The International Comparative Legal Guide to:

Gas Regulation 2011

A practical cross-border insight
into Gas Regulation work
Published by Global Legal Group, in
association with Ashurst LLP, with
contributions from:
ǼLEX
Ali Budiardjo, Nugroho, Reksodiputro
Allens Arthur Robinson
Bell Gully
BNG Legal
Chandler & Thong-ek Law Offices Limited
CMS Cameron McKenna
Cogan & Partners LLP
Criales, Urcullo & Antezana
Debarliev, Dameski & Kelesoska
Dr Kamal Hossain & Associates
Duane Morris LLP
Estudio Gálvez Abogados
Fortunati & Asociados
Garrigues
Gorrissen Federspiel
Haavind AS
Hogan Lovells
InterJuris Abogados, S.C
JeantetAssociés AARPI
KALO & ASSOCIATES
King & Spalding LLP
Loyens & Loeff N.V.
Mohamed Ridza & Co
O'Flynn Exhams
Pachiu & Associates
Rosenberg, Hacohen, Goddart & Ephrat
Schoenherr
SNR Denton
Studio Legale Bonora e Associati
TGC Corporate Lawyers
Uría Menéndez
Vellani & Vellani
 Chapter 40
Vietnam
Duane Morris LLP
1 Overview of Natural Gas Sector
1.1 A brief outline of Vietnam’s natural gas sector, including a
general description of: natural gas reserves; natural gas
production including the extent to which production is
associated or non-associated natural gas; import and
export of natural gas, including liquefied natural gas
(LNG) liquefaction and export facilities, and/or receiving
and re-gasification facilities (“LNG facilities”); natural gas
pipeline transportation and distribution/transmission
network; natural gas storage; and commodity sales and
trading.
1. Natural gas reserves and production
According to BP Statistical Review of World Energy 2010,
Vietnam’s gas reserve is approximately 10 trillion cubic feet. The
proven reserves can be found under Endnote 1.
Vietnam’s gas industry has a comparatively short history. Large-
scale gas development based on offshore resources began in 1995
in Vietnam, with the production of associated gas from the Bach Ho
fields. This was followed in 2003 when gas from the Nam ConSon
basin gas fields started to come on-stream, then from Block 11-2 in
2006. In 2007 came the first deliveries of gas from the PM-3
development in the offshore area jointly administered with
Malaysia. (See Endnote 2 and Endnote 3.)
Natural gas projects
In the past five years there has been only one large new project
under negotiation, namely Chevron’s B&52 gas prospect in the
Malay-Tho Chu basin for the O Mon power project. It is expected
to take approximately 5 years to bring it on-stream from the time of
a final official decision to go ahead.
2. Pipeline
In the south of Vietnam, new production feeds into, and new
consumption draws from, a “national trunk pipeline” that also
connects the O Mon, Ca Mau and Phu My consumption centres to
improve security of supply of each.
Pipeline projects that may be imminent tend to be small scale, such
as the collection, as compressed natural gas (CNG), of associated
gas presently flared mainly in the Bach Ho area and the tie-in of
marginal gas fields, mainly in the Nam Con Son area. Projects that
await approval are still being negotiated on a case-by-case basis.
3. Forecast of World Bank in Report No. 52865-VN
The geography of the vision for Vietnam’s gas industry in 2025:
6-8 significant offshore developments, each of 2-3
BCM/annum, 2 or 3 of which are in the north.
Some of these are supported by new pipelines to onshore,
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Giles Cooper
Oliver Massmann
others are tributary to existing pipeline systems such as those
from PM-3, Nam Con Son and Bach Ho offshore
developments.
Depending on the assessment of domestic gas prospects, a
first LNG project has been developed or is in progress for 2-
5 BCM/annum (1.5-3.7 million tonnes/annum).
A trunk onshore pipeline connects the main gas consuming
centres from Ca Mau and OMon in the southwest, across the
Delta to Phu My and possibly extending as far as QuangNgai
province.
Gas transmission “rings” have been created around HCMC.
If large-volume gas supply comes to the north, “rings” are
built around Hanoi-Haiphong, in both cases feeding
distribution systems that serve industrial and commercial
markets.
The refinery-petrochemical complex at Dung Quat is the first
industrial development of this kind that presents sufficient
market to support a new gas project.
Facilities have been created to collect associated and non-
associated gas from marginal and remote fields, to supply the
domestic market.
All offshore basins that are not disputed with other countries
have been explored to the degree necessary to provide
reliable 1P and 2P reserves data for purposes of oil and gas
production planning.
In the technology area, means have been found to deal with
high CO2 content natural gas and to develop CBM from
Vietnam’s coal resources.
1.2 To what extent are Vietnam’s energy requirements met
using natural gas (including LNG)?
Gas currently accounts for about one-third of Vietnam’s total
annual energy generation. Two major gas to power projects are in
operation: Bach Ho + Nam Can Son developments feeding the Phu
My power complex at over 4 BCM annually and the PM-3
development in the Malay-Tho Chu Basin, feeding Ca Mau power
and fertilizer plants at 1.5 BCM/yr. A third gas to power project is
presently under negotiation (Block B&52 to O Mon, eventually at
least 3.3 BCM/yr).
Gas now accounts for about 15% of Vietnam’s primary energy
supply. This compares favourably with averages in the Asia Pacific
region and slightly less than global levels.
The Power Master Development Plan (Power Master Development
Plan approved 2009) and the draft National Gas Master Plan
envisage gas use for energy generation in Vietnam to rise
dramatically from >8 BCM in 2010 to 13/15 BCM in 2015 and
21/24 BCM in 2025. This represents an approximate tripling of
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supply and demand in 15 years, focused almost entirely on power
generation.
The country’s primary energy demand is met by an estimated 44%
through oil, 18 % through gas, 17% through coal and 17% through
hydro-power. 85% of gas supplied in Vietnam is consumed for
power generation, 10% for fertilizer and 5% for other industries.
1.3 To what extent are Vietnam’s natural gas requirements
met through domestic natural gas production?
According to BMI’s Report, Vietnam’s gas production is slightly
higher than its demand: estimated gas consumption in 2010 will
account for 1.84% of Asia Pacific, while its share of production is
put at 2.20%. By 2014, its share of gas consumption is forecast to
be 2.56%, with the country accounting for 4.60% of supply. Gas
production is expected to rise from an estimated 9.1bcm in 2010 to
34.0bcm in 2019, with only 184% demand growth.
As the main gas supplier, PetroVietnam Gas Corp. (PVGAS) has
announced plans to import around 3 BCM of gas annually by 2015.
Due to an increasing domestic energy demand, the shortage is
expected to increase to approximately 4-8 BMC per year up to
2025.
1.4 To what extent is Vietnam’s natural gas production
exported (pipeline or LNG)?
According to BMI’s Report, Vietnam has potential for gas export,
but not likely until the period from 2010 to 2019, based on
comparison between gas consumption and demand.
2 Development of Natural Gas
2.1 Outline broadly the legal/statutory and organisational
framework for the exploration and production
(“development”) of natural gas reserves including:
principal legislation; in whom the State’s mineral rights to
natural gas are vested; Government authority or
authorities responsible for the regulation of natural gas
development; and current major initiatives or policies of
the Government (if any) in relation to natural gas
development.
The main purposes of a petroleum legislative framework are to
provide the basic context for and the rules governing petroleum
operations in the host country; to regulate them as they are carried
out by domestic, foreign, and international enterprises; and to
define the principal administrative, economic, and fiscal guidelines
for investment activity in the sector. The three essential elements of
such a framework in Vietnam are the Petroleum Law 1993, with
amendments 2000 and 2008, the implementing regulations
(primarily Decrees and Circulars), and the Model Contract.
Since the 1980s Vietnam has developed a variety of contractual
models to explore and develop its petroleum resources. The first
concept was a joint venture on the basis of which was established
the Vietsovpetro agreement between Vietnam and Russian
Governments. Subsequently standard terms for production-sharing
contracts were developed and promulgated.
State Property in Petroleum: the Petroleum Law asserts and
confirms that all petroleum lying within the State’s jurisdiction,
both onshore and offshore - including offshore areas where it
exercises exclusive economic interest over such resources - is the
exclusive property of the State. Any provisions to the contrary in
other laws or rights granted or vested hereunder in derogation of
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Vietnam
same are expressly superseded by this provision in the Petroleum
Law.
Regarding its regulatory regime, Vietnam has opted for the co-
existence of a Competent Authority and a national oil company
(NOC). The State vests the NOC with exclusive authority over the
sector as the de facto Competent Authority,
Vietnam
Accordingly, gas exploration and production is fully controlled by
the State and the only company authorised to develop gas is the
State-owned PetroVietnam, which primarily acts through its
subsidiary PVGAS. The Petroleum Law (enacted in 1993 and
reformed in 2000) provides an overall framework for the
exploration and development of gas resources and related-services;
it is supplemented by the implementing Decree 48/2000/ND-CP.
Nonetheless, there is no clearly established process for developing
gas projects in Vietnam and the legal framework is characterised by
a lack of clarity and transparency.
