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Application of science àn technology into operations management

Since Covid-19 pandemic outbreak, the Group, through network applications, has organized online meetings such General Meeting of Shareholders – one of the most important meetings with participations of all employees. Till 2022, the Group still maintains such online meetings and achieve results as follows:

- Ensure work efficiency no matter where employees are physically located around the world, ensure work efficiency despite of “geographical distance”, employees of Petrolimex still stand “close together” to capture the concept of work, implement and boost their productivity at work.

- Improve cost efficiency and maximize time efficiency for all employees and shareholders. The Group timely ensures equality and interests of shareholders. This is a positively support solution for successful meetings of Petrolimex.

Market present

Petrolimex identifies salary policy as an important tool to motivate and attract human resource, improve labor productivity sustainability goals. The good pay policy will minimize risks and ensure living standard for employees and their families, having positive impacts on social security, contributing to social progress and equality. Besides, the good pay policy also helps increase local consumption due to guaranteed employee income, contributing to higher GDP growth, improving growth quality and promote socio-economic sustainability.

The entry level wage paid to employees of Petrolimex without gender discrimination is always higher than the regional minimum wage stipulated by the Government to promote gender equality in the workplace. Now, the lowest entry level wage paid to employees at Petrolimex is higher than the regional minimum wage stipulated by the State at least by 15%.

In 2022, Petrolimex has paid 2,785 billion VND from the wage fund for employees of 43 member units with an average wage of 12.69 million VND/person/month, up 22.9% compared to average wages in 2021.

Indirect economic impacts

Investment in core activities: In 2022, the Group has invested in projects with total value of 1,032 billion VND (terminal, pipeline, headquarter, development of petroleum stations, equipment, IT and other ancillary works)

Social Security benefits: The Group has funded construction of 60 houses for the poor households in Tuyen Quang province. Support to build a library for Phinh Phang Semi-Boarding Secondary School for Ethnic Minorities worth 550 million VND.

Job creation, poverty and hunger reduction: With a network covering 63/63 cities and provinces nationwide including 2,760 petroleum stations owned and operated by Petrolimex (COCO) and more than 2,800 petroleum stations owned and operated by dealers (DODOS), Petrolimex not only meets production requirements and people’s lives but also creates jobs for 18,942 laborers (Parent Company-the Group and 43 single member limited petroleum companies). The Group has made significant contributions to national economic development, especially in remote, mountainous and island areas with high poverty rates.

Petroleum price stabilization, inflation control, Marco-economic stability.

Response to “Vietnamese people prioritize using Vietnamese products” campaign.

Promote social security through community activities.

Contribute to State budget 34,999 Billion VND

Labor management relations

Petrolimex commits to fully complying with regulations of the Labor Code in 2019 to ensure better rights and legitimate benefits of employees and employers; Ensure harmony of interests of employees and employer in line with socio-economic development of Vietnam, build a harmonious, stable and progressive labor relations, promote labor market development and meet requirements of international economic integration.

Through the annual employee conference and the terms of collective bargaining agreements, the Group will announce and provide employee related information, policies and regulations in an active, adequate and clear manner. It helps enhance employee trust, promote good labor-management relations, create a positive, inclusive and fair working environment, reduce the turnover rate and minimize business and production disruptions in the Group.

100% of member units of the Group build and sign collective bargaining agreements in accordance with Labor Law and notice to local authorities before implementation. The contents of collective bargaining agreements should provide for the terms and conditions that are more favorable to the employees.

Occupational health and safety

There are potential dangers in petroleum business, leaders of Petrolimex and member units, trade union and grassroots-level unions of Petrolimex have identified: any negligence in business and production activities, if any, will become a disaster affecting health and life of human, property, order, security, environment and community, etc. Therefore, the Group has implemented many policies and measures to prevent and ensure occupational safety and labor protection for employees, complying with occupational safety regulations and being well-prepared for potential dangers.

