On October 4, CEO of Vietnam Oil & Gas Group (known as Petrovietnam) Le Manh Hung inspected and tested the integrated business model at the Phu Lo and Ho Sen petroleum stations, which are managed by PetroVietnam Oil Corporation (PVOIL).
The General Director was accompanied by PetrovietNam's Deputy General Director Le Xuan Huyen, leaders of the Group's professional departments, PVOIL President & CEO Doan Van Nhuom, PVOIL's Deputy General Director Nguyen Dang Trinh, and PVOIL Hanoi leaders.
In recent years, as part of the Group's objective of extending the market and building a retail system to service customers, PVOIL has aggressively established a system of petroleum stations. From 82 stations when PVOIL was formed in 2008, with a retail fraction of 2% of total output, the complete PVOIL system will include 750 stores by the end of 2023.
PVOIL's output and retail share have both increased year after year. Retail output is expected to reach 1.05 million cu.m in 2023, contributing 25.4% of total business output. PVOIL has explored and gradually modified the distribution system's business model, in addition to encouraging digital transformation, increasing customer experience, and actively promoting non-cash payments.
The number of petroleum stations with charging stations is 253, and this figure is predicted to rise to 355 by the first quarter of 2024. There are more than 250 fuel stations with ample room to establish PVMart convenience stores. Furthermore, at all PVOIL gas stations, clients can make non-cash purchases using credit cards, QR codes, and e-wallets...
PVOIL aims to continue increasing retail output in 2024, with a projected output of 1,150 thousand cu.m, a 10% increase over the projection for 2023, accounting for 27.1% of total business output.
The retail system generates long-term earnings for PVOIL's petroleum company. The PVOIL brand has quickly spread throughout the country thanks to the expansion of the retail system, which has aided in the development of various distribution channels.
The integrated business model keeps up with shopping trends, bringing convenience to customers. Taking advantage of available premises at petroleum stations located in prime locations, with dense populations and available human resources, PVOIL chose Phu Lo and Ho Sen petroleum stations as the pilot project. The integrated business includes a PVMart convenience store located right in the station area.
After nearly two years of pilot, both businesses have stable and devoted clientele, and fuel output has increased. It can be observed that developing an integrated business model has led to the creation of a new business area that is in accordance with modern consumer trends, bringing beneficial impacts to the retail system and strengthening its image. PVOIL's image, brand, and customer service quality.
PVOIL will initially focus on building an integrated business strategy at petroleum stations in cities and urban areas. Later, the Corporation will implement the model in nearby areas, prioritizing fuel stations equipped with electric charging poles.
After inspecting and testing the integrated business model operations at two pilot stores, Petrovietnam CEO Le Manh Hung recognized PVOIL's efforts in expanding the market and shifting the business model to adapt to the energy transition and digital transformation.
He requested PVOIL to continue to review and analyze operating results from the pilot time, the interrelationship between petroleum retail activities and the integration of utilities, and carefully evaluate to make appropriate adjustments. consistent with reality, and at the same time have a plan to exploit cash flow, labor, and management costs to share and optimize costs and overall operational efficiency of each petroleum station.
At the same time, Petrovietnam CEO Le Manh Hung assigned Deputy General Director Le Xuan Huyen to direct PVOIL and its units to closely coordinate and promote business in the distribution and trading of downstream products to expand the market, optimize costs, increase scale, bring added value to customers, especially improve service quality and convenience, and save time for customers.
Furthermore, Petrovietnam CEO Le Manh Hung requested that PVOIL focus on managing the petroleum station portfolio, restructuring ineffective stores to have an effective portfolio that meets business criteria, and developing a plan to collaborate with PVcomBank to issue purchase cards and coordinate with Group units to increase sales points, promote the brand, share, and integrate utilities to optimize the price chain business values within the Group.
Some pictures of the inspection trip of Petrovietnam CEO Le Manh Hung: