Petrolimex’s 2024 achievements highlight the Group’s essential position
The Vietnam National Petroleum Group (Petrolimex/PLX/Group) organised a conference to review 2024 performance and implement 2025 tasks on January 1 in Hanoi.
Attending and directing the conference were Mr. Nguyen Hoang Anh, Member of the Central Party Committee, Chairman of the Commission for the Management of State Capital at Enterprises (CMSC); representatives of the leadership of the Party Committee of the Central Business Bloc; and representatives of the leadership of the CMSC’s departments.
The year 2024 was marked by significant challenges, including high inflation, geopolitical conflicts, and extreme natural disasters such as storms, floods, droughts, and landslides, causing severe loss of life and property. In that context, the Vietnam’s economy faced a decline in domestic consumer demand, difficulties in exports due to a shrinking global market, and pressure from rising input material prices.
Identifying 2024 as a pivotal year for breakthroughs in the five-year economic journey of the 2021-2025 period, and with the concern, direction, and support of CMSC, the Party Committee of the Central Business Bloc; the correct and timely guidance of the Party Committee and Board of Management of the Group, and the decisive, close, and effective management of the Board of Directors, the entire system—from the Parent Company to its member units—Petrolimex resolutely implemented numerous synchronised, flexible, and timely solutions. The aim was to comprehensively complete and exceed the planned production and business targets. At the same time, Petrolimex successfully fulfilled its political mission, stabilising the supply of the domestic petroleum market in all situations, contributing to ensuring national energy security, and supporting the national socio-economic development.
Key achievements of Petrolimex in 2024 First, ensuring supply and stabilising the petroleum market in all situations: In strict adherence to directives from the Government, the Prime Minister, and the Ministry of Industry and Trade, the Group organized resource creation and achieved 109 per cent of the total resource quota allocated by the Ministry of Industry and Trade. Notably, the Group proactively responded to and implemented timely scenarios to ensure uninterrupted petroleum supply, meeting the essential needs of the people, and minimizing risks to life and property during natural disasters, such as Typhoon Yagi in September 2024. Second, completing and exceeding all 2024 production and business plan targets: - The total consolidated petroleum sales volume of the entire Group in 2024 is estimated to reach 15,635,571m³/tons, equivalent to 120 per cent of the plan and a 9 per cent increase compared to the same period last year. - The estimated contribution to the State budget is VND31.250 trillion (about US$1.22 billion), amounting to 130 per cent of the planned target. Third, actively safeguarding cybersecurity and information security by establishing a Network Incident Prevention and Response Team; implementing technical and managerial measures to proactively prevent and minimize the risk of cyberattacks. Simultaneously, the Group coordinated incident responses according to regulations, performed data backup and recovery, and developed a plan to protect the security of the IT system. These efforts demonstrate the Group's strong commitment and top priority in responding to the increasing risks of non-traditional security threats. Fourth, 2024 marks a record year in the development of Petrolimex-owned retail petrol stations, with 93 new stations put into operation, bringing the total number of Petrolimex-owned stations to 2,774. The Group has won the bid for four pairs of rest stops on the North-South Expressway and is continuing to participate in bidding for phase 2 rest stops. The Group has implemented pilot programmes for truck service stations with new designs and brand identities, as well as issued revised regulations on petrol station management to improve operational efficiency. Fifth, resolutely strengthening control and risk management in the receipt and transportation of petroleum, reducing and strictly controlling abnormal losses at all stages. The Group continued to review and resolutely implement optimisation of commodity flow in key areas to increase the efficiency of the supply chain for the Group and its member units. Sixth, adjusting the increase in salaries for managers of petroleum companies starting January 1, 2024. This aims to improve income, approach market levels, and align with assigned responsibilities. The adjustment also ensures a reasonable correlation between the salaries of managers and employees, contributing to motivation and improved operational efficiency at member petroleum companies. Seventh, proactively attracting and seeking high-quality human resources and strengthening training to improve the quality of the workforce. This is the foundation of Petrolimex's development strategy to 2030, vision 2045. In 2024, the Executive Board proactively proposed to the Board of Management to develop a mechanism to attract and retain talent. Notably, Petrolimex is collaborating with Hanoi University of Science and Technology, organising the signing of a memorandum of cooperation and awarding 40 scholarships to outstanding students. The Group continued to promote training and improve the quality of human resources with nearly 40 training programmes and 137 direct and online courses implemented in 2024. These programmes attracted nearly 16,000 participants, focusing on training business staff, supporting franchised traders, improving the skills of Supervisors, and covering many other important professional topics. Eighth, the Group continued promoting the Comprehensive Digital Transformation Strategy by implementing a series of key projects such as the Automation Deployment Project at warehouses and