Nghe An Petroleum Company: 65 years of construction and development

Through ups and downs, Nghe An Petroleum Company has gradually grown stronger, making positive contributions to the cause of national liberation, building and protecting the Fatherland.

After the liberation of North Vietnam, the Vinh Petroleum and Lubricant Company, also serving as the General Warehouse, was established with the task of receiving, storing, and transporting petroleum products for the area from Nghe An to Vinh Linh.

From the very first bombing raid on North Vietnam on August 5, 1964, the US directly targeted the Ben Thuy Oil Depot. This was one of the six largest oil depots in North Vietnam, and many outstanding employees of the company bravely fell or lost parts of their bodies while fighting to protect it and extinguish fires to save the cargo. In 1973, along with the renaming of the corporation, the Nghe An Oil and Gas Sub-Department was renamed the Nghe Tinh Oil and Gas Company.

In 1991, the Nghe Tinh Petroleum Enterprise was renamed back to Nghe Tinh Petroleum Company. In 1995, the Ministry of Trade issued a decision to merge the Central Petroleum Company and the Vietnam National Petroleum Corporation, and simultaneously merged the Nghe Tinh Petroleum Branch into the Nghe Tinh Petroleum Company. In July 2010, the Nghe Tinh Petroleum Company was split into the Nghe An Petroleum Company and the Ha Tinh Petroleum Company, both belonging to the Vietnam National Petroleum Group.

During the integration period, the company has streamlined and reorganized its structure towards a more efficient and specialized approach. With over 600 employees, all of whom have received basic training, including over 300 with college or university degrees.

Ben Thuy oil depot. Photo: Van Truong

Throughout its 65 years of establishment and development, to achieve the success it enjoys today, the company has proactively and creatively sought out business partners, gradually expanding its distribution network and business methods.

Petrolimex's logo, symbolized by a drop of gasoline curling into the letter "P," can be seen everywhere along the roads. The company has established direct retail sales through its own network of petrol stations as its primary method.

The company has prioritized resources for new investments, upgrades, expansions, and modernization of its petrol station system. On average, the company develops 2-3 petrol stations each year. To date, the company has a modern retail network of 78 stations with 80 sales points, spread across the districts and towns of Nghe An province, with an annual growth rate of 8-9%, capturing approximately 50% of the petrol market share in the area.

In addition to developing its retail network, to ensure the supply of petroleum products, the company upgraded its petroleum storage capacity in 2001 to 22,800 m³.³In 2009, it reached 46,800 m³By 2014, the company had once again completed the upgrading of the Nghi Huong and Ben Thuy oil depots, increasing the total capacity of the two depots to 56,800 m3; implementing the State's policy on environmental improvement. In 2018, the company invested in two additional Ethanol (E100) storage tanks for blending E5 gasoline at the Ben Thuy depot, proactively supplying bio-gasoline to the market; the integrated port and depot system, connected by pipelines from the seaport to the river dock, can accommodate ships up to 1,500 m.³up to 18,000 m³Entering the country for import. Successfully carrying out the task of trading and maintaining national petroleum reserves in the North Central region and a part of neighboring Laos.

Over the years,Nghe An Petroleum CompanyThe company prioritizes investing in the application of advanced science and technology in production, business, and corporate management. Currently, it has a system of over 350 computers for all stores and affiliated units, all networked with the server system at the company's office. The company also focuses on developing a workforce of increasingly high quality.

The company's clean and well-maintained retail stores adhere to Petrolimex Vietnam's brand identity standards. Photo: Van Truong

Thanks to sound policies and effective management, the company's business results have consistently shown sustainable growth. In 2005, including the Nghe An and Ha Tinh provinces, petroleum production reached 230,000 cubic meters.³In 2010, it reached 280,000 m².³In 2016, Nghe An province alone achieved 352,000 m².³and in 2021 it is estimated to reach 327,000 m².³and consistently maintains a leading market share. Annual profits always meet or exceed planned targets.

