Development Strategies

Annual Report

2022

Development Targets

01
01
First target

Become a Vietnam’s leading energy group

Become a Vietnam’s leading energy group with core business line is petroleum trading, perform multi-ownership, focus on investment and development of relating and supporting business segments for petroleum trading.
02
02
Second target

Complete the business missions

Successfully complete missions including profitable business results, increased values for shareholders and excellently complete political missions assigned by the State, ensure energy security assurance and act as the State’s macroeconomic stabilizer.
03
03
Third target

Maintain and sustain its position as the largest Corporation in Vietnamese market

Maintain and sustain its position as the largest Corporation in Vietnamese market regarding petroleum downstream business, investment and development of liquefied gas fields (LPG, LNG, CNG), petrochemical, petroleum transportation, petroleum construction, insurance and other fields; rank among Vietnam’s Top 10 enterprises regarding business scale and business performance.
04
04
Fourth target

Improve business performance

Improve business performance, increase revenue, reduce costs and earn high profit based on reform of organization, business methodology, systematic management and operation mechanisms, improvement of technical and technological capacity and human resource’s competence regarding quantity and quality (in-depth development), appropriate market organization and effective management of business operations.
05
05
Fifth target

Reform organization and business methodology

Reform organization, business methodology, and management and administration mechanisms; improve technical and technological capacity and human resource’s competence regarding quantity and quality; appropriately organize markets and effectively manage business operations. Improve business performance, maintain and ensure stable profit growth; guarantee income and employment for employees.
06
06
Sixth target

Successfully play the role of
the key enterprise

Successfully play the role of the key enterprise in balancing supply and demand and ensuring petroleum supply in conformity with demand for economic development and the country’s industrialization and modernization and high-performance business as well.
07
07
Seventh target

Invest in key and
effective projects

Choose key and profitable investment projects, focus on maximal utilization of existing technical facilities; Foster investment and development of retail network with commercial comparative advantages, follow up the development trend of IT to have full application in operations.

Development Strategies

New product
development strategy

Developing new product following the trend of clean and eco-friendly product, meeting both domestic and international standards.

Marketing and brand
development strategies

Petrolimex will choose to push strategy, using integrated marketing communication tools (IMC). Increase investment in promotional activities, communication and brand development. Innovate and apply IT to business performance progress to promptly fulfill and conform to the Industry 4.0 era.

SWOT analysis

The Board of Directors acknowledge that 2023 will be a difficult and challenging year for the Group. Therefore, Petrolimex should be aware of its strengths and weaknesses to create opportunities for development and overcome threats.

The Petrolimex brand is a well known petroleum supplier in both the domestic (nearly 50% market share) and international market with over 66 years of experience in trading petroleum. Owning the largest technical infrastructure among the petroleum key traders in Vietnam with the modern and synchronous level up to the regional standards. Petrolimex’s strategic partner is ENEOS Corporation – Number 1 energy Corporation of Japan with over 100 years of experience, always accompanying and assisting Petrolimex in corporate governance improvement.

Petroleum is the product under the State’s price stabilization initiative; thus the price is not fully determined by the market forces due to that State control petrol price to achieve other macro targets. Despite being adjusted in line with the fluctuation of the world, the degree of adjustment of domestic price may not correspond to that of the world’s, partially affecting the Group’s business.

The growth potential of the petroleum business is still promising in the near future, which is an opportunity for petroleum trading enterprises, including Vietnam National Petroleum Group, to increase their market share. Drastic encouragement and direction by the Board of General Directors for the process of digital transformation, application of advanced science and technology is a great source of motivation for the Group’s sustainable growth in the 4.0 era.

The ever more competitive environment due to the attractiveness of the market leads to many potential threats to petroleum enterprises. In 2023, the world economy continues to face major risks and challenges relating to the pandemic, the war and the global economic downturn. Therefore, finding the focus of resources for business activities that generate cash flows associated with value, stopping investing in investments that do not generate cash flow, and the right decisions of the Group’s leaders will be the key to stability and a premise for the Group’s future growth.