Foreign investors may conduct gas development projects only in
cooperation with PetroVietnam, by way of a Production Sharing
Agreement (PSA), joint venture contract or other contractual forms.
For upstream projects PSAs are generally concluded between the
relevant exploration and production companies and PetroVietnam;
PetroVietnam retains a monopoly in the purchase or reselling of any
gas. All project details and pricing are based on negotiations with
PetroVietnam on a project-by-project basis, which has let to delays
in project development in the past.
Current major initiatives or policies of the Government
The National Strategy on Energy Development set forth the
strategic development of the petroleum sector until 2020:
Build up legal framework for the petroleum sector, especially
in the natural gas sector: regulations on permission of
transmission and distribution of natural gas, on approval of
natural gas price, transmission and distribution fees and on
technical standardisation.
Encourage petroleum survey, periodically consider and
readjust financial terms so that petroleum activities become
competitive in the region.
Prioritise natural gas development and use; encourage and
give incentive to developers in natural gas; and diversify
ownership in investment and operation of electricity
generation factories using natural gas.
2.2 How are the State’s mineral rights to develop natural gas
reserves transferred to investors or companies
(“participants”) (e.g. licence, concession, service contract,
contractual rights under Production Sharing Agreement?)
and what is the legal status of those rights or interests
under domestic law?
The Petroleum Law allows two ways of conducting petroleum
development: through forming an incorporated joint venture and
through a Production Sharing Agreement. Both of these two
approaches are referred to in the law, in short, as Petroleum
Agreements to which the Vietnamese party is PetroVietnam. All
Petroleum Agreements must follow the Model Contract. Any
derogation from such form must be approved by the Prime Minister.
Under the Model Contract, investors or companies (referred to in
the Model Contract as Operators) are entitled to retain a part of the
exploited petroleum to cover their investment and operation
expenses (called cost recovery petroleum). The Operator will be
then entitled to share the remaining petroleum net of taxes and
excises (called the profit petroleum). The cap of expenses-
recovering oil/gas is up to 70% of the total exploited petroleum in
case of petroleum investment promotion projects and 50% for other
cases. Finally, the Operator can sell its oil/gas entitlement freely on
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the open market and transfer the profit abroad, subject to payment
of taxes.
The Petroleum Law also sets forth a framework for Petroleum
Contract as follows:
1. Contractual period
For natural gas prospection, exploration and exploitation projects,
Vietnam
the term of Petroleum Contract shall not exceed 30 years, of which
the prospection and exploration period shall not exceed 7 years.
The contractual period of the Petroleum Contract may be extended,
but not exceeding a further 5 years, and 2 years for the exploration
period.
If gas with commercial value is discovered but the market demand
and/or conditions on pipelines and suitable treatment facilities do
not exist, contractors may retain the areas where gas is found. The
duration of retention of such an area shall not exceed 5 years and
may, in special cases, be extended for up to 2 more years.
2. Restriction of area for petroleum operation
The area for prospecting and exploration under a petroleum contract
shall not cover more than two (2) blocks. In special cases, the
Vietnamese Government has authority to permit a greater area.
2.3 If different authorisations are issued in respect of different
stages of development (e.g., exploration appraisal or
production arrangements), please specify those
authorisations and briefly summarise the most important
(standard) terms (such as term/duration, scope of rights,
expenditure obligations).
Different stages of petroleum operation are set forth by the
Petroleum Law and the Decree implementing the Petroleum Law
broadly as follows:
1. Bidding process
Upon notification of the invitation for bids made by PetroVietnam,
a bidder company shall within 60 days lodge its bid, including its
offers and commitments to fulfil the bidding norms: (i) the share of
oil and gas profit to the host country; and (ii) the minimum
workload and minimum financial commitments. Then the bids will
go through processes of bid opening, evaluation and appraisal of
bidding results.
Upon notification of the bidding results, PetroVietnam shall
negotiate within 90 days with the bid winner on the petroleum
contract on the basis of content of the bid.
Appointment of the bidder will be submitted to the Ministry of
Industry and Trade, and then the Prime Minister shall consider and
issue a formal decision on appointment of the bidder, based on the
appraisal report of the Ministry of Industry and Trade.
2. Appraisal of petroleum contract and grant of certificates
A dossier for appraisal of a petroleum contract shall be submitted to
the Ministry of Industry and Trade.
The dossier will be circulated around different ministries 2 months
before it is submitted to the Prime Minister for approval. Upon
approval of the Prime Minister, PetroVietnam and the contractor
shall sign the petroleum contract.
Within 10 working days after receiving the signed original
petroleum contract, the Ministry of Industry and Trade is authorised
to grant an Investment Certificate to the investors.
3. Project and work programmes
The successful bidder/party to the Petroleum Contract is required
to:
draw up conceptual plans and detailed plans forts activities,
and submit them to the Competent Authority for
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consideration and approval. The time limit for consideration
and approval is 60 days for a conceptual plan and 30 days for
a detailed plan, from the date of receiving such plans;
draw up an annual work programme corresponding to each
period in conformity with the commitments in the Petroleum
Contract regarding the time limit, work contents and
financing, and send them to PetroVietnam for agreement on
the implementation thereof; and
prepare the documents as outlined in question 2.11.
4. Prospecting and exploration stage
An agreement must be reached with PetroVietnam containing
minimum commitments regarding the geophysics survey volume,
number of drilled wells volume and other integrated studies, as well
as commitments regarding training, recruitment and technology
transfer. The cost estimates for the above-mentioned minimum
work commitment shall be considered the minimum financial
commitment.
During this stage, the contractor may start early production in the
contractual areas, on conditions that it submits to the Competent
Authority the Early Production Plans for approval.
5. Exploration stage
Upon discovery of petroleum, the contractor must promptly notify
and report on the study results, evaluation and relevant documents
to the Competent Authority and PetroVietnam.
The contractor and PetroVietnam must reach an agreement in the
relevant petroleum contract on the terms regarding criteria to
determine fields of commercial value, the time limit for submitting
the field reserve appraisal programmes, the outline plan and field
development plans.
Then the contractor has to notify the reserve appraisal results to
PetroVietnam. If the appraisal results show that the field is of
commercial value, the contractor and PetroVietnam shall have to
submit to the Competent Authority the reserve report and the field
development plans for submission to the Prime Minster for
approval.
2.4 To what extent, if any, does the State have an ownership
interest, or seek to participate, in the development of
natural gas reserves (whether as a matter of law or
policy)?
The State’s exclusive ownership over its natural resources is a
matter of policy and law, which is recognised by Vietnam’s
Constitution. As stated above, the Petroleum Law asserts and
confirms that all petroleum is within the State’s jurisdiction. The
State’s ownership interest is exercised by PetroVietnam that is
empowered to conduct petroleum operations and to enter into
petroleum contracts. In case a petroleum project is shared between
PetroVietnam and other party(ies), the State’s ownership interest
will be assured by the following rules:
1. Ownership of fixed installations and equipment
Although a contractor is permitted to install and operate and
maintain fixed installations and equipment servicing Petroleum
Operations, the ownership of such fixed installations and equipment
shall belong to the State of Vietnam from the date agreed upon by
the parties to a Petroleum Contract.
2. Ownership of samples, cores, data and information
All the samples, cores, data and information acquired during the
conduct of Petroleum Operations are the property of the State.
3. Preemptive right over assignment of Petroleum Contract
PetroVietnam shall have the preemptive right to acquire the
Petroleum Contract or portion thereof in case of total or partial
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assignment of Petroleum Contract bythe contractor.
While PetroVietnam operates the State’s monopoly, its gas
subsidiary PVGAS reportedly plans to conduct an IPO on the HCM
City Stock Exchange. Under this plan, some 5% of shares may be
offered to investors, while a further 20% may be offered to one or
more strategic investors.
The basic CIT rate is 50%. The rate applicable to investment
promotion projects is 32%. The contractor may be exempted from
CIT for a maximum period of two (2) years and entitled to the fifty
percent (50%) reduction of CIT for a maximum period of two (2)
subsequent years.
Profits for reinvestment shall not be subject to reimbursement of

