The role of the corporation in the transportation of petroleum business by the market mechanism

Journal of Market Prices (Tiger Spring Special)
11:51' SA - Thứ năm, 17/11/2011
Doctorate. Bui Ngoc Bao

General Director of Vietnam National Petroleum Corporation (Petrolimex)

In 2009 a memorable year for Vietnam Petroleum industry, by date of 15/10/2010 The Government has issued Decree 84/2009/ND-CP. With this decree, the first time the petroleum business is actually operating under the market mechanism, the management of the State. This is considered a comprehensive change to qualitative change of the active fuel management business.

In 2010, is seen as an opportunity for the Petroleum industry because this is the first year of Decree 84 really "come to life." There also is no less difficult, the pressure on key businesses. Because the application of this mechanism requires an active and be very flexible in dealing with capital markets fluctuating petroleum complex. The role and experience of leading a business, the General Petroleum Company has clearly defined roles and responsibilities in stabilizing the domestic fuel market to stabilize the macro economy, ensuring social security and sustainable growth ...

In 2009, the market continues to complicated

In 2009, the world oil market developments continue to complex and unpredictable. World continue to face many difficulties and challenges from severe consequences of the financial crisis and economic recession.

In the period 2008-2009, demand for gasoline in the world have fallen more than 2 million barrels / day, from 86 down to 84 million / day, although in the last months of 2009, demand began to grow back back. Most of the reduction concentrated in the developed OECD (of which one third is from the U.S., 1 / 3 from Europe), the developing countries outside the OECD such as China, India witnessed a slowdown temporary and then resume growth. In 2009, the U.S. accounted for 23%, Europe accounts for 18% of petroleum consumption worldwide.

World oil prices in the forecast, new ground was repeated at a price of WTI crude oil per year is $ 61.8 / barrel (in 2008 was approximately 100 USD / barrel), the price of petroleum products complex movements with large amplitude is virtually repeated in 2008, when comparing the average price in December to January's three main products (gasoline 92 - 0.05 S diesel - madut) in 2009 increased corresponding to 61% - 36% - 83% in 2008 down 61% - 43% - 52%.

For the petroleum business enterprises in the country is not out of the vortex of the crisis when faced with falling consumption, product price volatility rather complex amplitude is not worse than in 2008 ; ensure the currency situation for gasoline imports is difficult, with a high difference between the market rate and the interbank exchange rate actually affect the ability to raise foreign currency Commercial banks, not enough supplies, forced to stretch to buy with the loan contract can be risky due to exchange rate fluctuations.

Mechanism of petroleum business was transferred to operate under the market mechanism is the management of the State is a significant step forward in the petroleum business. However, in the early stages, the information that is incomplete on social issues, which are sensitive to both management agencies and enterprises subject to heavy pressure from public opinion.

In 2009, with the determination of the Government and ministries continued persistence of petroleum business operating under the market mechanism is the management of the State, has created a business corridor to the next clue years with the mechanism of loss and conditions make significant step forward in its work, which is responsible for the results of petroleum business.

Petrolimex Group aims to model the dynamic

Given the above , with the autonomy, flexibility, sense of responsibility and effort, the General Petroleum Co. Vietnam has confirmed the role of key rise from the first year of transformation processing, results in various fields, namely
First, the Petroleum Corporation of Vietnam (Petrolimex) in its role as a State Corporation, under the direction of the Government and the State management agencies, are able to fulfill its role as the key, do effective tool for the State to stabilize oil markets at all times to ensure sufficient fuel continuously in difficult conditions, to meet domestic needs, the needs of the household production major domestic and mountainous provinces, regions and remote areas; execution and taken seriously, the result of direct measures of the Government.

Second , the corporation has completed a comprehensive plan targets on production, revenue, profits, investment and development, ensuring employment and income stability for more than 25,000 employees in the branch at consistent with the premises of social budget nearly 29 trillion, up more than 10 trillion over the previous year, this figure confirms the results of operations of petroleum under the market mechanism .

Petrolimex has also contributed effectively to the social welfare and charity programs under the Government's objectives. Many affiliates took advantage of good business opportunities, has reached the highest profit in the next few years and continue to emerge into a strong brand in many important sectors such as petrochemicals market, Gas, Shipping, Insurance, Banking ...

Third , corporation has participated, actively contribute to the agency management solutions organization, administration and improve market legislation in the field of petroleum business.

Fourth , the strive of the corporation during its operation has been confirmed and recorded by the decision of the Prime Minister approved the equitization and restructuring Company In field model Petroleum Corporation multiple ownership. We can say, this is an important milestone marking the transition to large, paved the way for the development of strong Company In field in the next stage.

