AR PLX 2019 Final PDF

DIGITAL TRANSFORMATION
DISTINCTION DRIVES US FORWARD
ANNUAL REPORT 2019

Digital transformation is the integration of technologies and digital into business operations of enterprises and
organizations. This process is powerfully taking place around the world and creating enormous impacts on the
operation and competitive advantages of enterprises across the globe, including Vietnam.
As a leading economic corporation in Vietnam with a large geographical scale and a wide variety of industries,
Petrolimex keeps learning and acquiring the quintessence of the world.
Realizing the benefits of digital transformation, Petrolimex has been actively developing digital transformation
strategies since the 2000s, which actually initiated in 2010 and has been made major breakthroughs since 2012.
Currently, Petrolimex has been implementing an increasingly intensive transformation strategy in all activities in order
to accompany the digital economy in the Industry 4.0 era.
ABBREVIATIONS
BOM Board of Management

COCO Company Owned–Company Operated DIGITAL DIGITAL DIGITAL
TRANSFORMATION TRANSFORMATION TRANSFORMATION
Co., Ltd Company Limited IN SERVICE IN RESEARCH AND IN CORPORATE
CRM Customer Relationship Management QUALITY DEVELOPMENT GOVERNANCE
CSR Corporate Social Responsibilities
DO Diesel oil
DODO Dealer Owned–Dealer Operated
It can be said that digital transformation drives Petrolimex to promote innovation, increase operational efficiency, make
ERP Enterprise Resource Planning
differences, promote competitive advantages in the market and create growth momentum of the Group at present
GMS General Meeting of Shareholders and in future, thereby strengthening the Group’s position nationally and globally.
Group/Petrolimex/PLX Vietnam National Petroleum Group
This is also the reason why Petrolimex chooses the topic of DIGITAL TRANSFORMATION -
IT Information Technology
DISTINCTION DRIVES US FORWARD as the key message of 2019 Annual Report.
JCCP Japan Cooperation Center Petroleum
JSC Joint Stock Company With this message, Petrolimex chooses polygon style with sharp, strong and modern outlines to create a sense of
LNG Liquefied natural gas connection with the trend of the times throughout the report. Right from the cover, the harmonious combination
of the image of the oil flow and the polygons leaves a deep impression about Petrolimex’s determination to make
LPG Liquefied Petroleum Gas breakthroughs and success in the Industry 4.0 era.
PM Plant maintenance
SMO Sales Management Online DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD not only is a commitment of pioneering digital
technology by a leading enterprise, but also contributes to spreading the trend of digital transformation in the 4.0
revolution. Together, we can take the country firmly into the new era with new breakthroughs.
2 3 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

WHAT ATTRACTS INVESTORS TO PLX STOCKS?
GDP GROWTH RATE GROWTH RATE OF CAR LOW AVERAGE CONSUMPTION
SALES VOLUME OF PETROLEUM PER CAPITA IN
THE REGION, THE POTENTIAL
6-7 22.5 LNG INVESTMENT PROJECT
BRINGING HIGH ECONOMIC
%/YEAR %/YEAR BENEFITS IN FUTURE.
LARGE MARKET THE AVERAGE TRADING

CAPITALIZATION VOLUME IN 52 WEEKS
80% TOTAL ASSETS TOTAL REVENUE PROFIT AF TER TAX
61,762 189,604 5,648

(as at 31 December 2019) (from 01 January to 31 December 2019)
66,686 752,917 OF ANNUAL PROFITS ARE

PAID CASH DIVIDENDS VND BILLION VND BILLION VND BILLION
VND BILLION STOCKS/DAY ON AVERAGE
PLX IS THE LEADING STOCK IN

CASH DIVIDENDS AT A HIGH
VIETNAMESE PETROLEUM TRADING
AND STABLE LEVEL
INDUSTRY
LARGE MARKET CAPITALIZATION

SOLID FINANCIAL CAPACITY
HIGH LIQUIDITY
THE HIGHEST MARKET SHARE

HIGH GROWTH POTENTIAL
IN THE COUNTRY
CORPORATE GOVERNANCE UNDER

STABLE GROWTH
INTERNATIONAL STANDARDS
CLEAR STRATEGIC ORIENTATION TRANSPARENT INFORMATION
CAGR 2015 – 2019

A SYSTEM OF STORAGE TANKS
AND RESERVOIRS OF THE A LARGEST S CALE OF DISTRIBUTION
NET PROFIT PROFIT TOTAL OWNERS’
LARGEST CAPACITY NATIONWIDE NETWORK
REVENUE BEFORE TAX AF TER TAX ASSETS EQUITY
2.2 2,700 + 2,800 9% 10.3% 11.1% 6.7% 15.9%
MILLION M3 COCOs DODOs

CONTENTS
01 02 03 04 05 06
PETROLIMEX DEVELOPMENT BUSINESS CORPORATE SUSTAINABLE FINANCIAL
OVERVIEW STRATEGIES PERFORMANCE GOVERNANCE DE V ELOPMENT REPORT STATEMENTS
10 Vision – Mission – Core values 40 Petrolimex’s digital transformation 62 Report and evaluation by Board of 191 Statement of the Board of General Directors
122 The Board of Management’s 162 Report overview
story Management
14 Chairman’s letter structure and activities 192 Independent auditor’s report
48 SWOT analysis 164 Goals and orientations of
16 General Director’s letter 68 Report and evaluation by Board of 136 The Supervisory Board’s structure sustainable development strategy
General Directors 194 Consolidated balance sheet
52 Growth drivers and activities
18 General information 167 Stakeholder engagement
54 Development orientation 92 Business performance 198 Consolidated statement of income
20 Key milestones 137 Report of Supervisory Board
170 Environmental standards
96 Organization and human resources 140 Transactions, remuneration 200 Consolidated statement of cash flows
22 Core businesses and market place
and benefits of the Board of 182 Economic efficiency
24 Governance framework and 100 Investment activities and project 202 Notes to the consolidated financial
Management, Board of General 184 Social standards statements
Group’s organizational structure implementation Directors, Supervisory Board
26 Board of Management 102 Consolidated financial performance 140 Transactions of internal
30 Board of General Directors shareholders and related persons
106 Business and financial performance
34 Supervisory Board of member companies 141 Internal control system
36 Awards and Recognitions 118 Shareholders’ structure, owner’s 144 Risk management
equity changes
156 Legal affairs and compliance
DIGITAL TRANSFORMATION PETROLIMEX OVERVIEW
TRANSFORMATION
01
DIGITAL
FORWARD
DISTINCTION DRIVES US Vision – Mission – Core values
DISTINCTION DRIVES US Chairman’s letter
FORWARD General Director’s letter

General information
Key milestones
Core businesses and market place
Governance framework and Group’s organizational structure
Board of Management
Board of General Directors
Supervisory Board
Awards and Recognitions
VISION MISSION
Maintaining its position as one of the largest corporations in Raising shareholders’ value, bringing welfare to employees,
Vietnam, leading the petroleum downstream business; Continuing communities; raising the value of life; contributing to the
its petroleum business as the primary operation, expanding in country’s socio-economic development.
the fields of liquefied petroleum gas, petrochemical, petroleum
transportation, import and export, insurance, etc. becoming one
of the top 10 enterprises in the country in terms of the largest
market size and the highest economic efficiency.
CORE VALUES
BRAND VALUES BRAND PERSONALITIES
OPTIMISM
HERITAGE
We always believe in a
National pride brighter future
RESPONSIBILITY
HUMANITY
We care about
We center our activities employees, customers,
around serving the environment
DIVERSITY humanity and the surrounding
ENTHUSIASM community
We highly
appreciate We love what we do
difference and
diversity
DEVELOPMENT TRUST
We never stop striving We always keep
to innovate and better our “Promise”
ourselves

CHAIRMAN’S LETTER
Dear value shareholders, customers and partners,
The year 2019 marks a relatively comprehensive growth utilities in petroleum purchase and payment through 2019 is also the third consecutive year
for Petrolimex in business performance. Despite facing modern methods such as automated sales, card that Petrolimex was named as the
a lot of difficulties and challenges from the fierce payment, mobile payment, loyalty programs, customer
competition in the market to the uncertainty of world appreciation, etc.
Champion of Revenue among Top 50
oil price, Petrolimex still exceeded almost all criteria best listed companies 2019 in Vietnam
of 2019 business plan set by the General Meeting of The year 2020 is forecasted to be a challenging year for by Forbes Vietnam with 2019 revenue
Shareholders. Petrolimex’s success is driven by the best the management and business activities of Petrolimex reaching USD 8.35 billion
efforts, unanimity and determination of the Board of with many abnormal fluctuations of oil prices, global
General Directors and employees with the direction of political instability and especially the outbreak of Covid-19
the Board of Management. pandemic. In this context, the Board of Management of
Petrolimex has directed the Board of General Directors
2019 is also the third consecutive year that Petrolimex to develop specific business strategies and business
was named as the Champion of Revenue among Top scenarios for timely response to worst-case scenarios; TOTAL REVENUE 2019
8.35
50 best listed companies 2019 in Vietnam by Forbes drastically implemented solutions of cost reduction;
Vietnam with 2019 revenue reaching USD 8.35 billion. enhanced the risk management and prediction on
Additionally, Petrolimex was also honored to give plenty movements of the petroleum trading market; strongly
of awards in the field of governance and brand value by promoted value-added services in addition to petroleum
reputable rating organizations in the world. in order to leverage full advantage of distribution network
across the country. USD BILLION
Regarding sustainable development, we are proud of
being a socially responsible enterprise, respecting and With the historical tradition, unanimity and determination
balancing the benefits of all stakeholders, protecting from more than 24,000 officers and employees and led by
the environment and making a great contribution to the a talented, experienced and dedicated leadership team,
State Budget through tax payment. Petrolimex is always the Board of Management believes that Petrolimex will
pioneering in supply of clean and environmentally- overcome all difficulties to firmly develop and achieve
friendly energy products to the market. Besides, to the set goals.
minimize environmental pollution and prevent leakages,
we have invested trillions of VND in the research and On behalf of the Petrolimex Board of Management, I would
application of science and technology to operations. like to thank for all confidence, support, cooperation and
This further confirms Petrolimex’s business philosophy companionship from the value shareholder, customers
over the past 64 years, which is sustainable development and partners. I wish everyone good health, well-being
associated with environmental protection to build a and prosperity in 2020.
green environment to the community and make a
significant contribution to ensuring social security and
national security.
Chairman
In 2019, Petrolimex continued to promote the digital
transformation strategy and apply achievements of the
Industry 4.0 revolution to the governance and operation
of petroleum business throughout the system. We have
researched and conducted a number of key projects
such as implementation of decision-making supporting
system, management and administration of business
intelligence (BI) and big data, additional provision of Pham Van Thanh

GENERAL DIRECTOR’S LETTER
Vietnam National Petroleum Group »»Maintain the position as one of focal points with full the sustainable growth rate so as to firmly hold its market
will continue to maintain and promote compliance with Decision No. 49/2011/QD-TTg and share as well as improve the Group’s performance of
Decision No. 53/2012/QD-TTg of the Prime Minister on internal management as a concrete foundation for the
its leading position in the petroleum E5 RON 92 Euro II and DO 0.001S Euro V. Simultaneously, Group’s development for the next period 2021 – 2025.
downstream sector, and also make the Group completed the preparation of cargo supplies,
efforts to become the top energy infrastructure and technology conditions, etc. in order Petrolimex will consequently aggregate its resources and
Group in Vietnam with the orientation to make business available and put new marine fuels solutions to implement the following main objectives:
of high-quality product development, up for sale in timely compliance with the Sulphur Cap
and brand new and environmentally
Regulation of International Maritime Organization »»Synchronously deploying solutions in order to
(IMO) from 01 January 2020; complete the business and production plan for 2020;
friendly energy sources. implementing all methods of cost reduction from
»»Enhance communication through Petrolimex brand Parent company to member units;
promotion activities;
»»Maintaining the implementation of digital
»»Actively support management and administration transformation strategy, aggregating its resources,
throughout the entire Petrolimex system by digital adopting technological solutions to solve main
transformation. In Petrolimex, the digital transformation problems such as: Improving and upgrading the
has been prepared since the IPO, starting with the infrastructure of existing information system,
implementation and application of advanced solutions completing the information development strategy,
of enterprise resource planning ERP_SAP, and further and optimizing the effectiveness of components on
expanded through key projects such as: A management ERP_SAP; Implementing a non-cash payment solution
software system of warehouse, petroleum station, and customer relationship management (CRM) system;
electronic invoice, electronic document, etc.; thereby Deploying BI, an information system supporting
standardizing the management process of daily leaders in decision-making; etc.
business activities and the internal management
process according to actual requirements, contributing »»Continuing to research into solutions to utilize and
to the formation of a modern and dynamic increase utilities in its petroleum station system;
corporate culture. aggregating its resources for the development of its
petroleum station system.
Vietnam National Petroleum Group will continue
to maintain and promote its leading position in the With great responsibility to the shareholders, the Board of
petroleum downstream sector, and also make efforts General Directors and all employees of Vietnam National
Dear valued shareholders, customers and partners, to become the top energy Group in Vietnam with the Petroleum Group will strive to comprehensively meet the
orientation of high-quality product development, and planned targets for 2020 and the long-term goals for the
In 2019, Petrolimex kept affirming the systematic sustainability as well as the efficiency in governance from the Group to brand new and environmentally friendly energy sources. upcoming period of development in the future.
member units. In this context of concurrent opportunities and challenges, the Group still achieved several highly valued
results in the following areas: 2020 is forecasted to be the year with lots of difficulties On behalf of the Board of General Directors, I would like
and challenges. Since the early months of 2020, the world to thank the value customers, government agencies,
»»Ensured absolute safety in production and business process and no incidents related to fire prevention, environmental has suffered the Covid–19 pandemic, leading to a risk of shareholders and investors who have constantly
safety occurred in petroleum projects. global economic recession. For Petrolimex, in addition to supported us and placed their unceasing trust in
these adverse factors, the Group’s operations have been Petrolimex. We hope that we will continue to earn your
»»The fifth consecutive year that the Group completed and exceeded planned criteria assigned by the GMS: affected by the plummet of oil price from the beginning trust and support in the future.
of 2020 to the present. At the trading session of 21 April
• Total consolidated volume of petroleum sold reached almost 13.9 million tons m3, an increase of nearly 8.1% in 2020, it was the first time the WTI crude oil future price General Director
comparison to 2018, in which domestic sales volume increased 5.5% compared to that in 2018; delivered in May plunged to a negative level (below zero).
• Total consolidated revenue reached approximately VND 190 trillion, equivalent to that in 2018; The above-mentioned unfavorable factors have posed
many challenges in the implementation of 2020 plan.
• Total consolidated profit before tax reached VND 5,650 billion, rising 9% in comparison with that in 2018. Along with its efficient and absolutely safe organization
of production and business process in all core areas,
Petrolimex will also do its best to develop system, maintain Pham Duc Thang

GENERAL INFORMATION
GROUP OVERVIEW CHARTER CAPITAL
Vietnam National Petroleum Group (in abbreviation: Petrolimex) was established from the equitization and restructuring
12,938,780,810,000
of Vietnam National Petroleum Corporation. Principal business activities of Petrolimex are importing/exporting and
trading petroleum, refinery and petrochemical products, making capital investments in other enterprises with similar
business activities and others in accordance with the legal regulations. VND
In the domestic petroleum market, Petrolimex affirms the leading position in proper compliance with the Government’s
guidelines. Along with 30 other petroleum key traders and over 120 petroleum distributors, Petrolimex guarantees the
adequate and timely distribution of petroleum, serving the nation’s socio economic development, national security and Trading name VIETNAM NATIONAL PETROLEUM GROUP
defense as well as our people’s consumption demand. Petrolimex has 43 member units directly trading in petroleum Abbreviated name PETROLIMEX
throughout the country. Overseas, Petrolimex owns Petrolimex One-member Limited Liability Company in Singapore,
Petrolimex One-member Limited Liability Company in Laos and Petrolimex Representative Office in Cambodia. There Stock symbol PLX
is a retail network of 14,000 petroleum stations of all economic sectors nationwide, of which Petrolimex’s retail network
has more than 5,500 petroleum stations across the country, generating favorable conditions for consumers to use
Enterprise Registration Certificate No. 0100107370
products and services directly provided by Petrolimex. Based on the actual output of petroleum sold on the domestic Charter capital VND 12,938,780,810,000
market, Petrolimex actually accounts for 50% in market share on the national scale. In addition to petroleum products,
other products and services at Petrolimex petroleum stations such as lubricants, gas, insurance, banking, etc. produced No.1 Kham Thien Street, Kham Thien Ward, Dong Da
Address
and supplied by its member units are available. Petrolimex is always a pioneer in new technology adaption to its District, Hanoi, Vietnam
business performance, increasing labor productivity, improving customer satisfaction and also ensuring safety, energy Telephone +84 24 3851 2603
security, effective management and business.
Fax +84 24 3851 9203
Website http://www.petrolimex.com.vn
43
MEMBER UNITS
DIRECTLY TRADING IN
PETROLEUM
5,500
PETROLEUM STATIONS
ACROSS THE COUNTRY
KEY MILESTONES
1956 2011 2016 2018

The forerunner of Vietnam National Vietnam National Petroleum Group (Petrolimex) was instituted from On 26 May 2016, Petrolimex successfully issued individual Petrolimex signed a Memorandum of
Petroleum Corporation was the Oil, the equitization and restructuring of Vietnam National Petroleum shares to JX Nippon Oil & Energy Vietnam Consulting and Understanding with Vietnam Electricity
Lub and Grease Corporation which Corporation pursuant to Decision No 828/QD-TTg dated 31 May 2011 Holdings Company Limited, and raised the charter capital Corporation (EVN) on investment and
was set up by Decree No. 09/BTN, by the Prime Minister. from VND 10,700 billion to VND 11,388 billion. development cooperation in the clean
issued on 12 January 1956 by The energy industry.
Ministry of Commerce. Petrolimex successfully held its initial public offering (IPO) on Hanoi Petrolimex was licensed with Certificate of Securities Trading
Stock Exchange (HNX) on 28 July 2011. Code Registration No. 35/2016/GCNCP-VSD dated 25 April
2016 and “PLX” as stock symbol.
Vietnam National Petroleum Group operated officially in the form
of Joint Stock Company model from 01 December 2011 pursuant to On 28 July 2016, Petrolimex issued redeemable preferred
Enterprise Registration Certificate No. 0100107370. shares to current shareholders to raise the charter capital by
15%, from VND 11,388 billion to VND 12,938 billion.
1995 2012 2017 2019

