Retail News CRM

Tag: Petrolimex

  • China’s Meiyijia Opens Two Ohmee Stores at Petrolimex Stations in Hanoi

    China’s Meiyijia Opens Two Ohmee Stores at Petrolimex Stations in Hanoi

    Chinese convenience chain Meiyijia has opened two Ohmee Express stores at Petrolimex petrol stations in Hanoi following its entry into Vietnam in April. The pilot tests a forecourt retail model in the chain’s first overseas market.

    The tie-up links China’s largest convenience operator with Vietnam’s dominant petroleum distributor. Meiyijia runs more than 40,000 stores in its domestic market.

    Pilot Sites on Hanoi Arteries

    Both outlets operate on Ngoc Hoi and Nguyen Quy Duc streets in Hanoi. They stock packaged food, drinks and daily necessities alongside standard fuel station services.

    Petrolimex deputy general director Nguyen Ngoc Tu said the partnership supports plans to convert traditional petrol stations into multi-service commercial hubs. The strategy responds to shifts in vehicle energy use and digital payments.

    Fuel Forecourt Competition in Vietnam

    Forecourt retailing gives convenience operators a direct way to bypass street-level real estate bottlenecks in Southeast Asia. Securing prime roadside retail space in Hanoi and Ho Chi Minh City carries steep rents and heavy competition from players like Circle K, WinMart+ and GS25. Partnering with a state-backed fuel network gives Meiyijia immediate roadside access and built-in vehicle traffic without negotiating individual retail leases.

    Customer conversion presents the main operational challenge. Petrol buyers in Vietnam make brief refuelling stops on motorbikes. Basket sizes stay modest unless the forecourt store offers quick food service or payment utilities that draw riders off their bikes.

    Cross-Border Expansion from Guangdong

    Meiyijia entered Vietnam in April under the Ohmee banner, selecting the country for its first international expansion. Founded in Guangdong in 1997, the company built its domestic network on a low-cost franchise model. It penetrated lower-tier Chinese cities before expanding into higher-density urban centres.

    Results from the two Hanoi pilot stores will determine whether Meiyijia and Petrolimex roll out the Ohmee Express format across the fuel distributor’s nationwide network of filling stations.

  • Fuel market cannot be regulated by administrative diktats

    Fuel market cannot be regulated by administrative diktats

    The recent fuel shortages happened because retail prices did not follow the market economy principles, and the government cannot mandate prices, Prime Minister Pham Minh Chinh said.

    “Businesses only operate if they gain profits. It is difficult for the government to use administrative measures with them in a market economy.”

    He pointed out that calling on businesses to sacrifice their own interests for the nation could only be done during wartime, and authorities need to be flexible and keep up with the market.

    “When retail prices correctly reflect costs, retailers started to sell again because they see profits.”

    The government has instructed the Ministry of Industry and Trade to amend regulations to ensure demand and supply principles are followed.

    Many localities, including Hanoi and Ho Chi Minh City, reported fuel shortages for weeks in October and early November as gas stations said they were selling at a loss since retail prices were too low.

    The situation has improved in the last three weeks, with long queues no longer seen at filling stations.

    State-owned fuel distributor Petrolimex said it is set to increase supply by 40% to 2,000 cubic meters daily.

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  • Petrolimex welcomes new director general

    Petrolimex welcomes new director general

    Deputy Director General of Vietnam National Petroleum Group (Petrolimex) Dao Nam Hai will become its director general (DG), starting Mar. 1.

    He replaces Pham Duc Thang who retired in November 2021. Holding two master degrees in law and business administration, Hai, 48, Hai was its deputy DG for four years, and 9-year DG of Petrolimex’s insurance subsidiary, Petrolimex Joint Stock Insurance Company (PJICO).

    Petrolimex has a charter capital of nearly VND13 trillion ($573 billion). In 2021, the group posted net revenue of over VND169 trillion, up 37 percent compared to 2020.

    Its 2021 post-tax profit was VND3.1 trillion, 2.5 times higher year-on-year.

    The state-owned Petrolimex has a nearly 40 percent share in Vietnam’s petroleum market, has 43 subsidiaries, with 5,000 gasoline stations nationwide.

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  • Fuel distributors seek foreign supply amid refinery production trim

    Fuel distributors seek foreign supply amid refinery production trim

    Vietnamese fuel distributors are negotiating with foreign suppliers to ensure adequate inventory for the holiday after the country’s biggest refinery cease imports due to cash shortage.
    PVOil, the second-biggest fuel distributor in Vietnam behind Petrolimex, has secured a deal with a foreign supplier to import more gasoline amid the expected shortage.

