Chairman's Letter

Dear Valued Shareholders, Clients, and Partners,

At Vietnam National Petrolemum Group (Petrolimex), we always make continuous efforts to improve corporate governance, increase business and production efficiency to bring maximum benefits to our valued shareholders, clients, partners and stakeholders. With a motto of “human capital as a solid foundation for development”, Petrolimex always and proactively adds core values to our leaders, employees to build a strong and united team as a driving force for our long-term and sustainable development.

Remarkable milestones

Despite unpredictable changes of the global economy caused by Covid-19 pandemic, Petrolimex still gained outstanding achievements in 2020, highlighting common economic indicators in the period of 2015-2020 such as total sales volume of petroleum increased by an average 6.9%/year; profit /owner’s equity ratio reached 20.4%/year on average; contributing more than 188,000 billion VND to the State Budget in 2015-2020, an average of more than 37,600 billion VND/year; total pre-tax dividend payout reached 13,848 billion VND, equivalent to 1.07 times of charter capital with annual average dividend payout ratio of 29.56%.

In our Sustainability Report 2020, we set up strategic goals in many aspects such as new energy, human resource development, digital transformation in governance, management and restructuring, corporate innovation. This is now the right time for us to review and objectively evaluate our achieved results.

• In term of governance, the fact that “Sustainability Report 2019” of Petrolimex was honored by Ho Chi Minh City Stock Exchange for the first time as one of 10 best reports of listed companies in the market showed that Petrolimex’s positive changes in corporate governance have been acknowledged in the market.
• In term of human resource, being consistent with our motto, Petrolimex continuously strengthened training activities to improve professional experience for the employees in the whole system by establishing specialized training programs conducted by a professional and experienced team of lecturers. The results achieved by Petrolimex in the past 5 years were a solid affirmation on efficiency of training programs, professional and highly skilled human resource development.
• In term of other indicators such as environment, social responsibility, research and development of new energy products, restructuring plan and corporate innovation, Petrolimex has clearly defined that these are key contents and decisive factors for Petrolimex’s sustainable development in the future. Therefore, Petrolimex has been strengthening research, exploitation and synchronous development in the whole system

Vision to 2025 and following years

In a currently new normal status, Petrolimex is now facing both opportunities and existing challenges in the journey of development ahead. Therefore, Petrolimex’s BOM continues to provide guidance and direction to Management Department and member units to complete targets set up by the overall plan to achieve more successes as follows:

• Ensuring a harmonious combination of corporate governance factors in the digital transformation era, human resource and natural resource governance as a solid foundation to successfully perform business and production tasks in accordance with targets set up in the period of 2020-2025 and of each year.
• Focusing on construction and implementation of Petrolimex’s development strategy in 2020-2030 and a vision to 2045; successfully implementing the restructuring plan toward lean management, focusing on core fields with higher efficiency; implementing the policy of divestment of State capital at Petrolimex, divesting capital and restructuring ownership ratio of the Petrolimex at companies with capital contribution of the Petrolimex.
• Innovating, improving governance and management capacity by applying digital science and technology, improving capital deployment efficiency, labor productivity and competitiveness; closely following Petrolimex’s motto to develop a high-quality human resource in the whole system, building a professional, dynamic and modern team of leaders.
• Maintaining, well performing corporate social responsibility toward environment and society combined with ensuring transparency and efficiency of business and production activities.

With the achieved results, we believe that in 2021 and in this new decade, Petrolimex will continue maintaining sustainable development and growth, strengthening international cooperation with large corporations around the world to catch up with the trend of energy transition as well as deeply and widely digital transformation in the global scale. In order to achieve these goals, Petrolimex will ceaselessly build and complete a solid foundation with modern and transparent governance system in accordance with international standards to confidently overcome all challenges ahead.

Thank you very much for your cooperation and support.