Vietnam National Petroleum Corporation Vietnam National Petroleum Group On 21 April 2017, stocks of Petrolimex Petrolimex signed a Memorandum of
(Petrolimex) was reestablished pursuant to officially became a public company as per were listed on the Ho Chi Minh City Understanding with JXTG Holdings, the number
Decision No 224/TTg, dated 7 April 1995 by the document No 2946/UBCK-QLPH dated Stock Exchange (HOSE) with stock one energy corporation in Japan, on research in
Prime Minister. 17 August 2012 by the State Securities symbol PLX. LNG & Gas industries in Vietnam.
Commission.
The Group successfully sold 32 million treasury
shares on the stock market and gained nearly VND
2,000 billion.
CORE BUSINESSES AND MARKET PLACE
CORE BUSINESSES
MARKET PLACE
DOMESTIC OVERSEAS
The Group’s companies, branches Petrolimex Singapore,

and enterprises are located in 63 out Petrolimex Laos,
VIETNAM NATIONAL PETROLEUM GROUP of 63 provinces and cities nationwide.
(PETROLIMEX) Representative office in Cambodia.
Laos
PETROLEUM PETROCHEMICAL GAS PETROLEUM OTHERS Hoang Sa Islands
DISTRIBUTION DISTRIBUTION DISTRIBUTION TRANSPORTATION (insurance, banking,

(referred to as (referred to as (referred to as DISTRIBUTION construction,
“Petroleum”) “Petrochemical”) “Gas”) (referred to as trading, etc.)
“Petroleum
transportation”)
Cambodia
Ho Chi Minh City
Phu Quoc Island

Truong Sa Islands
63/63
PROVINCES AND CITIES
NATIONWIDE
04
COUNTRIES IN THE WORLD
Singapore

GOVERNANCE FRAMEWORK AND GROUP’S
ORGANIZATIONAL STRUCTURE
MANAGEMENT STRUCTURE SUBSIDIARIES, ASSOCIATES
GENERAL MEETING OF Of which, there are:

SUPERVISORY BOARD
SHAREHOLDERS
»»43 One-member Limited Liability
45
45 wholly-owned petroleum Petroleum Companies in Vietnam
subsidiaries and 22
»»01 One-member Limited Liability
subordinate branches. Company in Singapore
BOARD OF
MANAGEMENT »»01 One-member Limited Liability
Company in Laos
BOARD OF GENERAL
DIRECTORS
04 4 Corporations with more than

50% of stakes directly owned by
the Group.
REPRESENTATIVE 9 JOINT-VENTURES,
51 SUBSIDIARIES
OFFICES ASSOCIATES
REPRESENTATIVE OFFICE 4 CORPORATIONS WITH

47 WHOLLY-OWNED
IN HO CHI MINH CITY MORE THAN 50% OF
COMPANIES/ 9 Joint-Ventures and
STAKES DIRECTLY OWNED
09
CORPORATIONS Associates with more than
BY THE GROUP
20% of their charter capital
REPRESENTATIVE
owned by the Group.
OFFICE IN CAMBODIA
45 DOMESTIC
CORPORATIONS/ ONE-
MEMBER LIMITED LIABILITY
Petrolimex Tanker Corporation (PGT)
COMPANIES
providing water-way petroleum
PETROLIMEX SINGAPORE
ONE-MEMBER LIMITED
LIABILITY COMPANY
02 2 wholly-owned subsidiaries,
namely
transportation;
Petrolimex Transportation Services

Corporation (PTC) providing inland
petroleum transportation and
PETROLIMEX LAOS ONE- trading petroleum.
MEMBER LIMITED LIABILITY
COMPANY
LISTS OF SUBSIDIARIES, ASSOCIATES

(For more details please refer to the Financial Statements from pages 225 – 230)

BOARD OF MANAGEMENT
MR. PHAM VAN THANH

MR. YOSHIHIRO SATO
Chairman
BOM member – Non-executive
Year of birth 1972
Year of birth 1958
Nationality Vietnamese
Nationality Japanese
Qualification Master degree in Business
Administration, Bachelor degree Foreign language English
in Accounting Positions in other organizations Senior Vice President of JXTG Energy
Politic qualification Advanced
Foreign language English
Current position Chairman (full-time)
Working experiences
2005 – 2009 Head of Property and Fire Insurance Department,
Office of Petrolimex Insurance Corporation
2009 – 2013 Director of PJICO Hai Phong Branch, Petrolimex Insurance Corporation
2013 – 2018 BOM member, General Director of Petrolimex Aviation Fuel JSC
2018 – present BOM Chairman of Vietnam National Petroleum Group
Positions in other organizations
BOM Chairman of Petrolimex Aviation Fuel JSC
MR. PHAM DUC THANG
BOM member
Year of birth 1961

Qualification Master degree in Economics
Foreign language English, Russian
Current position Petrolimex General Director
Working experiences
2006 – 2012 Head of Import-Export Department, Vietnam National Petroleum Corporation
2012 – 2016 Deputy General Director of Vietnam National Petroleum Group
2016 – 2017 BOM member, Deputy General Director of Vietnam National Petroleum Group
2017 – present BOM member, General Director of Vietnam National Petroleum Group
Positions in other organizations: None

BOARD OF MANAGEMENT
(continued)
MR. NGUYEN THANH SON MR. TRAN NGOC NAM

BOM member BOM member
Year of birth 1962 Year of birth 1965

Nationality Vietnamese Nationality Vietnamese
Qualification Master degree in Economics Qualification Bachelor Degree in Accounting
Politic qualification Advanced Politic qualification Advanced
Foreign language English, Russian Foreign language English
Current position Petrolimex Deputy General Director Current position Petrolimex Deputy General Director
Working experiences Working experiences
1991 – 1997 Deputy Director of Petrolimex Bac Thai Co., Ltd. 2002 – 2003 Chief Accountant of Petrolimex Hanoi Co., Ltd.
1997 – 2002 Head of Organization and Administration Department, Petrolimex Lubricant Corporation 2003 – 2008 Chief Accountant of Vietnam National Petroleum Corporation
subsequently named Petrolimex Petrochemical Corporation 2008 – 2011 Director of Finance and Accounting Center, Vietnam National Petroleum Corporation
2002 – 2004 Deputy Director of Petrolimex Petrochemical Corporation (February 2004: BOM member, 2011 – 2016 Chief Accountant, Director of Finance and Accounting Center, Vietnam National Petroleum Group
Deputy General Director of Petrolimex Petrochemical Corporation)
2012 – 2016 Deputy General Director of Vietnam National Petroleum Group
2004 – 2008 Head of Personnel Department, Vietnam National Petroleum Corporation
2016 – present BOM member, Deputy General Director of Vietnam National Petroleum Group
2008 – 2011 Specialized BOM member, Vietnam National Petroleum Corporation
2011 – 2018 BOM member of Vietnam National Petroleum Group Positions in other organizations:
2018 – present BOM member, Deputy General Director of Vietnam National Petroleum Group BOM Chairman of Petrolimex Insurance Corporation (PJICO)
Positions in other organizations: None Head of the Group’s Capital Representatives, BOM member, Petrolimex Group Commercial Joint Stock Bank PG Bank
MR. LE VAN HUONG MR. NGUYEN ANH DUNG

BOM member – Non-executive BOM member – Non-executive

Qualification Chemical Engineer, Bachelor degree in Economics Qualification PhD in Economics
Foreign language English, Czechoslovakian Foreign language English, Czechoslovakian
Current position Petrolimex Head of Human Resources and Remuneration Department Current position Chairman of Board of Members - Petrolimex Tanker Corporation
1997 – 1999 Deputy Director of Petrolimex Vinh Phu Limited Company 1996 – 1997 Deputy Chief of Office, Vietnam National Petroleum Corporation
1999 – 2001 Director of Petrolimex Vinh Phu Limited Company 1997 – 2002 Deputy Head of Finance Department, Vietnam National Petroleum Corporation (January
2001 – 2004 Director of Petrolimex Phu Tho Limited Company 1999: cum Assistant of the BOM Chairman, Vietnam National Petroleum Corporation)
2004 – 2008 Head of Sales Department, Vietnam National Petroleum Corporation 2002 – 2005 Head of Import-Export Department, Vietnam National Petroleum Corporation
2008 – 2013 BOM member, General Director of Petrolimex Aviation Fuel JSC 2005 – 2013 General Director of Petrolimex Insurance Corporation
2013 – 2016 Head of Human Resources and Remuneration Department, BOM member of the Group 2013 – 2018 Chairman of Board of Members cum General Director of Petrolimex Tanker Corporation
2016 – present BOM member, Head of Human Resources and Remuneration Department, BOM of the Group 2016 – present BOM member of Vietnam National Petroleum Group
2018 – present Chairman of Board of Members, Petrolimex Tanker Corporation

BOARD OF GENERAL DIRECTORS
MR. PHAM DUC THANG MR. NGUYEN QUANG DUNG

General Director Deputy General Director
Year of birth 1972

(See “Board of Management” for details about Mr. Pham Duc Thang)
Qualification Master degree in Chemical Engineering
Politic qualification Bachelor
Working experiences
1996 – 2005 Deputy Head of Petroleum Engineering Department, Vietnam National Petroleum Corporation
2005 – 2006 General Director of PTN Chemicals Co., Ltd.
2006 – 2009 BOM member, General Director of PTN Chemicals Co., Ltd.
2009 – 2012 Head of Corporate Development Department, Vietnam National Petroleum Corporation
2012 – 2017 Head of Strategy and Investment Department, Vietnam National Petroleum Group
2017 – present Deputy General Director of Vietnam National Petroleum Group
MR. NGUYEN THANH SON
Positions in other organizations:
Deputy General Director
BOM member, Petrolimex Gas Corporation – JSC
(See “Board of Management” for details about Mr. Nguyen Thanh Son)
MR. NGUYEN VAN SU

Deputy General Director
Year of birth 1966

Qualification Mechanical Engineer,
Master degree in Business Administration
MR. TRAN NGOC NAM
Deputy General Director Working experiences
1997 – 2001 Head of Technical Department, Petrolimex Lubricant Corporation, currently Petrolimex Petrochemical Corporation
(See “Board of Management” for details about Mr. Tran Ngoc Nam)
2001 – 2005 BOM member (specialized) cum General Director of PTN Chemicals Co., Ltd.
2005 – 2008 Head of Corporate Development Department, Vietnam National Petroleum Corporation
2008 – 2017 Chief of Office, Vietnam National Petroleum Group
2017 – present Deputy General Director of Vietnam National Petroleum Group

BOM Deputy Chairman, Castrol – BP Petco Limited Liability Company
BOM member, Military Petrochemical JSC

BOARD OF GENERAL DIRECTORS
(continued)
MR. DAO NAM HAI MR. LUU VAN TUYEN

Deputy General Director Deputy General Director

Qualification Master degree in Business Administration, Qualification Master degree in Economics,
Master degree in Law Bachelor degree in Accounting
Foreign language English Foreign language English
2001 – 2005 Head of Market and Operations Management Department cum Assistant of General Director, 2002 – 2008 Member of Supervisory Board, Vietnam National Petroleum Group
cum Director of PJICO Lang Son Branch (from 03 February 2005) 2008 – 2012 Head of General Office under Finance and Accounting Center, Vietnam National Petroleum
2005 – 2009 Deputy General Director of Petrolimex Insurance Corporation Corporation
2009 – 2013 BOM member, Deputy General Director of Petrolimex Insurance Corporation 2012 – 2019 Chief Accountant of Vietnam National Petroleum Group
2013 – 2017 BOM member cum General Director of Petrolimex Insurance Corporation (PJICO) 2019 – present Deputy General Director of Vietnam National Petroleum Group
2017 – present Deputy General Director of Vietnam National Petroleum Group cum General Director of
Petrolimex Insurance Corporation (PJICO)
BOM member, Petrolimex Group Commercial Joint Stock Bank (PGBank)
MR. NGUYEN XUAN HUNG MR. NGUYEN BA TUNG

Deputy General Director Chief Accountant

Qualification Engineer of Transport Economics Qualification Bachelor Degree in Finance - Credit
Foreign language English Foreign language English
2012 – 2018 Head of Import-Export Department, Vietnam National Petroleum Group 2008 – 2018 Head of Finance Department – Finance and Accounting Division, Vietnam National Petroleum Group
2018 – present Deputy General Director of Vietnam National Petroleum Group 2018 – 2019 Head of General Office – Finance and Accounting Division, Vietnam National Petroleum Group
2019 – present Chief Accountant of Vietnam National Petroleum Group
Chairman of the Board of Members, Van Phong Bonded Petroleum Terminal Joint Venture Co., Ltd. Positions in other organizations:
Supervisor of Petrolimex Nam Dinh Co., Ltd. and Petrolimex Quang Ninh One Member Co., Ltd.

MR. NGUYEN VINH THANH
SUPERVISORY BOARD
Supervisor
Year of birth 1963

Qualification Master degree in Labor Economics
MR. DINH VIET TIEN (retired from 01 April 2020) Politic qualification Advanced
Head of Supervisory Board Foreign language English
Current position Supervisor of Vietnam National Petroleum Group
Year of birth 1960
Working experiences
2006 – 2008 Deputy Head of Party Committee Organization Department, Vietnam National Petroleum Corporation
Qualification Bachelor of Finance and Accounting
2008 – present Supervisor of Vietnam National Petroleum Group
Foreign language English Positions in other organizations: Supervisor of Petrolimex Quang Ninh One Member Limited Company and Petrolimex Da
Nang One Member Limited Company
Current position Head of the Group’s Supervisory Board
Working experiences
1996 – 2000 Head of Finance and Accounting Department of Petroleum and Gasoline Construction MS. PHAM THI DUNG
Design Company - Vietnam National Petroleum Corporation
Supervisor
2000 (September) Deputy Head of Accounting Department, Vietnam National Petroleum Corporation
2002 – 2008 Deputy Head of Inspection and Legal Department, Vietnam National Petroleum Corporation Year of birth 1972
2008 – 2014 Member of Supervisory Board, Vietnam National Petroleum Group Nationality Vietnamese
2014 – 01/04/2020 Head of Supervisory Board, Vietnam National Petroleum Group Qualification Bachelor of Accounting
Current position The Group’s supervisor
Working experiences
2003 – 2007 Head of Finance and Accounting Department of Petroleum and Mechanical Services Enterprise under
MR. TONG VAN HAI Petrolimex Hanoi One Member Limited Company
2008 – 2012 Specialist of Finance and Accounting Division, Vietnam National Petroleum Group
Supervisor
2013 – 2017 Deputy Head of Inspection and Legal Department, Vietnam National Petroleum Group
Year of birth 1980 2018 – present The Group’s supervisor
Nationality Vietnamese Positions in other organizations: Supervisors at Petrolimex Da Nang One Member Limited Company, Petrolimex Tien Giang
Qualification Master degree in Business Administration One Member Limited Company and Petrolimex Transportation Services Corporation.
Politic qualification Intermediate
MS. HOANG MAI NINH
Supervisor
Working experiences
2005 – 2006 Specialist of Finance and Accounting Department, Petrolimex Petrochemical Corporation – JSC Year of birth 1978
2006 – 2016 Worked at PTN Chemicals Co., Ltd. Nationality Vietnamese
2009 – 2016 Supervisor of Petrolimex Petrochemical Corporation – JSC Qualification Master degree in Economic Management
2016 – present The Group’s supervisor Politic qualification Advanced
Positions in other organizations: Foreign language English

Head of Supervisory Board, PTN Chemicals Co., Ltd.
Working experiences
Head of Supervisory Board, Van Phong Terminal
2009 – 2015 Chief Accountant of Petrolimex Ha Giang Limited Company
Supervisor of Petrolimex Petrochemical Corporation – JSC
2015 – 2018 Deputy Director of Petrolimex Ha Giang Limited Company
2018 – present Supervisor of Vietnam National Petroleum Group
Positions in other organizations: Supervisor of Petrolimex Binh Dinh Limited Company and Petrolimex Quang Ngai One
Member Limited Company.

AWARDS AND RECOGNITIONS
INDIVIDUAL AWARDS
»»The Second-Class Labor Order awarded to the Deputy General Directors in 2018
»»The Third-Class Labor Order awarded to the Deputy General Directors in 2019
»»Certificate of Merit from the Prime Minister awarded to Mr. Le Van Huong - a BOM member in 2018
»»Certificate of Merit from the Prime Minister awarded to the BOM Chairman in 2008 and 2016
»»The Second-Class Labor Order awarded to the BOM Chairman in 2015
»»The Third-Class Labor Order awarded to the BOM Chairman in 2011
»»National emulation officer awarded to the BOM Chairman in 2009
GROUP AWARDS
»»Certificate of Merit from the Prime Minister awarded to the General Director in 2014
TOP 50 TOP 10
VIETNAM’S BEST LISTED VIETNAM’S MOST VALUABLE
COMPANIES BRANDS
»»The First-Class Independence Order in 2015, 2016 »»In 2019, Petrolimex was honored by Forbes Vietnam in
two categories:
»»The Second-Class Labor Order in 2009
• The third consecutive time winning the Champion of
»»Ho Chi Minh Order in 2006 revenue in the “Top 50 Vietnam’s Best Listed Companies”;
»»Labor Hero Period Renewal in 2005 • In the Top 20 Vietnam’s brands worth over USD 100
million and leading the retail industry in the “Top 50
»»Hero of the People’s Armed Forces in 2006 Leading Brands in 2019”.
»»Certificate of Merit from the Prime Minister in 2011, 2014 »»In 2019, Petrolimex was ranked as one of the “Top 10
Vietnam’s Most Valuable Brands” by Brand Finance (UK).

