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The International Comparative Legal Guide to:

Gas Regulation 2011


A practical cross-border insight
into Gas Regulation work
Published by Global Legal Group, in
association with Ashurst LLP, with
contributions from:
ǼLEX
Ali Budiardjo, Nugroho, Reksodiputro
Allens Arthur Robinson
Bell Gully
BNG Legal
Chandler & Thong-ek Law Offices Limited
CMS Cameron McKenna
Cogan & Partners LLP
Criales, Urcullo & Antezana
Debarliev, Dameski & Kelesoska
Dr Kamal Hossain & Associates
Duane Morris LLP
Estudio Gálvez Abogados
Fortunati & Asociados
Garrigues
Gorrissen Federspiel
Haavind AS
Hogan Lovells
InterJuris Abogados, S.C
JeantetAssociés AARPI
KALO & ASSOCIATES
King & Spalding LLP
Loyens & Loeff N.V.
Mohamed Ridza & Co
O'Flynn Exhams
Pachiu & Associates
Rosenberg, Hacohen, Goddart & Ephrat
Schoenherr
SNR Denton
Studio Legale Bonora e Associati
TGC Corporate Lawyers
Uría Menéndez
Vellani & Vellani
Chapter 40

Vietnam Giles Cooper

Duane Morris LLP Oliver Massmann

1 Overview of Natural Gas Sector others are tributary to existing pipeline systems such as those
from PM-3, Nam Con Son and Bach Ho offshore
developments.
1.1 A brief outline of Vietnam’s natural gas sector, including a
Depending on the assessment of domestic gas prospects, a
general description of: natural gas reserves; natural gas
first LNG project has been developed or is in progress for 2-
production including the extent to which production is
5 BCM/annum (1.5-3.7 million tonnes/annum).
associated or non-associated natural gas; import and
export of natural gas, including liquefied natural gas A trunk onshore pipeline connects the main gas consuming
(LNG) liquefaction and export facilities, and/or receiving centres from Ca Mau and OMon in the southwest, across the
and re-gasification facilities (“LNG facilities”); natural gas Delta to Phu My and possibly extending as far as QuangNgai
pipeline transportation and distribution/transmission province.
network; natural gas storage; and commodity sales and Gas transmission “rings” have been created around HCMC.
trading. If large-volume gas supply comes to the north, “rings” are
built around Hanoi-Haiphong, in both cases feeding
1. Natural gas reserves and production distribution systems that serve industrial and commercial
markets.
According to BP Statistical Review of World Energy 2010,
Vietnam’s gas reserve is approximately 10 trillion cubic feet. The The refinery-petrochemical complex at Dung Quat is the first
industrial development of this kind that presents sufficient
proven reserves can be found under Endnote 1.
market to support a new gas project.
Vietnam’s gas industry has a comparatively short history. Large- Facilities have been created to collect associated and non-
scale gas development based on offshore resources began in 1995 associated gas from marginal and remote fields, to supply the
in Vietnam, with the production of associated gas from the Bach Ho domestic market.
fields. This was followed in 2003 when gas from the Nam ConSon All offshore basins that are not disputed with other countries
basin gas fields started to come on-stream, then from Block 11-2 in have been explored to the degree necessary to provide
2006. In 2007 came the first deliveries of gas from the PM-3 reliable 1P and 2P reserves data for purposes of oil and gas
development in the offshore area jointly administered with production planning.
Malaysia. (See Endnote 2 and Endnote 3.) In the technology area, means have been found to deal with
Natural gas projects high CO2 content natural gas and to develop CBM from
Vietnam’s coal resources.
In the past five years there has been only one large new project
under negotiation, namely Chevron’s B&52 gas prospect in the
Malay-Tho Chu basin for the O Mon power project. It is expected 1.2 To what extent are Vietnam’s energy requirements met
to take approximately 5 years to bring it on-stream from the time of using natural gas (including LNG)?
a final official decision to go ahead.
2. Pipeline Gas currently accounts for about one-third of Vietnam’s total
annual energy generation. Two major gas to power projects are in
In the south of Vietnam, new production feeds into, and new
operation: Bach Ho + Nam Can Son developments feeding the Phu
consumption draws from, a “national trunk pipeline” that also
My power complex at over 4 BCM annually and the PM-3
connects the O Mon, Ca Mau and Phu My consumption centres to
development in the Malay-Tho Chu Basin, feeding Ca Mau power
improve security of supply of each.
and fertilizer plants at 1.5 BCM/yr. A third gas to power project is
Pipeline projects that may be imminent tend to be small scale, such presently under negotiation (Block B&52 to O Mon, eventually at
as the collection, as compressed natural gas (CNG), of associated least 3.3 BCM/yr).
gas presently flared mainly in the Bach Ho area and the tie-in of
Gas now accounts for about 15% of Vietnam’s primary energy
marginal gas fields, mainly in the Nam Con Son area. Projects that
supply. This compares favourably with averages in the Asia Pacific
await approval are still being negotiated on a case-by-case basis.
region and slightly less than global levels.
3. Forecast of World Bank in Report No. 52865-VN
The Power Master Development Plan (Power Master Development
The geography of the vision for Vietnam’s gas industry in 2025: Plan approved 2009) and the draft National Gas Master Plan
6-8 significant offshore developments, each of 2-3 envisage gas use for energy generation in Vietnam to rise
BCM/annum, 2 or 3 of which are in the north. dramatically from >8 BCM in 2010 to 13/15 BCM in 2015 and
Some of these are supported by new pipelines to onshore, 21/24 BCM in 2025. This represents an approximate tripling of

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supply and demand in 15 years, focused almost entirely on power same are expressly superseded by this provision in the Petroleum
generation. Law.
The country’s primary energy demand is met by an estimated 44% Regarding its regulatory regime, Vietnam has opted for the co-
through oil, 18 % through gas, 17% through coal and 17% through existence of a Competent Authority and a national oil company
hydro-power. 85% of gas supplied in Vietnam is consumed for (NOC). The State vests the NOC with exclusive authority over the
power generation, 10% for fertilizer and 5% for other industries. sector as the de facto Competent Authority,

