Vietnam seeks gasoline imports as economy reopens

Market: Oil products
12/05/20

Vietnam's state-owned Petrolimex has issued a tender to buy gasoline amid easing travel restrictions in the country.

Petrolimex is seeking about 105,000-120,000t (0.89mn-1.01mn bl) of gasoline for delivery during May and June. The demand comes after Vietnam last week allowed non-essential businesses to resume operations after three weeks without any new community spread of the coronavirus.

The relaxation of the curbs is boosting car use and supporting gasoline demand. Driving in Vietnam was 3pc higher than a 13 January baseline on 10 May, after staying around 20-60pc below the same baseline for most of April, according to mobility data from Apple that gives an indication of driving activity by tracking direction requests.

Vietnam's oil product imports fell sharply in March as the coronavirus hit demand. Vietnam imported 482,415t of gasoline, diesel, fuel oil and jet fuel in March, the lowest monthly level since January 2017, according to preliminary customs data. Most of Vietnam's imports come from South Korea, Singapore and China.

Demand likely fell further last month after a nationwide social distancing exercise was imposed for 15 days from 1 April. Residents were told to stay at home and only go out to buy food, essential items or to seek urgent medical services. The lockdown was extended for Hanoi, Ho Chi Minh city and provinces deemed to have high Covid-19 infection risks.

Petrolimex's latest tender seeks 15,000-30,000t of 95R gasoline for 20-30 May loading, 30,000t of 95R gasoline for loading during 1-15 June, 30,000t of 90R or 92R gasoline for loading during 20-30 May and 30,000t of 90R or 92R gasoline for loading during 1-15 June. The cargoes are sought from South Korea or Van Phong, Vietnam. South Korean supplies require a form KV, which proves the origin of a cargo and exempts it from import taxes in Vietnam under a free-trade agreement between the two countries. The tender closes on 12 May and remains valid until 14 May.

By Aldric Chew

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