DIGITAL TRANSFORMATION DEVELOPMENT STRATEGIES
TRANSFORMATION
02
DIGITAL

Petrolimex’s digital transformation story
SWOT analysis
FORWARD Growth drivers

Development orientation
PETROLIMEX’S DIGITAL
TRANSFORMATION STORY
As a leading corporation in Vietnamese petroleum industry, Petrolimex

MANY IT APPLICATIONS ARE DEPLOYED AND
considers IT as a key factor throughout its operations and a decisive
CONSTANTLY IMPROVED
element for the competitive advantages in new era. By choosing the
theme “Digital transformation - Distinction drives us forward” for the Annual
Report 2019, Petrolimex again affirms the importance and essential role The following are some typical applications:
of IT system on our sustainable development journey.
ENTERPRISE RESOURCE PLANNING (ERP SAP)
Petrolimex has deployed SAP since 2009 and officially went live across the
Determining the essential role of IT system in business and mastering technology, managing operations and Group on 01 January 2013. This system facilitates the business operation and
operation and management, Petrolimex has pursued the effectively using the IT system invested according to the management from the Group’s Parent company to 43 member companies,
digital transformation strategy since the 2000s. However, digital transformation strategy. branches, enterprises, warehouses and oil terminal under petroleum
the digital transformation process actually began in 2010 companies (76 Company Codes). SAP system consists of management
and has had breakthrough developments since 2012 Throughout many years of information technology operations from purchase, storage to sales, accounting, statistics, financial
when Petrolimex had an initial public offering (IPO) and application, Petrolimex has gained a number of notable reports, management reports and consolidation of reports all over the
became a public company. achievements in its digital transformation, typically: Group, etc. ERP SAP is integrated with an automation system, contributing to
Receiving and processing information in timely, accurate ensure the accuracy, safety and reliability in the petroleum delivery and loss
Its evolution has helped Petrolimex to gradually standardize and reliable manner; meeting the requirements of management. Since the implementation of ERP SAP system, Petrolimex has
management process in a modern way, implement and information provision in accordance with regulations always accomplished the consolidated reports throughout the Group, and
apply the world’s most advanced management solutions. of public companies and government agencies; saving satisfied the requirements of prompt and accurate provision of information
Additionally, Petrolimex’s professional and technical time and cost, improving labor productivity; increasing on business performance not only for internal control purposes but also for
employees were trained and transferred technology, competitiveness and customer satisfaction. external parties’ needs including government agencies and investors.
ready to meet requirements of proactively receiving

TRANSFORMATION STORY (continued)
MANY IT APPLICATIONS ARE DEPLOYED AND CONSTANTLY IMPROVED (continued)
ENTERPRISE RESOURCE PLANNING (ERP SAP) (continued)
For further improvement in the efficiency of IT system application all over the Group, Petrolimex constantly conducted
researches, implemented new features and development modules on SAP system and achieved positive results in a
lot of aspects:
The Group consolidated financial statements: The SAP system

has enabled to simplify the consolidation of the Group financial
statements, and timely provide information on business performance
in accordance with the regulations. It is considered that Petrolimex
is the first State-owned enterprise to consolidate the financial
statements on its IT system.
ELECTRONIC
Sales Management Online (SMO): Successfully pilot implemented ENTERPRISE RESOURCE INVOICING SYSTEM ELECTRONIC MAIL CASHLESS PAYMENT
in Petrolimex Sai Gon One Member Limited Company, SMO enabled PLANNING (ERP SAP) (E-INVOICE) SYSTEM APPLICATION
customers to make direct orders on application website of the
Company instead of the traditional method of ordering: phone, fax,
email, etc.
Loss management at warehouses: The application of the program

helped the Group and its units minimize much effort in the collection
and calculation of loss data at stages, so that the data could be
aggregated right after reviewing and confirming data at warehouses.
Customer management: This facilitates the collection and storage

of a lot of important data and information about customers. Based
on such data, the Group could easily give assessments and analyses
on customer development trends as well as develop appropriate
customer service policies and strategies.
RETAIL GAS STATION DOCUMENT ELECTRONIC ONLINE CONNECTION
MANAGEMENT MANAGEMENT INFORMATION PAGE APPLICATIONS
Planning: Plans on costs, revenue, output, etc. are drawn up from the SYSTEM (EGAS) SYSTEM (E-OFFICE)
Group’s Parent company to member units, branches and enterprises
in order to fully support in the management and operation of business
plans, and control the progress at units.

MANY IT APPLICATIONS ARE DEPLOYED AND CONSTANTLY IMPROVED (continued)
EGAS enables the Group to conduct effective management and operation

of more than 2,700 gas stations owned by the Group, including retail Electronic mail system assists the management of over 250,000 e-mails
sales to customers. The system is integrated with pumps for the accuracy, per day, and readily meets the demands to support high-speed, timely
transparency and reliability of sales data to customers. and efficient information exchange inside the Group or with partners and
customers.
EFFECTIVE MANAGEMENT MANAGEMENT OF OVER
250,000
RETAIL GAS STATION AND OPERATION ELECTRONIC MAIL SYSTEM
MANAGEMENT
SYSTEM (EGAS) >2,700 (Email:@petrolimex.com.vn)
E-MAILS PER DAY

GAS STATIONS
E-INVOICE has been deployed and put into use since 2018; meeting the
requirements of invoice digitalization, helping management of an average Electronic information page is an official portal of Petrolimex, serving
of 23 million e-invoices per year, making it available for customers’ actual communication and information dissemination for customers and
demands on issuance, storage and search of electronic invoices, ensuring partners, meeting requirements of information transparency as stipulated
the transparency of sales invoices, and improving the convenience for ELECTRONIC INFORMATION by government agencies including the regulations on petroleum
customers. PAGE (Website: transparency under Decree 83 and information publication for public
www.petrolimex.com.vn) companies by State Securities Commission.
ELECTRONIC MANAGEMENT OF AN AVERAGE OF
INVOICING SYSTEM
(E-INVOICE) 23,000,000
E-INVOICES PER YEAR
The Group is cooperating with banks to implement a cashless
payment application for purchase at Petrolimex petroleum stations.
This application enables customers to save time and effort when
E-OFFICE has been implemented and put into use since 2017; satisfying purchasing petrol and is a useful tool in the management of their
the requirements of digitalization for incoming and outgoing documents, CASHLESS PAYMENT petrol costs, helping Petrolimex identify, manage and take care of
and connection management of direction and operation documents APPLICATION customers regularly.
from the Group to all member units. The system also facilitates the
management of an average of more than 200,000 electronic documents
per year, and becomes available to fulfill the requirements according to
the electronic document management process: from issuing/receiving,
DOCUMENT MANAGEMENT processing, storing to searching, making statistics in accordance with the The Group has deployed and used software to support remote working,
SYSTEM (E-OFFICE) actual demands of business direction and operation. team work, online working via technological devices such as: computers,
mobile phones, etc. These software enable staff to exchange, discuss and
MANAGEMENT OF AN AVERAGE OF
coordinate to solve their work quickly and effectively; simultaneously
200,000 ONLINE CONNECTION

APPLICATIONS
contributes to cost reduction of business trips, communication and
transaction, etc.
ELECTRONIC DOCUMENTS PER YEAR

2020 AND THE FOLLOWING YEARS - SERVICE DIGITIZATION FOR IMPROVEMENT

IN EFFICIENCY AND CONVENIENCE
Deploy modules of land, properties, plants
Integrate SAP program with smart devices or
and equipment management (PM: Plant
websites so that the production management
maintenance) that manage detailed information
tasks can be processed at any time and place,
about maintenance process, functioning
gradually reduce the space and time limits for
conditions of assets recorded on the SAP system.
management levels in interacting with the SAP
On that basis, the member companies can be
system.
proactive in periodic repair plans.
Determining the important role of IT in the global

development context, Petrolimex continues to implement Invest in research and
Upgrade the application
the digital transformation strategy, and accelerate implementation of new
system supporting remote
application process of the world’s scientific and Upgrade digitalization
working, online working and programs in order to supplement
program for documents,
technological advances and achievements of the Industry webinars to save the costs modern tools so that customers
records on e-Office system. have more utilities and
4.0 revolution into governance and management of of business operation and
experiences when purchasing
petroleum business in the entire system. governance.
and paying for petrol.
In addition, to fulfill requirements of business governance and management of all leaders, managers, sales executives,
and customers, Petrolimex keeps strengthening the implementation of digital transformation strategy by a number In general, the investment in IT construction and development at Petrolimex has made great progress. In order to
of key projects such as deployment of decision supporting system, management and administration of business achieve those important initial results, the Group has persistently made great efforts to overcome many difficulties in
intelligence (BI) and big data, additional provision of utilities in petroleum purchase and payment through modern the process of deploying technology applications, namely: unsynchronized technical facilities and non-standardized
methods such as automated sales, card payment, mobile payment, loyalty programs, customer appreciation, etc. process lead to take a lot of effort and time to deploy, change user habits, give training for user, manage risks for newly-
launched system, resulting in unstable operation, problems, technical failures, etc.
In 2020, Petrolimex keeps implementing a number of critical technological solutions to meet management and
governance requirements throughout the Group, and also constantly researches to improve IT system as a foundation With a solid IT platform, Petrolimex continues to consolidate and focus on IT investment and development according
for the Group’s development in the following years. Specifically, the Group focuses on investment and development of to the digital transformation strategy set and conducted for the last years. At the same time, the Group will maintain the
the following programs, projects and applications: vital role of IT system in business management and governance, helping the Group carry out and reach the business
targets and strategies in 2020 and the next years.

SWOT ANALYSIS
»»The Petrolimex brand is well known in both the domestic and international market »»Decree No. 83/2014/ND-CP, promulgated and officially took effect on 01 November
with over 64 years of experience in trading petroleum. In 2019, Petrolimex was ranked as 2014, helped enterprises trading petroleum, including the Vietnam National
one of the “Vietnam’s Top 10 Most Valuable Brands” by Brand Finance. Petroleum Group, to be more flexible in adjusting the petroleum price in the
country. Specifically, due to the mechanism dictating that two consecutive price
»»Owning the largest technical infrastructure among the petroleum key traders adjustments must be least 15 days apart should price be increased, domestic petrolem
in Vietnam with the modern and synchronous level up to the regional standards, prices are more closely aligned with the world’s, minimizing the risks from selling price’s
including the terminal and storage system with a capacity up to 2,200,000 m3; pumping being lower than the purchasing price due to that domestic prices was not adjusted
technology system, conveyance, distribution, measurement; more than 570 km of timely enough to the world’s as before. However, petroleum is under the State’s price
petroleum pipeline; etc.
STRENGTHS (S) WEAKNESSES (W) stabilization initiative; the petroleum price is not determined by the market forces
due to that State control petrol price to achieve other macro targets. Although the
»»Especially, Petrolimex has an unrivalled distribution system of 5,500 retail locations
petroleum price has been adjusted in line with the fluctuation of world’s, the degree of
nationwide, in which, there are about 2,700 COCO petroleum stations that have been
adjustment of domestic price may not correspond to that of world’s, partially affecting
invested and built for the last 64 years. All of these stations are located at commercially
the Group’s business.
favorable locations and gain turnover much more than that of other social stations
thanks to their brand reputation. With income from difference between purchase price
and sale price as well as impacts from general market mechanism, the system of these
stations has brought the highest profit to the enterprise.
»»Large-scale operation of the Group with its subsidiaries, joint ventures, associates
operating in the petroleum business and the related/ supporting business, contributes
to the Group’s advantages in capital mobilization and investment for large projects.
»»Petrolimex’s strategic partner is JXTG Nippon Oil and Energy Corporation – No. 1
energy Corporation of Japan with over 100 years of experience, always accompanying
and assisting Petrolimex in corporate governance improvement.

SWOT ANALYSIS (continued)
»»Demand for petroleum consumption continues to grow along with the growth of the »»In early 2020, the novel respiratory syndrome coronavirus (Covid-19) originated in
Vietnamese economy. Vietnam’s GDP is forecasted to grow at 6-7%/year in 2020. This Wuhan, China, then broken out and spread across the world at a breakneck speed,
demonstrates the steady growth of petroleum business. According to official reports, affecting not only China but also many countries in the world. In March 2020, the
Vietnam’s market has high petroleum demands because per capita income rapidly World Health Organization (WHO) officially declared the Covid-19 outbreak a global
increases while petroleum consumption per capita is low in comparison with the region pandemic. Governments forced to issue travel restrictions and lockdown measures.
(Source: World Bank). In addition, Vietnam is also a country with a fast growth rate of the Plenty of international flights were limited or even banned, leading to a 40% -80%
number of vehicles in circulation. The compound annual growth rate (CAGR) of passenger reduction in international flight revenue of airlines worldwide. In general, the world
cars is expected to reach 22.6% in the period of 2020-2025 and keeps reaching 18.5% in the economy was enormously influenced by this pandemic. Many economists have been
OPPORTUNITIES (O) period of 2025-2035. In addition to the rapid economic growth, the tourism and service THREATS (T) concerned that the world is on the verge of a global recession and in fact their concerns
sectors also have good growth, speeding up demands for logistics, transportation and has actually been proved. According to a report by Bloomberg, in mid-March 2020,
traveling, leading to the increasing demand for petroleum. Therefore, the growth potential
(continued) China - the world’s second-largest economy and the origin of the Covid-19 pandemic -
of the petroleum business is still promising in the near future, which is an opportunity for officially published some data of the first two months in 2020 showing a comprehensive
petroleum trading enterprises, including Vietnam National Petroleum Group, to increase recession in the fields of industrial production (-13.5%), property investment (-24.5%)
their market share. and retail business (-20%) for the first time in the past decade. Japan, Germany, France
and Italy had even gone into economic slowdown and depression before the Covid-19
»»Drastic encouragement and direction by the Board of General Directors for the process outbreak (for example, GDP growth rate of Germany and the UK reached 0% in the
of digital transformation, application of advanced science and technology to facilities fourth quarter of 2019). According to reports by Reuters and New York Times, the global
and business management and administration system gives the Group a new vitality stock market witnessed the biggest plunges in the context of constantly increasing
and a great source of motivation for the Group’s sustainable growth in the 4.0 era. 10 Covid-19 infection. On 12 March 2020, all leading stock exchanges in the United States
years ago, Vietnam National Petroleum Group was one of the first State-owned enterprises were reported the worst record decrease (for example, the Dow Jones Industrial index
to deploy the SAP ERP, facilitating automation, reduction in headcounts, and improvement declined by ~10%, the S&P 500 index fell by ~ 9.5%) in the US stock market in three past
in productivity and corporate governance efficiency. In addition, in the field of petroleum decades since Black Monday (1987) when the US stock market dropped more than 20%
business in Vietnam, the Group is also a pioneer in successful research, application and in only one trading session. Coping with risk of global economic recession increasingly
implementation of “Vaporation Recovery Unit” (VRU) of Duc Giang Oil Terminal under apparent, the debate of world economic experts has gradually turned to the topic of how
Petrolimex Hanoi One Member Limited Company. Duc Giang Oil Terminal has the long this global economic recession will last and the extent of its impact. Despite not
greatest frequency of petroleum input and output in the North (the average output of being affected as heavily as the tourism industry, the petroleum trading also faced the
4,000 m³ petroleum each day) with hundreds of xitec trucks coming. After operating VRU, common challenges of the global economic depression due to reduced travel demands
vaporation wastage has been reduced, contributing to environmental protection on the leading to significant decrease in petroleum consumption. However, opportunities still
one hand, and bringing significant economic efficiency to the Group on the other hand. exist and require the Group’s Management to make accurate judgments to grasp. The
After the successful operation of the VRU system at Duc Giang Oil Terminal, the Group has Federal Reserve Bank of Cleveland researchers published a really interesting finding that
planned to carry out researches and deployment in a wide range of large terminals under there is usually a period of robust growth after each severe recession (for example, the
the Group all over the country, expected to help further minimize the petroleum loss rate 2008-2009 recession). (Source: Bloomberg).
and improve business efficiency for the Group in the future. Recognizing the importance
of science and technology, the Board of General Directors has introduced a number of »»In addition to challenges from the risk of global recession, the petroleum trading
strategic guidelines, directed all member companies of the Group to get involved in the in particular and the oil and gas industry in general still face another significant
digital transformation process, considered science and technology as a powerful tool to challenge that is the volatility of the world’s crude oil price. The WTI crude oil price at
achieve mid-term and long-term development goals in the future. the end of the fourth quarter of 2019 tended to increase slightly from USD 55/barrel to
USD 63/barrel. However, it dropped sharply again right from the beginning of the first
[Refer to “Proposed plan for 2020” in the section “Report and Evaluation By Board of General
quarter of 2020. In January 2020, geopolitical issues and reduction in oil demand caused
Directors” (page 84) for more details in digital technology development plans and strategies.]
the WTI crude oil price to fall from USD 63/barrel to USD 50/barrel. While oil demand
tended to decrease sharply due to the impact of the Covid-19 pandemic, the failure
of Saudi Arabia and Russia to reach an agreement on oil production ignited a price
»»The ever more competitive environment due to the attractiveness of the market leads war causing steep fall in oil prices, sometimes down to USD 20.5/barrel on 18 March
to many potential threats to petroleum enterprises in the form of the entrance of new 2020. The volatile fluctuation of oil prices has had a great impact on the input prices
domestic businesses and the expansion of established international companies. In of petroleum traders, posed a great challenge for the Board of General Directors in the
addition to the increase in the number of wholesale im/exporters, the year 2015 marked management of oil price risks as well as the enhancement in inventory management
the establishment of petrol and oil distributors as stipulated in Decree No. 83/2014/ND-CP. efficiency. The rational decisions from the Board of General Directors are the keys to the
Up to now, there have been more than 30 importers and 100 petroleum distributors in the Group’s stability and development in the future.
domestic petroleum market, competing against one another and competing directly with
THREATS (T) petroleum exporters and importers in terms of Petroleum retail price.

GROWTH DRIVERS
Regarding corporate restructuring and

Regarding cost reduction innovation
Proactively and thoroughly implement the cost Maintain strengthening the restructuring of the
reduction throughout the Group’s system. Considering enterprise and all member companies to increase
2020 as a difficult year, the entire Group need to raise the business efficiency, finish divestment of non-core
awareness and attitude of frugality. Cost reduction should businesses, recover the Group’s investment capital in
be conducted in all stages from analysis, evaluation inefficient investment areas and business lines that are
and development of efficient sourcing, technology not conforming to the Group’s development orientation,
application to optimal loss management, expenditure and complete sound restructuring of Corporations under
reduction to further review and re-evaluation of property the direction of the Government.
and land management to avoid waste and loss.
2019 was a very difficult year for petroleum trading, but also a year of success
Regarding application of science and Regarding research and development
in the governance and management of the Group’s Board of General technology of new energy products
Directors with actual results exceeding most of the 2019 business plan targets
set by the GMS as well as the direction of the Board of General Directors. Further strengthen research, investment and application Consolidate and strengthen the cooperation with
The above achievements have not only to strengthened the confidence of science and technology to production and business experienced partners such as the Group’s strategic
process for improved labor productivity and economic partner as JXTG or other energy corporations all
from the Government, shareholders and investors in the Group’s Board of
efficiency. Additionally, it is predicted that in the next over the world to jointly find out opportunities for
Management, Board of General Directors, but also enhanced the reputation 5 years, the digital economy scale gains 20% GDP of investment, extraction and development of brand new
of Petrolimex among partners on the local and international market. Vietnam. Therefore, the application of digital technology, energy products. The Group keeps conducting required
big data and artificial intelligence need to be focused to procedures to accelerate the deployment of LNG project
enhance customer service quality and business efficiency. in My Giang, Khanh Hoa with EVN.
The Board of Management acknowledge that 2020 will be a difficult and challenging year for the Group due to a
lot of changes regarding petroleum trading policies, global economic uncertainties and increasing competition. In
order to overcome these challenges and achieve its goals of sustainable development, the Group must ensure growth
momentum by integrating innovation and creativity into traditional development measures, including the following
eight group of major issues:
Regarding professionalization of
investor relations activities Regarding Petrolimex’s people
Regarding the development of non- Petrolimex is already a large-scale listed public company In the new decade, the strong development of science
Regarding principal business activities petroleum value-added services with diverse shareholder structure and participation and technology has resulted in rapid changes in business
of nearly 100 foreign institutions including a lot of the methodology and environment as well as created a
Keep promoting the achievements obtained in 2019 on Concentrate on research and completion of evaluation
world’s multi-disciplinary corporations and financial fierce competition on the market. Therefore, Petrolimex’s
the basis of ensuring absolute safety in production and on business models and plans as well as select
institutions. Therefore, the investors relations should be leaders and staff are required to constantly change
business operations as the top priority. appropriate partners to develop value-added services
paid more attention. The information publication and their mindsets and frequently update their technical
at Petrolimex’s petroleum stations. This project needs
provision to investors should present professionalism, knowledge, regulations, economics and society, and
to be drastically implemented and piloted soon in 2020,
transparency and timeliness. These indirectly preserve more importantly, they should have ambition and
and then proceeded to apply synchronously across the
and develop the Group’s value through its share value aspiration to change Petrolimex in a more positive and
whole system to take full advantage of the Group’s retail
on stock exchanges as well as its objectives of divesting dynamic manner. All system need to make progresses,
chain nationwide in the future, thereby increasing the
State Capital and selling treasury stocks. create new innovations, take decisive actions and work
business efficiency and profitability of the whole Group.
with a high sense of responsibility.

