Hanoi (VNA) – It is time to make amendmentsto the current Law on Petroleum to legally facilitate the development ofVietnam’s oil and gas industry and implement the strategy for sustainabledevelopment of the maritime economy until 2030 and with a vision towards 2045.

This view was shared among participants at a seminar onthe local oil and gas industry as part of a new vision of the maritime strategyin Hanoi on October 28.

The oil and gas industry is vital to ensuring energysecurity and building national defence, said Nguyen Van Phuc, former ViceChairman of the National Assembly’s Economic Committee. The industry, which is animportant part of the maritime economy, also stimulates the service sector andsupport industries, creates jobs for people and contributes to the State andlocal budgets, he added.

But now the Law on Petroleum is deemed no longer sufficientto allow the industry to develop further in the new context, Phuc noted. Thoughthe law has been amended twice, in 2000 and 2008, it places most focus on theupstream segment, also known as the exploration and production of oil and gas.Meanwhile, no provision is made for the midstream business, which involves thetransportation, storage, and marketing of petroleum products; and downstreamsector, or the refining of crude oil and processing and purifying of rawnatural gas, according to Phuc.

As a result, it is challenging to draw investment in thedevelopment of the industry’s value chain through all three major segments.

Echoing Phuc’s view, Deputy Director of the CentralInstitute for Economic Management (CIEM) Tran Kim Chung said the strategy forsustainable development of the maritime economy can only work if it is providedwith an appropriate legal framework alongside an exclusive financial strategyand budgeting for its key industries, like oil and gas.

The industry needs a mid-term and long-term financial andbudgeting mechanism rather than in the short run like it is now, Chung added.

When the global oil price was at a high level, theGovernment should have set aside a reserve fund from revenue of oil and gasexports to re-invest into the industry and cover unexpected future costs when theprice sinks, he suggested.

Agreeing with Chung, Dr. Nghiem Vu Khai from Hai Phong’sdelegation of National Assembly deputies said the oil and gas sector used tocontribute 24 – 25 percent of the State budget between 2006 and 2008; however,the contributions have been largely spent on other purposes rather thanreturning to boost the industry.

He urged the government and relevant ministries such asthe Ministry of Science and Technology and Ministry of Industry and Trade tocreate a fund to stimulate petroleum technologies as well as maritime economy.

Taking notes of all the proposals, Vice Chairman of theNA’s Economic Committee Nguyen Duc Kien agreed that the changing socio-economicsituation requires policymakers to have a new approach to the management of theoil and gas sector and the technology application in the industry.

He unveiled that the Law on Petroleum will be amended,noting that the NA’s committees are discussing with the government a plan on therevision of the law, which will take place between 2019 and 2020.–VNA