petrol stations; automatic payment via RFID technology and smart cameras; SMO order management solutions; upgrading Petrolimex App Version 2; upgrading the interface and features of the Digital Office; BI intelligent reporting; digital transformation of the Group's internal management regulations; and surveying the current state of digital culture. Ninth,Green Energy Transition: the Group implemented a plan to develop a net-zero and carbon-neutral strategy for scopes 1 & 2 by 2026. This includes donating 2,300 water purifiers in Lao Cai, Ha Giang, and Yen Bai provinces; researching investment in afforestation; conducting greenhouse gas inventories across the Group; promoting consulting and research to create carbon credits, and registering to participate in JETP projects; among others. Tenth, effectively implementing social security work by supporting VND364 billion ($14.25 million - equivalent to approximately 10% of consolidated profit after tax) to the National Fund to jointly eliminate temporary and dilapidated houses for poor households and other social security programs. Additionally, the Group spent approximately VND130 billion (about $5 million) compensating for the cost of creating sources for units in remote and isolated areas with difficult business locations, to ensure the supply of petroleum to meet the needs of society and contribute to ensuring national energy security in all regions of the country. Closing out 2024, Petrolimex launched a series of events leading up to the celebration of the Group's 70th anniversary with three major sports festivals in the regions of the South Central Coast and Central Highlands, Southwest, and North Central Coast. These activities not only created a healthy playground and connected employees but also encouraged all officials, workers, and labourers to strive to complete their tasks excellently and achieve many successes toward the important milestone of the Group's 70th anniversary ceremony in January, 2026. |
In 2024, the Corporation successfully fulfilled the political tasks assigned by the Party and the State. This included ensuring the supply and stabilisation of the petroleum market across 63 provinces and cities, and over 700 districts nationwide, especially in remote mountainous areas and frontier regions. Additionally, the Corporation was recognised for its outstanding performance in jointly eliminating makeshift and dilapidated houses for impoverished households and other social security programmes, equivalent to 7,000 houses in 2024. Petrolimex is proud to be honoured in the Top 10 Best Corporate Governance Companies and Top 20 Best Annual Reports at the Listed Company awards.
Addressing the conference, Deputy Secretary of the Party Committee, Board of Management member, and Director General of Petrolimex, Dao Nam Hai emphasised that in 2024, the Group worked together and joined forces to overcome challenges to achieve outstanding, comprehensive, and exceeding results in production and business targets, ensuring fuel supply, stabilising the petroleum market, ensuring social security, improving the material and spiritual life of officials and employees, and maintaining their position and leading role in the downstream petroleum market.
Based on the motto: "Compliance with the law – Strength concentration – Effective streamlining – Comprehensive transformation – Innovative thinking – Successful breakthrough," Petrolimex is determined to achieve its 2025 production and business targets through the following orientations and tasks:
(1) Proactive and flexible – Timely supply: Proactively develop scenarios for business and sales activities, ensuring safety, flexibility, and suitability to market developments; Fully and seriously implement the assigned minimum total petroleum supply, ensuring the supply of petroleum for the economy in all situations, contributing to national energy security, and maintaining Petrolimex's position and leading role in the market.
(2) Objective management – Orientation compliance: Improve the quality of business, sales, and financial management; Consistently implement State policies and corporate regulations, and strive to complete the planned objectives and action programmes of the Corporation and its member units.
(3) Synergising strength – Comprehensive development: The entire system is committed to synergising its strength to aggressively and synchronously implement and maximise opportunities, striving to comprehensively achieve the production, business, and development investment targets for 2025, as well as the 2021-2025 period. Additionally, it will closely adhere to the eight groups of specific tasks and solutions for the Vietnam National Petroleum Group, as outlined in the plan attached to the Government’s Resolution No 38/NQ-CP dated August 20, 2024. This plan addresses the implementation status of the Politburo’s Conclusion No 76-KL/TW dated April 24, 2024, on the Strategic Orientation for the Development of Vietnam's Oil and Gas Industry to 2025, with a vision to 2035, and includes orientations for the new period.
(4) Efficient streamlining – Optimizing resources – Transforming the future: Embracing the spirit of 12th Party Central Committee’s Resolution No 18-NQ/TW dated October 25, 2017, which focuses on reforming and streamlining the apparatus to be lean, effective, and efficient, the entire Group will concentrate on applying solutions to upgrade and modernise technology and automation at warehouses and petrol stations. This includes reviewing and reducing unreasonable costs, effectively controlling sourcing, logistics, and transportation activities (both waterway and road). Additionally, the Group will research and develop mechanisms and policies to attract and value high-quality human resources, arrange and use labour scientifically and reasonably, minimise direct operational procedures that can be replaced, improve labour productivity, and optimise business efficiency.