DEVELOPMENT ORIENTATION
KEY TARGETS OF THE GROUP
1 4
Improve business performance, increase revenue, reduce costs
and earn high profit based on reform of organization, business methodology,
Become a Vietnam’s leading energy group whose key business systematic management and operation mechanisms, improvement of
line is petroleum trading with focus on multi-ownership, investment and technical and technological capacity and human resource’s competence
development of relating and supporting business segments for petroleum regarding quantity and quality (in-depth development), appropriate market
5
trading.
2
organization and effective management of business operations.
Reform organization, business methodology, management

Successfully complete missions including profitable and administration mechanisms; improve technical and technological
capacity and human resource’s competence regarding quantity and quality;
business results, increased values for shareholders and excellently
appropriately organize markets and effectively manage business operations.
complete political missions assigned by the State, ensure energy security
Improve business performance, maintain and ensure stable profit growth;
assurance and act as the State’s macroeconomic stabilizer.
guarantee income and employment for employees.
3 6
Maintain and sustain its position as the largest companies Successfully play the role of the key enterprise in balancing
in Vietnamese market regarding petroleum downstream business, supply and demand and ensuring petroleum supply in conformity with
investment and development of liquefied gas fields (LPG, LNG, CNG), demand for economic development and the country’s industrialization and
7
petrochemical, petroleum transportation, petroleum construction, insurance modernization and high-performance business as well.
and other fields; rank among Vietnam’s Top 10 enterprises regarding business
scale and business performance.
Choose key and profitable investment projects, focus on

maximal utilization of existing technical facilities; Foster investment and
development of retail network with commercial comparative advantages,
follow up the development trend of IT to have full application in operations.

DEVELOPMENT ORIENTATION (continued)
MID-TERM AND LONG-TERM DEVELOPMENT STRATEGIES
ENGINEERING AND TECHNOLOGY PERSONNEL TRAINING STRATEGY

STRATEGY
»»Focus on modernizing technical facilities of terminals, »»Maintain and improve intermediate training courses
reservoirs, pipelines, petroleum station network and for officers.
PRODUCT DEVELOPMENT STRATEGY
petroleum transporting vehicles in a orientation
»»Research, develop terminal project to receive and provide EXPECTED CAPACITY OF of standardization and unification throughout the »»Enhance skills and knowledge for employees and staff
LNG TERMINAL PROJECT industry. Invest in new construction of petroleum in the digital transformation period.
liquefied natural gas (LNG) to combined-cycle gas-turbine
IN MY GIANG projects to stabilize capacity, ensure the sourcing and
06
thermal power plants in Van Phong Economic Zone, Ninh Hoa
District, Khanh Hoa Province (LNG terminal project in My Giang). reserve of goods.
»»The LNG terminal project in My Giang with capacity of about »»Innovate and apply IT to business performance
6 million tons/year is planned to receive LNG importing vessels progress to promptly fulfill and conform to the Industry
with a capacity of up to 260,000 m³, and includes a gas recycling 4.0 era.
system to supply LNG to My Giang Power Center (invested by MILLION TONS PER YEAR
Vietnam Electricity Corporation) with a capacity of 6,000 MW
and containing 4 power plants with the LNG consumption of
over 17,000 tons/day. The LNG terminal project in My Giang
and My Giang Power Center are expected to put into no-load
commission in the fourth quarter of 2025.
INVESTMENT STRATEGY
»»Look for a comprehensive solution to improve operations in subordinate units with petroleum station network, for
example: renewal in organizational model, business methodology, internal control mechanism, technological and
technical innovation, improvements in human resources and market capture, etc.
»»Seek and take advantages of a wide range of value-added utilities of petroleum station chain such as: self-service,
lubricant charging services, car wash, supermarkets, restaurants, services supporting financial payment, banking, etc.
»»Comprehensively evaluate the efficiency of using investment capital and assets of the Group and units; strengthen
further the management of investment in other businesses; aggregate its resources for investment and business in
core business with comparative advantages.

DEVELOPMENT ORIENTATION (continued)
ENVIRONMENTAL AND SOCIAL GOALS
The mission of a leading corporate in petroleum business industry is to make contributions to the country’s economy and
development. Besides, Petrolimex is always aware of its role in contributing to society, community and environmental
protection. The Board of Management have set out very specific strategies in order to achieve the Group’s sustainable
development goals, which also emphasize the goals related to environmental and social responsibilities as follows:
PERSONNEL TRAINING STRATEGY CORPORATE SOCIAL

RESPONSIBILITY STRATEGY
»»Organize and deploy training programs for levels from »»Maintain carrying out the Group’s plans on social
managers of petroleum stations to mid-level managers security in the period 2018 – 2020; continue to commit
and Master of Business Administration (MBA), etc.; at the Group’s responsibilities and obligations to the
the same time, continue to implement domestic and local community where Petrolimex units directly
foreign training courses on petroleum; get involved in operations at the requests of local
authorities;
»»Enhance skills and knowledge for employees and staff
in the digital transformation period. »»Actively take part in programs of poverty reduction,
donation for people suffering from natural disasters,
donation for building homeless shelters and schools,
etc. aiming at improvement of spiritual and material life
for the community.
ENVIRONMENTALLY FRIENDLY INVESTMENT STRATEGY
PRODUCTS STRATEGY
»»Research and invest in technical facility system »»Research and take advantages of a wide range of
to develop new energy products which are value-added utilities of petroleum station chain such as:
environmentally friendly such as liquefied natural gas self-service, lubricant charging services, convenience
(LNG); stores, services supporting financial payment, banking,
etc.
»»Organize and put marine fuels into circulation
and business in compliance with the Sulphur Cap
Regulation of International Maritime Organization
(IMO) from 01 January 2020;
»»Also keep carrying out business of high-quality and

environmentally friendly fuel products under the
direction of the Government, for example, gasoline
Ron95 Euro IV and diesel 0.001S Euro V.

DIGITAL TRANSFORMATION BUSINESS PERFORMANCE
TRANSFORMATION
03
DIGITAL

Report and evaluation by Board of Management
Report and evaluation by Board of General Directors
FORWARD Business performance

Organization and human resources
Investment activities and project Implementation
Consolidated financial performance
Shareholders’ structure, owner’s equity changes
REPORT AND EVALUATION
BY BOARD OF MANAGEMENT
EVALUATION ON THE BUSINESS OPERATION
EVALUATION ON THE BUSINESS PERFORMANCE
In 2019, Vietnam achieved GDP growth of 7.02%, the highest one in recent years, and the macroeconomic environment
remained stable. The Ministry of Finance and the Ministry of Industry and Trade has maintained the management of
petroleum price in compliance with Decree No. 83/2014/ND-CP and in line with the world oil price. The State agencies FULFILL PETROLIMEX’S
also have intensified their inspection, control, and anti-commercial fraud in petroleum trading. Besides, the Group’s RESPONSIBILITIES AND
business operations were also affected by a number of unfavorable factors, for example, scale and competition from OBLIGATIONS TO COMMUNITIES
75.2
other key traders; especially in the second quarter of 2019, the Ministry of Finance and the Ministry of Industry and Trade
repeatedly adjusted rates of provision and use of Price Stabilization Fund (“PSF”) at a high level in many cycles resulting
in many times of negative PSF balance and influencing the Group’s capital balance; unstable domestic petroleum
supplies; three incidents in Nghi Son Refinery and Petrochemical LLC (24 February, early July, early September)
negatively affected the Group’s sourcing. VND BILLION
The Group consistently and drastically implemented given solutions, followed market fluctuation and the State’s increasing by 35% in comparison with that
macroeconomic policies, promptly took appropriate and effective measures for each market area, each unit and each in 2018
moment. Thanks to great efforts of the Group and member companies, 2019 business performances were relatively
comprehensively reaching and exceeding the GMS’s target. Some main criteria:
EVALUATION ON THE ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES
TOTAL CONSOLIDATED Petrolimex always strictly complies with the legal authorities to contribute to poverty reduction, quality
PROFITS BEFORE TAX regulations on environmental protection, furthermore, improvements in education, health care, caring for
5,648
proactively and synchronously implements solutions families under preferential treatment policy and people
and methods of environmental protection management with meritorious services to the revolution, etc. This
from the Group’s Parent company to member companies. enhances the engagement between the Group, member
The most prominent activities are: To pioneer in science units and local communities.
VND BILLION - technology research, application and investment
equivalent to 108% of the plan. on environmental protection in petroleum works, From results in 2018, the Group established a CSR
specifically, fixed containment boom system, laser Department and issued the Regulation on Organization
docking system, vapor recovery technology, etc.; To and Implementation of CSR with the goal of increasing
research alternative energy sources of gasoline; To select operational specialization in 2019. As of the end of 2019,
and supply high-standard and environmentally friendly member units, on behalf of the Group, set aside VND
fuel products such as RON 95 Euro IV, DO 0.001S Euro V 75.2 billion (increasing by 35% in comparison with that
and marine fuels in compliance with the Sulphur Cap in 2018) from CSR fund for 2018 - 2020 period and other
Regulation of International Maritime Organization (IMO) funds to fulfill Petrolimex’s responsibilities and obligations
TOTAL VOLUME OF TOTAL CONSOLIDATED
from 01 January 2020. In 2019, in the whole Group there to communities of localities where member units directly
PETROLEUM SOLD REVENUE was no serious case of explosion, fire or environmental do business and at request of local authorities. Typical
13.9 189,604 pollution, contributing to a stable environment for

business operation and development, and none of
units under the Group violated laws on environmental
social activities of the Group: support political and
social organizations (Veteran Association, Association
of Victims of Agent Orange), support to education
protection. and health care, supports to eradication of temporary
MILLION M3 TONS VND BILLION
shelters, poor households, “great unity” houses and
equivalent to 113.6% of the plan equivalent to 97.2% of the plan Petrolimex acknowledges that fulfilment of corporate charity houses, and supports to remediation of natural
social responsibilities (“CSR”) is both a duty and an disasters’ consequences as well. Particularly, as a member
opportunity for the Group to develop. With a nationwide of Social Fund of the Industry and Trade, the Group also
operation network ranging to remote areas and participated in Vietnam’s Child Protection Fund and Vu A
The Group fully and promptly complied with resolutions of the GMS, BOM and regulations of the State. disadvantaged areas, Petrolimex annually assigns plans Dinh Scholarship Fund.
for member units to actively coordinate with local

BY BOARD OF MANAGEMENT (continued)
EVALUATION ON THE BOARD OF GENERAL DIRECTORS’ ACTIVITIES THE BOARD OF MANAGEMENT’S ACTIVITIES IN 2019
The Board of Management operates in accordance with the provisions of the Charter and the Law on Enterprises.
Board meetings are conducted regularly, in accordance with the regulations. The Board of Management has followed
In general, the Board of General Directors successfully accomplished the closely the orientation agreed at the GMS and the actual situation of the Group to propose and implement resolutions.
Resolutions and Decisions of the GMS and the Board of Management In addition to regular meetings, the BOM also collected written opinions of the BOM members for 72 times on issues
with their high sense of responsibility and effectiveness in 2019. within decision-making authority to direct, manage and regulate activities of the Group. Some main tasks:
»»The Board of Management has led the Group »»The Board of Management has directed the staffing
effectively, preserving and raising equity, adding value under their jurisdiction.
to shareholders.
»»The Board of Management has instructed to continue
»»The Board of Management organized the 2019 GMS implementing the restructuring project of Vietnam
under regulations. National Petroleum Group in accordance with the
regulations of the Government and the Committee for
»»The Board of Management directed amendment, Management of State Capital at Enterprises.
completion and issue of a set of internal control
regulations suiting the new model of a listed company. »»The Board of Management has drastically directed in
The General Director, Deputy General Directors and managers fully and seriously carried out the resolutions and investing, cost cutting, well structuring the market,
decisions of the Board of Management. During the management, the General Director and members of the Board »»The Board of Management closely, promptly and revising the business mechanism to closely follow the
of General Directors complied with the decentralization specified in the Charter, the Group’s internal management regularly coordinated with the Board of General demand of each market area, especially conducting
regulations. The General Director promoted the leadership roles and responsibilities, directed and oriented the Group’s Directors to direct and the Supervisory Board to control evaluation of storage system to establish investment
important and core issues, and effectively coordinated the activities of the Board of General Directors. The Deputy the implementation of resolutions of the GMS and strategies, enhance the supervision, management and
General Directors actively implemented and completed their assigned tasks. Board of Management. promulgation of techno-economic norms: Loss norms,
charges for warehousing, freight, intake and operation
The Board of General Directors took a lot of synchronous, drastic and timely business solutions/business supports »»All decision-making issues of the Board of Management of Van Phong bonded warehouse to increase business
according to the guidelines and orientations of the Board of Management and market developments. Furthermore, are discussed in detail and timely announced to efficiency.
they also played a vital role in completing and exceeding important targets assigned by the GMS. the Supervisory Board and the General Director in
accordance with regulations. »»The Board of Management has directed and assigned
In general, the Board of General Directors successfully accomplished the Resolutions and Decisions of the GMS and the capital representative teams at Corporations/Joint
Board of Management with their high sense of responsibility and effectiveness in 2019. »»Proposals of the Board of General Directors are analyzed, Stock companies Limited liability companies to
discussed and given feedback in a timely manner. propose measures to enhance management, improve
the efficiency of capital spending.
»»The Board of Management has directed the preparation
of a business plan and other plans to submit to the »»The Board of Management directed information
GMS for approval. publication in compliance with regulations applied to
listed companies.
»»Approval of financial statements and evaluation of the
results of business performance of subsidiaries and »»The Board of Management directed the implementation
associates quarterly according to regulations. of the Group’s other tasks in accordance with the
authority, legal provisions, the charter and rules.
BY BOARD OF MANAGEMENT (continued)
ORIENTATION PLANS OF THE BOARD OF MANAGEMENT
2020 will be a year of many difficulties for Vietnam in general and

Petrolimex in particular due to the influence of Covid-19 pandemic. In
this context, the Board of Management has directed to be consistent
with the goal of implementation of solutions to quality improvements in
the Group’s management. Based on the actual situation, specifically
the evolution of Covid-19 pandemic, the Board of Management will
issue a resolution approving the objective to maintain the stability and
sustainable development, ensure and harmonize interests of shareholders
and other stakeholders together with measures to perform the following
major tasks and issues:
»»Directing organization of 2020 GMS under regulations; »»Keeping restructuring the Group, reviewing »»Divesting in accordance with the guidelines of the »» Improving the efficiency of capital expenditure, through
successfully implement items of the GMS’s Resolutions. organizational structure, especially in Companies Prime Minister after the Decision No. 1232/QD- such measures as:
Amid unforeseeable developments of the Covid-19 with many subsidiaries and branches to come up TTg dated 17 August 2017 by the Prime Minister
pandemic, the Board of Management directed to with restructuring solutions to a simplified, high- giving approval for List of State-owned enterprises • Reviewing investment projects for better prioritization,
leverage the technological strength and flexibly apply performance and cost-effective structure under undergoing divestment in 2017-2020 period was avoiding widespread investment;
information technology to the organization of 2020 restructuring orientation of the Government. amended or replaced; preparing for execution and
online GMS. This direction both facilitates the disease finding buyers for the reduced Petrolimex’s contributed • Continuing to maintain centralized capital
prevention and ensures timely organization of GMS for capital at PJICO at the direction of the Prime Minister; management contracts with large banks to increase
approval of critical business operation matters. divesting or merging PG Bank after receiving the State capital turnover; Imposing a good interest rate against
Bank’s official opinion. the average of capital market; Flexible use of financial
»»Formulating the for the Group’s development instruments;
strategy in conformity with Vietnam’s socio-economic »»Completing the Planning of technical facilities for
development strategy in general and development petroleum trading for 2018-2021 period with a vision • Developing a plan for divesting capital; Identifying the
orientation and strategy of the Committee for towards 2030. best methods of divesting the capital on the basis of
Management of State Capital, development strategy favorable legal and macro factors to act in accordance
and plan of Vietnam’s petroleum industry in particular. with the regulations.
»»Urging the relevant ministries and branches to consider

the amendment of regulations on investment activities
in petroleum production, trading in Vietnam.
»»Strengthening international integration; investing,

trading outside the territory of Vietnam.