Vietnam
enterprise income tax.
2.5 How does the State derive value from natural gas 3. Share of production
development (e.g. royalty, share of production, taxes)? According to the Model Contract, PetroVietnam is entitled to share
petroleum production net of:
The State derives value from petroleum operations primarily 1. Cost recovery petroleum
through royalties (referred to as a “tax on natural resources”),
corporate income taxes and share of production. This kind of expense is subject to negotiation of the Petroleum
Contract. The cap set up by the Petroleum Law is up to 70% of the
1. Royalties total exploited petroleum in case of petroleum investment
According to Circular No. 32/2009/TT-BT, Royalties are payable in promotion projects and 50% for other cases. In case of absence of
crude oil or natural gas and progressive on the basis of the total net such a negotiation, the default rate of 35% will apply.
petroleum output exploited in each royalty payment period, as 2. Royalty
below:
As described above.

Daily
Number of 2.6 Are there any restrictions on the export of production?
Royalty output of
days of
amount petroleum
Royalty petroleum
payable in = subject to x x
rate exploitatio At present, there are no express restrictions of the export of
crude oil or royalties in
n in royalty
natural gas royalty
period
period production. Article 28 of the Petroleum Law recognises
contractors’ rights to export petroleum production without having to
apply for export permits, though export duty issues will be relevant
as discussed below.
Royalty amount for natural gas:
Despite this general right to export, the Government does retain
discretion to mandate restrictions on exports and/or domestic sale in
Projects eligible for
Output
investment promotion
Other projects some circumstances.
Determination of payable export duty amounts:

Up to 5 million m3/day 0% 0%

Volume of
Payable Export
exported Dutiable
Between over 5 and 10 export duty = x x duty
3% 5% crude oil or price
million m3/day amount percentage
natural gas

Over 10 million m3/day 6% 10%

The export duty percentage is determined as follows:

Royalties shall be paid in crude oil or natural gas; in cash; or Percentag

Export
partially in cash and partially in crude oil or natural gas. e of
duty rate
Export temporarily
applicable
2. Corporate income tax (“CIT”) duty = 100% - calculated x
to crude oil
percentage royalties in
Determination of taxable income: or natural
royalty
gas
period

Turnover
from Deductible
In general then, the higher the royalty rates, the smaller the export
Taxable Other
income in =
petroleum
-
expenses
+ incomes in
duty will be.
operations in tax
tax period tax period
in tax period
period
2.7 Are there any currency exchange restrictions, or
restrictions on the transfer of funds derived from
production out of the jurisdiction?
Determination of the payable CIT amount:
Contractors have the right to open accounts in Vietnam and
overseas; overseas accounts must be registered with Vietnam’s
State Bank.
Payable CIT
Taxable income Contractors have the right to exchange foreign currencies at
amount in tax = x CIT rate
in tax period
period commercial banks or licensed credit institutions for purposes of
meeting foreign currency transaction needs or other permitted
transactions, pursuant to generally-applicable Vietnamese
legislation on foreign exchange management. Exceptions are made

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for certain “important projects”.
In general, the amounts of foreign currency exchange must not
exceed the amount in Vietnam Dong earned by the contractor from
the sale of oil and gas on the Vietnamese market.
The Petroleum Law allows foreign investors to transfer abroad
income from the sale of petroleum being part of recovered
Vietnam
expenses, profits and other lawful revenues earned in the course of
petroleum activities, after fulfilling the tax obligations. Transfer of
such revenue is no longer subject to a separate remittance tax.
2.8 What restrictions (if any) apply to the transfer or disposal
of natural gas development rights or interests?
As stated above, contractors have the right to transfer part or all of
their interest in Petroleum Contracts (i.e. transfer of the capital
amount contributed pursuant to the Petroleum Contract) if:
a) the transferee undertakes to continue to perform the
Petroleum Contract concluded by the transferor; and
b) satisfying the conditions on transfer of capital and projects
according to the investment law.
The transfer of part or whole of the Petroleum Contract must be
approved by the Prime Minister and takes effect as prescribed in the
modified investment certificate.
However, the State, through PetroVietnam, has a preemptive right
to acquire the Petroleum Contract or portion thereof proposed for
transfer.
The revenue derived from such a transfer is subject to CIT, as
described above, except for the CIT rate is 25% and CIT
exemptions and reductions are not applicable.
2.9 Are participants obliged to provide any security or
guarantees in relation to natural gas development?
The Petroleum Law does not require a contractor to provide any
specific security or guarantee. However the law does require
contractors to meet minimum workload and financial commitments,
as agreed in the relevant Petroleum Contract.
2.10 Can rights to develop natural gas reserves granted to a
participant be pledged for security, or booked for
accounting purposes under domestic law?
There are no express rules in Vietnam as to whether rights to
develop natural gas reserves can be pledged for security, or booked
for accounting purposes under domestic law.
The Civil Code defines property rights as “rights able to be
evaluated in money and transferable through civil transactions,
including intellectual property”. On this basis, contractors’ rights
under Petroleum Contracts, transferrable with permission of the
Prime Minister, may be considered a property right under the Civil
Code and therefore prima facie able to be pledged. Despite this, the
Government is likely to be unwilling to recognise such rights as
property rights for this particular purpose and it is notable that
nothing in the accounting legislation expressly permits contractors
to book such rights for accounting purposes. Similarly, legislation
on security transactions does not expressly recognise the right to
pledge such rights.
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2.11 In addition to those rights/authorisations required to
explore for and produce natural gas, what other principal
Government authorisations are required to develop
natural gas reserves (e.g. environmental, occupational
health and safety) and from whom are these
authorisations to be obtained?
After the conclusion and approval of a Petroleum Contract but
before any petroleum operation, the contractor must make or draw
up:
1. A report on environmental impact assessment.
2. A safety control programme and the risk evaluation enclosed
with measures to mitigate incidents and damages.
3. Emergency response plans, including technical solutions and
the utilisation of means and equipments to overcome the
incidents.
The Petroleum Law is silent on the contents and to whom these
documentations are to be addressed, although it is of common sense
to address them to the Competent Authority (Ministry of Industry
and Trade) and PetroVietnam.
2.12 Is there any legislation or framework relating to the
abandonment or decommissioning of physical structures
used in natural gas development? If so, what are the
principal features/requirements of the legislation?
A. Abandonment of fixed installations and equipment
During the course of petroleum operations, the contractor must
from time to time abandon fixed installations and equipment no
longer in use. The contractor must draw up plans on abandonment
of fixed installations and equipment and make financial provisions
for the abandonment. Expenses for the abandonment shall be
accounted as cost recovery petroleum. However, this obligation
only binds the contractor in case of successful exploration and
commercial production thereafter.
B. Abandonment of petroleum wells
The contractor must always include a preliminary plan of well
abandonment into the general plan of production for each well or
for the whole block under the Petroleum Contract. Then he has
obligation to make plans of well abandonment for each abandoned
well.
2.13 Is there any legislation or framework relating to gas
storage? If so, what are the principle
features/requirements of the legislation?
At present there is no specific regulation on LNG storage. With
regard to LGP, companies engaging in LPG activities must have
minimum storage capacity, as specified by Decree No.
115/2009/NĐ-CP on trading in liquefied petroleum gas:
1. Requirement of minimum storage capacity
For LPG production or processing:companies must have an LPG
storehouse (beyond the storing capacity already approved in the
investment project), with a total capacity of tanks of at least 5,000
m3 and built under planning and according to current technical
regulations to receive imported LPG from ships or other vehicles.
For leasing storehouses and ports for LPG exportation or
importation:companies must own or co-own LPG storehouses with
a total capacity of tanks of 1,000 m3 or more under a joint venture
or capital contribution contract approved by a competent authority
and built under planning and according to current technical
regulations.
For grade-I LPG distribution: companies must own or co-own an
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LPG storehouse with a total capacity of tanks of at least 800 m3 to
receive LPG from ships or other transport vehicles, and built under
planning and according to current technical regulations.
2. Requirement of minimum LPG volume in storage
(circulation reserves)
LPG wholesalers (exporter, importer, producer or processor or a
grade-I LPG distributor) shall maintain the minimum LPG
circulation reserve equal to 7 days’ supply for their distribution
systems and annually increase this reserve so that by 2015 this
reserve will be equal to at least 15 days’ supply.
Traders acting as general agents shall maintain the minimum LPG
circulation reserve equal to 3 days’ supply.
3 Import / Export of Natural Gas (including LNG)
3.1 Outline any regulatory requirements, or specific terms,
limitations or rules applying in respect of cross-border
sales or deliveries of natural gas (including LNG).
The following is only expressly for LPG, but LNG is considerably
likely to be subject to the same conditions and regulations:
A. Conditions for a trader engaging in LPG export /
import:
1. Having a business registration certificate, covering the right
to engage in LPG export and/or import.
2. Owning or co-owning a wharf within the Vietnamese seaport
system; or having entered into a contract for lease of a wharf
for at least one year for receiving LPG ships; having
storehouses of a total tank capacity of at least 3,000 m3 for
storing imported LPG from ships or other vehicles.
3. Owning at least 300,000 LPG bottles (excluding mini
bottles). These LPG bottles must be compatible with
trademarks and brands legally registered.
4. Having an LPG bottling station with a certificate of
satisfaction of LPG bottling conditions.
5. Having an LPG distribution system, including member
enterprises, branches, shops or automobile LPG-filling
stations or LPG supply stations and at least 40 LPG-trading
agents (general agent and agents or agents) that fully satisfy
conditions for agents as required by law.
B. Obligation of LPG circulation reserves
1. LPG wholesalers shall maintain the minimum LPG
circulation reserve equal to 7 days’ supply for their
distribution systems and annually increase this reserve so
that by 2015 this reserve will be equal to at least 15 days’
supply.
2. Traders acting as general agents shall maintain the minimum
LPG circulation reserve equal to 3 days’ supply.
4 Transportation
4.1 Outline broadly the ownership, organisational and
regulatory framework in relation to transportation
pipelines and associated infrastructure (such as natural
gas processing and storage facilities).
According to the ASMA Technical Assistance for the Revision of
the Existing Legal and Regulatory Framework 2003, the
Government of Vietnam is currently pursuing the establishment of
a legal and regulatory framework for gas transmission and
distribution. However, at present, legislation only provides limited
terms in this area and more is expected to be adopted in due course.
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A pipeline land strip (the land area and the space within two
boundaries of the pipeline land strip) will be assigned by the State
to the investor who shall have the full right to use such land strips
in the process of constructing, installing, operating and maintaining
the pipelines. While Vietnamese law only confers “land use rights”
to investors (with the State retaining ultimate ownership of land),
Vietnam
such land use rights can be considered de facto full property rights
over the land in question in accordance with the terms of the
particular land use rights granted. Investors may separately own the
pipelines themselves.
In practice, PetroVietnam may directly, or through its subsidiaries,
take part in the project as a party to the contract and will be, in most
cases, responsible for contributing land use rights with the other
investor(s) responsible for constructing the pipelines and associated
infrastructure. In such case, the land use rights will be accounted
for as equity of the project, and therefore the project will be
classified as a “State budget-funded project”. If the portion from
the State budget is more than 50% of total investment costs, the
project will be subject to process of investment assessment and
supervision, including additional public tender requirements.
4.2 What Governmental authorisations (including any
applicable environmental authorisations) are required to
construct and operate natural gas transportation pipelines
and associated infrastructure?
Vietnamese law does not clearly state whether a project of
construction and operation of pipelines is considered “a petroleum
project” (subject to petroleum legislation), a construction project
(subject to construction legislation) or a mix of the two. In absence
of specific guidance on this issue, both legal frameworks will, in
practice, apply. The primary petroleum-related aspects applicable
in this area have been outlined under questions 2.3 and 2.11 above.
The following touches on predominant construction-related points.
The construction of pipelines is classified, for purposes of
construction legislation, as construction for oil and gas extraction.
Such construction projects will fall into one of three classifications:
Total investment over VND 1.5 trillion
GROUP-A PROJECTS
(app. USD 75 million)
VND750billion – 1.5 trillion (app.
GROUP-B PROJECTS
USD3.75million - USD75million)
Under VND 75 billion (app. US D3.75
GROUP-C PROJECTS
million)
A Investment Project on the construction (feasibility study
report)
The investment study reports on the construction must contain:
1. Details of explanations of an investment project on the
construction of works, including the investment
necessity/objective and the total investment.
2. Details of the basic design of an investment project on the
construction of works.
B. Appraisal of the Investment Project on the
construction
As noted above in question 4.1, the process of project appraisal and
approval that applies to a given investment project varies on
whether or not State capital is involved. The following outlines in
