Petrolimex strives to stick to 2022 plans
On January 12, 2022, the Vietnam National Petroleum Group (Petrolimex/PLX/Group) held a conference in Hanoi to review its performance in 2021 and roll out tasks for 2022.
CMSC Deputy Chairman Ho Sy Hung; Party Secretary – Chairman of Petrolimex Pham Van Thanh and Board of Management member – Acting Deputy General Director Tran Ngoc Nam preside over the meeting
A general view of the conference
Delegates in attendance at the conference included CMSC Deputy Chairman Ho Sy Hung; Chief of Staff of the Party Civil Affairs Committee – Chief of Staff of CMSC Do Huu Huy and heads of the CMSC’s departments and representatives from the Central Enterprises Bloc’s Party Committee.
The COVID-19 pandemic made 2021 a challenging year for Vietnam’s economy in general and for petroleum business in particular. At the same time, the tough year showcased the Group’s braveness, resilience, and creativity in being proactive, flexibly adapting and gradually overcoming difficulties in the new normal. With efforts of the whole system; the consistent, united and drastic directions from the Board of Management and Board of Directors and the attempts and high determination of all staffers, Petrolimex accomplished all stated targets, tasks and plans.
Impressive achievements: - Fully and promptly comply with requirements of the Government and relevant authorities in the fight against COVID-19; and proactively implement vaccination programmes to guarantee safety for all staff, making considerable contributions to ensuring thorough business and production activities and ensuring sufficient fuel supply and energy security. - Work out flexible and appropriate business plans and sales policies to ensure safe adaptation to COVID-19 in each particular area to maximise sales volume. - Promote cashless payment project, apply new brand identity in petrol stations and operate the customer service helpline at 1900 2828, which helps improve Petrolimex image, prestige, and brand name. - Actively contribute opinions to the formulation, amendments and revisions of State management documents on petroleum business. - The management and governance works were improved, accelerating the application of information technology as well as digital transformation in the Group. - The brand communication, development and protection were carried out actively and effectively. - The income and life of all employees were guaranteed, which is a significant source of encouragement for the labourers to devote themselves for sustainability. |
Under the complex developments of the COVID-19 pandemic and its negative impacts, Petrolimex continued upholding its resolve of an enterprise in the top listed companies in the VN30 basket. The Group was honoured among Vietnam’s top listed firms for the fifth consecutive year by Forbes, and as Champion of Revenue on the stock exchange. Of note, the Group was bestowed the “Outstanding Progress in Corporate Governance” award by the HCM City Stock Exchange and the “Sustainability Reporting” award for the best listed firms. These honours further affirm the recognition of management agencies and the market for Petrolimex’s corporate governance model when the Group is approaching highest, more transparent and modern standards, towards the goal of balancing economic, social and environmental sustainability.
Amidst difficulties caused by COVID-19, Petrolimex still maintained its leading role of a State-owned enterprise in carrying out social responsibilities through many practical activities by both the Parent Company and its member units. Of note, Petrolimex promptly responded to the appeal of the Party, the Government, the Vietnamese Fatherland Front and the Commission for the Management of State Capital at Enterprises for fulfilling social responsibility through the contribution of nearly VND300 billion (over US$ 13 million) to the national fight against COVID-19, in which over VND250 billion was contributed to the COVID-19 Vaccine Fund. Other activities included the contribution of VND30 billion for the “Internet connection and computers for children” programme, and financial support for the purchase of medical equipment and food for affected localities in the South. Additionally, Petrolimex was the sole enterprise that cut petrol prices to assist local people and forces at the frontlines in the fight against coronavirus.
The year 2022 is of significance as it creates foundations for implementing goals set for the 2021-2025 period. It is estimated that advantages, opportunities and difficulties, challenges are intertwined but there are many more difficulties and challenges. The COVID-19 pandemic can become more complicated and dangerous. The global economic growth is projected to remain uneven. Domestically, the experience and ability to cope with the pandemic increase but the resilience of enterprises and people decreases. The Government’s Decree No 95/2021/NĐ-CP dated November 1, 2021 on amendments to some articles of the Decree No 83/2014/NĐ-CP dated September 3, 2021 on petroleum trading, which takes effect on January 2, 2022, will have certain impacts on the Group’s business.
