Sufficient supply – Flexible adaptation – Safe governance – Innovation
The Vietnam National Petroleum Group (Petrolimex/PLX/Group) held a conference to review the Group’s performance in 2023 and set out tasks for 2024 in Hanoi on January 12, 2024.
The conference witnessed the attendance of member of the Party Central Committee and Chairman of the Commission for Management of State Capital at Enterprises (CMSC) Nguyen Hoang Anh; representative of the leaders of the Central Enterprise Bloc Party Committee and representative of the leaders of CMSC departments.
In 2023, the global economy faced a series of difficulties such as high inflation, increasing interest rates, slow economic growth, political instability, and armed conflicts. The trend of trade and investment has undergone many changes to adapt to the new situation. Along with that, sustainable growth and the transition to green and clean energy are becoming increasingly clear trends that cannot be reversed. Vietnam’s economy is also impacted by the gloomy global economy. In addition to the continued decline in consumer demand and slower-than-expected recovery momentum, Vietnam’s economy faces additional challenges as it depends on external factors, negatively affecting Vietnam's GDP growth in 2023.
In 2023, the global oil price was unpredictable, especially in the last months of the year when it continuously decreased. Domestically, many petroleum businesses requested for dissolution and shutdown. The State management agencies strengthened inspections and supervision of petroleum business activities, revoking licences and handling violations of some key enterprises, which contributed to a healthier petroleum market. However, along with intense competition, especially in the intermediary sales channel, there were challenges and opportunities for Petrolimex due to violations of trademarks, unclear origins of goods, and poor quality, leading to unhealthy competition.
In the context that is more difficult than favourable, but with the attention, direction and support of the Central Enterprise Bloc Party Committee; the correct and timely guidance of the Party Committee, the Management Board of the Group; and the decisive, thorough and effective management of the Board of Directors, the whole system from the Parent Company to member companies have determined and unanimously implemented many resolute, synchronised and flexible solutions and quick adaptation to ensure the leading role in stabilising the petroleum market, contributing to ensuring national energy security, and achieving comprehensive and outstanding targets set for 2023.
Petrolimex’s impressive achievements in 2023 First,Well implement the leading role of a State-owned enterprise in stabilising the petroleum market and ensuring fuel supply in any situation, contributing to the national energy security. Second,It is expected to comprehensively complete and exceed the set targets: - Total consolidated sales volume of the entire Group in 2023 is estimated to reach 14,395,000 cu.m/tonne, equal to 110 per cent of the year’s plan and up 3 per cent compared to 2022. - Contribution to the State budget is estimated at VND34.3 trillion (nearly US$1.8 billion), equal to 139 per cent of the plan. Third, The year 2023 is the first year that the Group built up plans and set targets at the earliest time in recent years. This is a good foundation for the development and implementation of plans in the coming years. It is expected that tasks for 2024 will be assigned for member companies right in January, thereby helping them proactively implement production and business plans at the earliest time possible. Fourth, The Groups resolved to promote nationwide sales programmes and inked deals with big customers such as Viettel, VNPT, Jupiter, The Gioi Di Dong, Bach Hoa Xanh, Mai Linh, Toan Tin, and VNPost, among others, which is expected to generate annual revenue of thousands of billions of Vietnamese dong. Fifth, Take the lead in implementing the Government’s Decree 123/2020/NĐ-CP, Petrolimex is the first petroleum business that has successfully launched the use of e-invoices for each sale since July 1, 2023 across all 2,700 petrol stations throughout the country. The solution has helped minimise risks related to invoices and save manpower, time and costs and is an important basis for the Government, Ministry of Finance, and General Department of Taxation to determine the nationwide implementation of electronic invoicing for all petroleum businesses. In addition to technical solutions, Petrolimex also enhanced communication at all levels throughout the system to promote understanding, awareness, and proper explanation of the nature of Petrolimex’s