brief the process applicable in the case of no State capital
involvement.
1. Obtaining opinions of the competent agency on the
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Investment Project (officially within 10-20 working days):
For projects group-A projects: The Ministry of Industry and
Trade.
For group-B and group-C projects: Provincial-level Industry
and Trade Services.
2. Appraisal: once positive opinions have been obtained, the
Vietnam
investor must proceed to have the project formally appraised.
C. Appraisal and approval of technical designs and working
drawing designs
D. Construction permit
After the filing of an application, a construction permit shall be
granted by Provincial People’s Committees for grade A and grade B
construction projects and by district-level People’s Committees for
other constructions.
4.3 In general, how does an entity obtain the necessary land
(or other) rights to construct natural gas transportation
pipelines or associated infrastructure? Do Government
authorities have any powers of compulsory acquisition to
facilitate land access?
As noted above, a pipeline land strip will be allocated by the State
to the project investor who shall have the full right to use such land
strip in accordance with the particular terms of the relevant land use
rights certificate granted. Land granted to foreign-invested investor
entities will usually take the form of land lease, while land granted
to domestic investors may either be in the form of lease or long-
term ‘allocation’. Vietnamese law provides that the State manages
all land on behalf of the people of Vietnam and, as such, the State
does have power to compulsorily acquire land though subject to
compensation obligations.
4.4 How is access to natural gas transportation pipelines and
associated infrastructure organised?
Vietnamese law is silent on this issue and in practice access must be
negotiated on a case-by-case basis with PetroVietnam and the
Government, usually in the first instance via the Ministry of
Industry and Trade.
4.5 To what degree are natural gas transportation pipelines
integrated or interconnected, and how is co-operation
between different transportation systems established and
regulated?
To date, Vietnam’s gas pipelines have been exploited independently
from other systems and each other. There are currently no legal
provisions relating to co-operation or access between different
transportation systems.
4.6 Outline any third-party access regime/rights in respect of
natural gas transportation and associated infrastructure.
For example, can the regulator or a new customer
wishing to transport natural gas compel or require the
operator/owner of a natural gas transportation pipeline or
associated infrastructure to grant capacity or expand its
facilities in order to accommodate the new customer? If
so, how are the costs (including costs of interconnection,
capacity reservation or facility expansions) allocated?
There are no specific regulations on this issue in Vietnamese law at
present. The National Strategy on Energy Development
recommends diversifying modes of ownership and eliminating
monopoly until 2020. However, it is not known when the right to
344 WWW.ICLG.CO.UK
Vietnam
access to gas transportation pipelines will be legally recognised.
Theoretically, the Competition Law can impose a duty on a
company to grant access to other competitors, though such
regulations have not been widely used in practice in any
commercial sector.
4.7 Are parties free to agree the terms upon which natural
gas is to be transported or are the terms (including
costs/tariffs which may be charged) regulated?
Vietnamese law is silent about this issue. However, the National
Strategy on Energy Development encourages competition on the
field implying freedom of agreement on terms and conditions of
transportation of natural gas. Obviously, this must be conducted
within the framework proposed in the National Strategy on Energy
Development: “Important responsibilities of management of natural
gas are: grant of Transportation and Distribution permit, approval of
natural gas price, transportation and distribution cost, technical
standards.”
5 Transmission / Distribution
5.1 Outline broadly the ownership, organisational and
regulatory framework in relation to the natural gas
transmission/distribution network.
Although the law does not prohibit private ownership, almost all
distribution systems are currently State-owned.
The Ministry of Industry and Trade assumes the prime
responsibility for, and coordinates with, concerned ministries and
branches and provincial-level People’s Committees in devising and
publicising a national plan on development of LPG-trading
establishments, including LPG production or processing plants,
LPG storehouses with a total capacity of tanks and cisterns of 5,000
m3 or more, ports for LPG exportation or importation which can
accommodate ships of a tonnage of 5,000 tonnes or more; and
inspecting and supervising the implementation of the approved
planning.
Provincial People’s Committees devise plans on development of
LPG-trading establishments, including specialised LPG-trading
stores, LPG supply stations, automobile LPG-filling stations, LPG-
bottling stations, LPG storehouses with a total capacity of tanks,
and cisterns of under 5,000 m3, then incorporate them in their local
socio-economic development master plans, ensuring their
conformity with the national master plan, and inspect and supervise
the implementation of such plans after they are approved.
Decree No. 115/2009/NĐ-CP dated 2 November 2009, assigns the
Ministry of Industry and Trade to promulgate regulations on LPG
trading agents, but to date no such regulations have been issued.
5.2 What Governmental authorisations (including any
applicable environmental authorisations) are required to
operate a distribution network?
An LPG distributor must satisfy the following conditions or obtain
the following authorisations:
1. Grade-I LPG distribution:
a business registration certificate, covering the registration
for LPG trading;
owning or co-owning an LPG storehouse with a total
capacity of tanks of at least 800 m3 to receive LPG from
ships or other transport vehicles;
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Duane Morris LLP
owning at least 300,000 LPG bottles of all kinds (except mini
bottles), trademarks and brands already registered with
competent authorities under law;
having an LPG-bottling station with a certificate of
satisfaction of LPG bottling conditions; and
having an attached LPG distribution system, consisting of
bottled LPG-selling shops or LPG supply stations or
automobile LPG-filling stations, and at least 20 LPG-trading
agents (general agent and agents or agents).
2. LPG-trading general agent
having a business registration certificate, covering the
registration for LPG trading agency;
having an LPG and bottled LPG storehouse of a capacity of
at least 2,000 LPG bottles or bottled LPG of all kinds (except
mini bottles);
having an LPG distribution system consisting of bottled
LPG-selling stores or automobile LPG-filling stations, and at
least 10 agents; and
having entered into an agency contract of a term of at least 1
year, which is still valid, with an eligible LPG wholesaler.
3. LPG-trading agent
having a business registration certificate, covering the
registration for LPG trading agency;
having a bottled LPG-selling store or an automobile LPG-
filling station; and
having entered into an agency contract of a term of at least 1
(one) year, which is still valid, with an eligible LPG
wholesaler or general agent.
4. Bottled LPG-sales outlets
having a business registration certificate, covering the
registration for sale of bottled LPG;
having entered into a bottled LPG purchase contract of a
term of at least 1 year, which is still valid, with an eligible
agent or general agent or LPG wholesaler; and
having a certificate of satisfaction of fire prevention and
fighting conditions, a certificate of satisfaction of security
and order conditions granted by a competent police office.
5. Automobile LPG-filling stations
having a construction permit accompanied with a project or
design approved by a competent authority;
measuring devices have been inspected and corrected under
regulations;
equipment subject to stringent requirements on automobile
LPG filling safety has been inspected and registered under
regulations; and
having a certificate of satisfaction of fire prevention and
fighting conditions and a certificate of satisfaction of security
and order conditions granted by a competent police office.
6. Conditions on LPG supply stations
having a construction permit accompanied with a project or
design approved by a competent authority;
measuring devices have been inspected and corrected under
regulations; and
having a certificate of satisfaction of fire prevention and
fighting conditions and a certificate of satisfaction of security
and order conditions granted by a competent police office;
and a slip of results of inspection of equipment of LPG
supply stations subject to stringent safety requirements.
Moreover, depending on the potential impact of the project on the
environment, the Investor must obtain an Environment Impact
Assessment or just make an Environmental Protection
Commitment.
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Vietnam
5.3 How is access to the natural gas distribution network
organised?
Art 47 of the Competition Law prohibits restriction to the access to
the network for a company wishing to join the network and
satisfying the conditions for admission or withdrawal, if such
Vietnam
refusal constitutes discriminatory treatment and places such
company at a competitive disadvantage. However, due to an
absence of detailed regulations on this relatively new field of law in
Vietnam, investors may find difficulties enforcing such provisions
in practice.
An investor may otherwise want to access an existing network
through merger and acquisition activity. However to the extent
such activity would focus on State targets, the procedures and
obstacles are likely to be significant in practice.
5.4 Can the regulator require a distributor to grant capacity or
expand its system in order to accommodate new
customers?
Vietnam law does not expressly regulate this issue. It is noted
however that Decree No. 115/2009/NĐ-CP provides some
framework on this issue through requirement of minimum storage
in Art 52:
LPG wholesalers (LPG exporter, importer, producer or
processor or a grade-I LPG distributor) must maintain the
minimum LPG circulation reserve equal to seven days
supply for their distribution systems and annually increase
this reserve so that by 2015 this reserve will be equal to at
least 15 (fifteen) days’ supply.
Traders acting as general agents shall maintain the minimum
LPG circulation reserve equal to three days supply.
5.5 What fees are charged for accessing the distribution
network, and are these fees regulated?
There is very limited regulation on this matter in Vietnam.
Generally any fees would be negotiated on a case-by-case basis,
subject to negotiation. Investors may have some recourse to the
principle of non-discrimination set forth in Art 47 of the
Competition Law for admission or withdrawal of a member of the
network.
5.6 Are there any restrictions or limitations in relation to
acquiring an interest in a gas utility, or the transfer of
assets forming part of the distribution network (whether
directly or indirectly)?
There is no express legal regulation on this matter and therefore
these issues are subject to negotiation between any new prospective
member and the network or otherwise specified in the network’s
conditions for admission and withdrawal.
6 Natural Gas Trading
6.1 Outline broadly the ownership, organisational and
regulatory framework in relation to natural gas trading.
Please include details of current major initiatives or
policies of the Government or regulator (if any) relating to
natural gas trading.
There is no specific regulation for natural gas trading, however it is
useful to refer to Decree No. 115/2009/NĐ-CP on LPG as described
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in part in questions 5.1 – 5.6 above.
6.2 What range of natural gas commodities can be traded?
For example, can only “bundled” products (i.e., the natural
