On January 10, 2020 the Vietnam National Petroleum Group (Petrolimex/PLX/Group) held a conference to review the 2019 performance and work out tasks for 2020 at the Group office at No 9 Dao Duy Anh Street, Dong Da, Hanoi.

Chairman of the Commission for the Management of State Capital at Enterprises (CMSC) Nguyen Hoang Anh, Vice Secretary of the Central Business Bloc’s Party Committee Le Van Chau, and Deputy Minister of Industry and Trade (MoIT) Do Thang Haiattended the conference.

A general view of the conference

In 2020, the world economic growth is forecast to continue facing potential risks that might cause strong price fluctuations, notably geopolitical developments in the Middle East. At home, the domestic economic growth is expected to maintain at over 6.8 per cent per the target set by the Government; The domestic petroleum market will continue operating in line with the Decree No 83/2014/NĐ-CP, and the market competition becomes increasingly fiercer.

Such circumstances pose certain challenges for Petrolimex to accomplish the production – business targets for 2020.

With all the responsibility towards the shareholders on the basis of 64 years of development, Petrolimex leadership from the Parent Company to member companies are determined to embark on production activities right from the very first days of 2020, carrying the spirit of innovation and creativity, bringing into full play the competitiveness through internal strengths of the whole Petrolimex system to further uphold achievements gained in 2019 and give new impetus for sustainable development in the future.

Such determination put forward by the Petrolimex leadership is specified in the following key tasks: (1) Complete safety in production and business activities is the first and foremost objective; (2) Synchronous implementation of solutions to realise production and business targets set for 2020; (3) Completion of the restructuring of areas including construction and installation, insurance, banking, and non-petroleum investment in accordance with instructions of the CMSC and regulations of the State Bank of Vietnam; (4) Implementation of solutions to enhance the efficiency of management and governance works in association with Conclusion No 701 of the Party Central Committee’s Inspection Commission.

The four key tasks set for 2020 will be carried out through seven major solutions:

* Petroleum production and trading: Ensure sufficient supplies of fuel in any circumstance, especially supplies from the two domestic refineries; Effectively replace and consume new marine fuel; Effectively trade petroleum products of high quality (DO-V) and biofuels in line with the Government’s policy; Study solutions to make full use of and maximise utilities at petrol stations; Increase retail sales as well as cashless payments; Facilitate the development of sales outlets and enhance the efficiency of sale through customer loyalty programmes;

* Governance work: Maximise the efficiency of the information resources and make full use of material facilities of the ERP-SAP and Egas to gather information and analyse data for management and governance works; Review, set up and complete internal management regulations and rules of the Parent Company – the Group, contributing to enhnacing management efficiency.

* Investment into and management of technical facilities: Complete the planning of technical facilities for the whole sector; Focus resources to implement investment strategies, expanding the network of petrol stations, especially in commercially advantageous locations; Keep a close watch on the progress of key projects.

* Cost cutting: Review large expenditures to effectively cut costs; Manage land use to effectively plan out the optimal way to use land resources.

* Protect Petrolimex brand name: Study synchronous solutions from emulation – commendation to imposition of penalties to increase the efficiency of protecting the brand name.

* For member companies: Strengthen the connection and assistance between the Parent Company – The Group with corporations, joint stock companies and limited companies of which Petrolimex has partial ownership, enhancing the whole sector’s competitiveness; concurrently, study and review to develop and revise internal management rules and regulations in order to raise the role of the Parent Company in regulating, orientating and supporting member companies.

The year 2019 continued affirming the sustainability of the Petrolimex system as well as recognising the successes in management at all levels from the Group to member companies. The Group’s production and business outcomes were comprehensive whilst all targets exceeded those set by the Shareholders’ Meeting for the fifth year in a row.

Petrolimex contributed VND41.8 trillion (US$1.8 billion) to the State budget in 2019 (an increase of 7 per cent as compared to 2018), and earned consolidated profit before tax of VND5,486 billion or $236 million (a rise of 9 per cent over 2018). The volume of potroleum sold reached more than 13.6 million cu.m/tonne (an increase of 5.9 per cent as compared to 2018). The Group’s governance work was continuously strengthened, satisfying standards applied for a large-scale public company; The Group’s technical facilities were non-stop improved and developed.

2019 was the third consecutive year that Petrolimex was honoured as Champion of Revenue among the Vietnam’s Top 50 listed companies by Forbes Vietnam and ranked as one of the 10 most valuable brands in Vietnam as announced by Brand Finance.

With remarkable insight that “the Party and State always attach importance to and believe in the strong development of Petrolimex”, Petrolimex needs to concentrate on in order to further its stable and sustainable development, actively contributing to the country’s development in 2020 and the coming years; in which the Group must closely follow the Vietnam’s National Strategy on Energy Development to 2030 with a vision to 2045.

On the threshold of the New Year 2020 (Year of the Rat), leaders of CMSC and MoIT wished the whole Petrolimex staff good health, happiness and successes; and wished Petrolimex to develop more vigorously, deserving the trust of the Party, the State and the people, and deserving the role as a key enterprise in the national economy.

On the occasion of its founding anniversary (January 12, 1956 – January 12, 2020) with new spirit and new motivation of the New Year, Petrolimex would like to express their thanks and best wishes to the Party and State leaders, shareholders, partners, and customers who have always shown their confidence in Petrolimex/PLX, and to the media for their support to create business development consensus so as the Group can play its role as a key enterprise in the national economy.