The joint venture between Idemitsu Kosan and Kuwait Petroleum International Ltd, reported last April (2016), created Idemitsu Q8 Petroleum Co Ltd. Now this new fuel retail partnership will open its first fuel service station in Vietnam and will become the first foreign joint venture to distribute fuels in the country. The fuel service station is located in the Noi Bai International Airport area in Hanoi City. It took six months to get the license for the joint venture.
According to local media, Vietnam has opened doors to international owned firms to do business in the domestic fuel retail market. Idemitsui Q8 will sell imported fuel products and products of Nghi Son Oil Refinery will be sold from mid-2017. Idemitsui Kosan and Kuwait Petroleum International together have a 35.1% stake in the oil refinery project in Nghi Son Economic Zone in the north-central province of Thanh Hoa.
Idemitsui Q8 got the license to sell fuels in Vietnam when the Government allowed shareholders of Nghi Son oil and petrochemical complex to distribute its products in Vietnam. Idemitsui Q8 is planning to open 10 fuel service stations in the near future. Nghi Son Oil Refinery and Petrochemical Co Ltd is planning to sell products from mid-2017.
In the meantime, products of the refinery hasn’t fully meet the Vietnam Standard and Quality Institute’s standard levels 4 and 5, which is equivalent to European emissions standards Euro 4 and Euro 5, as per the Government’s Decision No. 49/2011 on a road map for emissions reductions. Euro 4 will be applied from January 1, 2017 and Euro 5 from January 1, 2022 based on the road map.
PetrolWorld notes that Idemitsu has been operations in Vietnam for a number of years to develop its business there. There have been many roadblocks and the various authorities have made normal international business difficult due to the transition required at local level. The best example of this is the mention above of industry and fuel standards. Idemitsu operates as a company with the highest standards, especially in Japan. Vietnam is struggling to introduce and regulate standards within the fuel retail network and logistics chain. PWKD20092016
According to local media, Vietnam has opened doors to international owned firms to do business in the domestic fuel retail market. Idemitsui Q8 will sell imported fuel products and products of Nghi Son Oil Refinery will be sold from mid-2017. Idemitsui Kosan and Kuwait Petroleum International together have a 35.1% stake in the oil refinery project in Nghi Son Economic Zone in the north-central province of Thanh Hoa.
In the meantime, products of the refinery hasn’t fully meet the Vietnam Standard and Quality Institute’s standard levels 4 and 5, which is equivalent to European emissions standards Euro 4 and Euro 5, as per the Government’s Decision No. 49/2011 on a road map for emissions reductions. Euro 4 will be applied from January 1, 2017 and Euro 5 from January 1, 2022 based on the road map.
PetrolWorld notes that Idemitsu has been operations in Vietnam for a number of years to develop its business there. There have been many roadblocks and the various authorities have made normal international business difficult due to the transition required at local level. The best example of this is the mention above of industry and fuel standards. Idemitsu operates as a company with the highest standards, especially in Japan. Vietnam is struggling to introduce and regulate standards within the fuel retail network and logistics chain. PWKD20092016
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