BY BOARD OF GENERAL DIRECTORS
EVALUATION ON BUSINESS OPERATION

CONSOLIDATED PROFIT
OVERALL BUSINESS PERFORMANCE IN 2019 CONSOLIDATED NET REVENUE
AF TER TAX
189,604 4,677
VND BILLION VND BILLION
ACTUAL RESULTS OF BUSINESS PLAN

Unit: VND billion
Items Target Actual result % completion
Consolidated net revenue 195,000 189,604 97%
Consolidated profit before tax 5,250 5,648 108%
For the year ending 31 December 2019, consolidated net revenue and profit before tax reached 97% and 108%
respectively of the targets approved by the GMS. In the circumstance of increasingly competitive market, the Group
still remained its market share and output growth, which demonstrated its efforts, growth potential and sustainable
In 2019, the Group took a lot of synchronous, drastic and timely business promotion solutions in order to reach and development.
exceed planned targets. 2019 is the fifth consecutive year that the Group completed and exceeded basic planned
targets assigned by the GMS in terms of sales volume, profits and dividends. This is also the third consecutive year that Unit: VND billion
the Group was honored in “Top 50 Best Listed Companies” and “Top 50 Leading Brands” by Forbes Vietnam. In addition
to above operating results, most of the Group’s operations achieved positive outcomes, especially: Compared to 2018
Consolidated items 2017 2018 2019
Variance %
»»Constantly invested and expanded the Group’s Net revenue 153,697 191,932 189,604 -2,328 99%
infrastructure and technology system. In 2019, the
68
Group exceeded the investment and development Profit before tax 4,785 5,178 5,648 470 108%
plan for petroleum station system and put 86 stations
into operation (18 stations stopped working), an Profit after tax 3,912 4,155 4,677 522 113%
increase of 68 stations compared to that in 2018,
NEW PETROLEUM exceeding 3 stations in comparison with the 2019 plan.
STATIONS IN 2019
»»Enhanced management and administration. In
2019, the Group reviewed, adjusted, revised and Revenue Profit
supplemented plenty of regulations related to
»»Ensured absolute safety in business process and no business management, investment, legal affairs, etc. Consolidated net revenue for the year 2019 reached VND Consolidated profit after tax for the year 2019 reached
incidents related to fire prevention, environmental aiming at the general regulations throughout the 189,604 billion, equivalent to 99% of that in 2018. The VND 4,677 billion, up 13% compared to that in 2018,
safety occurred in petroleum works; Group. The restructuring including governance model revenue mainly came from petroleum trading and the equal to an increase of VND 522 billion. This achievement
restructuring and land use management planning in decrease in revenue in comparison with that 2018 was resulted from the increased output of petroleum products
»»Effectively carried out the sourcing activities, the entire Group were also promoted. mainly caused by reduced prices of petroleum products in 2019 compared to that in 2018, and the results of non-
particularly at the time of unstable domestic supply, in 2019. petroleum segments essentially achieved and exceeded
contributing to the Group’s overall efficiency. the set targets.

BY BOARD OF GENERAL DIRECTORS (continued)
A ND T
RESULTS OF MAIN OPERATING SEGMENTS
R CH MEN
S EA LOP
RE EVE
PETROLEUM DISTRIBUTION
D
TOTAL CONSOLIDATED
VOLUME OF THE EXPORT OUTPUT
PETROLEUM SOLD
13.9 22.8% BR
ING P ING DS
GR IONE H
AC DAR
MILLION M3, TON COMPARED TO THAT IN 2018 AND
EXCEEDED 72.4% OF THE TARGET
EEN ERI O
FU NG P PR TAN
EL A LS
I O NA
T
The Group’s total consolidated volume of petroleum sold in 2019 reached approximately 13.9 million m3, up 13.6% as
compared to the target by 8.1% compared to that in 2018 and 13% compared to that in 2017. In general, domestic
N A
sales volume in 2019 increased as planned, especially the export output rose by 22.8% compared to that in 2018 and
T E R
exceeded 72.4% of the target.
IN
ENVIRONMENTALLY
HIGH-QUALITY FUELS
FRIENDLY FUELS
DO 0.001 EURO V RON 95 EURO IV E5 RON 92 EURO II
It can be stated that Petrolimex always pioneers, strictly complies and actively implements the Regulations on
domestic and international petroleum trading. In 2019, the Group kept trading high-quality fuels (DO 0.001 Euro V, RON
95 Euro IV) and environmentally friendly fuel (E5 RON 92 Euro II) under the Decision No. 49/2011/QD-TTg and Decision
No. 53/2012/QD-TTg issued by the Prime Minister. Besides, with the well-preparation for sourcing, infrastructure and
technology, the Group introduced a new low-Sulphur marine fuel, in time for the 01 January 2020 deadline set by the
International Maritime Organization (IMO). Furthermore, the Group also focused on researching and developing new
energy products following the environmentally friendly trend such as liquefied natural gas (LNG).
Regarding retail as a spearhead business method accounting for a large output proportion, the Group promoted
expanding the petroleum stations network in width and in depth, gave priority to locations with goodwill
(e.g. highways, inner cities, etc.). Following the year 2018, the Group continued to recognize and honor individuals who
are heads of petroleum stations, best sales executives in retail activities in 2019 in order to praise them at the annual
year-end gala and give them well-deserved rewards to encourage their efforts and enthusiasm for every employee.

RESULTS OF MAIN OPERATING SEGMENTS (continued)
PETROLEUM TRANSPORTATION SERVICES
Inland transportation Waterway transportation

In 2019, despite many difficulties due to competitions in the transportation market as well as increasing transportation In 2019, by identifying, following and properly assessing the global as well as domestic transportation market, Petrolimex
cost, etc. by using multiple solutions, the Petrolimex Transportation Services Corporation (PTC) had successfully Tanker Corporation (PGT) has promptly implemented numerous solutions to achieve positive results, completed the
accomplished the 2019 business plan. Specifically: business plan for 2019, specifically:
SALE VOLUME OF CONSOLIDATED PROFIT TRANSPORTED VOLUME

TRANSPORT VOLUME REVENUE PROFIT BEFORE TAX
PETROLEUM TRADING BEFORE TAX OF OCEAN VESSELS
211,918 602.6 80.27 23.9 > 4,109 228.5

M3, TON M3, KM VND BILLION BILLION M3xKM VND BILLION VND BILLION
REACHING 94% COMPARED REACHED 102% OF THE PLAN, ACCOMPLISHED 100% 101% OF THE PLAN 107% OF THE PLAN, 115% OF THE PLAN,
TO 2018 AND 100% OF THE PLAN UP 29% OVER 2018 AS PLANNED 100% COMPARED TO 2018 99% COMPARED TO 2018 107% COMPARED TO 2018
Inland transportation is one of the key segments to support and maintain petroleum trading. The excession of the set Waterway transportation is a highly invested segment of the Group, being capable of directly affect the petrol and
targetes is mainly attributed to the PTC’s flexible and effective management, renewal in means of transportation and oil importing activities. PGT had exceeded the business plan in 2019 by focusing on effective operation of ocean-
investment in petroleum stations, together with excellent co-operation with the Group and other petroleum companies going fleets, constantly reviewing and reducing operating costs, and conducting fleet restructuring process to ensure
in dispatching goods. PTC had implemented a series of corporate governance strengthening and business efficiency operational efficiency. PGT had further promoted the customer promotion process, effectively using the existing
improving methods such as researching, reviewing, revising and creating related internal control regulations; at the same fleet to improve the productive capacity of the waterway transportation segment. PGT had implemented centralized
time continuously reviewed regulations on original price list to ensure having practical transportation price list and to operation model (pools) in ocean-going as well as coastal transportation activities, professionalized the vessels
increase the competitive capacity. The implementation of these strategies aims for the target of making PTC become the operating process, and promoted advantages in maritime logistic field. By deploying these strategies PGT has stabilized
leading petroleum transportation corporation in Vietnam, which has the capability and reputation to cover the entire lives and employments for the labor force, contributed to the state budget and become a corporation with strong
transportation needs of Petrolimex as well as to expand operation to the domestic market and neighboring countries. financial capacity, experienced and passionate crew members and dynamic management teams who had good skills,
management knowledge and spirit.


PETROCHEMICAL DISTRIBUTION GAS AND LIQUEFIED GAS DISTRIBUTION
By implementing many positive, proactive and flexible

solutions, Petrolimex Gas Corporation JSC (PGC) had
achieved positive results in 2019, completing the
production and business targets.
TOTAL SALE VOLUME PROFIT BEFORE TAX
The Castrol BP Petco Co., Ltd.: is the company PLC Corporation: The main products of PLC are
169,191 194.58
having the largest market share in the Vietnam lubricant lubricants, asphalt and chemicals. In 2019, the lubricant TONS VND BILLION
market. The profit before tax had been at a very high business sector was relatively stable, but the two
104% OF THE PLAN INCREASED BY 1% COMPARED TO PLAN
level for many years. In 2019, the Company’s profit remaining sectors asphalt and chemicals - had faced a
AND 107% COMPARED TO 2018 AND 100.3% COMPARED TO 2018
reached VND 1,785 billion, increased approximately by lot of challenges due to objective reasons. The 2019
3% compared to 2018. The ownership percentage of the business results of PLC are as follows:
Group in the Company is 35%, and expected dividend
from the Company is nearly VND 500 billion.
Gas and liquefied gas had been facing tough challenges from alternative fuel sources such as low pressure gas or
industrial CNG in the southern area, the trend of replacing gas stove with electric stove and the competitions from
many other suppliers in the market. To achieve these results, PGC had maximized the use of the Petrolimex brand
in various forms of marketing to promote the brand as well as the superior quality of Gas Petrolimex’s products and
TOTAL CONSOLIDATED services; at the same time strengthened anti commercial fraud methods to protect the interests of Petrolimex gas
EXPECTED DIVIDEND
OUTPUT users, taking advantage of the direct distribution channel as well as the distribution channel through the system of
petroleum companies to optimize business and market development activities.
500 386,769
VND BILLION TONS
108% OF THE 2019 PLAN

AND 99.32% COMPARED TO 2018
TOTAL CONSOLIDATED
PROFIT BEFORE TAX
185.36
VND BILLION
96.90% OF THE PLAN

AND 95.08% COMPARED TO 2018


INSURANCE, BANKING, CONSTRUCTION AND OTHERS
CONSOLIDATED
PROFIT OF PGCC
86
VND BILLION
Construction and others
From the middle of 2018, the mechanics and equipment In 2019, the business of mechanics, construction and
building and designing business sector were restructured installation, chemicals, construction consultancy, and
in accordance with the Prime Minister’s Decision No. 828/ petrol equipment divisions all achieved good results.
QD-TTg dated 31 May 2011, forming Petrolimex Group The stable and growing macroeconomy has contributed
Construction and Trading Corporation (PGCC). The to promoting the development of petroleum trading in
consolidated profit of PGCC in 2019 was VND 86 billion, general and supporting services in particular.
reaching 127% of the plan and 110% compared to 2018.
Insurance Banking
In 2019, the insurance business had achieved its best In 2019, the Group had continued to implement its
and most comprehensive results: Total revenue of the restructuring and divestment plan from Petrolimex Group
Petrolimex Insurance Corporation (PGI) in 2019 was VND Commercial Joint Stock Bank (PGBank) according to the
3,665 billion. In which, the original insurance revenue undertakings which had been approved in principle by the
was VND 3,048 billion, increased by 10% compared to State Bank of Vietnam. However, the results achieved were
2018 and fulfilled 102.8% of the plan. Profit before tax not as expected due to the long merging process, resulting
reached: VND 200.6 billion - fulfilled 109% of the plan and in PG Bank’s another difficult year with low business
increased by 12% compared to 2018. efficiency. In 2019, PGBank’s profit before tax was VND
89.6 billion, reached 42% of the plan and 56% compared
to 2018.
TOTAL REVENUE PROFIT BEFORE TAX
3,665 89.6

FINANCIAL PERFORMANCE Assets structure
CONSOLIDATED ASSETS 37% 63%

»»Non-current assets as at 31 December 2019 »»Current assets as at 31 December 2019 accounted
accounted for 37% of total assets, an increase of VND for 63%, an increase of VND 4,063 billion or 12%
Scale of consolidated assets 1,416 billion, equivalent to 7% in comparison with compared to 2018. The scale of current assets
that of 2018. Out of total non-current assets, fixed increased in line with the sale volume of the Group’s
The total consolidated assets of the Group as assets accounted for over 67%, long-term financial petroleum products (the consolidated sale volume
at 31 December 2019 were VND 61,762 billion, investment accounted for 17%, other non-current in 2019 increased by more than 8% over 2018). Out
increasing by 10% year-over-year (Y-o-Y) assets accounted for 11%, investment properties of total current assets, inventories accounted for the
equivalent to VND 5,479 billion. Both non-current and long-term work in progress accounted for 5%. largest proportion of 30%, followed by cash and cash
and current assets had the same growth in value Increase in non-current assets mainly resulted from the equivalents which accounted for 29%, short-term
Y-o-Y, therefore, the proportion of non-current and following sectors: Fixed assets grew by VND 267 billion, accounts receivable accounted for 22%, short-term
current assets in the total assets had no significant held-to-maturity investments increased by VND 797 financial investments accounted for 14%, other current
change. Details are as follows: billion, other non-current assets increased by VND 271 assets accounted for 5%. The current assets structure in
billion. In 2019, the Group bought BIDV bonds to make 2019 had not much changed from that of 2018. All cash
use of cash flow, so the held-to-maturity investment and cash equivalents, short-term financial investments,
Current assets Non-current assets had a significant growth. short-term account receivables, inventories and other
current assets in 2019 had grown evenly over the same
THE TOTAL CONSOLIDATED ASSETS OF THE GROUP AS AT 31 DECEMBER 2019 period in 2018.
Unit: VND billion
Compared to 2018
Items 2018 Proportion 2019 Proportion * Assessment of assets profitability: Assets efficiency of Petrolimex in 2019 was better than that of
Variance % 2018; as shown by the return on assets (ROA), which was 7.92% in 2019, increased 0.88% compared to
Non-current assets 21,593 38% 23,009 37% 1,416 107%
2018.
Current assets 34,690 62% 38,753 63% 4,063 112% * Assessment of the Group’s liquidity: The Group always ensures the liquidity of all liabilities when they
fall due. All liquidity ratios are maintained at reasonable level and in compliance with legal regulations. In
TOTAL ASSETS 56,283 100% 61,762 100% 5,479 110% 2019, the liquidity ratios tent to be better than 2018, described in detail as follows:
Items 2018 2019 ROA
TOTAL CONSOLIDATED
ASSETS
GROWTH AMOUNT Current ratio (times) 1.10 1.13
7.92%
61,762 5,479 Quick ratio (times) 0.77 0.79
INCREASED BY 0.88% COMPARED TO 2018
Liquidity ratios had always been maintained at a reasonable level, ensuring payment obligations for
current liabilities when they fell due.
The current ratio was higher than 1, the quick ratio was higher than 0.5. The current ratio and the quick
ratio as at 31 December 2019 increased respectively by 3% and 2% compared to the same period
last year.

FINANCIAL PERFORMANCE (continued)
CONSOLIDATED RESOURCES
Scale of consolidated resources

TREASURY STOCKS WITH 2019 OWNERS’ EQUITY TOTAL OWNERS’ EQUITY
In addition to the increase in total assets, the total THE AVERAGE TRADING INCREASED
2,831 25,923
resources also increased accordingly, especially,
PRICE
62,455
owners’ equity increased by 12% as compared to
2018 and accounted for 42% of total resources.
The increase in owners’ equity was mainly due
to the increase in business performance of 2019
compared to that of 2018 and the result of selling
treasury stocks during the year that increased the VND BILLION VND BILLION
share premium. In 2019, the Group had sold 32 VND/ TREASURY STOCK
million treasury stocks with the average trading
price of VND 62,455/treasury stock.
Resources structure
In 2019, both liabilities and owners’ equity raised in value compared to those of 2018. However, there was a slight Resources: Gaining 10% Y-o-Y growth equivalent to VND 5,479 billion. In which, current liabilities increased VND 2,593
change in proportion of resources structure in 2019. As at 31 December 2019, owners’ equity accounted for 42% of billion, Non-current liabilities increased VND 55 billion, owners’ equity increased VND 2,831 billion. Details are as follows:
total resources, up 1% over 2018. By contrast, liabilities accounted for 58%, decreased by 1% compared to 2018. Details
are as follows: Liabilities: As at 31 December 2019, total liabilities were VND 35,839 billion. The Group had no overdue liabilities.
Debt-to-equity ratio as at 31 December 2019 was 1.38 (much lower than the maximum value accepted, which is 3) and
Unit: VND billion
declined by 4.1% compared to 31 December 2018.
Compared to 2018
Items 2018 Proportion 2019 Proportion Increase in liabilities are mainly resulted from current liabilities. Specifically:
Variance %
»»VND 13,749 billion in accounts payable to suppliers, »»VND 13,953 billion in short-term borrowings, an
Current liabilities 31,579 56% 34,172 55% 2,593 108% an increase of VND 1,261 billion over that as at 31 increase of VND 596 billion over that as at 31 December
Liabilities December 2018. In which, there were differences in 2018. All short-term borrowings were within due, which
Non-current liabilities 1,611 3% 1,666 3% 55 103% payable to some large suppliers compared to those of are unsecured loans for the purposes of mobilizing
2018: Binh Son Refining and Petrochemical Company working capital and opening letters of credit (L/C) for
Owners’ equity 23,092 41% 25,923 42% 2,831 112% Limited VND 3,940 billion (increased by VND 779 petroleum import.
billion), Nghi Son petroleum products distribution
TOTAL RESOURCES 56,283 100% 61,762 100% 5,479 110% branch Petrovietnam VND 2,469 billion (decreased by »»VND 1,433 billion in petroleum price stabilization fund, an
VND 665 billion), Vitol Asia Pte Ltd VND 1,489 billion increase of VND 497 billion over that as at 31 December
(increased by VND 254 billion), other suppliers VND 2018. Price stabilization fund were established and used
5,849 billion (increased by VND 1,314 billion). according to Joint Circular No. 39/2014/TTLT-BCT-BTC
dated 29 October 2014, issued by the Ministry of Finance
»»Taxes and others payable to State Treasury was together with the Ministry of Industry and Trade.
VND 2,925 billion, up by VND 1,025 billion from 2018,
mainly in environmental protection tax. »»The total value of other short-term payables were
VND 343 billion, which included taxes, other payables
to the State budget that were not yet due, salaries and
other payables, etc.
Owners’ equity: As at 31 December 2019 the balance of owners’ equity was VND 25,923 billion, up VND 2,831 billion
compared to the beginning of this period, which mostly came from increases in share premium and undistributed profit
after tax.
2019 ANNUAL REPORT
IMPROVEMENTS IN ORGANIZATIONAL STRUCTURE, MANAGEMENT POLICIES RISK MANAGEMENT MEASURES TO IMPROVE OPERATIONAL EFFICIENCY
»»Occasionally set up supervisory delegation in member »»Continue to take advantage of information sources,
companies to increase supervision from planning to utilize facilities of SAP-ERP, EGAS systems to synthesize
implementation. Carry out methods of cost cutting information and analyze data for management,
from importing, reserving, circulating and selling; operation, and governance.
»»Prioritize investing on specialized business and »»Enhance review, new development, modification,
supporting service of petroleum trading, avoid addition and completion of relevant internal
investing in non-core areas of the Group. management regulations and rules of the Group’s
Parent company as well as member companies to
»»Strengthen and promote investment and development improve operational efficiency and minimize risks.
of COCO petroleum stations nationally to sustain and
develop market share.
»»Implement Risk Management Framework development

project for the Group’s Parent company and member
companies to gradually improve risk management
competence and assure financial security.
APPLICATION OF INFORMATION TECHNOLOGY TO IMPROVE MANAGEMENT PROCESS

(ERP, AUTOMATION, etc.)
In recent years, Vietnam National Petroleum Group has
focused on implementing, maintaining, and developing
the information technology system to meet the actual
demand. The information technology system has been
operated in safe and stable condition, ready to be
used 24/7 during the management and administration
ORGANIZATIONAL STRUCTURE, MANAGEMENT - OPERATION POLICIES process.
(For details in some outstanding achievements of digital

»»Continue to operate and maintain existing IT »»Continue to review payment situation at petroleum transformation, see “Petrolimex’s digital transformation
application systems in a safe, stable and effective stations, work with a lots of payment service suppliers story” at page 40)
manner, contributing to the management and such as VISA, NAPAS to promote cashless payment
administration process, such as: SAP-ERP, EGAS, solution as well as develop more modern customer
E-INVOICES; Add and develop modules such as: loyalty programs and effective management methods.
Tank/Silo Management Integration on SAP-ERP,
Sales Management Online (SMO) researched and »»In addition to cashless payment by domestic debit
successfully launched at Petrolimex Saigon, etc. cards, the Group also developed new payment
solutions such as digital wallet. The Board of
»»Execute integration and optimization of data system Management approved the undertakings on adaption
to get best results in administration and management of the most modern payment solutions with QR code
and minimize operation costs, handle and resolve to improve the management process and ensure
incidents of key systems utilized by the Group; efficiency as well as safety.