    The supplier gave an acceptable price with reasonable delivery time, said Cao Hoai Duong, company chairman, without revealing details of the supplier and price.

    The fact that Nghi Son Oil Refinery has cut down its production from 105 percent to 80 percent due to insufficient funds is urging fuel distributors to scramble for solutions to have enough inventory for the upcoming nine-day Tet holiday, which begins Saturday.

    “The imports, together with our backup inventory, is enough for PVOil to cover the expected market shortage before, during and after Tet,” Duong said.

    An anonymous director of a central distributor said the company has finally been able to secure a deal with a supplier and will have enough inventory for the holiday.

    A media representative of leading distributor Petrolimex did not say whether it would import more as the company is still receiving the agreed amount of inventory from Nghi Son.

    “In whatever scenario we will strive to ensure there would be sufficient inventory to distribute to the market.”

    Nghi Son said that it had to cut production because state-owned energy giant Petrovietnam has not approved import contracts and therefore it has to cancel two crude oil imports this month.

    Therefore the factory might have to shut down in mid-February.

    However, Petrovietnam stated Wednesday that the factory canceled the two shipments and that it had nothing to do with the approval of import contracts.

    Matters concerning the contracts are part of Nghi Son’s restructuring plan, which is under negotiation, the statement read.

    Nghi Son Oil Refinery has a capacity of 200,000 crude oil barrels a day, or 10 million tons a year, twice that of Vietnam’s other refinery Dung Quat Oil Refinery in Quang Ngai Province.

    State-owned fuel company Petrovietnam has a 25.1 percent stake in the plant, while the rest are owned by three foreign firms: Kuwait Petroleum International (35.1 percent and Japanese companies Idemitsu Kosan (35.1 percent) and Mitsui Chemicals (4.7 percent).

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  • Petrolimex reports $44 mln profit

    Petrolimex reports $44 mln profit

    Petrolimex has reported pre-tax profits of over VND1 trillion ($44 million) in the first quarter thanks to the Covid-19 pandemic being contained and rising global oil prices.

    It has made a loss of VND1.7 trillion in the same period last year.

    The management of the country’s top fuel retailer said oil prices had risen 24 percent from last year to over $59 per barrel by the end of March.

    In the same period last year, they had plummeted 66 percent to around $22 per barrel.

    Revenues in the first quarter remained virtually unchanged from a year earlier, at VND38.2 trillion.

    It has targets of VND135.2 trillion in revenues and VND3.3 trillion in pre-tax profits, up 9 percent and 138 percent respectively, for the full year.

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  • Japan’s top energy company to increase Petrolimex stake

    Japan’s top energy company to increase Petrolimex stake

    Japanese oil giant ENEOS Corporation has registered to buy 25 million shares of fuel distributor Petrolimex on the Ho Chi Minh Stock Exchange.

    The transaction, to be completed in March, if successful, will see ENEOS increase its stake in Petrolimex to 2.94 percent. It had acquired a 1 percent stake last September.

    Petrolimex’s PLX shares closed at VND57,300 on February 24, and at this price the deal will cost ENEOS around VND1.4 trillion ($62 million).

    The company’s subsidiary, JX Nippon Oil & Energy Vietnam Consulting and Holdings Company Limited, owns another 8 percent stake in Petrolimex.

    ENEOS is the largest oil company in Japan with a 47 percent market share.

    In 2020, due to the impact of Covid-19, Petrolimex saw revenues fall 34.5 percent to VND123.9 trillion. Its net profit was VND1.2 trillion, a 73.6 percent fall.

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  • Vietnam’s Petrolimex plans Countrywide Convenience Stores

    Vietnam’s Petrolimex plans Countrywide Convenience Stores

    Vietnamese petroleum retailer Petrolimex is planning to build a convenience-store chain.

    After five years of research, the group plans to open stores across its network of 5200 gas locations across the country.

    “Petrolimex will expand into this sector, each store will host 1500 to 2000 products,” a Petrolimex representative said during a conference.

    “Our strategy partner JX Nippon Oil will support us to set up the chain in the most optimal way.”

    Petrolimex has tested the industry with its P-Mart in Hanoi’s Hoai Duc district. The store only sells Petrolimex-branded products such as oils and a limited range of snacks and beverages.

    There is no official information if Petrolimex will base its chain on this concept or build a different one.

    Stepping into the convenience-retailing sector, Petrolimex will compete with experienced players such as Circle K, 7-Eleven, VinMart + and FamilyMart, but none of those brands are affiliated with service stations.

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