The arrival of foreign petroleum enterprises will result in major changes to the Vietnamese market in the future. Japan’s Idemitsu Kosan Group will become the first foreign enterprise to be involved in Vietnam’s petroleum distribution business. Many believe it may face significant hurdles in developing its network despite possessing advantages in capital and experience.
Idemitsu Kosan and Kuwait Petroleum International Ltd. (KPI) have been granted a business license to establish joint ventures selling petroleum products. Idemitsu is not only one of the three largest oil companies in Japan but also one of its leading petroleum retailers, with about 3,700 gas stations.
The Ministry of Industry and Trade (MoIT) has confirmed that a number of foreign enterprises will be permitted to distribute petroleum products in Vietnam when investing in an oil refinery in Vietnam. This forms part of the government’s commitments to investors when they conduct oil refinery projects in the country.
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