On the basis of the assessment and forecast of the situation in 2022, Petrolimex rolls out and strives to fulfill Six key tasks, including: (1) To ensure complete safety in production and business activities, and to strengthen the COVID-19 prevention and control; (2) To synchronously work towards solutions to reach stated production and business goals; (3) To focus on promoting key petroleum production and business activities, in which due attention should be paid to developing the petrol retail network to open new petrol stations whilst modernising the existing petrol stations in association with implementing new brand identity, and effectively trading the high-grade fuels of Euro 5 standards; (4) To enhance production and business efficiency through advanced technologies, innovation and digital transformation; (5) To complete the Petrolimex Development Strategy in the period to 2030 with a vision to 2045 through digital transformation and brand development strategies; (6) To accelerate the restructuring process in the whole Group, to complete the restructuring, divestment at the Parent Company and member units, and to continue selling treasury stocks.
The above-mentioned tasks for 2022 will be implemented through six groups of solutions as follows:
• Petroleum production and business: To stick to amendments in Decree 95, flexibly utilising imported sources of high-quality fuels as well as domestic sources from two local refineries; To trade environmentally-friendly products in line with regulations on emission limit standards Euro 5; To study solutions to make full use of petrol stations; To increase retail output and promote cashless payment via Point-of-sale (POS) system in conjunction with Petrolimex ID database.
• Governance: To ensure the quality of oil and petrol, especially the high-quality varieties (Euro 5 standard fuel); To speed up the application of information technology, and digitisation in management and governance activities; To review, formulate and complete internal management regulations of the Parent Company – The Group, contributing to improved management efficiency.
• Investment in and management of material and technical system: To study, and pilot new business areas in relation to the core area of petroleum trading, and to proactively anticipate the energy transition trend in the world and in Vietnam; To complete material and technical system planning for the whole sector; To closely follow the implementation progress of key projects on warehouses, automation, pipelines, and so on.
• Financial activities: To come up with cost-effective solutions, increase the use of short-term capital, diversify financial instruments, capital sources with attractive interest rates for key projects.
• Promote Petrolimex brand value: To implement Petrolimex brand development strategy in association with the Group development strategy; To apply new brand identity signs in all newly-built, repaired and renovated petrol stations in conjunction with brand protection; To coordinate with State management agencies, market management bodies at all levels to propose the handling of any breach of intellectual property rights and trademark violations.
• Uphold the internal strength: To increase the connection and support between the Parent Company – The Group with Corporations, Joint Stock Companies, Limited Liability Companies; To strengthen the cooperation among member companies to develop and exploit new markets, new customers; To accelerate digital transformation and application of Industry 4.0 technologies to maximise efficiency of general databases.
Addressing the event, CMSC Deputy Chairman Ho Sy Hung spoke highly of the efforts and achievements that Petrolimex made in 2021. Under the complex developments of the COVID-19 pandemic, besides maintaining stable operation, Petrolimex ensured safety in all production and business activities and energy security; concurrently, making remarkable contributions to the fight against coronavirus in localities nationwide.
Speaking about orientations for 2022, CMSC Deputy Chairman Ho Sy Hung recommended that the Group pay due attention to investment activities and corporate governance; particularly the proactiveness, commercialism, and effectiveness in the enterprise development and Petrolimex brand strategies.
On behalf of the Group leaders, Party Secretary – Chairman Pham Van Thanh appreciated CMSC Deputy Chairman Ho Sy Hung’s directions and said he believed that with a long history of establishment and development and the efforts to overcome all challenges of a united collective, the whole Petrolimex staff will work side by side to successfully fulfill targets and tasks set for 2022 – the year is forecasted to continue witnessing complicated developments of COVID-19 due to the emergence of new variants and uneven global economic growth.
On the occasion of its 66th anniversary (January 12, 1956 – January 12, 2022) and the coming Lunar New Year of the Tiger, Petrolimex would like to express gratitude and send best wishes to the Party and State leaders, shareholders, partners, customers for their love and trust and local media agencies for their company.
