Vietnam’s gasoline imports from South Korea could see an increase this year, following a reduction in import duty since December last year, trade sources said.

"Vietnamese oil importers are now rushing to South Korea for their gasoline ... after the import tax [is cut to] 10 per cent," a Vietnamese importer said.

Under the Free Trade Agreement with South Korea, Vietnam has cut the import tariff on gasoline imports from South Korea to 10 per cent effective December 20, 2015, from 20 per cent previously.

The 10 per cent import tax on gasoline from South Korea is expected to remain in place till 2018. "We expect more gasoline cargoes from South Korea," a second Vietnamese oil products importer added.

According to Platts data, the country’s largest oil products importer Petrolimex has recently bought a total of about 150,000 mt of 92 RON gasoline for end-October to February loading from South Korea through four spot tenders.

Of this, about 90,000 mt gasoline, in three equal size cargoes, are for loading over January-February.

Petrolimex typically buys most of its 92 RON and 95 RON gasoline cargoes from Southeast Asian countries like Singapore or Malaysia.

Fellow oil products importer Saigon Petro has issued a buy tender, seeking 10,000 mt of 95 RON gasoline for March, and have for the first time, added South Korea as an alternative loading port to Singapore, Malaysia and Thailand.