(5) Expanding the network – Sustainable development: Vigorously promote robust growth across all retail channels, including wholesale, franchisees, and distributors; Simultaneously, transition decisively towards the trading of green, clean, and renewable fuels and energy products, with a focus on environmental protection; and Implement action programmes to fulfill the commitment to carbon neutrality according to the established roadmap.
(6) Innovation – Successful breakthrough: Foster and disseminate the spirit of technological innovation to drive business development in all aspects; Enhance the comprehensive management capacity of the Group and its member units across the entire system; Launch emulation movements to achieve significant accomplishments in production and business activities, alongside a series of cultural and sports events to celebrate major national anniversaries.
These include the 50th anniversary of the South Liberation and National Reunification, the 80th National Day, the 95th anniversary of the Founding of the Party, and the 70th anniversary of the establishment of Petrolimex in January 2026, all while aiming towards the successful organisation of Party congresses at all levels.
Petrolimex will implement the above six key tasks and orientations through ten thematic solutions: (1) Ensuring fuel sources; (2) Business and business support; (3) Security and safety; (4) Investment in technical infrastructure; (5) management, governance, and corporate restructuring; (6) Labor organisation and remuneration ; (7) Application of information technology, automation, and digital transformation; (8) Green transition; (9) Innovation; and (10) Adhering to the plan approved in the Group’s Restructuring Project for the period 2021-2025, with a vision to 2035.
Speaking at the conference, the Party Central Committee member and Chairman of CMSC, Nguyen Hoang Anh, acknowledged and commended the achievements of Petrolimex's officials, employees, and workers in 2024. He emphasised that Petrolimex's operations in the petroleum sector play a crucial role in the national economy, as petroleum is a vital fuel for most industries, production, business sectors, and social life. In 2024, Petrolimex not only successfully fulfilled its political tasks of ensuring the supply of petroleum for socio-economic development and national energy security but also met and exceeded its production and business targets. The Group achieved high levels in output, revenue, pre-tax profit, and contributions to the state budget compared to the plan. Additionally, the implementation of the Group’s Development Strategy and Restructuring Project has progressed fundamentally as scheduled.
As a leading State-owned enterprise in the petroleum supply sector, Petrolimex will continue to unite, strive, and contribute towards achieving the targets set by the Party and the Government for the economy, thus fostering an independent and self-reliant economy in Vietnam. The Chairman of CMSC has urged Petrolimex to prioritise and focus on several key tasks and solutions, including:
First, striving to excel in achieving the targets outlined in the 2025 production and business plan and development investment strategy. This includes the successful completion of the five-year Production and Business Plan and development investment strategy for the period 2021-2025, setting a strong foundation for the period 2026-2030, and moving towards the celebration of the Group's 70th anniversary.
Second, maintaining and preserving its position as the largest enterprise in the Vietnamese downstream petroleum market. By making petroleum the central axis of its business operations, Petrolimex will ensure effective sourcing, establish comprehensive and far-reaching forecasts of global and market trends, and secure the supply of petroleum to support Vietnam's socio-economic development.
Third, review and comprehensively implement the goals and tasks outlined in the Petrolimex Restructuring Project for the period 2021-2025, and the Petrolimex Development Strategy for the period 2021-2030, with a vision extending to 2035; Additionally, fully execute the directives from the Prime Minister and other competent authorities, including researching and implementing the Fuel Supply Project at Long Thanh International Airport, investing in rest stops along highways, and expanding the retail petrol station network.
Fourth, continue to develop and apply an advanced, modern corporate governance model in a streamlined manner, including effective management of investment capital and risk management, thereby ensuring the preservation and development of the State's invested capital; Embrace, transform, and successfully transition to the trend of trading green and clean fuels and energy products, protecting the environment, and aligning with global consumption trends.
Fifth, always prioritise the material and spiritual well-being of employees; Enhancing benefits for shareholders and the State, and improve the overall quality of life, contributing to the broader socio-economic development efforts.
On behalf of the Group's leadership, Member of the Party Committee of the Central Business Bloc, Party Secretary and Chairman of Petrolimex, Pham Van Thanh, received guidance from the CMSC leadership. The year 2025 is of particular significance as it marks the final year of the 5-year plan (2021-2025) and sets the stage for development in the upcoming phase. It is also a pivotal year for organising Party congresses at all levels, culminating in the 14th National Party Congress. Forecasts for 2025 indicate continued complexity and unpredictability in the global and regional landscapes, with challenges outweighing opportunities. However, with the entire country prioritising maximum resources to fully and comprehensively implement the tasks and orientations of Resolution 18 towards a "Lean-Compact-Strong-Efficient-Effective-Impactful" structure, the Group must also set highly specific and ambitious goals to ensure growth and efficiency, in line with the Central Government's direction.
