PETROSETCO Conquering Market with Smart Products, Utility Services

 

With the support and close guidance of the Vietnam National Oil and Gas Group (PetroVietnam), the trust of customers and the effort of all the staff, PETROSETCO impressively outdid its business plans set for 2014. Revenue reached VND11,770 billion, profit before tax was VND313 billion, and tax payment to the State budget was VND450 billion.

 

Trade and distribution services contributed 84 percent of PETROSETCO’s revenue and 58 percent of its profit. In 2014, PETROSETCO’s mainly distributed products included mobile phones (Samsung, Sony, HTC, Blackberry, Gionee, LG and other brands), laptops and notebooks (HP, Dell, Acer, eMachines, Fujitsu, Lenovo and other brands), accessories (Kingston, AMD, Asus, Huawei, SanDisk, Elixir, Adata, Genius, Samsung, 3M, ZyXEL and others), Microsoft solutions and software products, PP resins, LPG, fibres, fertilisers and other products. In recent years, competition among mobile phone brands have caused margins for distributors to decline and shortened product life-cycle, thus posing enormous difficulties for distributors. PETROSETCO actively adopted many solutions to cope with this reality like expanding and diversifying distributed products (in 2014, the corporation added some new brands like Philips and Lenovo phones), stepping up marketing to boost its popularity and identity on the market, supporting and expanding the dealer system, professionalising warehousing systems and logistics services. The corporation also strictly controlled inventories and debts.

 

In supply and logistics services, PETROSETCO continued to maintain its procurement and provision of oil and gas materials and equipment for traditional customers like VSP, PVC-MS and Cuu Long JOC. In 2014, the corporation joined 106 tenders and won 29.3 percent with a total value of over US$20.6 million. PETROSETCO also focused on expanding into non-core businesses. In 2014, it won bids to supply power distribution stations for two electricity projects in Thai Binh province. In new partner development, the firm signed an exclusive distribution contract with DHP, a supplier of drilling equipment.

 

PETROSETCO’s traditional services like logistics (staffing services, customs clearance, export consignment, etc.) and catering services continued to be stably developed in the year thanks to contracts with big customers like JDC Drilling, Seadrill, ENI and Origin Energy. The concern also supplied catering services for over 60 projects operating in oil, gas and other industries and 10 onshore projects. Additionally, PETROSETCO provided goods and foodstuffs for nearly 50 ships operated by VSP, PTSC, PV Trans and foreign service vessels.

 

PETROSETCO’s property services were kept good, safe and effective in 2014. The corporation continued to expand its range of services to non-petroleum industry, including the Headquarters of the State Bank of Vietnam and the Building of Electricity of Vietnam (EVN).

 

President Phung Tuan Ha affirmed that PETROSETCO will maintain the mobile phone and laptop market share with its best capacity while seeking new products and customers to optimise the distribution system and serve consumer demands. Besides, the corporation will base on market developments like price trends and demands of products it distributes like PP, LPG and fibres to adjust its production and business plans to ensure suitability and efficiency; speed up the development of logistics services and out-of-gauge cargo transportation services; and maintain traditional markets while expanding into new markets. The corporation will enhance its supply capacity and competitiveness to join equipment and material supply tenders, maintain its catering service market share, and constantly improve the quality of catering services for customers. It will safely and effectively manage and operate buildings, offices, hotels and other estates. Regarding Nghi Son refinery, in 2015, PETROSETCO will focus its available resources to carry out its plans. It will continue to prepare legal documents and market conditions for Cape Pearl Tower (in Ho Chi Minh City) and a residential and office complex (in Vung Tau City).

 

Being unable to hide his pride, President Phung Tuan Ha happily said, “The current success comes from PETROSETCO’s good preparation, right-oriented development strategy and mindset. The corporation has not made spreading investment, paid attention to common interests and not accepted to develop at any cost. The strength of PETROSETCO lies in its ability to grasp and make good use of every opportunity it has seen. It always utilises its strengths together with the support of the Government and the Vietnam National Oil and Gas Group (PetroVietnam). PETROSETCO always sees its employees as the most valuable property and the decisive vitality of the corporation. For this reason, the employees are offered attractive compensations, salaries and bonuses for their performances and devotions. Without doubt, the today success of PETROSETCO is resulted from right development strategies, business orientations, good market understanding, sustainable business and growth philosophies, effective risk management, professional service and customer satisfaction.”

 

Speaking of cooperation with foreign partners, Ha said “PETROSETCO always respectfully welcomes and facilitates foreign investors to Vietnam to establish cooperation in services investment. Its outstanding business results evidenced its dynamism and rapid adaptability. Specifically, despite complicated economic developments in Vietnam and in the world, PETROSETCO’s business operations still outperformed in 2014. In the coming time, PETROSETCO will continue to diversify its business operations to become the first choice in electronic and telecom device distribution, catering services, equipment supply and logistics services and property projects in Vietnam. With an annual growth of 5 percent, the corporation expects to catch the interest of international partners and investors. In addition, PETROSETCO always respects its partners, ensures long-term and sustainable cooperation to promote its strengths in business operations and strictly comply with the law of Vietnam and the world in the light of cooperation and investment philosophy “For the sustainable development and the interest of all parties.”