Ladies and gentlemen

In 2023, energy industry in the world continues to face a lot of difficulties: the war in Ukraine seriously impacts world energy security, fossil fuel demand peaks and energy prices continue to rise in countries around the world. With that background, the world is shifting towards achieving goals that seem very difficult to happen at the same time*: clean energy with low carbon emissions while ensuring adequate sustainable energy production at reasonable costs.

To keeping up with the movement, Petrolimex continues to act as the leading role of State-owned enterprises in stabilizing the petroleum market, ensuring the supply of petroleum to the nationwide distribution system in all situations, contributing to ensuring national energy security, while gradually transforming energy to become a green, clean, and environmentally friendly energy corporation.

In 2023, Petrolimex is proud to be one of the state-owned enterprises that comprehensively completed and exceeded planned targets with total consolidated revenue of about 11.2 billion USD and pre-tax profit of nearly 162 million USD. In 2023, Petrolimex has achieved many achievements associated with Petrolimex's specific goals as well as the 17 Sustainable Development goals of the United Nations; at the same time, it was honored by many prestigious ranking organizations such as: Top 10 best corporate governance enterprises in large capitalization group; Top 50 best listed companies in Vietnam; Top 100 most valuable brands in Vietnam; TOP 3 enterprises with the largest revenue scale in Vietnam; Top of the largest tax paying enterprises in Vietnam.

2023 is the year that Petrolimex has completed many important contents in the Group Restructuring Project for the period 2021-2025, vision toward 2035. Issued the Digital Transformation Strategy of Vietnam Petroleum Group until 2025, defining towards 2030, and at the same time promulgate the Development Strategy of Vietnam Petroleum Group to 2025, vision toward 2035. With the vision of becoming the leading energy group in Vietnam in terms of green, clean, and quality products, environmentally friendly based on 4.0 technology platform and comprehensive digital transformation, in the near future, Petrolimex will focus on two key, cross-cutting, long-term strategies: the comprehensive Digital Transformation strategy and Green Energy Transition Campaign.

Facing the energy transition movement taking place globally and in Vietnam, Petrolimex is taking steps to become a green, clean, and environmentally friendly energy conglomeration. In the forthcoming phase of development, Petrolimex will provide premium petroleum products that meet Euro V and Euro VI emission standards and will gradually transition from using fossil energy sources to lower-emission energy sources such as renewable energy, hydrogen and carbon capture.

Petrolimex also continues to enhance the research capability and implementation of green transformation projects at terminal, jetty, and petroleum station systems such as installation of vapor recovery units, rooftop solar power systems... In 2023, Petrolimex signed a Memorandum of Understanding with the National Innovation Center (NIC) to promote innovation in the energy transition process at Petrolimex. Petrolimex has also registered with the Ministry of Natural Resources and Environment 06 priority pilot projects at Petrolimex to contribute to Vietnam's green transformation process, within the framework of implementing the Plan to mobilize resources to implement the JETP Declaration ** of the Prime Minister.

Petrolimex has developed a plan to measure CO2 emissions throughout the Group as a foundation for setting up Action Programs, implementing projects associated with emission reduction and Carbon emission reduction, and in parallel with actively preparing to establish and organize market surveys for raw materials plans that have the potential to be used to produce new generation biofuels (waste oil and grease for HVO and SPK processing…).

The world's energy transition requires a balance between two key goals: aiming for net zero emissions while ensuring energy supply at an affordable cost. Petrolimex will continue the mission of ensuring national energy security by continuing to provide petroleum products with high emission standards, and on the other hand, will participate in the energy transition process in Vietnam by shifting from fossil energy to new sources of energy and renewable energy, transitioning from dependence on imported energy to domestically produced energy, replacing the operation of old-fashion systems with smart and innovating system.

The 2023 sustainability report has shown the results achieved by Petrolimex with the goal of becoming a sustainable development enterprise. Energy transition and sustainable development is a complex process, requiring Petrolimex to continue to implement development strategy carefully. On behalf of Petrolimex's board of directors, I would like to express my sincere thanks to the shareholders, customers, and partners who have always trusted and supported Petrolimex throughout the past years. We hope to continue to receive your support so that Vietnam Petroleum Group will continue to have more positive changes in the coming years.

Wishing you a new year of health, happiness and many successes!

*Energy-Trilemma

** JETP Declaration: Political declaration establishing a just energy transition partnership.