Energetically entering the lubricants market with a burning determination of occupying 5 per cent of the market share in Vietnam in 10 years, AP SAIGON PETRO, however, managed to achieve this target within just eight years. This success is attributed to AP SAIGON PETRO’s operating principles of placing customers’ rights and interests on top, continuously improving product quality and customer service, and readily building effectively collaborative relationships with all partners near and far.
AP SAIGON PETRO currently owns Cat Lai lubricants plant with an annual output capacity of 25,000 tonnes. Covering a total area of 14,000 square metres, the plant, which meets ISO 9001:2008 quality management standards, is equipped with synchronised Europe-standardised production lines, standard chemical testing labs, a nine-tank storage system with a holding capacity of 4,500 cubic metres of base oil, and a warehousing system with a holding capacity of 3,000 tonnes of finished products to timely meet market demands. Its semi-automated self-contained production technology can produce separate batches of specific lubricants and adjustable and linked filling system can multiformly fill a variety of lubricants categories into various packages and containers according to customer requirements.
Inheriting the essence of lubricants production technology of AP Oil International Limited (Singapore), AP SAIGON PETRO is strongly developing three product lines, namely hydraulic oil (used for plastic and footwear industries, motorised vehicles powered by hydraulic systems); common engine oil, and ship oil (for offshore fishing boats). Currently, the quality and grade of AP SAIGON PETRO-branded lubricants are rated on par with those made by world-renowned producers. To have this success, the company always tries to professionalise every department, intensify technical supervision, strictly apply the ISO 9001:2008 quality management system, stringently control lube quality starting from the stage of importing inputs, storing, blending and filling to the stage of marketing so as to make sure that all products supplied to consumers meet the highest quality and contain in the most eye-catching containers.
In addition, with its commitments of not commercially competing with distributors and readily providing technical supports for them to do fruitful business, AP SAIGON PETRO has established a nationwide network of 52 distributors which supply the company’s products in all 63 provinces, cities in Vietnam and expand the product presence to Cambodia. The company also ensures that its premium-quality lubricants are supplied to consumers in a timely, even fastest, manner. In an ongoing effort to improve the quality and diversify products, AP SAIGON PETRO will develop two key product lines, including lubricants for combine harvesters and lubricants for farming equipment. Speaking of this new direction, General Director Le Van Toan said, “Accurate forecast and sufficient market supply are key elements to the success of AP SAIGON PETRO. By promoting this strength, we are aiming to develop product lines used in agricultural production. Agriculture is an important economic sector of Vietnam from generation to generation and the company’s contribution to ensuring the operability of agricultural machines and tools is also indirectly helping develop the strong economic sector of the country.”
He added that the Vietnam lubricants market is attractive but very competitive because it gathers the most famous lubricant brands in the world such as Castrol, BP, Shell, Mobil, Total and Chevron. According to statistics, there are about 300 lubricant brands on the Vietnamese market for the time being. In the context of that fierce competition, the Government has outlined a long-term development roadmap for lubricant market and given more priority to domestic enterprises. Developing the national industry requires stable materials and fuel sources for long-time operation of machine and equipment systems. For its part, AP SAIGON PETRO is always acutely aware of the role and importance of its industry to national industrial development and always makes a great effort for the growth of the lubricant industry. At first, AP SAIGON PETRO set the target of holding 5 per cent of the lubricant market share in Vietnam in 10 years but this target was achieved after just eight years. This is a common fruit of not only the leadership and staff of AP SAIGON PETRO but also of all distributors, sales agents, partners and customers who have constantly supported the company for the past eight years.
According to Vietnam’s tariff reduction roadmap for goods imported from other countries in the region when it officially joined the ASEAN Economic Community and signed new generation free trade agreements (FTAs), from the start of 2016, lubricating oils and input materials for lubricating oil production (base oil and additives) are imposed 0 per cent of import tax. This means that the price of imported lubricants may be lower than that of domestically made products. It is also forecast that many foreign lubricant brands will arrive in Vietnam and existing FDI lubricant companies will expand investment, production and operation in Vietnam. And, the current market share of 70 per cent held by foreign-invested lubricant producers may be also increased.
In the context of that fierce competition, in order to develop and continuously increase the market share, AP SAIGON PETRO will focus on a comprehensive quality perfection strategy, ensure product quality and professionally external package appearance to catch the interest of customers. Besides, the company will concentrate on improving technological processes, speed up cleaner production and reduce production costs to bring products of best quality and most competitive price to customers. “This is also a way AP SAIGON PETRO has chosen to thank the trust and support of consumers for our products during the past time,” Mr Toan stressed.
Nguyen Viet Hung
Vietnamese