invoice issuance solution for each sale. Sixth,Introduce the Group’s Digital Transformation Strategy in the 2021-2025 period, with a vision to 2030. This is a crucial premise for implementing projects to modernise and advance the Group’s material and technical infrastructure system, including: Automation, Automatic tank gauge system at storage tanks and petrol stations; Cashless payment, E-invoice, Automated billing based on RFID technology and smart camera; Digital officer, APP Petrolimex version 2 (2024), Digital communication, and Digital training, among others. Seventh, Complete many important contents in the Group’s Restructuring Plan for the 2021-2025 period, with a vision to 2035, which includes: Divestment at PG Bank; Upgrade five branches in Vinh Phuc, Bac Ninh, Hung Yen, Hai Duong and Quang Nam provinces into five petroleum companies; Converse subsidiaries under petroleum companies into branches; Restructure petrol stations in some areas; and Increase the charter capital at certain petroleum companies, and so on. Eighth, Successfully organise the Petrolimex Innovation and Technology Conference on October 16, 2023 and the Business – Finance – Risk Management Conference 2023 on December 1, 2023, and Petrolimex Franchise Customer Conference on December 12, 2023; The large-scale conferences organised for the first time with innovative and creative approaches have widely disseminated messages and development orientations. In particular, the conferences’ Action Programmes were approved by the Board of Directors as a basis for implementing orientations and works for the whole system in 2024 and the following years. Ninth, Implement some measures to enhance management capacity and minimise risks at petroleum warehouses and petrol stations, including: Issue regulations on the management, operation and exploitation of petroleum warehouses; Adjust the provisions on the frequency of conducting self-inspection of errors in the dispensers as stipulated in the Petrol Station Management Regulations; Use automatic level measurement data as a basis for accounting, etc. Tenth, Continue to increase income, improve material and spiritual life for employees. Salary increase is significant as, besides encouraging and motivating the labourers to devote themselves, it is also the basis for the Group to determine to implement many management programmes, cut cost, and enhance the Group’s overall efficiency. |
Petrolimex has achieved significant accomplishments in a challenging year and has been honoured by reputable ranking organisations. These achievements include: Top 10 Large-Cap Listed Companies at the 2023 Vietnam Listed Companies Awards held by the Ho Chi Minh City Stock Exchange; 50 Best Listed Companies in Vietnam; 100 Most Valuable Brands in Vietnam; and Three largest Companies in Vietnam. The Group continued maintaining the leading position in terms of revenue on the stock exchange; with annual reports, management reports and sustainability reports consistently meeting the highest standards of listed public companies. Especially the reports are valued for conveying multiple messages, solutions and commitments towards green energy and appropriate net emission reduction in line with Vietnam’s commitments at COP26.
To leverage the achievements made in 2023 and overcome the anticipated challenges and favourable conditions, the Group has set forth six fundamental tasks as follows:
(1) Strictly implement the Prime Minister’s Official Dispatches and the Ministry of Industry and Trade’s Directives, effectively organising the work of generating sources, sales, and closely monitoring market developments to ensure timely supply to meet the consumption needs of society, serve economic development, and contribute to ensuring national energy security in each locality.
(2) Ensuring absolute safety in production and business activities is the top priority, including fire and explosion safety, financial safety, legal safety, environmental protection, and strengthening security and safety monitoring at petroleum facilities throughout the whole Group.
(3) The production and business plan for 2024 and the work plan of the Group and its member units must closely follow the plan and development orientation for the five-year period 2021-2025; the Group’s Restructuring Plan for the 2021-2025 period with a vision to 2035; the Group’s Development Strategy for the 2021-2025 period with a vision to 2035, which have been approved by CMSC. Right after the Group assigns the plan for production and business, and development investment in 2024, member companies will start implementing it as soon as possible based on the Group’s decision and the guiding documents for plan implementation.