The Group manages occupational health and safety regulations on occupational health and safety accompanied by Decision No 035/PLX-QD-HDQT dated 11th January 2017. Accordingly, every unit must arrange a full-time/part-time staff on occupational safety and health, establish a Council/Steering Committee on occupational safety and health including representatives of the employer: representative of the grassroots-level trade union executive committee, health workers in business and production facilities.

Units, on a yearly basis, should set up occupational health and safety plan with contents specified in regulations on occupational health and safety.

Every unit must arrange persons (full-time or part-time) in charge of occupational health and safety or establish a management unit of occupational health and safety to ensure minimum requirements.

At Parent Company-the Group: occupational safety and health is directly guided by 01 Deputy General Director. Department of Technology-Safety coordinates with Department of Organization and HR to advise and support General Director to direct, manage and operate occupational health and safety

Petrolimex conducts medical examinations for 100% direct employees

100% of units of Petrolimex will provide in-kind support for employees working in hazardous environment under a list of heavy, hazardous and dangerous occupations. Regarding occupational disease, Petrolimex will conduct periodical annual medical examinations for 100% of employees to timely detect and treat (if any) and ensure employees’ health. Apart from health insurance as stipulated by labor law, employees are covered by comprehensive health care insurance and occupational accident insurance.

Regarding cases of occupational accidents, Petrolimex will carry out compensation policy in accordance with Labor Law based on injury rate; Trade Union and Young Union will visit, encourage and call for support from the Group-wide for cases with extremely difficult circumstances.

WORKER TRAINING ON OCCUPATIONAL HEALTH AND SAFETY: In 2022, a team of lecturers awarded certificates by the Group has trained a total of 12,827 employees under 06 groups of trained objectives on occupational safety and health, issuing certificates for 2,915 employees, issuing safety cards for 8,182 employees, opening training logbook for 1,730 employees.

Training and education

Petrolimex identifies human resources as decisive factor to its sustainability. Therefore, to improve quality of human resources, the Group and member units build plans and implement training courses/programs, re-training to improve qualifications, professional skills, management skills, political theory, foreign language, informatics, career skills for employees. In addition, Petrolimex also focuses on building and training personnel in key areas which can have big impacts on business performance of Petrolimex such as: training program for managers of petroleum, gas, lubricant stations, etc. building, training professional working style, friendly behavior, civilized and polite communication for sales employees at petroleum stations. By doing this helps improve business performance of Petrolimex based on technology platform, optimize the process and improve service quality.

PERFORMANCE IN 2022:

866 trainees participating in training courses on petroleum techniques, safety technology, construction-investment.

34 trainees participating in the MBA program (Andrews MBA) organized by Andrews University (USA) in Vietnam

210 trainees participating in 6 training courses, training program for managers of petroleum stations of Petrolimex

231 trainees participating in 7 training courses, training program for middle managers of Petrolimex

19,104 trainees participating in training courses on digital transformation, automation, IT management system.

Customer health and safety

Always put itself in the position of customers to evaluate its products objectively in all aspects to bring the best quality product and service to customers. As a key player in the petroleum business and distribution, Petrolimex continuously make efforts in completing and improving product quality as well as doing research and developing new, green-clean and environmentally friendly products toward customer health and safety and environmental protection.

All safety measures applied at petroleum facilities of Petrolimex aim to ensure employee and customer safety from source generation to sales, specifically: Petrolimex fully complies with regulations of State management agencies on product quality standards, issuing regulations on product quality standard higher than that of Vietnam standard in terms of technical requirements of current petroleum products to manage effectively from import, storage, transport, applying technology and import-export equipment, storage, transport, etc. limit the release of petroleum vapor to the environment, minimize petroleum evaporation and impacts customers of Petrolimex.

At petroleum stations where employees direct contact with customers, Petrolimex always deploys solutions to ensure the absolute safety. In 2022, Petrolimex has amended and supplemented Regulations on fire prevention & fighting, search-rescue, completing its oil spill response plan for each petroleum station as well as emergency response plan.

All petroleum products must be accompanied by safety data sheets for hazardous chemicals from import by source including information about characteristics, toxicity, ecology, health impact, first-aid steps, etc. in accordance with the Law on chemicals.