The origin of Vietnam National Petroleum Corporation (Petrolimex) was the Oil and Grease Corporation established on January 12, 1956 with the main function of ensuring sufficient petroleum products for economic recovery and development, facilitating socialist construction and aiding the war effort. Petrolimex has since developed strongly with over 100 petroleum businesses throughout the country.
Reviewing the history of the country, 50 years ago, in the context of being divided into 2 areas North and South, the young Corporation in company with the whole population took part in the resistance war and country’s construction. The staff of the Corporation not only ensured sufficient fuel for North-South transportation but also for the operation of factories in the post-war recovery process and socialist construction of the North. It is the staff who made huge contribution to the country’s reunification.
In the past year, realising its role as the key State-owned enterprise operating in fuel field in which 100 per cent products are imported, the Corporation actively mobilises all sources of foreign currency to ensure sufficient fuel for domestic demand. The Corporation has established a network of over 100 of the world’s best-known and reputable suppliers such as Shell, Esso, and Total. In particular, Petrolimex is the country’s first and unique business to import oil from the Middle East by large capacity tanker, shipping to Van Phong gulf in Khanh Hoa province and then delivering to the Corporation’s ports. Therefore, in the context of sharp fluctuation of oil price on the world market, this import faces difficulties, the Corporation can still fulfil its import plan, stabilising the domestic oil market, ensuring sufficient amount of fuel in both quality and quantity, at any time and any place.
Petrolimex’s market is continuously expanding. Average output grows by 10.1 per cent per year, revenue increases by 38.4 per cent per year, accounting for 60 per cent of domestic market share. Moreover, Petrolimex is the leader in re-exporting fuels to neighbouring countries such as Laos, Cambodia and provinces in southern China.
Petrolimex has cooperated with the British petroleum since 1993 to established BP Petco joint venture that operates effectively with the famous BP lubricant. The Corporation also works with Japanese and Singaporean businesses establishing companies that have been making profits. Currently, Petrolimex is the biggest corporation in the fuel business in Vietnam, accounting for nearly 30 per cent of the domestic market share, competing fairly with the world’s best-known petroleum corporations such as BP, Castrol, Caltex, and Mobil.
The Corporation’s network has expanded from 250 service stations nationwide in 1990 to a current 5,000. Besides main fuels as the core business the Corporation develops a diverse range of business activities providing other services such as ocean and inland traffic, pipeline transportation, bank, insurance, consultation on design and construction of oil plants, and the petrochemical business. The Corporation has built 5 Gas depots and big gas filling plants equipped with the most advanced technology in HCM City, Hanoi, Danang, Haiphong and Can Tho and smaller filling machines in localities, contributing to environmental protection, reducing forest destruction and enhancing people’s living standard. The Corporation’s 2 DMN producing plants, chemical and liquid bitumen depots have created the largest petroleum products supplying network in Vietnam.
In 2005, the total revenue of Petrolimex reaches VND43,800 billion (US$2.75 billion), sales reach 7.6 million m3.tonnes, contributing VND7.7 billion (US$484 million) to the State budget. Petrolimex was awarded the Labour Hero certificate by the State in recognition of its outstanding achievements last year. The 3 subsidiary companies including P12 Petroleum Company, Nghe Tinh Petroleum Company and VITACO petroleum transportation company honourably received this noble reward.
Nguyen Thoa
Vietnamese
