Viet Nam looks to China for stable jet fuel supplies amid Middle East disruptions
VGP - Viet Nam has called on China to help secure stable jet fuel supplies for its airlines amid ongoing disruptions to global energy markets caused by tensions in the Middle East.
In a letter addressed to Song Zhiyong, Head of the Civil Aviation Administration of China, Uong Viet Dung, Director of the Civil Aviation Authority of Viet Nam (CAAV), requested that the Civil Aviation Administration of China (CAAC) instruct fuel suppliers to ensure adequate and consistent provision for Viet Nam.
The request follows recent high-level engagements between the two countries, including the state visit to China by Viet Nam General Secretary and State President To Lam, which underscored the importance of strengthening comprehensive bilateral cooperation.
According to Uong, instability in the Middle East has disrupted global and regional oil supply chains, creating shortages of jet fuel that are affecting airline operations, including those of Vietnamese carriers.
Citing the long-standing partnership and close coordination between the two aviation authorities, the CAAV asked the CAAC to work with major Chinese fuel providers such as Sinopec, PetroChina, and China National Offshore Oil Corporation to maintain reliable supplies under existing contracts.
Viet Nam's aviation authority expressed confidence that support from Chinese regulators and suppliers would help ensure stable flight operations between the two countries, meet rising travel demand, and further promote people-to-people exchanges.
Earlier, the Ministry of Construction asked the aviation authority to prepare operational scenarios for air transport amid volatility in Jet A 1 fuel prices.
On April 12, the National Assembly adopted a resolution introducing a number of provisions on environmental protection tax, VAT, and special consumption tax (SCT) applicable to petrol, oil products, and aviation fuel.
Under the resolution, the environmental protection tax on petrol (excluding ethanol), diesel, kerosene, mazut, and aviation fuel is set at VND0 per litre. The SCT rate on all types of petrol is also zero percent. The resolution takes effect from April 16 through the end of June 30.
In addition, to ensure that the domestic petrol, oil, and aviation fuel market is managed in line with global price developments, the National Assembly has authorized the government to issue a resolution to adjust – either shorten or extend – the effective period of this measure.
The CAAV stated that the aviation fuel supply is at risk of shortage, forcing the carrier to prioritize maintaining key national connections and major domestic routes that serve travel, trade, and tourism needs.
From April 1, the airline suspended operations on several routes, including Hai Phong–Buon Ma Thuot, Hai Phong–Cam Ranh, Hai Phong–Phu Quoc, Hai Phong–Can Tho, Ho Chi Minh City–Van Don, Ho Chi Minh City–Rach Gia, and Ho Chi Minh City–Dien Bien, totaling 23 flights per week.
Airlines' operating costs could increase by as much as 40 percent compared with the pre-conflict period, leaving carriers on the defensive as input costs surge and fluctuate rapidly and unpredictably./.
