Secretary of Party Committee – Chairman of Petrolimex Pham Van Thanh

Mr.Nguyen Hoang Anh– Member of the Party Central Committee, Chairman of the State Capital Management Committee

Mr. Le Van Chau – Vice secretary of Central Business Bloc’s Party Committee;

Mr. Do Thang Hai – Deputy Minister of Trade and Industry

Distinguished delegates,

Today, we are very honoured to welcome high-ranking leaders of the Party and State to the conference.

The guiding speeches by Party and State leaders are actually valuable suggestions and detail instructions; a source of profound encouragement and thorough orientations for Petrolimex to implement not only in 2020 but also in the coming years.

Petrolimex Board of Management and Board of Directors fully understand and perceive the instructions of the Party and State leaders and pledge to seriously implement the instructions by specific and practical actions; and are determined to fulfill targets set for 2020, deserving the trust and support of the Party and State leaders.

On behalf of the Vietnam National Petroleum Group, I would like to express my sincere thanks to the attention, leadership and instruction of the Party and State leaders to all activities of Petrolimex.

Your excellencies,

Mr Pham Duc Thang – Director General of Petrolimex has, on behalf of the Board of Directors, presented a detailed report on the performance of the Group in 2019 and orientations, targets and solutions for 2020. In addition, a number of speeches and presentations by representatives of some member petroleum companies and some joint stock companies have drawn a clear picture of the general business situation as well as advantages and disadvantages of the whole Petrolimex system.

Although 2019 was a tough year for petroleum business, the year still witnessed successes in the management of the Group’s leadership, exceeding most of the 2019 business plan targets set by the General Meeting of Shareholders as well as orientations of the Board of Directors.

The above achievements have continuously contributed not only to strengthening the confidence of the Government, shareholders and investors in the leadership of Petrolimex Board of Management and Board of Directors but also to enhancing the reputation of Petrolimex in the market and among international partners. Each attainment demonstrates the all-out efforts, consensus, determination, and coordination of the whole Petrolimex system; the entire leaders, managers and employee over the past years. On behalf of the Group’s Board of Management, I would like to express my gratitude to each official and labourer in every position for their hard work and dedication over the past years to the general development of Petrolimex.

Nevertheless, besides achievements there still exist numerous shortcomings and tasks that have not been fulfilled in accordance with the orientations and goals of the Government and the Group leadership, which we need to seriously take into consideration and thoroughly assess and analyse; drawing profound lessons of experiences for 2020 and the following years.

Distinguished delegates,

The year 2020 will be a difficult and challenging year for the Group as it is expected to face many fluctuations related to petroleum trading policies, instabilities of the global economy as well as increasing competition. With that in mind, we need to be well-prepared and stay proactive with a strong determination and highest responsibility to cope with and respond to challenges of the year. To that end, the Group must ensure growth momentum by integrating innovation and creativity into traditional development measures. Of note, we should stay focused in eight groups of major issues as follows:

First,regarding production and business activities: It is essential to further uphold achievements obtained in 2019 on the basis of ensuring complete safety in production and business activities as the top priority. I request all member petroleum companies, Corporations, joint stock companies to set higher targets, and to make joint efforts to early realise plans and targets and make more impressive and comprehensive achievements in 2020. "Generally speaking, 2020 must deliver much more remarkable performance than in 2019"

Second,regarding the development of non-petroleum services: Our focus will be on studying and completing the evaluation of business models and plans as well as selecting suitable partners for the development of value-added services at Petrolimex’s petrol stations. The project needs to be drastically implemented and piloted soon in 2020, which is the prerequisite for the synchronous implementation in the whole system in the future to maximise advantages of the retail network across the country. The practice is expected to increase the Group’s business efficiency and profits.

Third,regarding cost cutting: It is necessary to proactively and thoroughly implement cost reduction in the whole Petrolimex system. As 2020 is seen as a difficult year, the whole Petrolimex must raise awareness and spirit of thrift practice. Cost cutting is essential in all stages, from evaluation and analysis to effective generation of sources, application of technologies in management to minimise losses, cutting spending, thoroughly reviewing assets and land management, avoiding wastefulness and losses. I call for the Board of Directors to have close guidance from the Parent Company to all member units to thoroughly follow the direction in the whole Petrolimex system.

Fourth,regarding corporate restructuring and renewing: It is significant to continue speeding up the restructuring of the enterprise and member companies to increase business efficiency. It is a must to complete the divestment of non-core businesses, recover the Group’s investment capital in non-performing business areas and business areas that are not suitable with the Group’s development orientation; and complete the restructuring of Corporations under the direction of the Government.

Fifth,regarding the application of science and technology: It is necessary to accelerate the research, investment and application of science and technology into production and business activities to improve labour productivity and economic efficiency. Besides, Viet Nam has a goal to increase the GDP share of digital economy to 20 per cent in the next five years, thus, it is significant to focus on the application of digital technology, big data and Artificial Intelligence in improving the quality of customer services and increasing efficiency for the enterprise.

Sixth,regarding the research and development of new energy products: It is important to reinforce the cooperation with experienced partners, including the strategic partner JXTG (Major Japanese oil distributor) or other energy corporations in the world, to jointly seek for opportunities to invest in, exploit, and develop new energy products. It should continue carrying out necessary procedures to work with Vietnam Electricity (EVN) to speed up the implementation of LNG (liquefied natural gas) project in My Giang, Khanh Hoa Province.

Seventh,regarding the professionalism of relationship with investors, shareholders: Because Petrolimex is a large-scale public company listed on the stock exchange, with a diverse shareholder structure and the participation of nearly 100 foreign organisations including many multidisciplinary Corporations and big financial organisations in the world, it is necessary to paid due attention to strengthening cooperation with investors. The disclosure and provision of the corporate information to investors must demonstrate professionalism, transparency, punctuality, and thereby indirectly maintaining and developing the corporate values through the stock value on the stock market, along with the objectives to divest State capital or sell treasury shares.

Eight,regarding Petrolimex people: Last but not least, in this new decade, the strong development of science and technology has led to rapid changes in business methods and business environment, as well as created extremely fierce competition in the market, requiring the people, Petrolimex leaders and officials to constantly renew their ways of thinking, and regularly update professional knowledge as well as legal, socio-economic knowledge. More importantly, that must be a strong desire and aspiration to change Petrolimex in a more positive and dynamic manner. I call for all Petrolimex staff to further uphold the spirit of dedication and devotion; the whole system must move and renovate, must act drastically and responsibly, notably the Parent Company, for the common goal that is the development of Petrolimex. To that end, each Petrolimex official must renew their way of thinking and must clearly understand their role and position, especially the leaders of professional departments and sections must demonstrate high exemplary spirit, setting examples for the whole system.

Ladies and gentlemen,

With the outcomes and achievements gained in 2019, I strongly believe and expect that, right after the Conference, with new faith, new spirit and new motivation, the Board of Management, Board of Directors of the Parent Company and member petroleum companies, Corporations, and joint stock companies will unit to make further determination and efforts and to be more dynamic and creative to successfully reach targets and duties set for 2020.

On behalf of the Petrolimex Board of Management and Board of Directors, I would like to convey my sincere appreciation to the Party and Government leaders, delegates, distinguished guests and all participants for your presence today at the event.

On the occasion of the New Year 2020, I would like to wish you all good health, happiness, luck and success.

Thank you!