Vietnam
Accordingly, gas exploration and production is fully controlled by
1.3 To what extent are Vietnam’s natural gas requirements the State and the only company authorised to develop gas is the
met through domestic natural gas production? State-owned PetroVietnam, which primarily acts through its
subsidiary PVGAS. The Petroleum Law (enacted in 1993 and
According to BMI’s Report, Vietnam’s gas production is slightly reformed in 2000) provides an overall framework for the
higher than its demand: estimated gas consumption in 2010 will exploration and development of gas resources and related-services;
account for 1.84% of Asia Pacific, while its share of production is it is supplemented by the implementing Decree 48/2000/ND-CP.
put at 2.20%. By 2014, its share of gas consumption is forecast to Nonetheless, there is no clearly established process for developing
be 2.56%, with the country accounting for 4.60% of supply. Gas gas projects in Vietnam and the legal framework is characterised by
production is expected to rise from an estimated 9.1bcm in 2010 to a lack of clarity and transparency.
34.0bcm in 2019, with only 184% demand growth. Foreign investors may conduct gas development projects only in
As the main gas supplier, PetroVietnam Gas Corp. (PVGAS) has cooperation with PetroVietnam, by way of a Production Sharing
announced plans to import around 3 BCM of gas annually by 2015. Agreement (PSA), joint venture contract or other contractual forms.
Due to an increasing domestic energy demand, the shortage is For upstream projects PSAs are generally concluded between the
expected to increase to approximately 4-8 BMC per year up to relevant exploration and production companies and PetroVietnam;
2025. PetroVietnam retains a monopoly in the purchase or reselling of any
gas. All project details and pricing are based on negotiations with
PetroVietnam on a project-by-project basis, which has let to delays
1.4 To what extent is Vietnam’s natural gas production
in project development in the past.
exported (pipeline or LNG)?
Current major initiatives or policies of the Government
According to BMI’s Report, Vietnam has potential for gas export, The National Strategy on Energy Development set forth the
but not likely until the period from 2010 to 2019, based on strategic development of the petroleum sector until 2020:
comparison between gas consumption and demand. Build up legal framework for the petroleum sector, especially
in the natural gas sector: regulations on permission of
transmission and distribution of natural gas, on approval of
2 Development of Natural Gas natural gas price, transmission and distribution fees and on
technical standardisation.
2.1 Outline broadly the legal/statutory and organisational Encourage petroleum survey, periodically consider and
framework for the exploration and production readjust financial terms so that petroleum activities become
(“development”) of natural gas reserves including: competitive in the region.
principal legislation; in whom the State’s mineral rights to Prioritise natural gas development and use; encourage and
natural gas are vested; Government authority or give incentive to developers in natural gas; and diversify
authorities responsible for the regulation of natural gas ownership in investment and operation of electricity
development; and current major initiatives or policies of generation factories using natural gas.
the Government (if any) in relation to natural gas
development.
2.2 How are the State’s mineral rights to develop natural gas
The main purposes of a petroleum legislative framework are to reserves transferred to investors or companies
(“participants”) (e.g. licence, concession, service contract,
provide the basic context for and the rules governing petroleum
contractual rights under Production Sharing Agreement?)
operations in the host country; to regulate them as they are carried and what is the legal status of those rights or interests
out by domestic, foreign, and international enterprises; and to under domestic law?
define the principal administrative, economic, and fiscal guidelines
for investment activity in the sector. The three essential elements of The Petroleum Law allows two ways of conducting petroleum
such a framework in Vietnam are the Petroleum Law 1993, with development: through forming an incorporated joint venture and
amendments 2000 and 2008, the implementing regulations through a Production Sharing Agreement. Both of these two
(primarily Decrees and Circulars), and the Model Contract. approaches are referred to in the law, in short, as Petroleum
Since the 1980s Vietnam has developed a variety of contractual Agreements to which the Vietnamese party is PetroVietnam. All
models to explore and develop its petroleum resources. The first Petroleum Agreements must follow the Model Contract. Any
concept was a joint venture on the basis of which was established derogation from such form must be approved by the Prime Minister.
the Vietsovpetro agreement between Vietnam and Russian Under the Model Contract, investors or companies (referred to in
Governments. Subsequently standard terms for production-sharing the Model Contract as Operators) are entitled to retain a part of the
contracts were developed and promulgated. exploited petroleum to cover their investment and operation
State Property in Petroleum: the Petroleum Law asserts and expenses (called cost recovery petroleum). The Operator will be
confirms that all petroleum lying within the State’s jurisdiction, then entitled to share the remaining petroleum net of taxes and
both onshore and offshore - including offshore areas where it excises (called the profit petroleum). The cap of expenses-
exercises exclusive economic interest over such resources - is the recovering oil/gas is up to 70% of the total exploited petroleum in
exclusive property of the State. Any provisions to the contrary in case of petroleum investment promotion projects and 50% for other
other laws or rights granted or vested hereunder in derogation of cases. Finally, the Operator can sell its oil/gas entitlement freely on

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the open market and transfer the profit abroad, subject to payment consideration and approval. The time limit for consideration
of taxes. and approval is 60 days for a conceptual plan and 30 days for
a detailed plan, from the date of receiving such plans;
The Petroleum Law also sets forth a framework for Petroleum
Contract as follows: draw up an annual work programme corresponding to each
period in conformity with the commitments in the Petroleum
1. Contractual period Contract regarding the time limit, work contents and
For natural gas prospection, exploration and exploitation projects,
Vietnam

