Vietnam feasibility study - EITI

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II.2 - fInancIal lIaBIlITY Of THe OIl anD Gas cOmPanY
Oil and gas activities are regulated in the Law on Petroleum in 1993 and its revised and supplemented
versions in 2000 and 2008. Apart from the obligations provided for by those laws and similar obligations
for taxes, charges and fees applicable to mining activities, the enterprises are also required to pay
other taxes and fees.
II.2.1 fees
Fee for the purchase and use of petroleum information
As provided for in the Petroleum Law, petroleum exploring and exploiting enterprises are obliged
to pay a fee to the state for the use of information about petroleum. This fee will be negotiated in
the petroleum exploration and exploitation contract and PVN shall negotiate and collect this fee on
behalf of the host country.
types of bonuses
As petroleum exploitation is a relatively special activity and petroleum activities in Vietnam are almost
all carried out offshore, closely connecting it to the economic, politic and security of sovereignty
situation of the nation. The Vietnam Oil and Gas Group (PVN) is assigned by the State to represent and
perform activities of exploration, exploitation and related business activities. Business activities in the
petroleum area are conducted under the production sharing contracts (PSC), bidding, etc.
There are three main types of bonuses to be paid to the state budget, including:
• Signature bonus;
• Commercial finding bonus; and
• Production bonus.
Norm and form for collecting these bonuses are directly mentioned in the petroleum exploitation
contracts.
environmental protection fee applicable to crude oil and natural gas
The Decree No. 82/2009/ND-CP of the Government providing for environmental protection fee
applicable to mineral exploitation provides that the fee applicable to “crude oil shall be VND 100,000/
ton and for natural and coal gas VND 50/m 3 . For natural gas collected during the exploitation of crude oil
(associated gas) in particular, the fee shall be VND 35/m 3 .” Unlike minerals, 100% of the environmental
protection fees in petroleum activities are paid directly to the central budget.
II.2.2 Profit sharing
Foreign enterprises shall be responsible for distributing a part of their profits called petroleum interest
to the host country. Rate and form of profit distribution shall be stipulated in the relevant contracts,
depending on the specific lot and cooperation project. PVN shall be the authorized unit to directly
collect these amounts from petroleum exploitation contracts.
II.2.3 Taxes
natural resources tax
Specific tax rate applicable to crude oil and natural gas are determined progressively for each part by
the output of crude oil, natural gas and coal gas, which is produced in an average day. Specifically,
Circular No. 32/2009/TT-BTC of MOF provides for the natural resources tax rate applicable to crude oil
and natural gas as follows:
The Extractive Industries Transparency Initiative and the Implementation Perspective of Vietnam