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Deflating illegal gas production

Update: December, 03/2009 - 00:00

Deflating illegal gas production

(04-12-2009)

HA NOI — A new programme on minimising the illegal production and trade of gas was introduced yesterday in a deal between the Ministry of Industry and Trade (MoIT) and the Viet Nam Gas Association.

The programme, which also involves the Firefighting Department, is aimed at raising the awareness, roles and responsibilities of the association and of relevant enterprises in building and defending their trademarks, as well as getting more involved in the fight against counterfeits and the illegal trade of gas products.

Gas trading had been operated under a market mechanism since 2001, said Deputy Minister of MoIC Nguyen Cam Tu. "Despite the late adoption of the mechanism, the gas market has grown in both quantity and scale," said Tu yesterday at the signing ceremony of the Regulation of Co-ordination, between the MoIT’s Market Management Department, the Association and the Firefighting Department.

There were around 80 gas companies nationwide, with their network of shops and agencies constantly expanding. Gas was considered a product with a stabilised price, with its retail price based on State-controlled market mechanism.

The gas market’s fast development, however, had also brought about illegal trading of fake products, as well as unfair competition among gas enterprises and companies. That had badly effected consumers and authentic dealers and companies. The investment environment was also seriously damaged, while the State budget had suffered some big losses.

Despite the quick development of the gas trade, a legal system to adjust and manage it was not yet completed. Co-ordination among inspectors and management bodies, and relevant enterprises and the association was still poor, which had led to wrongdoing.

"It is necessary for the association, enterprises and companies to improve their co-ordination with the market management force to uphold their collective power to ensure the stability of the gas market and the legal benefits of consumers and enterprises," said Tu.

Under the new regulation, each gas agency could only register three trademarks while major gas trading companies will have to take responsibility for their trading activities, across the entire system. — VNS

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