financing, and send them to PetroVietnam for agreement on


the term of Petroleum Contract shall not exceed 30 years, of which the implementation thereof; and
the prospection and exploration period shall not exceed 7 years. prepare the documents as outlined in question 2.11.
The contractual period of the Petroleum Contract may be extended, 4. Prospecting and exploration stage
but not exceeding a further 5 years, and 2 years for the exploration An agreement must be reached with PetroVietnam containing
period. minimum commitments regarding the geophysics survey volume,
If gas with commercial value is discovered but the market demand number of drilled wells volume and other integrated studies, as well
and/or conditions on pipelines and suitable treatment facilities do as commitments regarding training, recruitment and technology
not exist, contractors may retain the areas where gas is found. The transfer. The cost estimates for the above-mentioned minimum
duration of retention of such an area shall not exceed 5 years and work commitment shall be considered the minimum financial
may, in special cases, be extended for up to 2 more years. commitment.
2. Restriction of area for petroleum operation During this stage, the contractor may start early production in the
The area for prospecting and exploration under a petroleum contract contractual areas, on conditions that it submits to the Competent
shall not cover more than two (2) blocks. In special cases, the Authority the Early Production Plans for approval.
Vietnamese Government has authority to permit a greater area. 5. Exploration stage
Upon discovery of petroleum, the contractor must promptly notify
2.3 If different authorisations are issued in respect of different and report on the study results, evaluation and relevant documents
stages of development (e.g., exploration appraisal or to the Competent Authority and PetroVietnam.
production arrangements), please specify those The contractor and PetroVietnam must reach an agreement in the
authorisations and briefly summarise the most important relevant petroleum contract on the terms regarding criteria to
(standard) terms (such as term/duration, scope of rights,
determine fields of commercial value, the time limit for submitting
expenditure obligations).
the field reserve appraisal programmes, the outline plan and field
development plans.
Different stages of petroleum operation are set forth by the
Petroleum Law and the Decree implementing the Petroleum Law Then the contractor has to notify the reserve appraisal results to
broadly as follows: PetroVietnam. If the appraisal results show that the field is of
commercial value, the contractor and PetroVietnam shall have to
1. Bidding process
submit to the Competent Authority the reserve report and the field
Upon notification of the invitation for bids made by PetroVietnam, development plans for submission to the Prime Minster for
a bidder company shall within 60 days lodge its bid, including its approval.
offers and commitments to fulfil the bidding norms: (i) the share of
oil and gas profit to the host country; and (ii) the minimum
workload and minimum financial commitments. Then the bids will 2.4 To what extent, if any, does the State have an ownership
interest, or seek to participate, in the development of
go through processes of bid opening, evaluation and appraisal of
natural gas reserves (whether as a matter of law or
bidding results.
policy)?
Upon notification of the bidding results, PetroVietnam shall
negotiate within 90 days with the bid winner on the petroleum The State’s exclusive ownership over its natural resources is a
contract on the basis of content of the bid. matter of policy and law, which is recognised by Vietnam’s
Appointment of the bidder will be submitted to the Ministry of Constitution. As stated above, the Petroleum Law asserts and
Industry and Trade, and then the Prime Minister shall consider and confirms that all petroleum is within the State’s jurisdiction. The
issue a formal decision on appointment of the bidder, based on the State’s ownership interest is exercised by PetroVietnam that is
appraisal report of the Ministry of Industry and Trade. empowered to conduct petroleum operations and to enter into
2. Appraisal of petroleum contract and grant of certificates petroleum contracts. In case a petroleum project is shared between
PetroVietnam and other party(ies), the State’s ownership interest
A dossier for appraisal of a petroleum contract shall be submitted to
will be assured by the following rules:
the Ministry of Industry and Trade.
1. Ownership of fixed installations and equipment
The dossier will be circulated around different ministries 2 months
before it is submitted to the Prime Minister for approval. Upon Although a contractor is permitted to install and operate and
approval of the Prime Minister, PetroVietnam and the contractor maintain fixed installations and equipment servicing Petroleum
shall sign the petroleum contract. Operations, the ownership of such fixed installations and equipment
shall belong to the State of Vietnam from the date agreed upon by
Within 10 working days after receiving the signed original
the parties to a Petroleum Contract.
petroleum contract, the Ministry of Industry and Trade is authorised
to grant an Investment Certificate to the investors. 2. Ownership of samples, cores, data and information

3. Project and work programmes All the samples, cores, data and information acquired during the
conduct of Petroleum Operations are the property of the State.
The successful bidder/party to the Petroleum Contract is required
to: 3. Preemptive right over assignment of Petroleum Contract
draw up conceptual plans and detailed plans forts activities, PetroVietnam shall have the preemptive right to acquire the
and submit them to the Competent Authority for Petroleum Contract or portion thereof in case of total or partial

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assignment of Petroleum Contract bythe contractor. The basic CIT rate is 50%. The rate applicable to investment
While PetroVietnam operates the State’s monopoly, its gas promotion projects is 32%. The contractor may be exempted from
subsidiary PVGAS reportedly plans to conduct an IPO on the HCM CIT for a maximum period of two (2) years and entitled to the fifty
City Stock Exchange. Under this plan, some 5% of shares may be percent (50%) reduction of CIT for a maximum period of two (2)
offered to investors, while a further 20% may be offered to one or subsequent years.
more strategic investors. Profits for reinvestment shall not be subject to reimbursement of

Vietnam
enterprise income tax.
2.5 How does the State derive value from natural gas 3. Share of production
development (e.g. royalty, share of production, taxes)? According to the Model Contract, PetroVietnam is entitled to share
petroleum production net of:
The State derives value from petroleum operations primarily 1. Cost recovery petroleum
through royalties (referred to as a “tax on natural resources”),
corporate income taxes and share of production. This kind of expense is subject to negotiation of the Petroleum
Contract. The cap set up by the Petroleum Law is up to 70% of the
1. Royalties total exploited petroleum in case of petroleum investment
According to Circular No. 32/2009/TT-BT, Royalties are payable in promotion projects and 50% for other cases. In case of absence of
crude oil or natural gas and progressive on the basis of the total net such a negotiation, the default rate of 35% will apply.
petroleum output exploited in each royalty payment period, as 2. Royalty
below:
As described above.

Daily
Number of 2.6 Are there any restrictions on the export of production?
Royalty output of
days of
amount petroleum
Royalty petroleum
payable in = subject to x x
rate exploitatio At present, there are no express restrictions of the export of
crude oil or royalties in
n in royalty
natural gas royalty
period
period production. Article 28 of the Petroleum Law recognises
contractors’ rights to export petroleum production without having to
apply for export permits, though export duty issues will be relevant
as discussed below.
Royalty amount for natural gas:
Despite this general right to export, the Government does retain
discretion to mandate restrictions on exports and/or domestic sale in
Projects eligible for
Output
investment promotion
Other projects some circumstances.
Determination of payable export duty amounts:

Up to 5 million m3/day 0% 0%

Volume of
Payable Export
exported Dutiable
Between over 5 and 10 export duty = x x duty
3% 5% crude oil or price
million m3/day amount percentage
natural gas

Over 10 million m3/day 6% 10%

The export duty percentage is determined as follows:

Royalties shall be paid in crude oil or natural gas; in cash; or Percentag


Export
partially in cash and partially in crude oil or natural gas. e of
duty rate
Export temporarily
applicable
2. Corporate income tax (“CIT”) duty = 100% - calculated x
to crude oil
percentage royalties in
Determination of taxable income: or natural
royalty
gas
period

Turnover
from Deductible
In general then, the higher the royalty rates, the smaller the export
Taxable Other
income in =
petroleum
-
expenses
+ incomes in
duty will be.
operations in tax
tax period tax period
in tax period
period
2.7 Are there any currency exchange restrictions, or
restrictions on the transfer of funds derived from
production out of the jurisdiction?
Determination of the payable CIT amount:
Contractors have the right to open accounts in Vietnam and
overseas; overseas accounts must be registered with Vietnam’s
State Bank.
Payable CIT
Taxable income Contractors have the right to exchange foreign currencies at
amount in tax = x CIT rate
in tax period
period commercial banks or licensed credit institutions for purposes of
meeting foreign currency transaction needs or other permitted
transactions, pursuant to generally-applicable Vietnamese
legislation on foreign exchange management. Exceptions are made

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for certain “important projects”. 2.11 In addition to those rights/authorisations required to


