HCM City needs VND630 billion for LPG distribution upgrade

20.05.2016

The HCMC government will find about VND630 billion (US$28.2 million) for a major project to improve the liquefied petroleum gas (LPG) distribution system by 2025, according to a new development plan for LPG trading in the city.

To execute the project, the city will encourage local and foreign firms to invest in upgrading LPG distribution and prioritize allocation of zoned land for construction of storage facilities, ports and LPG bottling stations.HCMC will build a modern LPG distribution system comprising storage facilities, bottling and distribution stations, and LPG facilities of wholesale traders, general agents and agents in line with the plan submitted to the city government last week by the HCMC Department of Industry and Trade.

The department expects the LPG distribution system will meet local demand for LPG, which is forecast to increase from the current 300,000 tons (or 35 kilograms per person) a year to 391,600 tons (43 kilograms per person) in 2020 and about 445,000 tons (45 kilograms per person) in 2025.The city will restructure LPG transshipment facilities with capacities of below 2,500 tons and encourage the development of LPG distribution chains for the existing outlets of wholesale traders, general agents and agents. LPG business households will be backed to become firms or branches of wholesale traders and general agents.Wholesale traders, general agents and agents will be given priority to open new LPG stores meeting the conditions set out by Decree 19/2016/ND-CP. Land allocation is prioritized for the LPG outlets that need to be relocated and new stores. New LPG stores must be situated at least 100 meters away from schools, hospitals and public buildings.Around 470 new LPG stores will go up in HCMC by 2020, taking the total to 1,410 by that year and 1,620 by 2025.Thailand has surpassed China to become Vietnam’s biggest car exporter, with rising truck sales in the first quarter of the year.Statistics from General Department of Vietnam Customs showed that Vietnam imported over 29,054 cars and trucks worth over USD732.7m in the first quarter, including 10,155 were imported from Thailand. South Korea followed with 5,369 cars and China stood third with 4,261.2,300 trucks and cars were imported from Thailand in April alone, an increase of 130 percent compared to three months ago.Most of them are pick-up trucks which have low import taxes in accordance with the agreements reach in the ASEAN Economic Community. In addition, pick-up trucks are favoured in Vietnam due to lower registration fees, including special consumption tax.Vietnam imported USD1.8bn of goods from Thailand and exported USD836m in the first three months. The trade deficit increased to nearly USD1bn making it the highest trade deficit Vietnam has with an ASEAN country within the last two years.

High turnover imports include electric applicants, spare parts and automobiles.Last year, Vietnam imported 125,600 cars and trucks that worth USD3.5bn. China was the biggest customer with 40,000 vehicles while Thailand ranked fourth with 25,140.

Source: Vietnam.net

Photo: Vietnam.net