In Vietnam, lubricant (lub) business is run by market mechanism in which the state does not regulate the price. This is really a competitive market. Petrolimex Petrochemical Corporation (PLC) which is friendly named “Petrolimex lubricant” successfully competed in the market, remarkably contributing to the aggregate turnover of Vietnam National Petroleum Group (Petrolimex). On an average, each staff member of PLC contributed one billion dongs to state budget per year.

Director General Nguyen Van Duc introducing production and quality control equipment at Thuong Ly plant

Director General Nguyen Van Duc directly briefed visitors at Thuong Ly lubricant plant

We arrived to and worked with PLC right after Petrolimex announcement of its aggregate benefit before tax for the first 6 months of 2013. Petrolimex had on its own made the announcement to the mass media of central and local levels that drew public opinion: much consensus and several controversies.

Upon seeing us, Director General Nguyen Van Duc said: Petrolimex lubricant is the pride of Petrolimex. It is safe to say that “Petrolimex lubricant” is the Vietnamese brand name on par with well-known world names in three respects: technological equipment, product quality and experience. Thereafter, he explained on the data and their significance. Everything was clear and coherent, reminding me of the precise glorification of PLC by Hanoi Stock Exchange (HNX) as one of the thirty (30) most transparent enterprises.

He enthusiastically told us that lubricant market in Vietnam is fiercely competitive. Lubricant producers in Vietnam comprise: domestic, foreign and joint venture enterprises. Competition is mainly in two aspects: quality and price.

With regards to quality, Petrolimex lubricant in market has the quality never lower than any brand of the world in this respect.

With certain base oil, certain additive, and certain technology, what lubricants world producers could turn out, PLC could at present time make the same at such advanced level.

As for price, we sell at lower price than products of same category and quality of other brands.

That is the reason why, Petrolimex lubricants are welcome by Vietnamese users, thus the quantity and sale revenue is on an increase.

Petrolimex lubricants turnover in 2006-2013

That is the core field (lubricant) and in Vietnam directly produced and sold by Petrolimex Petrochemicals Company (as the holding company)

To fully understand about PLC, other points should be mentioned: there are two other fields undertaken by PLC: bitumen and chemicals. These two fields are handled by two affiliate companies (100% equity by PLC) . To seriously and objectively assess, PLC is holding top position in Vietnam in bitumen and chemical business in terms of turnover, quality and brand prestige.

PLC Turnover by fields (6 months of 2013)

Next to the supply of goods and services in Vietnam, PLC is boosting the supply of goods and services to regional countries and the world: to take part in the production and distribution of Total Lubmarine on a world wide scale for vessels operating in Vietnamese waters , Vietnamese vessels berthing at world ports and world vessels berthing at Vietnamese ports, export to Laos and some other countries.

PLC has two modern plants at Thuong Ly (Hai Phong City) and Nha Be ( ̣̣̣̣̣̣Ho Chi Minh City) with present capacity of 50,000tons/year and is now expanding to 100,000tons/year . PLC plants are most modern in Vietnam and on par with the world. Therefore Nippon Oil of Japan chose to sign contract with PLC for the production of lubricants for cars, motorcycles and other machines and equipment of Japan operating in Vietnam such as Honda, Yamaha, Suzuki, Kubota etc…

This operation remarkably contributes to the employment of labour, the investment productivity, the income of enterprise and working staff of PLC.

PLC turnover by markets (data of 6 months of 2013)

Director General Nguyen Van Duc was glad to say: we are proud to be a Petrolimex member who contributes to state budget at high level; taken on an average each staff member of PLC contributes to the state one billion dongs (in the year 2012 PLC contributed to the state budget 697 billion dongs in which lubricant amounted to 302 billion dongs) . Next to it, PLC perfoms its social responsibility in many other aspects: ISO in environment and many other social and charity works.

PLC is a joint stock company in which Petrolimex equity is 79.07%, joined the stock exchange in 2006. In six months of 2013, by equity ratio, PLC contributed 85.638 billion dongs to the aggregated profit after tax of Petrolimex.

PLC appreciates the trust of partners, customers and endusers in Vietnam and abroad, the coordination of all staff of the great family of Petrolimex.

When the profit in the business of main oils (gasoline, diezel, kerosene, and fuel oil) in Vietnam is made according to the guideline of the Party and government, cost reduction, profit sharing to ensure the harmonious interests of the state, the enterprise and the endusers (to understand rightly, this is not the order of 1-2-3 but the enterprise is the bridge, the tool, the means to carry it out) ; PLC enjoys the endevour of Petrolimex petroleum companies to develop their business to maintain employment, ensure the improved income of workers worthy of their labour

PLC is upholding the spirit of Petrolimex. That is to move further together with endusers, customers, partners and our beloved fatherland of Vietnam.