In general, the amounts of foreign currency exchange must not explore for and produce natural gas, what other principal
Government authorisations are required to develop
exceed the amount in Vietnam Dong earned by the contractor from
natural gas reserves (e.g. environmental, occupational
the sale of oil and gas on the Vietnamese market. health and safety) and from whom are these
The Petroleum Law allows foreign investors to transfer abroad authorisations to be obtained?
income from the sale of petroleum being part of recovered
Vietnam

expenses, profits and other lawful revenues earned in the course of After the conclusion and approval of a Petroleum Contract but
petroleum activities, after fulfilling the tax obligations. Transfer of before any petroleum operation, the contractor must make or draw
such revenue is no longer subject to a separate remittance tax. up:
1. A report on environmental impact assessment.
2.8 What restrictions (if any) apply to the transfer or disposal 2. A safety control programme and the risk evaluation enclosed
of natural gas development rights or interests? with measures to mitigate incidents and damages.
3. Emergency response plans, including technical solutions and
As stated above, contractors have the right to transfer part or all of the utilisation of means and equipments to overcome the
their interest in Petroleum Contracts (i.e. transfer of the capital incidents.
amount contributed pursuant to the Petroleum Contract) if: The Petroleum Law is silent on the contents and to whom these
a) the transferee undertakes to continue to perform the documentations are to be addressed, although it is of common sense
Petroleum Contract concluded by the transferor; and to address them to the Competent Authority (Ministry of Industry
b) satisfying the conditions on transfer of capital and projects and Trade) and PetroVietnam.
according to the investment law.
The transfer of part or whole of the Petroleum Contract must be 2.12 Is there any legislation or framework relating to the
approved by the Prime Minister and takes effect as prescribed in the abandonment or decommissioning of physical structures
modified investment certificate. used in natural gas development? If so, what are the
However, the State, through PetroVietnam, has a preemptive right principal features/requirements of the legislation?
to acquire the Petroleum Contract or portion thereof proposed for
A. Abandonment of fixed installations and equipment
transfer.
During the course of petroleum operations, the contractor must
The revenue derived from such a transfer is subject to CIT, as
from time to time abandon fixed installations and equipment no
described above, except for the CIT rate is 25% and CIT
longer in use. The contractor must draw up plans on abandonment
exemptions and reductions are not applicable.
of fixed installations and equipment and make financial provisions
for the abandonment. Expenses for the abandonment shall be
2.9 Are participants obliged to provide any security or accounted as cost recovery petroleum. However, this obligation
guarantees in relation to natural gas development? only binds the contractor in case of successful exploration and
commercial production thereafter.
The Petroleum Law does not require a contractor to provide any B. Abandonment of petroleum wells
specific security or guarantee. However the law does require
contractors to meet minimum workload and financial commitments, The contractor must always include a preliminary plan of well
as agreed in the relevant Petroleum Contract. abandonment into the general plan of production for each well or
for the whole block under the Petroleum Contract. Then he has
obligation to make plans of well abandonment for each abandoned
2.10 Can rights to develop natural gas reserves granted to a well.
participant be pledged for security, or booked for
accounting purposes under domestic law?
2.13 Is there any legislation or framework relating to gas
There are no express rules in Vietnam as to whether rights to storage? If so, what are the principle
features/requirements of the legislation?
develop natural gas reserves can be pledged for security, or booked
for accounting purposes under domestic law.
At present there is no specific regulation on LNG storage. With
The Civil Code defines property rights as “rights able to be regard to LGP, companies engaging in LPG activities must have
evaluated in money and transferable through civil transactions, minimum storage capacity, as specified by Decree No.
including intellectual property”. On this basis, contractors’ rights 115/2009/NĐ-CP on trading in liquefied petroleum gas:
under Petroleum Contracts, transferrable with permission of the
1. Requirement of minimum storage capacity
Prime Minister, may be considered a property right under the Civil
Code and therefore prima facie able to be pledged. Despite this, the For LPG production or processing:companies must have an LPG
Government is likely to be unwilling to recognise such rights as storehouse (beyond the storing capacity already approved in the
property rights for this particular purpose and it is notable that investment project), with a total capacity of tanks of at least 5,000
nothing in the accounting legislation expressly permits contractors m3 and built under planning and according to current technical
to book such rights for accounting purposes. Similarly, legislation regulations to receive imported LPG from ships or other vehicles.
on security transactions does not expressly recognise the right to For leasing storehouses and ports for LPG exportation or
pledge such rights. importation:companies must own or co-own LPG storehouses with
a total capacity of tanks of 1,000 m3 or more under a joint venture
or capital contribution contract approved by a competent authority
and built under planning and according to current technical
regulations.
For grade-I LPG distribution: companies must own or co-own an

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LPG storehouse with a total capacity of tanks of at least 800 m3 to A pipeline land strip (the land area and the space within two
receive LPG from ships or other transport vehicles, and built under boundaries of the pipeline land strip) will be assigned by the State
planning and according to current technical regulations. to the investor who shall have the full right to use such land strips
2. Requirement of minimum LPG volume in storage in the process of constructing, installing, operating and maintaining
(circulation reserves) the pipelines. While Vietnamese law only confers “land use rights”
LPG wholesalers (exporter, importer, producer or processor or a to investors (with the State retaining ultimate ownership of land),

Vietnam
grade-I LPG distributor) shall maintain the minimum LPG such land use rights can be considered de facto full property rights
circulation reserve equal to 7 days’ supply for their distribution over the land in question in accordance with the terms of the
systems and annually increase this reserve so that by 2015 this particular land use rights granted. Investors may separately own the
reserve will be equal to at least 15 days’ supply. pipelines themselves.

