General Director's Letter

Dear valued shareholders, customers, and partners,

In the big picture of 2020, because of double effects from the Covid-19 pandemic and the oil price collapse, most of the large oil and gas corporations in the world have encountered unprecedented difficulties, with huge losses in business results. In our country, enterprises operating in petroleum trading, services and transportation have been impacted comprehensively on their business results as well as their growth rates of many coming years.

Vietnam Petroleum Trading Group is not an exception. Facing the difficulties caused by the general context, business results have much declined compared to recent years. However, with the traditional history of 65 years of establishment and growth, all employees of Petrolimex have strived to achieve the goals and meet basic targets that the General Meeting of Shareholders has approved, ensuring the minimum dividend at 12% of par value. Production and business operations have displayed the outstanding results:

• Petrolimex’s Board of General Directors have closely followed the targets and solutions approved by the General Meeting of Shareholders and Board of Management directed and administered operating activities in accordance with the new situation in each period, each geographical location, each business sector; contributed to maintain sales volume ensuring jobs and employees’ lives.
• The Boards have actively, flexibly and promptly generated solutions to deal with crises and risks in the most effective way. The sales procedures, policies, and ordering activities are strictly controlled and adjusted together with strict sanctions. Thereby, the quality of placing and fulfilling orders are improved and controlled strictly. The sales policies are also adjusted in line with the market fluctuations.
• Management and governance in the entire Petrolimex system are well-implemented, which is also an important factor helping Petrolimex to meet the targets and missions in 2020. The investment solutions and policies, the implementation of advanced enterprise resource planning solutions such as ERP-SAP, the application of digital technology in management of warehouses, depots, petroleum stations, electronic invoices being promoted and maintained in the previous years have demonstrated the efficiency in managing business activities smoothly from parent company to member units, especially in the context of working in social distancing.

Stepping into 2021, production and business activities of Petrolimex are anticipated to continue facing difficulties and challenges when Covid-19 pandemic is still a complicated situation around the globe. Meanwhile, in our country, the third wave of infection has occurred with the larger scale and size compared to the first two waves in 2020. To complete production and business targets of 2021, Petrolimex will prioritize its resources to invest in high quality and environmentally friendly products. Simultaneously, the Group will implement safe and efficient business solutions to its core business sector. Together, the Group hope to realize its strategic goal to become the top energy Group in Vietnam. Petrolimex will focus on implementing core tasks and solutions mentioned here:

• The Group will continue to strictly follow the regulations on prevention of Covid-19 by the Government bodies; effectively implement the resolutions of the General Meeting of Shareholders and the Board of Management; put efforts to meet the basic planned targets, 5 missions and 6 solution groups that have been approved, especially two breakthrough solutions: cashless payment and new brand identity; meeting double- targets, both ensuring safety and effective production, with greater care for employees’ lives in the whole system.
• The Group will strengthen management solutions and technological application in management and governance. In which, it will focus on implementation and completion of the Business Intelligence System so as to implement on the whole group from mid-2021; digitalize the order management system based on the road map in 2021; applying cashless payment with advanced POS generation combined with Petrolimex ID databases.
• The Group will continue to strictly implement Decision no 49/2011/QD-TTg on dated 01st September 2011 of the Prime Minister on regulations on the roadmap of applying emission standards with newly produced and imported cars and motorcycles. In which, it will actively prepare technical infrastructure and implement incentives to use fuel products based on Euro4 and Euro5 standards following the roadmap.

With great responsibility to the shareholders, the Board of General Directors and all employees of Vietnam National Petroleum Group will strive to comprehensively meet the targets for 2021 based on the core missions that the General Meeting of Shareholders and the Board of Management have assigned.

On behalf of the Board of General Directors, I would like to thank our valued customers, government agencies, shareholders and investors who have constantly supported us and placed unceasing trust in Petrolimex. We hope that we will continue to earn your trust and support in 2021 and in the following years.