gas commodity and the distribution thereof) be traded?
Vietnam
There is no specific regulation on this issue, but it is useful to refer
to LPG regulations generally which allows LPG to be traded at
stations or bottled according to national standards.
7 Liquefied Natural Gas
7.1 Outline broadly the ownership, organisational and
regulatory framework in relation to LNG facilities.
There are no specific regulations for LNG, however it is useful to
refer to regulations on LPG for general principles.
7.2 What Governmental authorisations are required to
construct and operate LNG facilities?
There are no specific regulations on this, however as the
construction of operation of LNG facilities may be subject to both
petroleum and construction legislation, it is useful to refer to
questions 2.3 and 4.2 above for general outline on relevant points.
7.3 Is there any regulation of the price or terms of service in
the LNG sector?
Where a petroleum product is sold to the public, its price will fall
under a scale fixed by the Government and readjusted from time to
time. For regulations on trading of LPG, please refer to questions
5.1 – 5.6 above.
7.4 Outline any third-party access regime/rights in respect of
LNG Facilities.
There are no specific regulations on this issue in Vietnam at present.
8 Competition
8.1 Which Governmental authority or authorities are
responsible for the regulation of competition aspects, or
anti-competitive practices, in the natural gas sector?
The authority responsible for the regulation of competition aspects
is the Competition Council, who is responsible for every sector,
including the gas sector.
8.2 zTo what criteria does the regulator have regard in
determining whether conduct is anti-competitive?
The Competition Law 2004 specifies a number of criteria of an anti-
competitive conduct:
A. Agreements in restraint of competition
1. agreements either directly or indirectly fixing the price of
goods and services;
2. agreements to share consumer markets or sources of supply
of goods and services;
3. agreements to restrain or control the quantity or volume of
goods and services produced, purchased or sold;
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Vietnam
4. agreements to restrain technical or technological
developments or to restrain investment;
5. agreements to impose on other enterprises conditions for
signing contracts for the purchase and sale of goods and
services or to force other enterprises to accept obligations
which are not related in a direct way to the subject matter of
the contract;
6. agreements which prevent, impede or do not allow other
enterprises to participate in the market or to develop
business;
7. agreements which exclude from the market other enterprises
which are not parties to the agreement; and
8. collusion in order for one or more parties to win a tender for
supply of goods and services.
The agreements at points 1, 2, 3, 4 and 5 above are prohibited when
the parties to the agreement have a combined market share of thirty
(30) per cent or more of the relevant market. The remaining points
are prohibited irrespective of the market share of participants.
B. Abuse of dominant market position
A group of enterprises shall be deemed to be in a dominant market
position if they act together in order to restrain competition and fall
into one of the following categories:
(a) 2 enterprises have a market share of fifty (50) percent or
more in the relevant market;
(b) 3 enterprises have a market share of sixty five (65) percent or
more in the relevant market; and
(c) 4 enterprises have a market share of seventy five (75) percent
or more in the relevant market.
Any enterprise or group of enterprises in a dominant market
position shall be prohibited from carrying out the following
practices:
1. selling goods or providing services below total prime cost of
the goods aimed at excluding competitors;
2. fixing an unreasonable selling or purchasing price or fixing a
minimum re-selling price goods or services, thereby causing
loss to customers;
3. restraining production or distribution of goods or services,
limiting the market, or impeding technical or technological
development, thereby causing loss to customers;
4. applying different commercial conditions to the same
transactions aimed at creating inequality in competition;
5. imposing conditions on other enterprises signing contracts
for the purchase and sale of goods and services or forcing
other enterprises to agree to obligations which are not related
in a direct way to the subject matter of the contract; and
6. preventing market participation by new competitors.
Any enterprise in a monopoly position shall be prohibited from
carrying out the following practices:
1. practices mentioned above applied for enterprise or group of
enterprises in a dominant market position;
2. imposing disadvantageous conditions on customers; and
3. abuse of monopoly position in order to change or cancel
unilaterally a signed contract without legitimate reason.
8.3 What power or authority does the regulator have to
preclude or take action in relation to anti-competitive
practices?
The Competition Council is equipped with the following powers to
preclude and take action in relation to anti-competitive practices:
(a) to control the process of economic concentration (i.e.
mergers, joint ventures, etc.) in accordance with this Law;
(b) to accept jurisdiction over files for request of exemption; to
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forward its opinion to the Minister of Trade for a decision or
to submit the same to the Prime Minister for his decision;
(c) to investigate competition cases concerning practices in
restraint of competition and unfair competitive practices;
(d) to deal with and impose fines in respect of unfair competitive
practices; and
(e) to fulfil other duties in accordance with law.
8.4 Does the regulator (or any other Government authority)
have the power to approve/disapprove mergers or other
changes in control over businesses in the natural gas
sector, or proposed acquisitions of development assets,
transportation or associated infrastructure or distribution
assets? If so, what criteria and procedures are applied?
How long does it typically take to obtain a decision
approving or disapproving the transaction?
In the case where enterprises participating in an economic
concentration have a combined market share in the relevant market
of from thirty (30) percent to fifty (50) percent, the legal
representative of such enterprises must notify the administrative
body for competition prior to carrying out the economic
concentration. The procedure is as follows:
1. A file for notification of an economic concentration
2. Acceptance of jurisdiction over file for notification of
economic concentration (within seven working days from
the date of receipt)
3. Reply to notification of economic concentration
The administrative body for competition shall be responsible,
within a time limit of forty five (45) days from the date of receipt
of a complete file for notification of an economic concentration, to
provide a written reply to the enterprise which submitted the file.
The written reply of the administrative body for competition must
confirm that the economic concentration belongs to one of the
following categories:
(a) the economic concentration does not fall within the
prohibited category; and
(b) the economic concentration is prohibited because the
enterprises participating in the economic concentration have
a combined market share in the relevant market of more than
fifty (50) percent.
4. Carrying out economic concentrations
The legal representative of enterprises participating in an economic
concentration in the category required to provide notification stated
above may conduct procedures for the economic concentration at
the authorised State body in accordance with the laws on
enterprises, only after having received a written reply from the
administrative body for competition that the economic
concentration is not within the prohibited category.
9 Foreign Investment and International
Obligations
9.1 Are there any special requirements or limitations on
acquisitions of interests in the natural gas sector (whether
development, transportation or associated infrastructure,
distribution or other) by foreign companies?
The Petroleum Law only applies to Petroleum exploration and
production activities carried out within the territory, the exclusive
economic zone and the continental shelf. Within this scope of
operations, foreign investors can only carry out activities under a
petroleum contract that may be signed in the form of a production-
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Vietnam
sharing contract, joint-venture contract or other contractual forms.
But since Decree 48/2000/NĐ-CP only sets forth a model
production-sharing contract, it means that this kind of contract is a
preference one, and this fits the international practice in the sector.
To date, only one incorporated joint venture was created by
Vietnam and Russia (Vietsovpetro).
Vietnam
For other activities related to petroleum, such as refining,
transmission and distribution and trading, the investment and
company legislations will apply.
Any restrictions on foreign ownership stakes in a given sector are
based on Vietnam’s WTO service sector commitments that
generally follow a phased-in approach over time. In any event,
Vietnam’s Government has discretion to grant foreign ownership in
excess of such commitments.
9.2 To what extent is regulatory policy in respect of the
natural gas sector influenced or affected by international
treaties or other multinational arrangements?
Principle of non-discrimination features prominently in GATT and
GATS, to which Vietnam is an official member:
National Treatment (Art. 3): Equal treatment for foreign and
domestic individuals and companies.
Most Favoured Nation (Art. 4): Equal treatment for nationals
of all trading partners in the WTO.
Minimum protection by WTO is normally widened by bilateral
agreements, for instance the Vietnam – US BTA provides a fuller
mechanism of protection:
Principle of National Treatment (Art. 3): Each Party shall
accord to nationals of the other Party treatment no less
favourable than it accords to its own nationals with regard
[…] intellectual property rights.
Principle of Fair and Equitable Treatment (Art. 11): ensure
that enforcement procedures of IP rights are not
unnecessarily complicated or costly, and do not entail
unreasonable time limits or unwarranted delays.
10 Dispute Resolution
10.1 Provide a brief overview of compulsory dispute resolution
procedures (statutory or otherwise) applying to the natural
gas sector (if any), including procedures applying in the
context of disputes between the applicable Government
authority/regulator and: participants in relation to natural
gas development; transportation pipeline and associated
infrastructure owners or users in relation to the
transportation, processing or storage of natural gas; and
distribution network owners or users in relation to the
distribution/transmission of natural gas.
The Model Contract encourages parties to the Petroleum Contract
to submit their dispute to London Petroleum Institute. In practice,
PetroVietnam and contractors prefer to address their dispute to the
Singapore International Arbitration Center (SIAC).
If the dispute is between contractors and a Government authority,
contractors must address their appeal to decisions firstly to the head
of such Governmental body, or if the decision is made by such head,
to the body in the next higher hierarchy. If all appeals are
unsuccessful, then contractors can lodge a claim to the court to
request review of the court over decisions made by Government
authority.
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10.2 Is Vietnam a signatory to, and has it duly ratified into
domestic legislation: the New York Convention on the
Recognition and Enforcement of Foreign Arbitral Awards;
and/or the Convention on the Settlement of Investment
Disputes between States and Nationals of Other States
(“ICSID”)?
Vietnam
10.4 Have there been instances in the natural gas sector when
foreign corporations have successfully obtained
judgments or awards against Government authorities or
State organs pursuant to litigation before domestic
courts?