Traders acting as general agents shall maintain the minimum LPG In practice, PetroVietnam may directly, or through its subsidiaries,
circulation reserve equal to 3 days’ supply. take part in the project as a party to the contract and will be, in most
cases, responsible for contributing land use rights with the other
investor(s) responsible for constructing the pipelines and associated
3 Import / Export of Natural Gas (including LNG) infrastructure. In such case, the land use rights will be accounted
for as equity of the project, and therefore the project will be
classified as a “State budget-funded project”. If the portion from
3.1 Outline any regulatory requirements, or specific terms,
limitations or rules applying in respect of cross-border the State budget is more than 50% of total investment costs, the
sales or deliveries of natural gas (including LNG). project will be subject to process of investment assessment and
supervision, including additional public tender requirements.
The following is only expressly for LPG, but LNG is considerably
likely to be subject to the same conditions and regulations: 4.2 What Governmental authorisations (including any
A. Conditions for a trader engaging in LPG export / applicable environmental authorisations) are required to
import: construct and operate natural gas transportation pipelines
1. Having a business registration certificate, covering the right and associated infrastructure?
to engage in LPG export and/or import.
2. Owning or co-owning a wharf within the Vietnamese seaport Vietnamese law does not clearly state whether a project of
system; or having entered into a contract for lease of a wharf construction and operation of pipelines is considered “a petroleum
for at least one year for receiving LPG ships; having project” (subject to petroleum legislation), a construction project
storehouses of a total tank capacity of at least 3,000 m3 for (subject to construction legislation) or a mix of the two. In absence
storing imported LPG from ships or other vehicles. of specific guidance on this issue, both legal frameworks will, in
3. Owning at least 300,000 LPG bottles (excluding mini practice, apply. The primary petroleum-related aspects applicable
bottles). These LPG bottles must be compatible with in this area have been outlined under questions 2.3 and 2.11 above.
trademarks and brands legally registered. The following touches on predominant construction-related points.
4. Having an LPG bottling station with a certificate of The construction of pipelines is classified, for purposes of
satisfaction of LPG bottling conditions. construction legislation, as construction for oil and gas extraction.
5. Having an LPG distribution system, including member Such construction projects will fall into one of three classifications:
enterprises, branches, shops or automobile LPG-filling
stations or LPG supply stations and at least 40 LPG-trading Total investment over VND 1.5 trillion
GROUP-A PROJECTS
agents (general agent and agents or agents) that fully satisfy (app. USD 75 million)
conditions for agents as required by law.
B. Obligation of LPG circulation reserves
VND750billion – 1.5 trillion (app.
GROUP-B PROJECTS
1. LPG wholesalers shall maintain the minimum LPG USD3.75million - USD75million)
circulation reserve equal to 7 days’ supply for their
distribution systems and annually increase this reserve so
Under VND 75 billion (app. US D3.75
that by 2015 this reserve will be equal to at least 15 days’ GROUP-C PROJECTS
million)
supply.
2. Traders acting as general agents shall maintain the minimum
A Investment Project on the construction (feasibility study
LPG circulation reserve equal to 3 days’ supply.
report)
The investment study reports on the construction must contain:
4 Transportation 1. Details of explanations of an investment project on the
construction of works, including the investment
necessity/objective and the total investment.
4.1 Outline broadly the ownership, organisational and
regulatory framework in relation to transportation 2. Details of the basic design of an investment project on the
pipelines and associated infrastructure (such as natural construction of works.
gas processing and storage facilities). B. Appraisal of the Investment Project on the
construction
According to the ASMA Technical Assistance for the Revision of As noted above in question 4.1, the process of project appraisal and
the Existing Legal and Regulatory Framework 2003, the approval that applies to a given investment project varies on
Government of Vietnam is currently pursuing the establishment of whether or not State capital is involved. The following outlines in
a legal and regulatory framework for gas transmission and brief the process applicable in the case of no State capital
distribution. However, at present, legislation only provides limited involvement.
terms in this area and more is expected to be adopted in due course. 1. Obtaining opinions of the competent agency on the

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Investment Project (officially within 10-20 working days): access to gas transportation pipelines will be legally recognised.
For projects group-A projects: The Ministry of Industry and Theoretically, the Competition Law can impose a duty on a
Trade. company to grant access to other competitors, though such
For group-B and group-C projects: Provincial-level Industry regulations have not been widely used in practice in any
and Trade Services. commercial sector.
2. Appraisal: once positive opinions have been obtained, the
Vietnam

investor must proceed to have the project formally appraised. 4.7 Are parties free to agree the terms upon which natural
C. Appraisal and approval of technical designs and working gas is to be transported or are the terms (including
drawing designs costs/tariffs which may be charged) regulated?
D. Construction permit
Vietnamese law is silent about this issue. However, the National
After the filing of an application, a construction permit shall be
Strategy on Energy Development encourages competition on the
granted by Provincial People’s Committees for grade A and grade B
field implying freedom of agreement on terms and conditions of
construction projects and by district-level People’s Committees for
transportation of natural gas. Obviously, this must be conducted
other constructions.
within the framework proposed in the National Strategy on Energy
Development: “Important responsibilities of management of natural
4.3 In general, how does an entity obtain the necessary land gas are: grant of Transportation and Distribution permit, approval of
(or other) rights to construct natural gas transportation natural gas price, transportation and distribution cost, technical
pipelines or associated infrastructure? Do Government standards.”
authorities have any powers of compulsory acquisition to
facilitate land access?
5 Transmission / Distribution
As noted above, a pipeline land strip will be allocated by the State
to the project investor who shall have the full right to use such land
5.1 Outline broadly the ownership, organisational and
strip in accordance with the particular terms of the relevant land use
regulatory framework in relation to the natural gas
rights certificate granted. Land granted to foreign-invested investor transmission/distribution network.
entities will usually take the form of land lease, while land granted
to domestic investors may either be in the form of lease or long-
Although the law does not prohibit private ownership, almost all
term ‘allocation’. Vietnamese law provides that the State manages
distribution systems are currently State-owned.
all land on behalf of the people of Vietnam and, as such, the State
does have power to compulsorily acquire land though subject to The Ministry of Industry and Trade assumes the prime
compensation obligations. responsibility for, and coordinates with, concerned ministries and
branches and provincial-level People’s Committees in devising and
publicising a national plan on development of LPG-trading
4.4 How is access to natural gas transportation pipelines and establishments, including LPG production or processing plants,
associated infrastructure organised? LPG storehouses with a total capacity of tanks and cisterns of 5,000
m3 or more, ports for LPG exportation or importation which can
Vietnamese law is silent on this issue and in practice access must be accommodate ships of a tonnage of 5,000 tonnes or more; and
negotiated on a case-by-case basis with PetroVietnam and the inspecting and supervising the implementation of the approved
Government, usually in the first instance via the Ministry of planning.
Industry and Trade.
Provincial People’s Committees devise plans on development of
LPG-trading establishments, including specialised LPG-trading
4.5 To what degree are natural gas transportation pipelines stores, LPG supply stations, automobile LPG-filling stations, LPG-
integrated or interconnected, and how is co-operation bottling stations, LPG storehouses with a total capacity of tanks,
between different transportation systems established and and cisterns of under 5,000 m3, then incorporate them in their local
regulated? socio-economic development master plans, ensuring their
conformity with the national master plan, and inspect and supervise
To date, Vietnam’s gas pipelines have been exploited independently the implementation of such plans after they are approved.
from other systems and each other. There are currently no legal
Decree No. 115/2009/NĐ-CP dated 2 November 2009, assigns the
provisions relating to co-operation or access between different
Ministry of Industry and Trade to promulgate regulations on LPG
transportation systems.
trading agents, but to date no such regulations have been issued.

