A Petrolimex ship is unloading oil products. (Photo: Internet)
Vietnam’s gasoline imports from South Korea are set to rise this year, after import duty was cut last December under a bilateral trade deal, the Platts newswire cited trade sources.
Under the Free Trade Agreement with South Korea, Vietnam slashed the import tariff on gasoline imports from South Korea by half to 10%, effective December 20, 2015. The 10% import tax on gasoline from South Korea is expected to remain in place till 2018.
Vietnam’s largest oil products importer Petrolimex
has recently bought a total of about 150,000 tons of 92 RON gasoline for end-October to February loading from South Korea, according to Platts data.
Petrolimex typically buys most of its 92 RON and 95 RON gasoline cargoes from Southeast Asian countries like Singapore or Malaysia.
Another oil products importer, Saigon Petro, has for the first time added South Korea as an alternative loading port to Singapore, Malaysia and Thailand.
According to data of General Department of Vietnam Customs, Singapore was the biggest oil product supplier in 2015, with 3.85 million tons, up 48.5% from 2014, followed by Thailand with 2.26 million tons, up 164%, and China with 1.76 million tons, up 4.6%.
Oil product imports from South Korea fell 33.9% year on year to 343,794 tons in 2015.