Vietnam Removes Liquefied Gas, Diesel Import Tariff

November 19, 2007 10:47 p.m. EST

Ho Chi Minh City, Vietnam (AHN) - Vietnam's Ministry of Finance announced Monday the reduction to zero percent the tariff on imported liquefied gas and diesel. The tax removal takes effect Tuesday.

The measure seeks to stabilize the price of oil in the country. It is the second round of tariff reduction for November. Previously the import tax on liquefied gas was at 2 percent, while diesel oil was taxed at 10 percent.

Vietnam's oil consumption has been on the rise the past few years following its rapid economic expansion. It registered a 7.7 percent gross domestic product expansion in 2004, 8.4 percent in 2005 and 8.17 percent in 2006.

While the nation has an estimated 600 million barrels of oil reserves, it still relies on crude imports due to lack of refining capacity. In 2005, it exported 370,00 barrels per day of crude to refiners in Japan, Singapore and South Korea.