Forecast in 2010 and measures to stabilize fuel prices

In 2010, the world economy have seen the bottom of the crisis. With real economic growth shows signs of optimism in the last months in 2009 and the determination of the entire Party and people, the Government has developed indicators of socio-economic development in 2010 with GDP growth from 6.5% - 7%.

From the economic growth rate forecast by agencies, the Ministry of Industry and Commerce has officially assigned to the General Plan in 2010 Vietnam National Petroleum Company to increase production and sales of over 5%, higher pre-tax profit than in 2009. Here are some criteria to be modest compared with an increase of the Company In field has been achieved over the years, but also a challenge for non-small goals to achieve good results with a domestic market competition paralysis and the situation the world oil market is complicated.

In 2010 was the first year of trading in petroleum application of Decree 84-CP of the Government, the initiative of enterprises to create growth opportunities for the petroleum business enterprises. For the first year of Decree 84 should apply in the process of business transformation mechanism will also face the complicated development of the market, requires the State management agencies, enterprises and special consumers to adapt to the fluctuations increase, discounts by market rules, consistently implemented to ensure the effective implementation of this Decree.

The role and experience of leading a business, large market share, the proposed corporation, the Government propose to switch mechanisms on petrol, oil, contribute to the same state agency construction management , issued Decree 84, which is the next milestone on the nature of change management activities on petrol and oil. Decree 84/2009/ND-CP dated 15/10/2009 of the Government on official business petrol effective from 15.12.2009; under which the petrol and oil are operating under the new enterprises may decide the retail price when the price of gasoline, oil products world market fluctuations, is fundamental to the operation of traders in oil prices in the market mechanism, the management of the state.

Petroleum Corporation of Vietnam, under the direction of the Government and the State management agencies, are clearly defined roles and responsibilities in stabilizing the domestic petroleum market, execution and seriously, the result of direct measures of the Government on a stable macro economy, ensuring social security and sustainable growth.

To further ensure the stability of the domestic petroleum market and the effective implementation of Government Decree 84/2009/ND-CP, the General Petroleum Co. Vietnam has been implementing a number of solutions the following:

One is, to maximize spiritual source from Dung Quat oil refinery, continue to sign long term contracts and exploiting new import sources, using effective means of ocean being invested increased in 2009 to balance the import quotas in 2010 the Ministry of Industry and Trade Affairs, to ensure sufficient domestic demand for the role of a major enterprise. The issue is important to change the fundamental way from Dung Quat provides clues to the initiative.

Second , actively and persistently operate gasoline prices in the market mechanism to ensure: Sufficient supply - Contribute to State Budget and Enterprise have accumulated, to ensure harmoniously State three benefits - Business and consumers in the spirit of Decree 84 of the Government.

Third , continued investment, acquisition, system upgrade retail to enhance the distribution system, improve sales and commercial civilization Petrolimex system in all local nationwide with particular emphasis on areas where low market share Company In field, in areas with too many selling points taken from various sources / or market where vacancies are likely to occur speculation, hoarding goods, raising price; reaffirm the key role of the corporation in the market stability in areas critical to the State's request.

Fourth , conditional use for distributed systems based on middleware technology review to select the eligible subjects and reputation in the business to use as a general agent / agents carry badges of the corporation; the agents in the area of ​​remote network that is not covered directly by the corporation to, Company In field will have appropriate policies to jointly develop, actually become the leading distributor of Petrolimex in these localities.

Fifth , accelerate the construction of key projects to soon put to use, promote efficiency and increase of capital goods stocks under new regulations (30 days), contribute to stabilize the oil market in all circumstances.

Sixth , deploying synchronous fuel card program on the system stores and reputable agents to increase the production of higher retail natural growth, a positive response to non-payment policy
cash by the Government on the other, forming new habits towards civilization, bringing many benefits to consumers when buying goods and services in the corporation system.
Petrolimex membership
Petrolimex Resources

Products & promotions
Visit Statistics
Total hits: .
Total hits of the month: .
Total hits of the day: .
Currently online: .
Cơ quan chủ quản: Ủy ban Quản lý vốn Nhà nước tại doanh nghiệp (CMSC) Đơn vị thiết lập website: Tập đoàn Xăng dầu Việt Nam (Petrolimex) Chịu trách nhiệm quản lý nội dung: Ông Nguyễn Quang Dũng - Phó Tổng Giám đốc Địa chỉ: Số 1 Khâm Thiên, Đống Đa, Hà Nội - ĐT: (024) 3851-2603 - Fax: (024) 3851-9203 – Email: banbientapweb [@] petrolimex [.] com [.] vn