Petrolimex Hanoi: Reconfirms its regulating position in market

Thanh Huong

09:09 AM @ Wednesday - 19 October, 2011

A new look of oil service station network of the company, equipped up to standard

In the course of 55 years of building and development, although faced with uncountable sacrifices, difficulties, and hardship, in whatever circumstance Petrolimex Hanoi guaranteed the supply of oils to Petrolimex companies in 16 northern provinces.

Industry and Trade News: Petroleum Company, Region 1 (Petrolimex Hanoi) is a member of Vietnam National Petroleum Corporation (Petrolimex Vietnam). The company is to deal in oils and petrochemicals, meeting social demand and national defense on the premise of Hanoi Capital and Bac Ninh and Vinh Phu provinces, ensuring the supply for downstream companies in 16 northern provinces.

30 years in the system of centralized planning

In response to the task of economic development and the strategic mission of the country, on April 13, 1956 The Ministry of Commerce issued Decree 104/BTN-ND-TC establishing the Gasoline, Oil and Grease Company of Hanoi (the forerunner of Petroleum Company Region 1 (Petrolimex Hanoi) in line of the Gasoline, Oil and Grease Corporation (forerunner of Vietnam National Petroleum Corporation, now Petrolimex Vietnam) This event marked a new development of the petroleum sector in the Capital City of Hanoi.

In the time of frenzied bombing by US imperialism against the North, officers and men worked selflessly against time, overcoming difficulties and were ready to march to the battlefield under the slogan “All for the battlefield”, “ All to defeat US marauders’ aggression” . Duc Giang Oil Depot was twice attacked by US aircraft on June 29, 1966 and April 16, 1972. With determination and bravery, officers and men of the depot, ignoring danger and sacrifices, rushed to the burning fire so as to salvage oil for the continuous stream of oil flowing to the battlefield in the air of Hanoi and other battlefields across the country, contributing to the victory of our people and armed forces to defeat US marauders.

Director Tran Dac Xuan presided over a customers conference


Transaction center of Duc Giang Oil Depot just came into operation

Just after the restoration of peace, the company started the rebuilding of Duc Giang Oil Depot of a capacity of more than 50,000cubic meters and later upgraded to more than 80,000cbm . In 1980, the company was renamed as Petroleum Company Region 1.

The period of 30 years (1956-1985) was the course of centralized planning. The company had to overcome difficulties, improved styles of work, raised the spirit of responsibility, always ensuring full supply of oils for the war, production and people’s life. That was the starting period for the building of initial material infrastructure, preparing for a new phase of development.

Embark on a market system

Since 1986 when the Party and the State advocated the renovation of the economy, the shift over to a socialist-oriented market economy, the company actively proceeded with the new line, timely implemented measures and methods in strict implementation of Party and State guidelines in a spirit of overcoming difficulties and accepting competition.

When the demand of oil for the economy and the society was increasing, chiefly the demand for direct retail to customers, in June 1990, Petrolimex Vietnam decided to set up Hanoi Oil Retail Enterprise. Since then the retail network of the company quickly developed. The covering of oil demand by retail network marked a new and important change of the company, from distribution to business, from subsidy system to market system.


Duc Giang Oil Depot is one of green, clean and beautiful environment


Tree planting for the greening of storage area

From 1991 up to now, the economic, political and social situation of the world and within the country witnessed complex changes such as economic and political crisis, oil prices sharp fluctuation, inflation, price escalation… had remarkable impact on each and every enterprise, offering new challenges. Especially, the fluctuation of oil price not only influenced business outcome of each enterprise but also affected the process of conversion to really market system. At times, business partners restricted the purchase, curb the sale in order to reduce losses, hence the overall weight of oil supply rested solely on Petrolimex. The State had many policies and measures to regulate the oil sector.

Decree 55/ND-CP and later Decree 84/ND-CP created a verandah for the oil business in a market system. However in fact oil enterprises could not operate in a market system. The State continued to directly intervene in the market in order to maintain macro balance. Oil enterprises had to face pressures form various sides. In the market foul competition was rampant.


First prize for whole team in the Fire Prevention Competition Nation Wide 2010 of Petrolimex

Faced with above situation, seriously implementing direction by the Corporation, Petrolimex Hanoi tried its best to meet the demand of oil for production activities in its field of operation. In particular, the company paid attention to the retail of oil to end users, hence the business outcome of the company was good, ensuring the over-fulfillment of planning norms, maintaining and expanding market share, ensuring supply source, financial safety, loss reduction in difficult point of time, and many solutions to increase profits in normal business condition, bringing in efficiency to the oil sector and to the state.

In the last 5 years, the company had progress in leap and bound in all areas, i.e. to make a remarkable change in enterprise management, viewing results as a measuring meter and a motivation for the development of the enterprise, improving the competitiveness through the diversification of modes and quality of service.. The company had flexible business scheme and policies therefore it maintain the number of traditional clientele and developed new customers, maintained wholesale market, firmly increased retail market and increased the productivities of non-oil business, highlighting the regulating role in its theater of operation.

Focus on investment, continuous development

In the last 55 years, one of major policies of the company was to expand and modernize material infrastructure at direct service for business and production. The company focused on new investment and upgrade and modernize oil retail network, raise the attractiveness toward new customers, increased retail market share, highlighting the regulating and stabilizing role in the theater of operation. From a retail shop with 13 cadres and men when it was set up the company now owns a network of 120 modern and civilized retail stations and more to come.

The company boldly applied technological advancement in the expansion and modernization of terminals and stores. At Duc Giang Oil Depot, almost all sub-systems and major processes were automated in par with a modern, civilized, green, clean and beautiful oil storage depot.

The company’s development in recent time was continuous and sustainable on the basis of inheriting and promoting the tradition of 55 years This can be seen through some data of the year 2010. as compared with the year 2005: Oil volume delivered for sale was 1,489,434cbm/ton, an increase of 47.5%, revenue increase by more than 240%, contribution to budget by 222%, labour productivity (oil retail) by 50% and salary income by 40%.

On the occasion of its 55th founding anniversary, Petrolimex Hanoi is honored and proud to receive The Independence Medal, First Class granted by the Party and State to all officers and men for their outstanding achievement in the years 2006-2010.

Thanh Huong

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