for filling stations is now almost complete throughout the country.
However, it is compulsory for Vietnam to open its retail petrol market by 2018-2019 in accordance with its commitments in signed trade agreements which will help increase the presence of foreign petrol firms in Vietnam, contributing to boosting competitiveness and transparency.
Vietnam now has 23 petrol wholesalers and 69 retailers with the largest share belonging to Petrolimex.