People lining up for fuel at a station in Hanoi. (Photo: VNA) SBV stressed the importance of fuel as a key commodity with directand significant influence on the country's macro-economic stability andpeople's everyday lives, said the document.
Since the beginning of the year, SBV has been working closely withcommercial banks to extend credit lines for fuel traders and to grant themfavourable exchange rates.
As the global oil price continued to be volatile and the marketfacing disrupted supply, the Government of Vietnam has made it a high priorityto ensure a stable supply for the domestic market.
The central bank was to implement financial support policies tobest support fuel traders in accordance with existing regulations. Traders wereadvised to stay in close contact with commercial banks to plan ahead for theirfinancial needs.
Meanwhile, the banks were to conduct comprehensive reviews to stayon top of the situation with an objective to streamline the process to makesure traders' financial needs are met in a timely manner.
The central bank expects monthly reports from commercial banks onhow and when they plan to support traders, including both retailers andimporters who were encouraged to report to the SBV should they experienceissues or delays.
During a discussion at the National Assembly, Minister of Industryand Trade Nguyen Hong Dien said support from the central bank was to play acrucial role in boosting traders' financial capacity and easing the ongoingfuel shortage across the country.
The National Assembly (NA) has tasked Dien and his ministry withcoming up with a plan to establish a stable supply of fuel and to efficientlyoperate the country's fuel network.
Earlier last month, Minister of Finance Ho Duc Phoc proposedgiving the Ministry of Industry and Trade (MoIT) full authority to adjust fuelprices, instead of the current joint authority between MoIT and the Ministry ofFinance. Phoc said it would help streamline procedures and increase efficiencyin fuel management.
Some industry experts voiced their support for the minister'sproposal, saying it may put an end to the blame trading recently between thetwo ministries. In addition, MoIT which currently oversees fuel trading andretail activities was in a much better position to come up with a priceadjustment mechanism that balances the rights and benefits of traders andconsumers.
"The proposal reduces the workload for the Ministry ofFinance. In addition, it's only logical for ministries which are in charge toadjust prices of certain commodities," said NA Deputy Tran Van Lam, amember of the NA's finance and budget committee.
A number of fuel stations have been reported to close in recentweeks with traders citing numerous difficulties in securing stock and sufferingheavy financial losses since the beginning of the year./.
VNA
