Vietnam Urged to Invest More in Fuel Reserves; Top Experts Says Move is a Must Due to High Usage

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HANOI, April 14 (Xinhua) — Vietnam must invest to raise its fuel reserve capacity given the massive amount of fuel the country consumes every day, local media reported, citing local experts.

The country spent over US$9 billion on fuel imports in 2022, which covered roughly 70 per cent of domestic demand.

However, in order to sustain and accelerate economic growth in the future, a greater amount is likely required, local newspaper Vietnam News reported on Friday.

Luu Binh Nhuong, deputy head of the Ombudsman Board under the Standing Committee of the National Assembly stressed the importance of building a strong fuel reserve, citing examples of the United States, China and India, which hold, on a regular basis, millions of barrels in reserve to ensure ample supply for industries.

Nguyen Hoang Giang, deputy head of the financial planning department under the Ministry of Industry and Trade, said a fuel reserve could serve as a blood bank to ensure supply during emergencies.

Last year’s fuel disruption that saw numerous fuel stations across the country being closed down due to lack of supply clearly showed a lack of preparation and planning, as well as subpar fuel infrastructure, the newspaper reported.

Nguyen Duc Hanh, chairman of a local petroleum company, said it is high time for a fuel reserve law to be promulgated.

He called for stronger government financial support and policies to help businesses access funding in the future, the newspaper reported. – Xinhua

Source: The Star