Petrolimex must reform to strengthen leading role

Xuan Tuyen

03:01 PM @ Wednesday - 31 July, 2019

Deputy Prime Minister Trinh Dinh Dung emphasised that Petrolimex, first and foremost, must reform and improve its competitiveness, fulfilling the task of ensuring sufficient supply of fuel for the economy, and pursuing policies on the national petroleum market.

Deputy Prime Minister Trinh Ding Dung made a speech at the event. Photo Nhat Bac

Addressing the conference held by the Vietnam National Petroleum Group on January 12 to review the 2018 performance and carry out the 2019 tasks, Deputy Prime Minister Trinh Dinh Dung acknowledged the Group’s contribution to the national development.

"The strength of the Vietnam National Petroleum Group is that the Group has strictly followed the Party and State guidelines and policies; satisfying requirements in energy and petroleum supply for socio-economic development, transportation, agricultural and industrial production, services, etc.; for national defence and security; civil use and environmental protection," said the Deputy PM.

In addition, the Group has a long history of 63 years of establishment and development, and solidarity; and an infrastructure system with depots and warehouses, pipelines, and petrol stations across the whole country. The Group has also pioneered in the coordination and consumption of petroleum products of domestic petrochemical refineries such as Dung Quat and Nghi Sơn, among others; which contributes to implementing the Government’s commitments for the common development of Vietnam’s oil and gas industry.

Leave no doubt on petrol quality

According to the Deputy PM, the Vietnam National Petroleum Group is facing numerous difficulties and challenges in both production and business activities. The business network remains unsynchronised although the Group’s system is much better than other private petroleum enterprises. Petrol stations concentrate too much on old traffic routes whereas there is a shortage of petrol stations along highways and urban bypasses. The distribution network is still asynchronous in new development areas, economic zones, and industrial development areas where there is a high demand for fuel. In impoverished and remote areas, the distribution network remains poor.

Despite substantial investments, the strategic petroleum infrastructure system (pipelines, warehouses) fail to meet production and business requirements, especially in the southern region. The system of petroleum depots and warehouses has not proactively made forecasts and investments to satisfy actual requirements and improve competitiveness.

The Group has not yet widely and qualitatively applied automation technology in stages (measurement, inspection, discharge and retail, et.) to ensure safety and prevent fraud. The trading of biofuel E5 reveals certain shortcomings in price, tax, consumer psychology, and distribution system, and so on.

"There were doubts about the quality of E5 bio-fuel but the Group has not proactively worked with specialists, scientists, and concerned bodies to inform and respond to customers’ questions about the bio-fuel’s quality. Thus, the Group needs to work out solutions to make customers better aware of E5 bio-fuel and other bioproducts, as well as effects on the environment", said the Deputy PM.

The recent time has witnessed increasingly fierce competition in the domestic and international retail markets whilst methods, practices, and service quality of Petrolimex’s system are still slow to be reformed.

Photo Nhat Bac

Reform to uphold leading role

Deputy PM Dung noted that in the industrialisation and modernisation period to pursue the goal of soon becoming a modern industrial country with developed traffic system, improved people’s living standards, and increased use of automobiles, the demand for fuel is growing. Besides, the requirement for petroleum import in the coming time is huge, so the tasks of the Group in 2019 and the following years are very demanding.

"The first task of Petrolimex is to focus on playing a leading role in supplying petroleum for socio-economic development, enhancing competitiveness, reforming and speeding up development", he said.

Additionally, to ensure reasonable petrol prices, creating a driving force for sustainable development and making it affordable to customers; serving to improve the quality of people’s life.

In addition to prices, petroleum must be of good quality and meet requirements for environmental protection and reduced emissions. To that end, besides the State policies, the Group should proactively propose and consult policies related to petroleum sector.

Another requirement is to enhance production and business, and investment efficiency to prevent losses; accelerate the application of science and technology into the management of petroleum consumption to stop frauds; establish infrastructure system and consumption and distribution networks to meet technical and safety standards whilst ensuring they are modern and eye-catching to intensify competitiveness.

The Group should increase investment into and upgrade the infrastructure and technical facilities for the system of depots, warehouses, pipelines, and especially petrol stations with automation technologies to make them gradually satisfy international standards in key markets, big cities, traffic arteries, and in impoverished, mountainous and islands areas.

Petroleum is a special commodity, flammable and likely to cause serious effects on the environment if any incidents occur. Therefore, the Deputy PM required Petrolimex and member units to strengthen their coordination with relevant bodies to pay heed attention to security, safety, fire prevention and control, and environmental protection.

Petrolimex continues working closely with the Vietnam Oil and Gas Group (Petrovietnam) in the consumption of petroleum products at Nghi Son Refinery and Dung Quat Refinery to ensure overall benefits.

Photo Nhat Bac

To carry out the tasks mentioned above, Deputy PM Dung reiterated that the Group must improve capability, the quality of governance, production and business; promptly address difficulties and obstacles to fulfill objectives and tasks set for 2019 and the following years. In which, it is crucial to continue restructuring the Group, in the main area of petroleum and in banking and insurance; and complete management work and training of professional staff and management leaders to meet new requirements.

Also, the Deputy PM called for Petrolimex to constantly care for the labourers’ life; build up a united team to work together well.
Source: Government Portal

Vietnam National Petroleum Group - Petrolimex (PLX)

Committed to constantly making an effort to go further on the path of development and bring the lives of Vietnamese people and all Petrolimex employees to new heights in the future