Vietnam is the most petroleum imports from Malaysia

The total volume of petroleum imports from Malaysia in the first 2 months of 2018 reached 702 000 tonnes, equivalent to $ 415 million …

Malaysia is “compose” the throne of Singapore, South Korea, becoming the largest petroleum provider for Vietnam, worth $ 415 million in 2 months.

Malaysia led 

, according to the General Administration of Customs, in January 2/2018, Vietnam imported 270,000 tons more oil from Malaysia worth nearly $ 156 million, bringing the total volume of petroleum imports from this country of 2 first month to reach 702 000 tonnes in 2018, equivalent to USD 415 million.

If compared with nearly 440,000 tonnes figure petrol is imported in month 1/2018, the amount of oil imported from Malaysia in February fell by 1.6 times, but still enough to help Malaysia continue to lead on the source supply fuel for Vietnam market.

Standing in second place is Singapore while providing 209,000 tons of petroleum Vietnam, equivalent to $ 124 million in January 2/2018. Generally in the first two months of 2018, Vietnam has imported 389 million tons of oil from Singapore, equivalent to $ 235 million.

In addition, Vietnam also imports oil from China and Thailand, with 120,000 tonnes and 104,000 respectively in month 2/2018 tons.

In the first 2 months of 2018, gasoline in the top 10 largest import categories with $ 1.4 billion, up 55% compared to the same period in 2017.

Earlier, in 2017 Vietnam exported 12.86 million entered tons of oil, worth 7.04 billion US dollars, up 9.4% in volume and 38.3% in value compared with 2016.

gasoline prices imported into Vietnam market in 2017 reached an average 547.4 USD / ton, up 26.5% compared with 2016.

Notably, in 2017 Vietnam imports to 4.3 million tons of petroleum from Singapore – ranked first in the export market, accounting for 33.5% of all imported petroleum in Vietnam.

In second place was South Korea, while providing 3.03 million tonnes Vietnam in 2017 gasoline, accounting for 23.6% of all imported petroleum in the country.

Petroleum imports from Malaysia market only ranks third with 2.61 million tons, accounting for 20.3% of total petrol imports.

Hope gasoline prices fell by CPTPP? 

In another development, Vietnam has officially signed Agreement on Comprehensive Partnership and Progress Trans-Pacific (CPTPP) on the date 09.03.2018. In the 11 countries participating in CPTPP with Singapore and Malaysia – two countries with which Vietnam is importing gasoline at most.

According commitment from CPTPP, Member States will proceed to cut the rate of 0% in 7 years. This will open up opportunities to import petrol at a cheaper price before.

“This is the advantage of CPTPP. When goods tariff to 0% approaching, all countries would have benefited”, economist Ngo Tri Long told Bloomberg.

However, the import duty reduction has pulled domestic gasoline prices decrease over? Difficult to give accurate answers, especially in the context of the Ministry of Finance has launched consultation on environmental tax increase scenario frame VND4,000 / liter.

Causes of proposed tax increases environments to dramatic framework of the Ministry of Finance is the agency explains, comes from the commitment to reduce import tariffs under the agreements of free trade has led to revenue from operations petroleum imports continued to decline over the years.

Specifically, in 2017, revenue from the operation of petroleum imports fell from 97% the ASEAN market compared to 2016.

As the environmental protection tax increases, fuel prices will increase. As for gasoline, the tax rate in the environmental protection accounted for about 4.9% of the selling price; for about 3.2% of diesel oil; to fuel oil at 8.9%; for about 0.6% of lubricants and grease for about 2.3%.

Thus, when Vietnam integrates import tax cuts but the taxes in the country increased, so hard to assert after the conclusion of the FTA or CPTPP, gasoline prices in the country will decline.