The Ministry of Finance has outlined the proposal in a draft decree amending preferential import tariffs on certain goods, which has been submitted to the Ministry of Justice for appraisal.
The ministry said global conditions remain volatile, particularly due to tensions in the Middle East that have caused sharp fluctuations in energy prices and disrupted fuel supply chains.
Rising crude oil prices are already affecting Vietnam’s domestic market, making tariff adjustments necessary to stabilise supply and ensure national energy security, it said.
The ministry noted that tensions involving the United States, Israel and Iran have significantly affected global oil and gas markets, including Vietnam.
Vietnam currently imports most of its fuel from Association of Southeast Asian Nations countries and the Republic of Korea, benefiting from 0 per cent tariffs under free trade agreements.
However, global supply disruptions could make it harder to source refined fuel from these markets. Maintaining the current tariff structure could therefore complicate efforts to stabilise supply and control prices.
To address this risk, the Ministry of Industry and Trade has proposed cutting most-favoured-nation import tariffs on fuel products to 0 per cent, with the measure expected to remain in place until April 30, 2026.
Under the draft decree, the tariff on unleaded motor gasoline and blending components such as naphtha and reformate would fall from 10 per cent to 0 per cent.
Tariffs on diesel, fuel oil, jet fuel and kerosene would also be reduced from 7 per cent to 0 per cent.
Several petrochemical feedstocks, including xylene, condensate and p-xylene, would see tariffs cut from 3 per cent to 0 per cent, while other cyclic hydrocarbons would be reduced from 2 per cent to 0 per cent.
The drafting agency estimated that if the new tariff rates were applied based on 2025 import turnover, state budget revenue could fall by about VND 1.02 trillion (about USD 38.9 million).
The proposal comes as domestic fuel prices have risen sharply. On March 7, retail fuel prices were raised, with E5 RON 92 petrol capped at VND 25,220 per litre and RON 95-III at VND 27,040 per litre, up by about VND 3,780 and VND 4,700 respectively.
Diesel rose to about VND 30,230 per litre, while kerosene reached roughly VND 35,090 per litre after increases of more than VND 7,200 and VND 8,490 per litre.