Court cases are generally not publicised in Vietnam. However, it is

Vietnam is a signatory to both the New York Convention on the unlikely that any foreign entities have obtained judgment against
Recognition and Enforcement of Foreign Arbitral Awards and Government authorities pursuant to litigation before domestic
ICSID. As Vietnam elects the unilateralism model in treaty law, a courts to date.
treaty is effective and binding from date of signature of the
Government without any requirement for a legislative body to
ratify. 11 Updates

10.3 Is there any special difficulty (whether as a matter of law
or practice) in litigating, or seeking to enforce judgments
or awards, against Government authorities or State
organs (including any immunity)?
With respect to domestic awards or judgments, special difficulties
arise in practice considering question marks over the independence
of the judiciary in Vietnam and power of State organs in particular
to influence decisions. With regards to offshore cases, enforcing
foreign court judgments in Vietnam is all but impossible due to an
absence of judicial recognition treaties for the vast majority of
countries. Foreign arbitral awards may be enforced in theory but,
again, enforcement in practice is likely to be cumbersome and time-
consuming. As with other countries, Vietnamese courts may base
on public policy to refuse recognition of foreign judgments or
awards.
11.1 Please provide, in no more than 300 words, a summary of
any new cases, trends and developments in Gas
Regulation Law in Vietnam.
In terms of Vietnam’s long term policy strategy, there are two key
regulations governing master plan on oil and gas of Vietnam:
(i) Decision No. 386/QD-TTg, dated 9 March 2006, of the
Prime Minister approving strategy for development of oil
and gas sector until 2015, vision to 2025; and
(ii) Decision No. 233/QD-TTg, dated 18 February 2009, of the
Prime Minister approving master plan for development of oil
and gas sector until 2015, vision to 2025.
Unfortunately, the content of such documents are not readily made
public. Predictions about Vietnam’s long-term strategy regarding
gas development - especially questions of State monopoly vs.
privatisation and of competitive market prices - are thus hard to
make. It should be clear, however, that Vietnam will increasingly
have to rely on gas imports to meet its increasing domestic demand.

