In the morning of October 18th 2019, President of Vietnam Oil and Gas Group (PetroVietnam) Le Manh Hung had a meeting with leaders of Petrovietnam Oil Corporation (PVOIL).
During the meeting, PVN President Hung was accompanied by leaders of divisions and offices of the group.
Receiving the working delegation, PVOIL’s President & CEO Cao Hoai Duong reported an overview of corporation business and production situation between 2016 and 2019, plans for the coming years as well as difficulties the corporation needs further assistance from the parent company.
During the 2016 – 2019 period, PVOIL performed well its role as an agent for crude oil wholesale, ensuring safe and effective sales of Vietnam's crude oil. It provided adequate and timely crude oil source for Dung Quat oil refinery’s operation.
For petroleum business, PVOIL got total oil trading volume maintained at about 3.2 million cubic meters /ton per year. Sales through PVOL’s retail channel increased steadily annually. This is also a channel with high efficiency and the corporation wants to focus for further development.
In the context of fierce competition, PVOIL has been improving its image and brand and enhancing innovation and creativity in its business for better competitiveness. Recently, PVOIL has successfully diversified its services and payment methods with PVOIL Easy, PVOIL Mobile.
The PVOIL Easy program offers customers non-cash payment services when purchasing petroleum through reading QR codes on their mobile devices. Being deployed since June 2018, the service has helped sales volume by over 4,200 cu.m monthly, equivalent to the total sales of 23 petroleum stations.
Business model through PVOIL Mobile, shipping petroleum with unchanged prices have received strong support from customers. This new business channel attracts several customers, especially transport companies and those working on construction, mining ...
For development goals, PVOIL aims to increase proportion to 35% for 3 categories, including retail channel (currently is 26%), industrial customer sales (currently is 20%) and market share of petroleum (currently is 20%).
Besides, PVOIL has decided to give top priority for promoting development quality.
In order to achieve the above goals and ensure sustainable development, PVOIL is deploying several solutions such as restructuring the subsidiary companies and restructuring assets.
PVOIL is planning to enter new business fields such as supplying Jet A1 fuel, deploying non-petrol business activities at PVOIL's petrol stations such as convenience stores, car repair, car washing, coffee shops, roadside stations ...
PVOIL leaders want to promote the implementation of the State divestment plan in PVOIL to 35%. However, this process is facing hurdle, especially in the implementation of equitization settlement.
The corporation sought PetroVietnam’s assist to deal with difficulties. PVOIL is also seeking approval for increasing foreign ownership limit for better liquidity. Thereby, PVOIL shares in the market will become more attractive in the market.
At the meeting, PetroVietnam’s leaders assessed the business activities of PVOIL and proposed solutions for removal of problems PVOIL is facing.
PetroVietnam President Le Manh Hung highly appreciated PVOIL's efforts in production and business activities, especially for its effort in raising its retail market share by applying technology in business development.
Mr Hung approved solutions PVOIL proposed for better production and business targets. Upon proposals from PVOIL, Hung assigned departments of the group to consider and coordinate with PVOIL for deployment as well as solve difficulties in order to maintain effective operations of the business.