The Group has identified the theme for 2025 as: "A year of focusing on streamlining the organisation, coupled with cost reduction; improving management efficiency to organise and implement business operations towards a minimum growth target of 8%, striving for double-digit growth." The Chairman of the Management Board of Petrolimex emphasised several key points and orientations:
First, it is imperative to have a deep and unified understanding, along with decisive actions, regarding the prevention of wastefulness. This policy has garnered particular concern and close guidance from the Party and State leaders. The Group's Board of Management issued Decision No 1141/PLX-QD-HDQT on December 23, 2024, establishing a Steering Committee for Preventing Wastefulness at the Vietnam National Petroleum Group. This committee is directly led by the Party Secretary and Chairman of the Board of Management of Petrolimex, who serves as the Head of the Steering Committee. Commenting on the current efforts to prevent wastefulness, the Party General Secretary emphasised that wastefulness remains prevalent in many forms and has been causing serious consequences for the overall development of the country. Therefore, the Group must promote propaganda and communication to raise awareness among each Petrolimex officer and employee about the detrimental effects of wastefulness on national and Group resources. It is essential for the leaders of each unit to urgently establish a Steering Committee for Preventing Wastefulness and develop a plan to implement wastefulness prevention within each unit. Concurrently, the remaining work items and cost items that can be reduced must be thoroughly reviewed. The role of Controllers in the units should be maximised to perform supervisory functions for the Group's Board of Management.
Second, it is essential to adhere to the Party's policy on streamlining the organisational structure to be lean, transparent, strong, effective, and efficient, avoiding overlapping functions and wasting resources, in accordance with the requirements of sustainable development and international integration. The orientation regarding streamlining and merging the current apparatus in the spirit of Resolution No 18-NQ/TW—a correct and accurate policy of the Central Government—aligns perfectly with the operational goal of "lean, effective, and efficient" of the Vietnam National Petroleum Group. To continue promoting leadership and direction in streamlining the organisation, increasing efficiency, and boosting labour productivity throughout the industry, leaders of units need to further promote the role of the head in reviewing and evaluating the organisation, assessing competent personnel to implement arrangement, adjustment, and building an effective working organisation. They should urgently establish a Steering Committee to implement Resolution No 18-NQ/TW and develop a plan to streamline the organisation at the unit level. In the current context, streamlining must be refined, strong, effective, and efficient. The Group will refer to the Central Government's guidance to develop appropriate policies for those pioneering early retirement. From 2025 onwards, there will no longer be a situation where, once appointed, one can rest assured of working until retirement. If, by the end of the term, an individual is found to be weak and unable to complete their tasks, they will be replaced immediately.
Third, focus on decisively implementing the Prime Minister's Official Dispatch No 140/CD-TTg dated December 27, 2024, regarding the goal of achieving double-digit economic growth in 2025. This year, ministries, departments, and local authorities will concentrate on implementing key tasks and solutions outlined by the Prime Minister in Official Dispatch No 140, aimed at promoting economic growth of 8 per cent in 2025, prioritising the quality of growth, and striving for a double-digit growth rate in the 2026-2030 period. The business plan set by the Group for 2025, which has been reported to the CMSC, is based on cautious risk calculations and unfavorable factors. However, leaders from the Group and member units need to develop a scenario with higher goals and specific solutions for growth targets in 2025. This will create a foundation for the 2026-2030 period, in line with the General Secretary's guiding principle that 2025 should achieve the highest level in the 5-year plan (2021-2025). To ensure this goal, the Group's Board of Management will directly monitor and assign Board members according to their functions and tasks to provide decisive direction to each member unit.
Fourth, in nearly 70 years of formation and development, Petrolimex has consistently been the pioneering petroleum business, leading and holding the number one market share. The Group’s officials and employees have always been proud and respectful of their leading position. However, in the current context, with rapid changes in the business environment, and the agility, determination, and proactivity of main competitors in the market, it is essential to reflect on whether Petrolimex is becoming passive and falling behind in the race of the new era.
Additionally, the Chairman of the Petrolimex Board of Management expressed his belief that, with the consensus and determination of the entire system, and the spirit of solidarity stemming from a 69-year history, Petrolimex will strive even harder. The organisation will become more dynamic and creative to seize every opportunity and advantage, steadily overcome all difficulties and challenges, and successfully achieve the goals and tasks set for 2025 and the following years.
On the threshold of the Lunar New Year – The Year of the Snake, the leadership of Petrolimex extends their best wishes for the New Year; sincerely thanking the leaders of the Party and State, shareholders, partners, and customers for their continued trust and affection. They also extend gratitude to the press agencies of Vietnam for always standing side-by-side with Petrolimex throughout its 69-year journey. This journey has seen Petrolimex build the stature of a leading State-owned enterprise, supplying and stabilising the petroleum market, being a key force in ensuring national energy security, and showing determination in its digital transformation and green transition activities as the country enters a new era of development.