Endnotes

Endnote 1

Proven Reserves

At end 2009

At end 1989 At end 1999 At end 2008 Trillion Trillion

Share R/P
Trillion Trillion Trillion cubic cubic
of total ratio
cubic cubic cubic feet metres
metres metres metres

Indonesia 2.55 2.62 3.18 112.5 3.18 1.7% 44.3

Malaysia 1.61 2.48 2.38 84.1 2.38 1.3% 38.0

Myanmar 0.27 0.29 0.57 20.1 0.57 0.3% 49.4

Pakistan 0.65 0.70 0.84 32.0 0.91 0.5% 23.9

Papua New Guinea 0.23 0.43 0.44 15.6 0.44 0.2% *

Thailand 0.23 0.35 0.34 12.7 0.36 0.2% 11.6

Vietnam _ 0.17 0.56 24.1 0.68 0.4% 85.2

Other Asia Pacific 0.26 0.34 0.36 12.9 0.36 0.2% 20.9

(Source: BP Statistical Review of World Energy, 2010)

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Endnote 2

Production*

Change 2009 over

Billion cubic meters 2005 2006 2007 2008 2009 2009 share of total
2008

Vietnam
Indonesia 71.2 70.3 67.6 69.7 71.9 3.5% 2.4%

Malaysia 61.1 63.3 64.6 64.9 62.7 -3.3% 2.1%

Myanmar 12.2 12.6 13.5 12.4 11.5 -6.7% 0.4%

Pakistan 3.6 3.7 4.1 3.8 4.0 4.4% 0.1%

Papua New Guinea 35.5 36.1 36.8 37.5 37.9 1.3% 1.3%

Thailand 23.7 24.3 26.0 28.8 30.9 7.6% 1.0%

Vietnam 6.9 6.8 7.1 7.9 8.0 1.0% 0.3%

Other Asia Pacific 7.0 10.1 12.5 13.7 13.6 0.4% 0.5%

(Source: BP Statistical Review of World Energy, 2010)

Endnote 3

Vietnam annual gas production

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 Duane Morris LLP Vietnam

Giles Cooper Oliver Massmann

Duane Morris Vietnam LLC Duane Morris Vietnam LLC
Unit V1307/1308, 13th Flor Unit V1307/1308, 13th Flor
83B Ly Thuong Kiet Street 83B Ly Thuong Kiet Street
Hoan Kiem District, Hanoi Hoan Kiem District, Hanoi
Vietnam Vietnam
Vietnam

Tel: +84 8 3824 0231 Tel: +84 4 3946 2205

Fax: +84 4 3946 1311 Fax: +84 4 3946 1311
Email: gtcooper@duanemorris.com Email: omassmann@duanemorris.com
URL: www.duanemorris.co.uk URL: www.duanemorris.co.uk

Giles Cooper practices in the area of corporate law with a focus
on international law in Southeast Asia. Mr. Cooper has
experience with foreign investment and commercial law related to
construction, mergers and acquisitions, securities, contract
negotiation and drafting, banking and finance, and employment
law.
Mr. Cooper is a graduate of Victoria University in Wellington, New
Zealand, and a graduate of the University of Canterbury in
Christchurch, New Zealand. He is a barrister and solicitor of the
High Court of New Zealand and a registered foreign lawyer in
Vietnam.
Areas of Practice:
International Commercial and Corporate Law
Construction Law
Securities and capital markets
Labour and Employment Law
Major projects
Oliver Massmann practices in the area of corporate international
taxation and on power/water projects, matters related to oil and
gas companies and telecoms, privatisation and equitisation,
mergers and acquisitions, and general commercial matters for
multinational clients in relation to investment and doing business
in Vietnam.
Mr. Massmann is the only foreign lawyer in Vietnam who is
presenting to the National
Assembly of Vietnam in Vietnamese language and teaching
International law in Vietnamese
language at the Ministry of Justice in Hanoi.
Mr. Massmann is a 1994 graduate of Bochum Law University, first
state exam and Ministry of
Justice, Duesseldorf Germany, second state exam 1997. He is
admitted to the Bar Association in Berlin and a licensed foreign
lawyer in Vietnam.

Education:
University of Victoria, Institute of Professional Legal
Studies, Certificate of Professional Practice, 1998
University of Canterbury (Christchurch, New Zealand),
LL.B. (Hons), 1996

Duane Morris LLP, a full-service law firm of more than 650 attorneys, offers innovative solutions across diverse industries in the
United States and internationally to address the legal and business challenges of today’s evolving global markets . Throughout its
more than 100-year history, Duane Morris has fostered a collegial culture, where lawyers work with each other to better serve their
clients Lawyers who are leaders in a range of legal disciplines and have diverse backgrounds join Duane Morris in order to use
the latest technology, professional support staff and other resources in pursuit of clients’ goals.
Growth and Culture
Evolving from a partnership of prominent lawyers in Philadelphia more than a century ago, Duane Morris now has offices in many
major markets and continues to expand across the country and overseas. Throughout this expansion, Duane Morris remains
committed to preserving the collegial culture that has attracted so many talented attorneys. The firm’s leadership believes this
culture is truly unique among large law firms, and that outstanding legal work is best accomplished by skilled professionals who
respect each other and work well together.
Leadership and Experience
Duane Morris lawyers hold leadership positions in bar associations, as well as in educational, cultural and charitable organisations
and with community groups across the country. Many of the firm’s attorneys come to Duane Morris after having held senior
positions in government agencies and large corporations. This range of experience is further enriched by the diverse backgrounds
of the firm’s attorneys. Duane Morris has long been committed to recruiting, retaining and promoting talented female and minority
lawyers, many of whom hold leadership roles at the firm.
Technology and Infrastructure
Trade publications have placed Duane Morris in the upper echelon of firms in terms of utilizing technology. Hundreds of lawyers
working around the globe quickly communicate and collaborate using the firm’s integrated computer network, accessing
sophisticated research software, information-rich databases, and other knowledge-sharing tools. Duane Morris’ clients also
benefit from the contributions of professional-level support staff who maintain the firm’s technological and administrative
infrastructure and enable lawyers to focus on providing valuable counsel and service to their clients.

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