In particular, the company has always preserved and developed its capital, including state capital; gradually increasing the income of its employees, ensuring it is consistently high every year. Tax contributions to the state budget were 84 billion VND in 2005, 330 billion VND in 2010, 825 billion VND in 2016, 908 billion VND in 2020, and an estimated 940 billion VND in 2021.

Along with its petroleum business, the company has proactively developed its business in non-petroleum products and services such as: lubricants, liquefied petroleum gas, Pjico insurance, Petrolimex paint, and JANA laundry detergent.

Revenue from non-petroleum business activities over the past five years has reached nearly 700 billion VND, with a growth rate of over 10% per year. Diversifying business activities has fostered dynamism, responsiveness, and adaptability among the company's employees in a competitive market. The company also actively participates in social welfare activities, including supporting and caring for Vietnamese Heroic Mothers.

Cashless payment services are launched at gas stations of Nghe An Petroleum Company. Photo: Mai Hoa

To successfully accomplish the tasks ahead, the Company's leadership will pursue the following objectives:

Firstly, focusing on human resources is a crucial factor determining the company's success over the past 65 years and in the future. We consistently prioritize training, development, and improvement of management skills, professional expertise, vocational skills, and work ethic among our employees. We uphold the code of conduct and corporate culture. We ensure employment and income for our workers.

Secondly, we must continue to vigorously implement the strategy of investing in modern and advanced technical infrastructure, with a priority on developing the retail system to improve service quality and business efficiency.

Thirdly, to supply the market with high-quality products and services at competitive prices; to improve and expand the distribution system to fully satisfy the needs of society; and to strengthen communication policies and brand development efforts to elevate the company's position in the market.

Fourth, effectively control risks, innovate, continue the digital transformation of management processes, apply enterprise resource management software systems such as SAP-ERP, gas station management software, and cashless purchasing at retail gas stations to adapt to the current Industry 4.0 era.

Cashless purchasing at retail gas stations is a good adaptation to the current Industry 4.0 era. Photo: PV

Fifth, proactively build and effectively implement the tasks and plans assigned by the group and higher authorities. Ensure financial and business safety, fire safety, environmental protection, occupational safety and hygiene, and fulfill social responsibilities as well as commitments to customers.

Throughout its 65 years of construction and development, the staff and workers of Nghe An Petroleum Company have been honored by the Party and State with the title of Hero of the People's Armed Forces in 1995, Hero of Labor in the Renovation Period in 2005, Third-Class Independence Order in 2001, Second-Class Independence Order in 2011, First-Class Labor Order (second time) in 2016, and many other prestigious titles and awards for collectives and individuals of the Company across generations.

The company headquarters is located at 4 Nguyen Sy Sach Street, Hung Binh Ward, Vinh City, Nghe An Province. Photo: Van Truong

THANK YOU LETTER

On the occasion of the 65th anniversary of the establishment of Nghe An Petroleum Company (Petrolimex Nghe An) (December 29, 1956 - December 29, 2021), on behalf of the Party Committee and the Company's leadership, I would like to express my deepest gratitude to all generations of cadres, employees, and workers throughout the years for their contributions and dedication of their efforts and intellect to the Company's development over the years.
We sincerely thank the Ministry of Industry and Trade, the State Capital Management Committee at Enterprises, the Provincial Party Committee - People's Council - People's Committee, the Vietnam Fatherland Front Committee of Nghe An province, the Party Committee of the Nghe An Enterprise Bloc, the Vietnam National Petroleum Group, and all departments, agencies, and partner units inside and outside the industry, and especially our customers throughout the country, for their leadership, support, and assistance.
In the coming period, the leadership and employees of Nghe An Petroleum Company hope to continue receiving the attention, assistance, and guidance from all levels of leadership, the support and cooperation of partners and customers, and the efforts of all employees so that the Company can grow stronger and stronger.
With sincere wishes for good health, happiness, and success!