EXPAND AND
UPGRADE
PROPOSED PLAN FOR 2020 TERMINALS, JETTIES,
RESERVE, WHARF,
PIPELINE, etc.
For 2020, the Government sets the goal of GDP growth of 6.8% based on the achieved results in 2019. However,
plenty of elements in the macroeconomy are very difficult to predict, affecting the Group’s business performance, UPGRADE INVEST GASOLINE
especially the impact and unpredictable movements of the Covid-19 pandemic to the global economy: 238 DISPENSER, IT,
COCO PETROLEUM AUTOMATION, EGAS,
TỔ TOTAL
STATIONS NG etc.
1.8INVESTMENT
MỨ
86 2,818
CĐ
ẦU
T
»»The domestic petroleum market continues to be operated under the Decree No. ĐỒ TƯ
VND ỶBILLION
83/2014/ND-CP. Competition in the market becomes fiercer due to the appearance of 36 NG
.
petroleum key traders, up 7 key traders, compared to the end of 2018. In addition, stable
01 operation of Nghi Son Refinery and Petrochemical LLC will have a significant impact
on domestic petroleum market and the business performance of 02 Petrolimex abroad
petroleum companies.
NEWLY BUILD
84
COCO PETROLEUM
OTHER
INFRASTRUCTURE
STATIONS INVESTMENT
PLAN TO INVEST IN TECHNICAL INFRASTRUCTURE IN 2020 OF PETROLEUM SEGMENT

»»Trademark infringement and trade fraud tend to become complicated and uncontrolled.
02 In 2020, the Board of General Directors pledges to continue focusing on retailing, the largest source of income
to the business, taking leverage from brand advantage and a nationwide network. Therefore, the domestic
petroleum segment will focus on repairing and developing new petroleum stations. The Group plans to build 84
new COCOs and upgrade existing ones with the total investment of VND 1,184 billion.
Number Value
No. Project
»»Impact of Decree No. 100/2019/ND-CP (“Decree 100”): Since the effective date of Decree (Petroleum stations) (VND billion)
03
100 and the authorities have drastically implemented, people have restricted their 1 Newly built COCO petroleum stations 84 647.53
consumption of alcohol at restaurants, which has partly affected the demand for travel,
resulting in declined sales volume of petroleum. 2 Upgrade existing COCO petroleum stations 238 536.47
Expand and upgrade terminals, jetties, reserve,

3 982.45
wharf, pipeline, etc.
4 Invest gasoline dispenser, IT, automation, EGAS, etc. 588.79
5 Others 62.5
Since the beginning of 2020, the Board of General Directors has built several targets for the 2020 plan. However, the
outbreak of the Covid-19 pandemic has been negatively affecting the world economy in general and Vietnam in 6 Total 2,818
particular. The Group’s business performance will also be significantly affected by the Covid-19 pandemic because of
social distancing and travel restriction leading to a decline in gasoline consumption, including gasoline and aviation
fuel. The Board of Management and Board of General Directors are continuing to evaluate and develop scenarios and
plans for 2020 to report to the GMS for approval in accordance with the situation of the Covid-19 pandemic. In addition to new COCO petroleum station projects, in 2020, the Group also plans to invest on the following projects:
»»Invest in new construction of Thanh Hoa Petroleum »»Invest in new construction of offices: Petrolimex Dong
Terminal, expand the capacity of Viet Tri Petroleum Thap Co. Ltd., Petrolimex Tay Ninh Co. Ltd., Petrolimex
Terminal, K2 Terminal and expand and raise the Quang Ninh Co. Ltd. - Hai Duong Branch, Petrolimex
capacity of K132 - Hai Duong Terminal, improve and Gia Lai Co. Ltd.
upgrade B12 pipeline.

PROPOSED PLAN FOR 2020 (continued)

The Group set key missions for 2020 as follows
OTHER KEY DEVELOPMENT PLANS AND STRATEGIES IN 2020
Ensuring absolute safety in business operations (people, fire prevention and fighting, environmental hygiene, cash,
commodity, and etc.); Fulfilling 2020 business plan; Optimizing technical facility use efficiency; Making advanced and
2019 is the fifth consecutive year that Vietnam National Petroleum Group effective corporate; Focusing on sufficient petroleum supply for development; Pricing suits people’s affordability and
achieved encouraging business results, reaching and exceeding the contributes to stable and sustainable development; Assuring petroleum quality, meeting environmental protection
planned targets. requirements; Improving business performance, preventing loss and waste, etc.
To complete the above missions, the Group offered solutions with

TOTAL CONSOLIDATED CONSOLIDATED PROFIT the main contents as follows
OUTPUT BEFORE TAX
»»For petroleum field, focus on »»Deploy and apply scientific »»Regarding six fields including
13,894,992 5,648 investment in existing core

business activities including
logistics, preparation, quality,
and technological advances to
ensure transparency, publicity
and prevent petroleum loss; Give
petroleum,
systematization
keep
via
promoting
coordination among member

close
M3, TONS VND BILLION information technology and solutions for input cost decrease companies to gain the shared
8.1% in comparison with 2018 9% in comparison with 2018 automation. Promote in-depth to reduce product price, set business performance and
market research to make flexible appropriate price for people. improve the position in domestic
business decisions and increase and foreign markets.
output for all sales channels.
2019 is the fifth consecutive year that Vietnam National In 2019, the Group expected to pay cash dividends
Successfully protect Petrolimex »»Promote cashless payment in all
trademark from all infringement petroleum stations nationwide.
Petroleum Group achieved encouraging business to shareholders at dividend payout ratio of no less
acts to protect rights of Petrolimex
results, reaching and exceeding the planned targets. than 30%. The Group has been considered as one of
In detail, total consolidated output was 13,894,992 m³/ highly profitable listed companies with high and stable
and petroleum transparency »»The Corporation continues to
under Decree 83. report to the Ministry of Industry
ton, increasing 8.1% in comparison with 2018 and 13.6% dividend payout ratio over the years.
and Trade and related ministries
higher than the plan; consolidated profit was VND 5,648
billion, increasing 9% in comparison with 2018, reaching Petrolimex has improved its corporate governance under
»»Review the whole national and departments to ask for
petroleum supply system, then permission of adjustment the plan
107.6% of the plan. international standards; transparency and publicity in
make internal plans and develop to invest in LNG warehouse project
management and information publication. Not only does
retail network with priority. in My Giang to provide fuel for
Petrolimex hold the key role in developing Vietnam’s
My Giang-Nam Van Phong Power
petroleum market, but it also contributes to the stability
of the macroeconomy and ensures the social security.
»»Forecast demand for and structure Station. In which, some contents
of petroleum use during 2020 need to be implemented for the
– 2025 and 2025 – 2030 period, 2019-2021 period as follows:
proactively seek supplies and »»On the basis of core products,
meet product demand. it is necessary to enhance sales • Construction site research report.
of non-petroleum products, pay
attention to stable development • Pre-feasibility study report
so that by-products do not impact
• Feasibility study report
the business results of the core
product - petroleum. • Construction document + cost
estimate.
Restructuring task
Keep implementing the plan to reduce the need of downsizing of the State Capital to 51% based on the roadmap
approved in Decision No. 1232/QD-TTg of the Prime Minister. Complete organizational structure of the Parent company
to effectively manage the task in the new context and meet shareholders’ development expectation.

PROPOSED PLAN FOR 2020 (continued)

Petrolimex has focused on investing, maintaining and developing the IT
OTHER KEY DEVELOPMENT PLANS AND STRATEGIES IN 2020 (continued) system with important components, acting as the lifeblood in business
administration.
Major orientations on Information Technology in 2020
Petrolimex has focused on investing, maintaining and developing the IT system with important components, acting
as the lifeblood in business administration; ensure that the IT system operates in safe and stable manner, is ready to
meet the 24x7 requirements as a solid infrastructure for the Corporation to manage and conduct business according
Integrate SAP program with smart devices or websites so that the to the State-controlled market mechanism, meet the information requirements of regulatory agencies, investors and
01 production and administration tasks can be carried out in whenever

and wherever, gradually help managers reduce the space and time
limits, and management in interacting with the ERP system.
customers.
T S
M EN
E
Q UIR
E SA
/7 R
Implement PM (Plant maintenance) module to manage facilities,
assets, provide detailed information about maintenance process and
operational status of assets recorded on the ERP system. On that basis, 02 E T2
4 FE
ME e-O
the member companies can be proactive in periodic maintenance plans.
ITY ffic
BIL e
STA
Implement administration modules on SAP_ERP system: managing
03 land records according to Decree No.167; export procedure in

accordance with the new circular, business performance estimation
program, petroleum quality administration.
PM
Implement digitalization program for documents, records on
e-Office system.
04 SA
P
R P
P_E
SA
05 Deploy Microsoft cloud computing platform used on Email
(migrate 6,000 mail boxes from the system to the cloud).
88 89 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD

CI D
LI AN
ES
PO CT
E RA
NC NT
RA CO
SU R
IN BO
LA
EVALUATION ON HUMAN RESOURCES
S
IE
L IC
S ,
NU RY
PO
BO LA
SA
Human is one of the key factors in the success of Petrolimex. As a result,
Petrolimex pays special attention to employees’ life and fully perform
policies. In 2019, the Corporation had many practical activities to improve
in the material and spiritual life, especially policies on social insurance,
health insurance, and unemployment insurance for employees in order
to protect legal and legitimate rights and interests and help them feel
TR
AIN
assured and have long engagement.
IN
OT
G
H
PO
ER
LI
BE
CI
ES
NE
FI
TS
TRAINING POLICIES
To improve the quality of human resources, the practical and high applicability topics. Some training
SALARY, LABOR CONTRACT OTHER BENEFITS
Corporation and its member companies annually programs such as: Complete the selection of annual
BONUS POLICIES AND INSURANCE POLICIES formulate plans and organize training and retraining to training courses (TR, IT) organized by JCCP in Japan.
foster professional and managerial capability, political Review and nominated 8 trainees for 8 training courses
In 2019, Petrolimex made Petrolimex fully implements Petrolimex’s employees are theory, foreign languages, information technology and approved by JCCP. Deploy CPJ-3-18 training course
adjustments in pay and reward regimes for employees in entitled to other regimes from occupational skills of their employees. While the training about Petroleum market and distribution network
policies to suit the business accordance with regulations. Welfare fund and specific program improves the skills of employees in general, organized in Japan by JCCP from 19 February 2019
activities and the Government’s 100% of employees are provisions of the Collective Petrolimex also focuses on building and training staffs to 01 March 2019 with 10 trainees. Develop and
regulations on region-based required to sign labor contracts Labor Agreement. Moreover, in key areas greatly impacting Petrolimex’s business propose 3 CPJ courses in the financial year 2019 and
minimum wage, ensuring according to the laws. In Petrolimex deducts one month’s performance such as: Training program for the Heads 2 implemented CPJ courses in 2019 as follows: CPJ-6-
employees’ income growth addition, Petrolimex also salary from expenses (according of petroleum stations, lubricants stores, etc. building, 19 about Financial management and accounting from
according to productivity always complies with insurance to Government’s regulations) to training, fostering professional working style, friendly 11 June 2019 to 21 June 2019 for 10 trainees, CPJ-7-
and increase in sales volume. policies required by the laws, cover expenses such as buying attitude, and polite communication for the sales staffs 19 about Petroleum market and distribution network
Sickness or maternity leave namely: social insurance, health health care insurance, taking at the petroleum stations. Thereby, improving and from 09 September 2019 to 19 September 2019 for 10
policies: Petrolimex fully and insurance, unemployment vacations, supporting travel enhancing Petrolimex’s business performance based trainees. The remaining course, CPJ-8-19, about Human
timely complies with social insurance, occupational expense on holidays, etc. for on technology development, process optimization and resources management and development will be held
insurance law; its employees accident insurance, pension, employees. Level and content service quality improvement, resulting in: up from 27 February 2020 to 06 March 2020. Organize
are also allowed to create maternity allowance, etc. of expenses depend on the the Signing ceremony between Petrolimex and JCCP
conditions for taking rest actual conditions of the units as »»The training program of Petrolimex Heads of store in at the Corporation’s Transaction office on 11 June 2019,
and recuperation whenever specified in the collective labor 2019 was organized 18 courses for 584 trainees. attended and signed by the Corporation’s General
needed in accordance with the agreement of each unit. Director and Chief Executive Officer of JCCP.
condition of each unit. »»Training program for Petrolimex middle managers:
Collaborate with the Business Administration »»Coordinate with JXEV to establish training courses
Institute - National Economics University to develop on Quality control and Petroleum preparation for 21
and organize 7 courses for 226 trainees. Cooperate trainees, Building marketing strategy for 20 trainees,
with Japan Cooperation Center Petroleum (JCCP) to Trademark protection, Environmental safety in Japan
develop and organize training courses in Japan with with 10 trainees.

BUSINESS PERFORMANCE
Although the above unfavorable factors had adverse impacts on the Although the above unfavorable factors had adverse impacts on the Corporation, it continued to prove its stable and
Group, it continued to prove its sustainable and systematic operation systematic operation and achieved successes in its 2019 business operations. Therefore, the business results in 2019
were relatively comprehensive, reached and exceeded basic targets assigned by the GMS, specifically:
and achieved successes in its 2019 business operations.
2019 Actual result Benchmark comparison (%)

No. Items Target
(1) 2017 2018 2019 2017 2018 2019
(2) (3) (4) (5)=4/2 (6)=4/3 (7)=4/1
Volume of petroleum
1 12,227,600 12,281,358 12,873,118 13,894,992 113 108.1 113.6
sold (*)
2 Consolidated revenue 195,000 153,697 191,932 189,604 123.4 98.8 97.2
Consolidated profit before

3 5,250 4,785 5,177 5,648 118 109.1 107.6
tax
At least
4 Dividend 30% 26% (**) 30% 86.7 100 216.7
12%
Notes:
(**) The dividend rate in 2019 was expected to be 30%
and would be approved by GMS at the 2020 GMS.
(*) The volume of petroleum sold includes: Domestically
sales, re-export sales, export sales, outputs from (***) Consolidated before tax earnings numbers are
Petrolimex Aviation (PA) JSC, Petrolimex Laos and in accordance with consolidated financial statements
Petrolimex Singapore’s sales volume excluding crude oil. audited by KPMG.
VOLUME OF PETROLEUM
CONSOLIDATED REVENUE
SOLD
13,894,992 189,604
M3,TON VND BILLION
In 2019, the macro environment continued to be as follows: (i) The global petroleum price continued
favorable and growing with 2019 GDP of 7.02%, the to be relatively complicated, unpredictable and not
highest one in the recent years. The Ministry of Finance comparable with 2018, due to the negative impact of
and Ministry of Industry and Trade continued to follow the unstable political and economic changes in the Middle
global petroleum price to regulate domestic petroleum East, tense relation between the US and Iran, US-China CONSOLIDATED PROFIT
market under Decree No. 83/2014. Government trade war; (ii) scale and level of competitiveness in BEFORE TAX DIVIDEND
agencies strengthened commercial anti-fraud activities domestic petroleum market was growing; (iii) intellectual
in petroleum trading. Those favorable factors affected
positively to business performance of Petrolimex.
property and copyright infringement tended to
increase, violations in petroleum business continued
5,648 26%
to be complicated; (iv) unstable operation of domestic VND BILLION
Apart from favorable factors above, the Group’s business petroleum refineries impacted negatively to the
operations were also affected by unfavorable factors Corporation’s source generation.