4.6 Outline any third-party access regime/rights in respect of


natural gas transportation and associated infrastructure. 5.2 What Governmental authorisations (including any
For example, can the regulator or a new customer applicable environmental authorisations) are required to
wishing to transport natural gas compel or require the operate a distribution network?
operator/owner of a natural gas transportation pipeline or
associated infrastructure to grant capacity or expand its An LPG distributor must satisfy the following conditions or obtain
facilities in order to accommodate the new customer? If the following authorisations:
so, how are the costs (including costs of interconnection, 1. Grade-I LPG distribution:
capacity reservation or facility expansions) allocated?
a business registration certificate, covering the registration
for LPG trading;
There are no specific regulations on this issue in Vietnamese law at
owning or co-owning an LPG storehouse with a total
present. The National Strategy on Energy Development
capacity of tanks of at least 800 m3 to receive LPG from
recommends diversifying modes of ownership and eliminating ships or other transport vehicles;
monopoly until 2020. However, it is not known when the right to

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owning at least 300,000 LPG bottles of all kinds (except mini 5.3 How is access to the natural gas distribution network
bottles), trademarks and brands already registered with organised?
competent authorities under law;
having an LPG-bottling station with a certificate of Art 47 of the Competition Law prohibits restriction to the access to
satisfaction of LPG bottling conditions; and the network for a company wishing to join the network and
having an attached LPG distribution system, consisting of satisfying the conditions for admission or withdrawal, if such

Vietnam
bottled LPG-selling shops or LPG supply stations or refusal constitutes discriminatory treatment and places such
automobile LPG-filling stations, and at least 20 LPG-trading company at a competitive disadvantage. However, due to an
agents (general agent and agents or agents). absence of detailed regulations on this relatively new field of law in
2. LPG-trading general agent Vietnam, investors may find difficulties enforcing such provisions
having a business registration certificate, covering the in practice.
registration for LPG trading agency; An investor may otherwise want to access an existing network
having an LPG and bottled LPG storehouse of a capacity of through merger and acquisition activity. However to the extent
at least 2,000 LPG bottles or bottled LPG of all kinds (except such activity would focus on State targets, the procedures and
mini bottles); obstacles are likely to be significant in practice.
having an LPG distribution system consisting of bottled
LPG-selling stores or automobile LPG-filling stations, and at
least 10 agents; and 5.4 Can the regulator require a distributor to grant capacity or
expand its system in order to accommodate new
having entered into an agency contract of a term of at least 1 customers?
year, which is still valid, with an eligible LPG wholesaler.
3. LPG-trading agent Vietnam law does not expressly regulate this issue. It is noted
having a business registration certificate, covering the however that Decree No. 115/2009/NĐ-CP provides some
registration for LPG trading agency; framework on this issue through requirement of minimum storage
having a bottled LPG-selling store or an automobile LPG- in Art 52:
filling station; and LPG wholesalers (LPG exporter, importer, producer or
having entered into an agency contract of a term of at least 1 processor or a grade-I LPG distributor) must maintain the
(one) year, which is still valid, with an eligible LPG minimum LPG circulation reserve equal to seven days
wholesaler or general agent. supply for their distribution systems and annually increase
4. Bottled LPG-sales outlets this reserve so that by 2015 this reserve will be equal to at
least 15 (fifteen) days’ supply.
having a business registration certificate, covering the
registration for sale of bottled LPG; Traders acting as general agents shall maintain the minimum
LPG circulation reserve equal to three days supply.
having entered into a bottled LPG purchase contract of a
term of at least 1 year, which is still valid, with an eligible
agent or general agent or LPG wholesaler; and 5.5 What fees are charged for accessing the distribution
having a certificate of satisfaction of fire prevention and network, and are these fees regulated?
fighting conditions, a certificate of satisfaction of security
and order conditions granted by a competent police office. There is very limited regulation on this matter in Vietnam.
5. Automobile LPG-filling stations Generally any fees would be negotiated on a case-by-case basis,
having a construction permit accompanied with a project or subject to negotiation. Investors may have some recourse to the
design approved by a competent authority; principle of non-discrimination set forth in Art 47 of the
measuring devices have been inspected and corrected under Competition Law for admission or withdrawal of a member of the
regulations; network.
equipment subject to stringent requirements on automobile
LPG filling safety has been inspected and registered under 5.6 Are there any restrictions or limitations in relation to
regulations; and acquiring an interest in a gas utility, or the transfer of
having a certificate of satisfaction of fire prevention and assets forming part of the distribution network (whether
fighting conditions and a certificate of satisfaction of security directly or indirectly)?
and order conditions granted by a competent police office.
6. Conditions on LPG supply stations There is no express legal regulation on this matter and therefore
having a construction permit accompanied with a project or these issues are subject to negotiation between any new prospective
design approved by a competent authority; member and the network or otherwise specified in the network’s
conditions for admission and withdrawal.
measuring devices have been inspected and corrected under
regulations; and
having a certificate of satisfaction of fire prevention and 6 Natural Gas Trading
fighting conditions and a certificate of satisfaction of security
and order conditions granted by a competent police office;
and a slip of results of inspection of equipment of LPG 6.1 Outline broadly the ownership, organisational and
supply stations subject to stringent safety requirements. regulatory framework in relation to natural gas trading.
Please include details of current major initiatives or
Moreover, depending on the potential impact of the project on the
policies of the Government or regulator (if any) relating to
environment, the Investor must obtain an Environment Impact natural gas trading.
Assessment or just make an Environmental Protection
Commitment. There is no specific regulation for natural gas trading, however it is
useful to refer to Decree No. 115/2009/NĐ-CP on LPG as described

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in part in questions 5.1 – 5.6 above. 4. agreements to restrain technical or technological


developments or to restrain investment;

6.2 What range of natural gas commodities can be traded?


5. agreements to impose on other enterprises conditions for
For example, can only “bundled” products (i.e., the natural
signing contracts for the purchase and sale of goods and
gas commodity and the distribution thereof) be traded?
services or to force other enterprises to accept obligations
which are not related in a direct way to the subject matter of
Vietnam

the contract;
There is no specific regulation on this issue, but it is useful to refer
6. agreements which prevent, impede or do not allow other
to LPG regulations generally which allows LPG to be traded at
enterprises to participate in the market or to develop
stations or bottled according to national standards.
business;
7. agreements which exclude from the market other enterprises
7 Liquefied Natural Gas which are not parties to the agreement; and
8. collusion in order for one or more parties to win a tender for
supply of goods and services.
7.1 Outline broadly the ownership, organisational and
regulatory framework in relation to LNG facilities. The agreements at points 1, 2, 3, 4 and 5 above are prohibited when
the parties to the agreement have a combined market share of thirty
There are no specific regulations for LNG, however it is useful to (30) per cent or more of the relevant market. The remaining points
refer to regulations on LPG for general principles. are prohibited irrespective of the market share of participants.
B. Abuse of dominant market position
7.2 What Governmental authorisations are required to A group of enterprises shall be deemed to be in a dominant market
construct and operate LNG facilities? position if they act together in order to restrain competition and fall
into one of the following categories:
There are no specific regulations on this, however as the (a) 2 enterprises have a market share of fifty (50) percent or
construction of operation of LNG facilities may be subject to both more in the relevant market;
petroleum and construction legislation, it is useful to refer to (b) 3 enterprises have a market share of sixty five (65) percent or
questions 2.3 and 4.2 above for general outline on relevant points. more in the relevant market; and
(c) 4 enterprises have a market share of seventy five (75) percent
or more in the relevant market.
7.3 Is there any regulation of the price or terms of service in
the LNG sector? Any enterprise or group of enterprises in a dominant market
position shall be prohibited from carrying out the following
Where a petroleum product is sold to the public, its price will fall practices:
under a scale fixed by the Government and readjusted from time to 1. selling goods or providing services below total prime cost of
time. For regulations on trading of LPG, please refer to questions the goods aimed at excluding competitors;
5.1 – 5.6 above. 2. fixing an unreasonable selling or purchasing price or fixing a
minimum re-selling price goods or services, thereby causing
loss to customers;
7.4 Outline any third-party access regime/rights in respect of
LNG Facilities. 3. restraining production or distribution of goods or services,
limiting the market, or impeding technical or technological
development, thereby causing loss to customers;
There are no specific regulations on this issue in Vietnam at present.
4. applying different commercial conditions to the same
transactions aimed at creating inequality in competition;
8 Competition 5. imposing conditions on other enterprises signing contracts
for the purchase and sale of goods and services or forcing
other enterprises to agree to obligations which are not related
8.1 Which Governmental authority or authorities are
in a direct way to the subject matter of the contract; and
responsible for the regulation of competition aspects, or
anti-competitive practices, in the natural gas sector? 6. preventing market participation by new competitors.
Any enterprise in a monopoly position shall be prohibited from
The authority responsible for the regulation of competition aspects carrying out the following practices:
is the Competition Council, who is responsible for every sector, 1. practices mentioned above applied for enterprise or group of
including the gas sector. enterprises in a dominant market position;
2. imposing disadvantageous conditions on customers; and
8.2 zTo what criteria does the regulator have regard in 3. abuse of monopoly position in order to change or cancel
determining whether conduct is anti-competitive? unilaterally a signed contract without legitimate reason.