(4) Closely follow and strictly carry out 25 action programmes approved by the Group’s Board of Management after the Petrolimex Innovation and Technology Conference and Business – Finance – Risk Management Conference in 2023. The solutions will focus on main pillars including: enhancing customer experience, improving the efficiency of commodity management and corporate governance on the basis of implementing the Digital Transformation Strategy.
(5) Maintain, strengthen, renew, modernise and advance the advantages of traditional petroleum business, and the system of petroleum storage, tanks, pipelines, petrol stations and transportation vehicles, and so on. At the same time, it is necessary to adapt to, successfully transition and shift towards the trading of clean, green, environmentally-friendly fuel and energy products.
(6) For other business sectors, continue to effectively uphold and exploit the overall strength of the non-petroleum ecosystem which consists of traditional sectors such as gas, lubricants, insurance, transportation, and engineering and construction; Implement business restructuring in line with the Group’s Restructuring Plan for the 2021-2025 period with a vision to 2035.
The six key tasks mentioned above will be implemented by Petrolimex through 10 specialised solutions: (1) Ensuring sources; (2) Business and business support; (3) Investment in technical infrastructure; (4) Financial management; (5) Management and governance; (6) Labour organisation and wages; (7) Digital transformation; (8) Green transition; (9) Innovation; and (10) On the basis of the Group’s Restructuring Plan for the 2021-2025 period with a vision to 2035 approved by CMSC, the Group will continue developing plans to implement divestment, rearrangement and restructuring of its member units according to specific timelines.
Delivering a directive speech at the conference, CMSC chairman Nguyen Hoang Anh acknowledged and highly appreciated Petrolimex’s achievements as the Group has completed and exceeded the targets for production, revenue, profit and State budget contributions. Petrolimex has been bestowed nationally and internationally as one of the businesses with best corporate governance in 2023.
Additionally, he said, Petrolimex has demonstrated the spirit of innovation and successfully completed many important tasks such as pioneering and leading in the implementation of electronic invoicing in petroleum trading, developing the Group’s development strategy and the Group’s restructuring plan for the five-year period, and actively researching the transition to green energy.
“The achievements that Petrolimex has made reflect the appropriate leadership philosophy, resolute and flexible management of the leadership as well as the efforts and dedication of the company’s officers, employees and labourers. I commend the achievements that Petrolimex gained in the past year and believe that the Group will continue maintaining its leading role as a State-owned enterprise in national economic development,” said Nguyen Hoang Anh.
To successfully complete tasks set for 2024, the CMSC chairman requested Petrolimex to make further efforts, be serious and determined, and synchronously take solutions to implement production – business, and investment – development plans that have been approved by CMSC and the General Meeting of Shareholders, complete the plans set for the 2021-2025 period as a basis for the 2026-2030 period and towards the Group’s 70th anniversary.
Petrolimex needs to continue maintaining and preserving its position as the largest petroleum business in the Vietnamese market, considering petroleum products as the main axis of its business activities, establishing early and long-term forecasts about the international and domestic market situations, actively managing the source to ensure timely and sufficient supply of petroleum products to serve the production and consumption needs of the country.
On behalf of the Group's leaders, Petrolimex Party Secretary - Chairman Pham Van Thanh embraced the guidance of the CMSC leaders; and expressed confidence that with the unity and determination of the entire system, the longstanding tradition of solidarity for 68 years, Petrolimex will continue to strive with even greater effort; be more dynamic and creative to seize every opportunity, favourable conditions, steadily overcome all difficulties and challenges to successfully fulfill the goals and tasks set for 2024.
As the year comes to its end, the Petrolimex leadership would like to express our sincere gratitude and best wishes to the Party and State leaders, shareholders, partners, and customers who have always placed their trust and support in Petrolimex to realise the Group's strategic goals by 2025 with a vision to 2035 "Becoming the leading energy group in Vietnam that provides green, clean, high-quality, and environmentally friendly energy products, based on the foundation of the Industry 4.0 technology and comprehensive digital transformation."
