Petrolimex works towards core 2018 tasks

On January 12, 2018, Vietnam National Petroleum Group (Petrolimex) organised a Conference to review 2017 production and business activities and work out orientations, tasks in 2018.

Deputy Minister of Industry and Trade Do Thang Hai addresses the conference

Petrolimex Board of Management member and Director General Pham Duc Thang said 2017 was the third consecutive year that Petrolimex has completed and exceeded set targets with encouraging growth rates. Of note, Petrolimex was successfully listed on the stock exchange (ticker symbol: PLX), maintained its leading position in revenue, was recognised top 50 best listed companies in Vietnam stock market in 2017 with market cap reaching VND100 trillion (US$4.4 billion) . All these achievements demonstrate PLX’s transparency, prestigious position of Petrolimex and promising prospects of PLX in the future. Especially, Petrolimex contributed VND36 trillion ($1.6 billion) to the State budget.

The year 2017 also witnessed Petrolimex performing impressive activities through investment into expanding distribution network, successfully applying the unified five-step selling process in the whole system, successfully launching new products of DO-V & E5 in the market which showcases the Group’s voluntariness and responsibility towards the State, consumers and the environment; bringing new vitality to production and business activities, and so forth.

Director General Pham Duc Thang emphasised that competition in the petroleum market in 2018 is forecast to be increasingly more intense as a result of increased wholesale dealers and distributors and increased number of petrol stations in the midst of higher demand for petroleum and for high-quality fuel. Thang said it is worrying that unhealthy competition in the form of trademark infringement and the selling of poor quality fuel becomes more and more sophisticated.

Chairman of Petrolimex Board of Management, Bui Ngoc Bao (right) and Petrolimex Director General Pham Duc Thang co-chair the conference

Under such context, Petrolimex Board of Directors determined development objectives with new driving forces, new manners to suit the new situation. Specific tasks set for the year 2018 include: First, effectively develop production and business activities on the basis of deepening Petrolimex’s voluntariness and identities to reach targets set for each area; on the basis of ensuring absolute safety, promoting the application of information technology and automation in order to increase the level of comprehensive safety and increase labour productivity in both areas of producing and trading Petrolimex branded goods/services. Second, continue restructuring in accordance with the Prime Minister’s Decision No 828, including the reduction of State ownership to 51% per Decision No 1232/QD-TTg.

Based on the two tasks mentioned above, the Group Board of Directors set forth 10 specific solutions. In the field of petrol, it is necessary to continue promoting Petrolimex’s core values built up throughout the past 62 years, concentrate on developing the four key activities (logistics, fuel mixture, quality, IT application and automation). Besides keeping a close eye on the State Bank of Vietnam’s exchange rate adjustment policy, and Petrolimex will work with financial advisors to control risks in this area (exchange rate, interest rate, petrol price), it is necessary to control variable costs and fixed costs to make sure that financial situation is always sound and efficiently used. Branding and brand identity continue to be prioritised in parallel with the mobilisation of the whole Petrolimex system on the basis of co-ordination with State management bodies and media to successfully protect well-known Petrolimex trademark, and so on.

Regarding non-petroleum goods/services, it is essential to continue promoting business efficiency on the basis of promoting the systematicness, reaching out to the society, and to the outside world. A number of specialised corporations continue to restructure internally to manage enterprises in the direction of: concentrated management, comprehensive development and being compatible with new context of competition as well as structure to ensure sufficient sources.

An overview of the conference

Addressing the conference, Deputy Minister of Industry and Trade Do Thang Hai spoke highly of achievements that Petrolimex made last year. The Deputy Minister urged Petrolimex to quickly build up a plan for transparent divestment of State capital, which must eliminate the so-called interest groups; and continue to strengthen the forecast, analysis and prevention of risks; and to fortify the co-ordination with management bodies, and so forth.