The Competition Law 2004 specifies a number of criteria of an anti- 8.3 What power or authority does the regulator have to
competitive conduct: preclude or take action in relation to anti-competitive
A. Agreements in restraint of competition practices?
1. agreements either directly or indirectly fixing the price of
goods and services; The Competition Council is equipped with the following powers to
2. agreements to share consumer markets or sources of supply preclude and take action in relation to anti-competitive practices:
of goods and services; (a) to control the process of economic concentration (i.e.
3. agreements to restrain or control the quantity or volume of mergers, joint ventures, etc.) in accordance with this Law;
goods and services produced, purchased or sold; (b) to accept jurisdiction over files for request of exemption; to

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forward its opinion to the Minister of Trade for a decision or sharing contract, joint-venture contract or other contractual forms.
to submit the same to the Prime Minister for his decision; But since Decree 48/2000/NĐ-CP only sets forth a model
(c) to investigate competition cases concerning practices in production-sharing contract, it means that this kind of contract is a
restraint of competition and unfair competitive practices; preference one, and this fits the international practice in the sector.
(d) to deal with and impose fines in respect of unfair competitive To date, only one incorporated joint venture was created by
practices; and Vietnam and Russia (Vietsovpetro).

Vietnam
(e) to fulfil other duties in accordance with law. For other activities related to petroleum, such as refining,
transmission and distribution and trading, the investment and
company legislations will apply.
8.4 Does the regulator (or any other Government authority)
have the power to approve/disapprove mergers or other Any restrictions on foreign ownership stakes in a given sector are
changes in control over businesses in the natural gas based on Vietnam’s WTO service sector commitments that
sector, or proposed acquisitions of development assets, generally follow a phased-in approach over time. In any event,
transportation or associated infrastructure or distribution Vietnam’s Government has discretion to grant foreign ownership in
assets? If so, what criteria and procedures are applied? excess of such commitments.
How long does it typically take to obtain a decision
approving or disapproving the transaction?
9.2 To what extent is regulatory policy in respect of the
In the case where enterprises participating in an economic natural gas sector influenced or affected by international
concentration have a combined market share in the relevant market treaties or other multinational arrangements?
of from thirty (30) percent to fifty (50) percent, the legal
representative of such enterprises must notify the administrative Principle of non-discrimination features prominently in GATT and
body for competition prior to carrying out the economic GATS, to which Vietnam is an official member:
concentration. The procedure is as follows: National Treatment (Art. 3): Equal treatment for foreign and
1. A file for notification of an economic concentration domestic individuals and companies.
2. Acceptance of jurisdiction over file for notification of Most Favoured Nation (Art. 4): Equal treatment for nationals
economic concentration (within seven working days from of all trading partners in the WTO.
the date of receipt) Minimum protection by WTO is normally widened by bilateral
3. Reply to notification of economic concentration agreements, for instance the Vietnam – US BTA provides a fuller
mechanism of protection:
The administrative body for competition shall be responsible,
within a time limit of forty five (45) days from the date of receipt Principle of National Treatment (Art. 3): Each Party shall
of a complete file for notification of an economic concentration, to accord to nationals of the other Party treatment no less
favourable than it accords to its own nationals with regard
provide a written reply to the enterprise which submitted the file.
[…] intellectual property rights.
The written reply of the administrative body for competition must
confirm that the economic concentration belongs to one of the Principle of Fair and Equitable Treatment (Art. 11): ensure
that enforcement procedures of IP rights are not
following categories:
unnecessarily complicated or costly, and do not entail
(a) the economic concentration does not fall within the unreasonable time limits or unwarranted delays.
prohibited category; and
(b) the economic concentration is prohibited because the
enterprises participating in the economic concentration have 10 Dispute Resolution
a combined market share in the relevant market of more than
fifty (50) percent.
10.1 Provide a brief overview of compulsory dispute resolution
4. Carrying out economic concentrations procedures (statutory or otherwise) applying to the natural
The legal representative of enterprises participating in an economic gas sector (if any), including procedures applying in the
concentration in the category required to provide notification stated context of disputes between the applicable Government
above may conduct procedures for the economic concentration at authority/regulator and: participants in relation to natural
gas development; transportation pipeline and associated
the authorised State body in accordance with the laws on
infrastructure owners or users in relation to the
enterprises, only after having received a written reply from the
transportation, processing or storage of natural gas; and
administrative body for competition that the economic distribution network owners or users in relation to the
concentration is not within the prohibited category. distribution/transmission of natural gas.

