Xuyen Viet Oil’s violations expose gaps in fuel sector

The violations were uncovered and linked to the recent arrests of high-profile officials, including Deputy Minister of Industry and Trade Do Thang Hai, who is being investigated for receiving bribes.

Established in 2005 in Ho Chi Minh City, Xuyen Viet Oil has expanded to grab 40% of the southern market and 10% of the national market.

But inspectors from the industry ministry found that the company had falsified its records to show a larger number of fuel stations than it actually had.

The law requires fuel importers and exporters to have at least 40 stations, and so Xuyen Viet Oil had signed a merger deal with another distributor, Dai Dong Xuan, which operated 36 of them.

But after getting permits from the industry ministry in November 2021, the two companies rescinded the deal.

Another violation by Xuyen Viet Oil was buying fuel from its own subsidiary, Viet Oil Group Lado.

Its reports to authorities on import and export volumes and sales were inconsistent and late.

It was fined VND390 million in August last year and had its permit revoked for 90 days in September.

The company owes VND1.5 trillion to the tax authorities, or a fifth of all taxes owed to HCMC as of October this year.

It took VND200 billion out of the national fuel price stabilization fund but failed to return it.

The violations by Xuyen Viet Oil show there are many loopholes in the management of the fuel industry, Ministry of Public Security spokesperson To An Xo said.

It also shows that the company has no regard for the laws, he added.

Ministry of Industry and Trade inspectors had last year hauled up some of their colleagues for being tardy in uncovering Xuyen Viet’s wrongdoing and penalizing it.