BUSINESS PERFORMANCE
(continued)
It is affirmed that the investment in technology application and equipment

serving the operation of the Group’s technical infrastructure system
(technology, automation, fire protection, environmental protection) in INSTALLATION OF A
recent years has been positive effects on the Group’s business results, PONTOON ROOF TO
gradually bring in width and in depth efficiency, namely: REDUCE
»»Adaption, technology, and automation in stages, operations of petroleum terminals have contributed to the increase
of petrol and oil input and output (for example: at the Duc Giang Terminal, the output has now tripled compared to
90-95%
1998 when the automation was not launched), improving labor productivity and management efficiency, minimizing BEFORE INSTALLATION
loss of goods, gradually creating premise to streamline the workforce, reduce operating costs, improve warehouse
safety levels. Specifically:
Despite at the beginning stage of application and demand for further study in coming time, »»Application of technology solutions and equipment in the fields of operation, fire protection, and environmental
01 automation to measure tank level supported the internal goods monitoring and circulation, protection in petroleum projects (terminals, petroleum stations) contributing to improving the technical -
slightly reduced labor force, minimized loss and improved safety in tank operation. technological and management level in warehouse operation, reducing loss of goods (for example: Installation of a
pontoon roof for petrol tanks contributed to reducing 90-95% loss compared to before installation), reduced the risk
of fire and environmental pollution, improved customer satisfaction and reliability, thereby enhancing the prestige
and competitiveness of the Corporation as well as its subsidiaries.
Application of automation in freight forwarding in road and water-way terminals contributed

to improve accuracy level of delivery (thanks to high-precision and reliable measuring
02
devices), minimized errors and subjective factors in measuring process by human, improved
the stability of goods quality (in mixing and preparation technologies), removed a number of
steps in the operation process, thereby reducing the import and export time and improved
labor productivity;
Integration and communication between the automation system at the export terminals with
03 the business management system (SAP/ERP) contributed to the improvement of efficiency,

reliability and timeliness in money-goods management, productivity of business-accounting
divisions (time and number of employees could be reduced);
Implementation of automation for route pumping stations, automatic distribution and

delivery system on the pipeline contributed to reducing the hard labor of the workers,
improving accuracy, reliability and especially safety in operation of transfer pump, delivery,
and receipt of pipelines, etc.
04

ORGANIZATION AND HUMAN RESOURCES
BOARD OF GENERAL DIRECTORS NUMBER OF EMPLOYEES AND HUMAN RESOURCE POLICIES
Number Conflict LABOR FORCE OVERVIEW

Related
of shares of
Number of Ownership percentage in Violation interests As at 31 December 2019, there were 24,009 employees in total (as at 31 December 2018 was: 24,726), including 18,300
No. Members Title held by interests
shares held voting shares of laws with employees in petroleum distribution, increasing by 1% in comparison with 2018, mainly serving the Group’s business
the related with
Company expansion needs.
person Company
11% (representative
142,326,589
General of the State Capital) The Group’s personnel structure by function
1 Mr. Pham Duc Thang 0 None None None
Director 0.00175%
22,600
(individual)
7% (representative
Deputy 90,571,466
of the State Capital) Petroleum distribution (including the Group’s Parent
2 Mr. Nguyen Thanh Son General 0 None None None
0.00175% company and 43 member-companies): 18,300 employees
Director 22,700
(individual)
7% (representative
Deputy 90,571,466 Transportation corporations 100% owned by the Group
of the State Capital)
3 Mr. Tran Ngoc Nam General 0 None None None (PGT & PTC): 3,916 employees
Director 0.00039%
5,000
(individual)
Deputy Joint stock companies with more than 50% Corporation
0.00063%
4 Mr. Nguyen Quang Dung General 8,100 0 None None None capital (PLC, Gas, Van Phong Terminal): 1,793 employees
(individual)
Director
Deputy
5 Mr. Nguyen Van Su General 0 0 0 None None None
Director
7% (representative
Deputy 90,571,466
of the State Capital) Personnel structure of petroleum distribution including the Parent company
6 Mr. Dao Nam Hai General
0.00023%
0 None None None and 43 member companies
Director 3,000
(individual)
Deputy
0.00046%
7 Mr. Nguyen Xuan Hung General 6,000 0 None None None
(individual)
Director
Deputy
7% (representative
8 Mr. Luu Van Tuyen General 90,571,466 0 None None None
of the State Capital)
Director
CHANGES IN BOARD OF GENERAL DIRECTORS
Name Job title Appointed date/dismissed date

By qualifications By gender By age
Luu Van Tuyen Deputy General Director Appointed from 01 January 2019
Graduate and above: 432 employees Male: 12,472 employees Over 50: 1,746 employees
Nguyen Ba Tung Chief Accountant Appointed from 01 January 2019 Undergraduate, College: 7,427 employees Female: 5,828 employees From 30 to 50: 11,848 employees
College or lower: 10,441 employees Under 30: 4,706 employees

ORGANIZATION AND HUMAN RESOURCES
(continued)
NUMBER OF EMPLOYEES AND HUMAN RESOURCE POLICIES (continued)
HUMAN RESOURCE POLICIES
»»Average salary of the Group’s employees in 2019 was about VND 9,965,000/person/month,
increasing by around 2% from 2018.
»»Averageincome of the Group’s employees in 2019 was about VND 11,525,000/person/month, rising by 2.6%
compared to 2018
»» Welfare expenses equivalent to 01 salary month (according to the Circular No. 151/2014/TT-BTC dated 10 October
2014 by the Ministry of Finance guiding the implementation of Decree 91/2014/ND-CP dated 01 October 2014 by
the Government);
»»Other policies:
Personnel structure by function Personnel structure by management level • Policies about social insurance, health insurance, • Provisions in the collective labor agreement between
unemployment insurance, shift meal and labor employees and management on birthdays, sickness,
Parent company: 224 employees Parent company’s managers: 15 employees protection were fully implemented in accordance with etc. were fully complied.
43 member companies: 18,076 employees 43 member companies’ managers: 191 employees State regulations.
• Offer life insurance and voluntary pension insurance
Office labor (including the Parent company and 43 member • Health care insurance (at PJICO) with an average of benefits from business costs for all employees with an
companies): 3,292 employees VND 1,800,000/person. amount of from VND 1.5 to 3 million/person/month
Workers: 14,802 employees have been implementing.
2019’S AVERAGE 2019’S AVERAGE HEALTH

PETROLIMEX’S INCOME CARE INSURANCE
HEADCOUNT
24,009 11.525 1.8

PEOPLE
VND MILLION/PERSON
VND MILLION/PERSON/MONTH
2.6%
2019 ANNUAL REPORT

INVESTMENT ACTIVITIES AND PROJECT
IMPLEMENTATION
A ND
EXP
NEWLY BUILD UPGRADE TOTAL INVESTMENT
VALUE
120 275 1,520

COCOs COCOs VND BILLION
AS OF 31 DECEMBER 2019 EQUIVALENT TO REACHED 80.5% OF THE PLAN

AND 86 COCOs HAVE BEEN VND 324.7 BILLION
A DE
PUT INTO USE GR
NE UP
WL
YB
UIL
D
The Group has invested in 120 newly built COCOs as at 31 December
2019 and 86 COCOs have been put into use. In general, petroleum
companies well performed technical management and facility
investment works assigned by the Group and successfully achieved
Project’s investment capital was mainly sourced from Transportation, etc. resulted in limited performance.
given targets regarding value and quantity. equity capital. Group A and Group B projects were not Despite difficulties of administrative procedures, many
included in investment, execution and transferring companies excellently developed their network, such as:
projects, while group C projects primarily consisted of Petrolimex An Giang - 4 stations, Petrolimex Da Nang -
Unit: VND billion newly constructing and rebuilding petroleum stations; 4 stations, Petrolimex Phu Khanh - 5 stations, Petrolimex
upgrading storages, wharves, petroleum transports; Tra Vinh - 4 stations, Petrolimex Can Tho - 6 stations,
2019 Target 2019 Actual result renovating offices, copyright, and management software, Petrolimex Gia Lai - 8 stations, etc. Other remaining works
No. Project etc. and investment items that have been put into operation
Quantity Value Quantity Value met the Group’s business operation demands.
(COCOs) (VND billion) (COCOs) (VND billion) The Group has invested in 120 newly built COCOs as of
1 Newly build COCO petroleum stations 65 702 86 616.9 31 December 2019 and 86 COCOs have been put into In addition to projects of newly built COCO petroleum
use. In general, petroleum companies well performed stations, in 2019, the Group implemented some
2 Upgrade petroleum stations 256 454 275 324.7 technical management and facility investment works investment projects as follows:
assigned by the Group and successfully achieved given
3
Expand and upgrade terminals, jetties, reserve,
357.92 203.7 targets regarding value and quantity. However, because • Invest, improve, upgrade ports, warehouses: K130
wharf, pipeline, etc. standards and regulations of the State have many Warehouse, B12 Oil Terminal, Nha Be Oil Terminal,
4
Invest gasoline dispenser, IT, automation, EGAS,
256.18 278.2
shortcomings for construction activities of the industry, K2 Vung Tau port, Vinh Tre Oil Terminal, Tra Vinh Oil
etc. gained results are limited. Terminal, etc.
5 Others 116.42 97.2
Especially, in COCO network development of member • Invest in new construction of offices: Petrolimex Ha
6 Total 1,886 1,520 companies, many units suffered difficulties in Nam Ninh, Petrolimex Quang Tri, Petrolimex Ha Bac.
administrative procedures under regulation 01:2008/
BXD, in traffic connection under Circular No. 50/2015/ The total investment value in 2019 was VND 1,520 billion,
BGTVT dated 23 September 2015 by the Ministry of equivalent to 80.5% of the plan.
CONSOLIDATED FINANCIAL PERFORMANCE
FINANCIAL PERFORMANCE (The 2019 financial statements were audited by KPMG) MAJOR FINANCIAL INDICATORS
2018 actual 2019 actual No. Financial ratios 2018 2019

No. Items Unit Comparison
results results
1 Liquidity ratios
1 2 3 4 5 6=5/4
- Current ratio (times) 1.10 1.13
VND - Quick ratio (times) 0.77 0.79
1 Net revenue 191,932,473 189,603,525 99%
million
2 Solvency ratios
VND
2 Accounting profit before tax 5,177,656 5,647,772 109% - Liabilities /Total assets (times) 0.59 0.58
million
- Liabilities /Owner’s equity (times) 1.44 1.38
VND 3 Management efficiency ratios
3 Net profit after tax 4,154,564 4,676,562 113%
million
- Inventory turnover (turn) 15.37 15.89
- Equity holders of the Parent company " 3,747,899 4,157,778 111% - Net revenue/Total assets (times) 3.41 3.07
4 Profitability ratios
- Return on sales (ROS) 2.16% 2.47%
- Non-controlling interest " 406,665 518,783 128%
- Return on equity (ROE) 17.88% 19.08%
VND - Return on assets (ROA) 7.04% 7.92%
4 Total assets 56,283,120 61,762,414 110%
million
Unit: VND million CURRENT RATIO LIABILITIES/TOTAL ASSETS
1.13 1.38
250,000
191,932 189,604
200,000
150,000 TIMES TIMES
100,000
61,762
56,283
50,000
5,177 5,647 4,154 4,676 NET REVENUE/TOTAL RETURN ON SALES
ASSETS (ROS)
0
Net revenue Accounting profit

before tax
Net profit after tax Total assets
3.07 2.47%
TIMES
2018 actual results 2019 actual results
CONSOLIDATED FINANCIAL PERFORMANCE
(continued)
MAJOR FINANCIAL INDICATORS (continued)

Most important financial ratios of the Group in 2019 was quite similar to that of 2018 and had better tendency. Liquidity
ratios were always kept at safe level, profitability ratios were positive, ensuring business performance, profitability of
capital. Specifically:
Unit: Time Unit: turn Unit: Time
1.6 18 4
15.37 15.89 3.41
1.4 16 3.5
3.07
1.13 14 3
1.2 1.10
12
1 2.5
0.77 0.79 10
0.8 2
8
0.6 1.5
6
0.4 4 1
0.2 2 0.5
0 0 0
2018 2019 2018 2019 2018 2019 2018 2019
Current ratio Quick ratio Inventory turnover Net revenue/Total assets
»»The current ratio was higher than 1, the quick ratio was higher than 0.5. The current ratio and the quick ratio as at 31 »»Inventory turnover of 2019 was 15.89 rounds/year, up »»Net revenue/Total assets ratio of 2019 decreased by
December 2019 increased by 3% and 2.6% respectively compared to 31 December 2018. by 0.52 rounds over 2018. 9.9% compared to that of 2018, mainly attributing to
the decrease in petroleum products prices in 2019 and
increase in the Group’s total assets.
Unit: Time
1.6 25
1.44
1.38
1.4
19.08%
20
1.2 17.88%
1 15
0.8
0.59 0.58 10
0.6 7.92%
7.04%
0.4
5
0.2 2.16% 2.47%
0 0
2018 2019 2018 2019 2018 2019 2018 2019 2018 2019
Liabilities /Total assets Liabilities /Owner’s equity Return on sales (ROS) Return on equity (ROE) Return on assets (ROA)
»»Liabilities/Total assets ratio was 0.58 as at 31 December 2019, a slight decline of 1.7% compared to 31 December »»Profitability ratios in 2019 were all better than those of 2018 due to a Y-o-Y growth by 13% in consolidated profit after
2018. Liabilities/Equity ratio as at 31 December 2019 was 1.38 (much lower than the maximum value accepted, which tax. In which, ROS was 2.47%, up 0.31% over 2018. ROE reached 19.08%, grew by 1.2% from 2018. ROA was 7.92%, up
is 3) and declined by 4.1% compared to 31 December 2018. 0.88% compared to 2018.
BUSINESS AND FINANCIAL PERFORMANCE OF
MEMBER COMPANIES
Petrolimex Tanker Petrolimex Petrochemical Petrolimex Insurance

EVALUATION ON BUSINESS PERFORMANCE 2019
Corporation Corporation - JSC Corporation
(PGT) (PLC) (PGI) In 2019, along with meeting all transportation demands of the
Group, PGT also strengthened the relationship with external
customers, achieving positive results: transported volume of
$
PROFIT BEFORE TAX
228.5
ocean vessels was 29.3 billion m³xkm; revenue was over VND
4,109 billion, profit before tax reached VND 228.5 billion. More
importantly, PGT established centralized operation model
(vessel pools) in sea and coastal transportation activities,
professionalized vessels operation, promoted advantages VND BILLION
in maritime logistic, stabilized lives and employment for the
labor force, increased contribution to the State budget.
Petrolimex Transportation Services Petrolimex Gas Petrolimex Aviation Fuel JSC

Corporation Corporation - JSC (PA)
(PTC) (PGC) ORIENTATION AND PLAN FOR 2020
In 2020 and the following years, the global economy in general and the maritime transportation market in particular
PETROLIMEX TANKER CORPORATION (PGT) will still be difficult due to recovery process, but there are also many positive signs. Therefore, PGT will continue:
OVERVIEW
Established in the restructuring process of Vietnam in stock exchanges. PGT’s tanker fleet has a total weight
National Petroleum Corporation (formerly) and Vietnam of over 500,000 DWT. Its vessels are all classified and
Restructure business activities with transportation-centric orientation;
National Petroleum Group (currently) under the Prime certified by international registry organizations (DNV,
Minister’s Decision No. 828/QD-TTg dated 31 May ABS, NK, etc.), complying with international regulations
2011, PGT has the forming factors to be the member and conventions, achieving international certificates on
companies with extensive experience and scope of international safety (DOC and SMC), and international Implement many business solutions in other industries but focus on 02 main objectives:
operation throughout the domestic waterway network security (ISSC). This is the biggest vessel fleet in Vietnam, Successfully organize ship operation, investment, fleet renewal while promoting
and international waters. including long-haul and coastal vessels and river-shipping investment in some other potential areas such as: repairing and building new vessels,
barges. With the motto of “Profession - Safety - Respect - supplying crew members, cleaning oil tankers and disposing oil-contaminated wastes
PGT is a one-member limited liability company under Integration”, the management and operation quality of in order to organize and operate stable business activities, step by step penetrating into
Vietnam National Petroleum Group. PGT has subsidiaries PGT’s fleet and its member companies are always paid national and global markets.
including 05 joint stock companies operating in the attention. Its vessels are all classified and certified by
fields of transporting, chartering and leasing of oil international registry organizations, complying strictly
tankers and petroleum products, maritime services and with international regulations and conventions about
engineering and port business; all of which were listed security, safety and environment in maritime operations.
In the period of 2020 - 2025 and vision to 2030, PGT determined to continue to be stable and develop on the basis
of close association with the Corporation’s business organization and promote the potential and advantages of its
member companies with strong financial capacity, a team of experienced and enthusiastic crew members together
with a dynamic, knowledgeable and enthusiastic management team; especially, Petrolimex’s culture and spirit flowing
PGT’S TANKER FLEET HAS A in blood vessels of nearly 2,000 PGT employees.
$ TRANSPORTED VOLUME TOTAL WEIGHT
23.9 500,000
In the process of international economic integration, together with the direction and support of Vietnam National
Petroleum Corporation, PGT will promote all resources and leverage opportunities to reach out for the ocean with the
hope of sustainable development “Reaching further!”.
BILLION M3xKM DWT
MEMBER COMPANIES (continued)
PETROLIMEX TRANSPORTATION SERVICES CORPORATION (PTC) $

CONSOLIDATED PROFIT $
ACTUAL SALES
BEFORE TAX VOLUME
The consolidated profit before tax of the Corporation was VND 80.27
billion, by 100% from the plan, down 4% compared to the same period
80.27 211,918
in 2018. In which, petroleum trading profit was VND 24.5 billion; profit VND BILLION M3/TON
from transport business was VND 45 billion and other profits was VND
10.4 billion. fulfilling 100% of the 2019 plan fulfilling 100% of the 2019 plan
OVERVIEW EVALUATION ON PRODUCTION AND

BUSINESS PERFORMANCE 2019 ORIENTATION AND PLAN FOR 2020
Petrolimex Transportation Services Corporation,
established in accordance with Decision No. 515/PLX- Profits
QD-HDQT dated 20 September 2017 by the Board of
Management of Vietnam National Petroleum Group and In 2019, the consolidated profit before tax of the
was officially put into operation on 01 October 2017. Corporation was VND 80.27 billion, by 100% from the
plan, down 4% compared to the same period in 2018.
Member companies of PTC include: 03 branches: PTC In which, petroleum trading profit was VND 24.5 billion;
Khanh Hoa, PTC Binh Dinh and PTC Can Tho; 01 directly profit from transport business was VND 45 billion and
operated COCO in Tam Nong District, Phu Tho Province; other profits was VND 10.4 billion. Orientation
06 member companies with more than 51% ownership: for 2020
Petajico Hanoi, PTS Ha Tay, PTS Nghe Tinh, PTS Hue, Business performance of PTC in business
Petajico Da Nang and PTS Saigon. fields
PTC’s business activities: Directly trading in petroleum

