Hanoi (VNA) – Experts and policymakers have gatheredin a workshop discussing the draft of the amended Petroleum Law in an effort toenhance regulatory framework in the oil and gas sector.

The event was co-hosted by the Institute for Brand andCompetitiveness Strategy (BCSI) and the Vietnam Clean Energy Association (VCEA)in Hanoi on July 26.

The Law on Petroleum was first introduced on July 6, 1993and revised in 2000, 2008 and 2018. Together with guiding documents, it hasbeen facilitating the development of the oil and gas industry. However, therehave been a number of challenges emerging in the enforcement of the law.For examples, there are major gaps between several provisions and the changingreality as well as the robust growth of the energy sector at present. Someparts of the law are also not consistent with related laws and regulations.

A draft revised law on oil and gas was first submitted for discussion at the third session of the 15th National Assembly, aimingto build a law more relevant to the current situation and enhance the effectivenessand efficiency of State governance in the field. The revision also seeks to providea more synchronized regulatory framework and remove legal barriers forinvestors.

Commenting on the draft of the bill, Director of the VietnamEnvironment Incident Response Centre Pham Van Son said the bill must strengthenaccountability of organisations and individuals involved in oil and gasproduction as well as of regulators, given that Vietnamese leaders have committedto no trade-off between environment and economic interests.

Organisations and individuals involved in oil and gasproduction must develop a plan for prevention of and emergency response to environmentalincidents which shall be submitted to concerned authorities, he suggested, addingthat they must be obliged to implement the plan once it is approved.

He further noted that regulators must verify the plan andhave it exercised in reality before approval. After the approval, they alsoneed to check whether the plan is properly executed on an annual basis, hesaid.

Son proposed that the law should include a separate stipulation on environmental assessment.

Echoing Son’s view, Assoc. Prof., Dr. Nguyen Canh Nam from theVietnam Mining Science and Technology Association (VMSTA) said the bill shouldinclude specific provisions focusing on environmental incidents. It is criticalto ensure that these provisions will be properly enforced under supervision.

Several participants held that it is important for the law tostrengthen mechanism for attracting investment in the oil and gas industry.

More policies are needed to better lure investment in oiland gas exploration and production, said economist Nguyen Minh Phong. The law must clarify concepts of preferential policies in import and export of oil andgas and include additional provisions that allow the withdrawal of incentives incase investors fail to comply with certain regulations or commit wrongdoings,according to Phong.

Corporate income tax should be slashed from 25% to 20% whileexport duties should be doubled, Phong recommended. Greater attention should also be paidto national energy security, he added.

Agreeing with Phong, BCSI Director Dr. Vo Tri Thanh emphasised thatthe withdrawal of incentives should be done in accordance to market principles.There should be warnings for investors if they fail to fulfill theirobligations in terms of environmental protection, technology and investment.

Dr. Doan Van Thuan from the Vietnam Petroleum Institute underscoredVietnam’s commitment to achieving net zero emission by 2050 at the 26th UN Climate Change Conference (COP26) in Glasgow, the UK last year, saying thereshould be policies to encourage the reduction of carbon dioxide emissions.

The amended Petroleum Law is scheduled to be tabled for discussion again and adopted at the upcoming fourth session of the 15th National Assembly./.