9 Foreign Investment and International The Model Contract encourages parties to the Petroleum Contract
to submit their dispute to London Petroleum Institute. In practice,
Obligations
PetroVietnam and contractors prefer to address their dispute to the
Singapore International Arbitration Center (SIAC).
9.1 Are there any special requirements or limitations on If the dispute is between contractors and a Government authority,
acquisitions of interests in the natural gas sector (whether
contractors must address their appeal to decisions firstly to the head
development, transportation or associated infrastructure,
distribution or other) by foreign companies?
of such Governmental body, or if the decision is made by such head,
to the body in the next higher hierarchy. If all appeals are
unsuccessful, then contractors can lodge a claim to the court to
The Petroleum Law only applies to Petroleum exploration and
request review of the court over decisions made by Government
production activities carried out within the territory, the exclusive
authority.
economic zone and the continental shelf. Within this scope of
operations, foreign investors can only carry out activities under a
petroleum contract that may be signed in the form of a production-

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10.2 Is Vietnam a signatory to, and has it duly ratified into 10.4 Have there been instances in the natural gas sector when
domestic legislation: the New York Convention on the foreign corporations have successfully obtained
Recognition and Enforcement of Foreign Arbitral Awards; judgments or awards against Government authorities or
and/or the Convention on the Settlement of Investment State organs pursuant to litigation before domestic
Disputes between States and Nationals of Other States courts?
(“ICSID”)?
Vietnam

Court cases are generally not publicised in Vietnam. However, it is


Vietnam is a signatory to both the New York Convention on the unlikely that any foreign entities have obtained judgment against
Recognition and Enforcement of Foreign Arbitral Awards and Government authorities pursuant to litigation before domestic
ICSID. As Vietnam elects the unilateralism model in treaty law, a courts to date.
treaty is effective and binding from date of signature of the
Government without any requirement for a legislative body to
ratify. 11 Updates

10.3 Is there any special difficulty (whether as a matter of law 11.1 Please provide, in no more than 300 words, a summary of
or practice) in litigating, or seeking to enforce judgments any new cases, trends and developments in Gas
or awards, against Government authorities or State Regulation Law in Vietnam.
organs (including any immunity)?
In terms of Vietnam’s long term policy strategy, there are two key
With respect to domestic awards or judgments, special difficulties regulations governing master plan on oil and gas of Vietnam:
arise in practice considering question marks over the independence (i) Decision No. 386/QD-TTg, dated 9 March 2006, of the
of the judiciary in Vietnam and power of State organs in particular Prime Minister approving strategy for development of oil
to influence decisions. With regards to offshore cases, enforcing and gas sector until 2015, vision to 2025; and
foreign court judgments in Vietnam is all but impossible due to an (ii) Decision No. 233/QD-TTg, dated 18 February 2009, of the
absence of judicial recognition treaties for the vast majority of Prime Minister approving master plan for development of oil
countries. Foreign arbitral awards may be enforced in theory but, and gas sector until 2015, vision to 2025.
again, enforcement in practice is likely to be cumbersome and time- Unfortunately, the content of such documents are not readily made
consuming. As with other countries, Vietnamese courts may base public. Predictions about Vietnam’s long-term strategy regarding
on public policy to refuse recognition of foreign judgments or gas development - especially questions of State monopoly vs.
awards. privatisation and of competitive market prices - are thus hard to
make. It should be clear, however, that Vietnam will increasingly
have to rely on gas imports to meet its increasing domestic demand.

Endnotes

Endnote 1

Proven Reserves

At end 2009

At end 1989 At end 1999 At end 2008 Trillion Trillion


Share R/P
Trillion Trillion Trillion cubic cubic
of total ratio
cubic cubic cubic feet metres
metres metres metres

Indonesia 2.55 2.62 3.18 112.5 3.18 1.7% 44.3

Malaysia 1.61 2.48 2.38 84.1 2.38 1.3% 38.0

Myanmar 0.27 0.29 0.57 20.1 0.57 0.3% 49.4

Pakistan 0.65 0.70 0.84 32.0 0.91 0.5% 23.9

Papua New Guinea 0.23 0.43 0.44 15.6 0.44 0.2% *

Thailand 0.23 0.35 0.34 12.7 0.36 0.2% 11.6

Vietnam _ 0.17 0.56 24.1 0.68 0.4% 85.2

Other Asia Pacific 0.26 0.34 0.36 12.9 0.36 0.2% 20.9

(Source: BP Statistical Review of World Energy, 2010)

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Endnote 2

Production*

Change 2009 over


Billion cubic meters 2005 2006 2007 2008 2009 2009 share of total
2008

Vietnam
Indonesia 71.2 70.3 67.6 69.7 71.9 3.5% 2.4%

Malaysia 61.1 63.3 64.6 64.9 62.7 -3.3% 2.1%

Myanmar 12.2 12.6 13.5 12.4 11.5 -6.7% 0.4%

Pakistan 3.6 3.7 4.1 3.8 4.0 4.4% 0.1%

Papua New Guinea 35.5 36.1 36.8 37.5 37.9 1.3% 1.3%

Thailand 23.7 24.3 26.0 28.8 30.9 7.6% 1.0%

Vietnam 6.9 6.8 7.1 7.9 8.0 1.0% 0.3%

Other Asia Pacific 7.0 10.1 12.5 13.7 13.6 0.4% 0.5%

(Source: BP Statistical Review of World Energy, 2010)

Endnote 3

Vietnam annual gas production

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Giles Cooper Oliver Massmann


Duane Morris Vietnam LLC Duane Morris Vietnam LLC
Unit V1307/1308, 13th Flor Unit V1307/1308, 13th Flor
83B Ly Thuong Kiet Street 83B Ly Thuong Kiet Street
Hoan Kiem District, Hanoi Hoan Kiem District, Hanoi
Vietnam Vietnam
Vietnam

Tel: +84 8 3824 0231 Tel: +84 4 3946 2205


Fax: +84 4 3946 1311 Fax: +84 4 3946 1311
Email: gtcooper@duanemorris.com Email: omassmann@duanemorris.com
URL: www.duanemorris.co.uk URL: www.duanemorris.co.uk

Giles Cooper practices in the area of corporate law with a focus Oliver Massmann practices in the area of corporate international
on international law in Southeast Asia. Mr. Cooper has taxation and on power/water projects, matters related to oil and
experience with foreign investment and commercial law related to gas companies and telecoms, privatisation and equitisation,
construction, mergers and acquisitions, securities, contract mergers and acquisitions, and general commercial matters for
negotiation and drafting, banking and finance, and employment multinational clients in relation to investment and doing business
law. in Vietnam.
Mr. Cooper is a graduate of Victoria University in Wellington, New Mr. Massmann is the only foreign lawyer in Vietnam who is
Zealand, and a graduate of the University of Canterbury in presenting to the National
Christchurch, New Zealand. He is a barrister and solicitor of the Assembly of Vietnam in Vietnamese language and teaching
High Court of New Zealand and a registered foreign lawyer in International law in Vietnamese
Vietnam. language at the Ministry of Justice in Hanoi.
Mr. Massmann is a 1994 graduate of Bochum Law University, first
Areas of Practice: state exam and Ministry of
International Commercial and Corporate Law Justice, Duesseldorf Germany, second state exam 1997. He is
admitted to the Bar Association in Berlin and a licensed foreign
Construction Law lawyer in Vietnam.
Securities and capital markets
Labour and Employment Law
Major projects

Education:
University of Victoria, Institute of Professional Legal
Studies, Certificate of Professional Practice, 1998
University of Canterbury (Christchurch, New Zealand),
LL.B. (Hons), 1996

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Email: sales@glgroup.co.uk

www.ICLG.co.uk