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Home / Knowledge / News / Textiles / Crude oil exports will prove expensive for traders

Crude oil exports will prove expensive for traders

09
Apr '08

Vietnam, third largest oil producer in Southeast Asia, has decided to increase tax on exports of crude oil.

This Governmental decision will be adhered for achieving the objective of increasing the influx of revenue and expanding the state budget.

Crude oil remains the largest foreign exchange earner of Vietnam, accounting for 17 percent of national export revenue.

The move was taken with regard to accelerating inflation which has hiked for 13 successive months. Besides, experts anticipate a good number of investors to bank on higher yielding assets.

In fact, the Government has also brought about a cut in its expected economy expansion of 9 percent reducing it to 7.5 percent for 2008.

However, Dung Quat, the first refinery of the country with an annual processing capacity of 6.5 million tons of crude oil is presently under construction in central Quang Ngai Province and is scheduled to operate in late 2008 or early 2009.

It is hoped that with the commencement of this refinery, Vietnam will be able to increase not only the annual output of crude oil but also its domestic supplies.

More Textiles News - Vietnam...