»»In petroleum trading: Actual sales volume of PTC in
2019 was 211,918 m³ tons; reaching 94% compared to
and underwriting volume of the transportation
2018 and fulfilling 100% of the 2019 plan.
distribution, contracting for transportation business of
the Corporation, capital investment in other enterprises »»In transportation business: Total transport volume
and other industries under the business license. of the whole Corporation was over 7.4 million m³.tons,
reaching 105% of the planned one and up 38% from In transportation business In petroleum trading
Currently, the joint stock companies/branches under 2018. The rise of transport volume was attributed to
the Corporation totally own 921 tank trucks with a total PTC’s affiliated units, including 03 newly established »»Focus on developing markets with strong growth »»Improve commercial and well-served culture, apply
average capacity of 19,743m³, average capacity of 21.4 branches, continuing to receive vehicle fleets as well potential, large proportion. commendation and encouragement mechanisms
m³/vehicle, average vehicle productivity of 2,543 m³km/ as transport market from Petrolimex’s petroleum to petroleum stations for improving retail output
m³ vehicle/month. companies. Total transport volume of PTC was over »»Pay special attention to customer service, enhance and labor productivity.
602 million m³km, an increase by 2% compared to the service quality, build trust with customers, especially
PTC’s charter capital is VND 300 billion. traditional ones.
»»Continue to invest in upgrading technical equipment
plan and 29% Y-o-Y growth. The increase in transport
and repairing items of petroleum stations to ensure
volume was lower than that of transported volume as
applicable requirements of 5S standard.
result of the decline in average transport distance. In »»Properly invest in modernizing and restructuring
2019, the average transport distance of the Corporation vehicle fleets under market demand and the State’s »»Synchronously deploy management software at
$
CHARTER CAPITAL was 81 km, a decrease by 7% from 2018. regulations as well as ensure transport capacity. petroleum stations for more effective management
and higher business performance.
300 »»Minimize
operation.
risk and derived expenses in business
»»Fully implement product policies of the Corporation
to become different and unparalleled in product
policies in association with business performance.
VND BILLION »»Enhance inventory management, improve business
performance.
PETROLIMEX PETROCHEMICAL CORPORATION - JSC (PLC)
OVERVIEW pioneers in technology, infrastructure as well as research

Plan, orientation and solution for 2020
and development of new products. Along with the main Asphalt
Petrolimex Petrochemical Corporation, preceded by business, the Corporation also operates in supporting Petrolimex Asphalt Co. Ltd. now holds almost 28% Major orientations
the Petrolimex Petrochemical Joint Stock Company, services in its supply chain under the form of joint- domestic market share.
established on 09 June 1994. On 13 October 1998, ventures or associates. The development orientation of »»Keep stably developing 3 main sectors: lubricants,
PLC was renamed as Petrochemical Company, under the Corporation is to focus on strengthening the position In addition to advantages such as: factories and branches asphalt and chemicals;
Vietnam National Petroleum Group. On 23 December of the domestic market, developing the scale of three covering Vietnam; professionally invested sprinkler tank
2003, PLC was equitized. On 01 March 2004, Petrolimex business sectors to regional and international levels. truck and transport fleets as well as technical services
»»Continue to expand the domestic and foreign markets;
Petrochemical Corporation was officially put into to support customers at the construction site, in the »»Focus on research and production of new products,
operation with the charter capital of VND 150 billion, EVALUATION ON BUSINESS PERFORMANCE past year, the Company also encountered numerous diversify product groups, especially products with high
which was partly owned and managed by the Vietnam 2019 difficulties as follows: quality and sustainable efficiency;
National Petroleum Group with the proportion of 85%.
Over years of business, nowadays, PLC’s charter capital »»Late deployment and disbursement of transport »»Continue to invest on technical infrastructure to
Business performance 2019 projects;
has reached 808 VND billion, of which Petrolimex owns maintain its advantages in all 3 main sectors;
79.07%. »»Increasingly fierce competition;
Total consolidated output: 386,769 tons, 8.37% higher »»Constantly improve business value to best benefit
than the 2019 plan and equal to 99.32% of 2018. shareholders;
PLC is the first domestic company into petrochemical »»Market demand stayed the same as 2018.
product business, including: lubricants, asphalt, Consumption revenue was VND 6,160,046 million, »»Develop the community and social benefits.
chemicals. Operated under the model of Parent company 2019 production was nearly 196 thousand tons, reaching
reached 97.75% of 2019 plan and by 95.74% from that
and its subsidiaries (including Petrolimex Asphalt 98% that of 2018 and reaching 108% of the plan. This Solutions and general plan for 2020
of 2018.
Company Limited and Petrolimex Chemicals Company result was due to the Company’s efforts in the fourth
Limited), the Corporation has strongly developed in all quarter of 2019, along with the disbursement of some »»Keep the marketing concepts timely and constantly to
Total consolidated profit before tax was VND 185,361 maximize efficiency of inventory operation in cases of
three key industries with specialized fields to become road maintenance projects near the end of 2019, sharply
million, fulfilling 89.05 of the plan and 95.08% of 2018. strong fluctuations in prices.
raising the production of December 2019 compared to
the same period of previous years as well as remaining
The specific situation of the 3 business sectors of the
months of the year. »»Observe the fluctuations of import prices, exchange
Corporation was as follows: rates, loan interest rates, state management policies to
TOTAL CONSOLIDATED
Chemicals ensure a stable supply and increase competitiveness.
OUTPUT Lubricants
Petrolimex Chemicals Co. Ltd. continued to be one of the »»Settling foreign exchange transactions for imported
386,769 »»The Petrolimex lubricant brand continued to affirm in

terms of quality and trademark which is increasingly
accepted by customers. Petrolimex lubricant products
top solvent businesses in the domestic market with the
revenue of over VND 2,300 billion. In 2019, the total sale
volume of the Company was 161,191 tons.m³; ended the
shipment, meet market demand in a timely manner to
increase revenue and collect debts on time.
»»Implement suitable methods for financial management,

TONS are becoming increasingly diverse and plentiful, year 2019 over plan by 112% and buffer of up to 1% from
2018. inventory administration, etc. to minimize the impact
possibly replacing almost all DMN products of foreign
8.37% higher than the 2019 plan of increase in exchange rates, interest expenses and
lubricant brands such as CastrolBP, Shell, Total, Caltex
meet the capital needs of each industries.
etc.
»»Along with researching and promoting sales activities,
»»In 2019, the market price increased, but PLC still PLC in general and each member unit in particular will
maintained a stable selling price in the first quarter and focus on collecting debts and handling with doubtful
TOTAL CONSOLIDATED applied an after-sales services support policy as well as and bad debts under the business nature of each
PROFIT BEFORE TAX sales promotions for customers. industry.
185,361 »»Stable supply, good inventory management. Ensuring

timely delivery for both domestic and foreign vessels
with the active coordination of the global Total
VND MILLION
Lubmarine system.
fulfilling 89.05% of the plan
»»Technical services meet the requirements of industrial
customers.
PETROLIMEX GAS CORPORATION - JSC (PGC) PLAN,

ORIENTATION,
OVERVIEW AND SOLUTION
FOR 2020
Petrolimex Gas Corporation (PGC), preceded by the
Petrolimex Gas JSC, is one of the corporations partly
owned and managed by the Vietnam National Petroleum
Group. After nearly 20 years of establishment, PGC has a
wide range of operation network and serves many areas
like industry, agriculture, commerce, and consumption.
It is said to be one of the most prestigious brands in
Vietnam market in terms of selling gas (LPG). Major orientations
At present, PGC owns a system of modern equipment »»Develop the Corporation become one of the leading company in liquefied petroleum gas trading in
and infrastructure. Its network of ports and reserves Vietnamese market, strengthen market share increase; research and develop new products such as LNG,
with total capacity of 8,235 tons is located in strategic CNG besides traditional liquefied petroleum gas;
industrial zones of the country with charging stations
for assured supply to all provinces and cities nationwide. In today’s fierce competition, with over 70 gas brands »»Promote value of Petrolimex trademark; take advantage of strengths of direct distribution channels and
Its preservation and packing technology matches that in the market, Petrolimex Gas Corporation output for distribution channels via petroleum companies in trading and market development;
of regional countries. Its products are completely safe, civil use, commerce and industry uses still maintains the
of high quality, of which listed weight is true to actual growth rate of 5 – 9% each year. »»Sustainably develop, increase corporate value, ensure interests of shareholders and employees;
weight. In industrial field, PGC is also one of the leading
units in setting up gas reserves as well as in supplying The Corporation’s distribution network is allocated
gas for companies. It is trusted by domestic enterprises throughout 63 provinces of Vietnam and constantly
and FDI ones from Japan, Korea, Taiwan, Hong Kong, etc. expanding.
Key solutions
»»Keep diversifying supplies to gain advantages »»Accelerate progress of key investment projects
during purchasing negotiation with suppliers; to put into operation soon; keep rehabilitating,
actively seek and select supplies entitled to upgrading technical equipment for production
import tax incentives for reduced purchase price; at plants and charging stations to enhance
capacity and product quality;
TOTAL OUTPUT »»Apply flexible pricing mechanisms suiting each
PROFIT BEFORE TAX
individual gas consumer; focus on promotion »»Gradually decrease indirect workforce and
169,191 194.58
of after-sales technical service quality; promote increase production and sale teams; complete
existing advantages of Petrolimex trademark appropriate salary, compensation and benefits,
and expand industrial gas sale to customers in commendation policies for employees;
provinces;
TONS VND BILLION »»Re-standardize
cost norms and re-complete
meeting 104% of target achieving 100.3% Y-o-Y growth in 2018
»»Simultaneously develop three channels of management regulations, rules, complete
bottled gas sale suiting characteristics of management accounting system;
each market; complete mechanism of sales
assignment to each sales employee at stores, »»Strengthen information technology system
promote encouraging policies for increased standardization, promote application of
output, strengthen technical services for sales; concentrated management software integrated
EVALUATION ON PRODUCTION AND BUSINESS PERFORMANCE 2019
with multimedia applications and existing
In 2019, the Corporation invested heavily in brand establishment and development. It also focused on structuring the
»»Foster PR and advertisement, diversify forms software to better serve business operations.
of promotion of Petrolimex Gas’s unmatched
network, proposing programs to cooperate with member petroleum companies of the Vietnam National Petroleum
brand, product and service quality; strengthen
Group, which gained remarkable results. Total output was 169,191 tons, meeting 104% of target and achieving 107%
anti-trade fraud to protect rights of Petrolimex
Y-o-Y growth. Profit before tax was VND 194.58 billion, exceeding target by 1% and achieving 100.3% Y-o-Y growth in
gas users.
2018.
PLAN, ORIENTATION, AND
BUSINESS AND FINANCIAL PERFORMANCE OF SOLUTION FOR 2020
PETROLIMEX INSURANCE CORPORATION (PGI) 2020 targets
In 2020, PJICO keep persistently aiming at sustainable and effectively growth, focus on developing and applying digital
technology to insurance business activities to improve labor productivity, service quality and competitiveness.
However, even in the first months of 2020, the Covid-19 pandemic was becoming more and more complicated,
seriously affecting the business performance of enterprises in Vietnam and worldwide. The World Health Organization
(WHO) has also declared a global medical emergency. This is a huge challenge in fully implementing the 2020 business
plan of the Corporation.
Key solutions
To accomplish the targets above, the Corporation needs to continue to focus on solutions as follows:
Original insurance business Reinsurance solutions Financial investment solutions

solutions
OVERVIEW »»Search for top reinsurance partner »» Focus on long-term investments,
»»Promote sales in businesses such with high credit rating and strong industries with high growth potential;
Petrolimex Insurance Corporation (PJICO) is the foremost insurer in Vietnam which operates under the joint stock as motor vehicle, properties, financial potential. Develop
ownership structure. Since establishment, PJICO has been making great effort to become one of the four leading projects, goods, vessels; selection criteria for unrated »» Regularly review financial and deposit
enterprises in Vietnam market in terms of non-life insurance. reinsurers. portfolios to propose plans for
»»Focus on health insurance, divestment of ineffective, or achieved
Having a business model encouraged by the State and a policy on insurance price, especially the energetic and effective aviation insurance and energy »»Improve competitiveness, expected profits investments;
service, PJICO has created a reliable and prestigious image in customers’ minds. insurance; promote reinsurance acceptance. completely divest from Vinare.
»»Minimize risks, reduce the rate Governance solutions Human resource/system

of professional compensation, solutions
EVALUATION ON BUSINESS PERFORMANCE
2019
control claims reserve, simplify »»Maintain and improve the credit
procedures, prevent profiteering rating results based on A.M.Best’s »»Buildhuman resources capability,
and improve customer value; recommendations, expand PJICO’s business and management
Total revenue including sales from original insurance, re- PJICO’ S TOTAL REVENUE brand to the international market; processes 4.0.
»»Promote
3,665
insurance, re-insurance commission and investment in sales through the
2019 hit VND 3,665 billion. In which, sales from original network of petroleum companies; »»Reduce costs and limit »»Establish more units in key and
insurance (excluding insurance for fishing vessels under overspending; potential business locations and
Decree No. 67/CP) was VND 3,048 billion, up 10% over »»Gradually replacing traditional merge, dissolve low-performance
2018 and equivalent to 102.8% of the plan. VND BILLION
retail with sales by channel/chain »»Deploy Premia upgrade project units.
to new version (Web Portal).
Profit before tax was VND 200.6 billion, growing by reached over 104% of the 2019 plan »»Selling insurance to Korean Fully digitize professional and »»Support salary for Deputy Directors,
12%, equivalent to 109% of the given plan. In 2019, the communities and businesses in managerial processes. Examiners, and Compensation
Corporation adjusted its 2018 profit before tax to increase Vietnam. staffs of member companies.
by VND 3.86 billion according to the adjustment of the »»Independently monitor service
State Audit Office of Vietnam. quality at all Departments of the »»Develop a team of highly skilled
Corporation. and qualified key personnel with
PROFIT BEFORE TAX outstanding leadership, fine
Proposing to the GMS to raise dividend payment rate to
200.6
quality and great dedication to the
shareholders at 13% (an increase of 1% compared to 2018).
Corporation.
With the direction of the Board of Management and »»Apply individual key performance
the efforts of all employees, in 2019, the Corporation indicators (KPIs) for departments at
VND BILLION
overcame challenges and continue to comprehensively the Corporation’s Office.
complete plans assigned by the GMS and the BOM. equivalent to 100.3 % of the 2018 plan
PLAN,
PETROLIMEX AVIATION FUEL JSC (PA)
ORIENTATION,
OVERVIEW EVALUATION ON PRODUCTION AND AND SOLUTION
BUSINESS PERFORMANCE 2019 FOR 2020
Petrolimex Aviation Fuel JSC (PA) was established in
2008, supplying fuel for domestic and foreign airlines. In 2019, Vietnamese aviation market kept maintaining
After many challenges in the initial phase, PA has made high growth rate, however, there was fierce competition
great effort to become a major one among Vietnam from both domestic and foreign markets. Besides,
National Petroleum Group’s subsidiaries. PA’s success unforeseeable fluctuation of aviation fuel price due to
has disrupted from monopolistic aviation fuel markets, geopolitical factors, high input costs etc. caused many
governed by Vietnam Air Petrol Company - a member difficulties to PA’s business operations. Thanks to PA’s
of Vietnam Airlines. Currently, PA supplies all fuel and great effort and support from the corporation and other
fuel charging services for aircrafts from more than 50 companies in the field, PA managed to achieve high 2020 targets Major orientations
domestic and international airlines such as Vietjet Airline, growth rate in 2019, with revenue and profit before tax
Bamboo Airways, Hai Au, Vietnam Helicopter Corporation, increasing sharply. Its profit before tax grew by 195% to In 2020, PA has focused on the continuing »»Keep maintaining absolute safety in all business
Emirates Airline, Singapore Airlines, Etihad Airways, Air VND 846 billion, fulfilling 190% of the set target. Output upgrading, expand its distribution network, fields.
France, etc. at 5 domestic airports (Noi Bai, Tan Son Nhat, in 2019 was 1,333,116 m³, 15% higher than planned, improve its competitiveness, reduce costs to
Cat Bi, Da Nang and Cam Ranh) and over 50 airports in an increase of 23% from 2018. Profit after tax/owners’ ensure its sustainable development target; besides, »»Promote the Petrolimex brand values, maintain
Asia - Pacific region. equity was 58%, preserving and developing capital, the PA always follows and sticks to the changes the existing customer portfolio and develop new
dividend payout ratio to shareholders was at least 30%/ in domestic and foreign petroleum markets, customers.
year, employees’ income was high, largely contributed to especially in the Covid-19 pandemic to create plans
the State budget, the safety and security in operation of »»Complete business management system, expand
on production and business; promote Petrolimex’s
the Company was secured. supply network both domestic and aboard.
brand and build competitive advantage and
market development. »»Achieving sustainably increases in corporate
value, and ensure interests of shareholders and
employees.
Key solutions
$
OUTPUT IN 2019 $
PROFIT BEFORE TAX
»»Setup »»Implement Phu Quoc and Lien Khuong Airport
1,333,116 846
a realistic plan for 2020, based on the
high determination from the beginning of the Warehouse projects, Duong Dong Pre-airfield
year and consistency with the direction of the Terminal projects. Prepare pre-feasibility study
Corporation’s leaders at the 2019 year-end gala. projects for warehouses such as Phu Bai, Vinh,
M3 VND BILLION Long Thanh, Ba Ngoi and Nam Dinh Vu, etc.
»»Proactively maintain the growth goals, resolutely
reached 115% of the 2019 plan fulfilling 190% of the set target stick to the assigned goals. »»Consolidate and strengthen the system,
improving operation and administration
»»Directly and drastically direct departments capacity such as: consolidating organizational
and units to closely monitor the changes of structure, people, building KPIs system;
the market and competitors, enhance the expanding, upgrading and maintaining the
forecasting work, especially about the impact existing technical facility system; completing
of the Covid-19 pandemic to appropriately and the ISO 9001 certificated management system;
effectively apply solutions on sales and sourcing. regulation/policy/management process system;
»»Expand into global markets, new customers, new IT system, ERP & application software solutions,
business products. digital conversion, automation, etc.
»»Enhance expense management (meetings, »»Implement tight, flexible, effective, safe and
opening, festivals, travel, etc. continue to review sustainable sales and financial management
economic and loss norm). policies. Strengthen risk management.
2019 ANNUAL REPORT

SHAREHOLDERS’ STRUCTURE, OWNER’S EQUITY
CHANGES
SHARE INFORMATION SHAREHOLDER’S STRUCTURE AS AT 31 DECEMBER 2019
Number of Holding
Shareholder Ownership
shareholders percentage
Domestic
Name of shares VIETNAM NATIONAL PETROLEUM GROUP - PETROLIMEX Ticker symbol PLX
»»Individual, in which: 8,360 20,171,205 1.56%
Insider and relatives of insider 28 105,124 0.01%
Charter capital VND 12,938,780,810,000
»»Institutional, in which: 50 1,100,319,390 85.04%
Committee for Management of State Capital 1 981,686,626 75.87%
Total shares
Vietnam National Petroleum Group 1 103,064,846 7.97%
listed: 1,293,878,081 shares Type of shares ordinary shares
Trade Union 1 5,000,000 0.39%
Total shares in Other institutions 47 10,567,918 0.82%

Par value VND 10,000/share circulation 1,190,813,235 shares Total domestic (I) 8,410 1,120,490,595 86.6%
Foreign
Number of restricted Number of freely »»Jx Nippon Oil & Energy Vietnam Consulting and
shares 108,528,476 shares traded shares 1,082,284,759 shares Holdings Company Limited
1 103,528,476 8.00%
»»Other institutions 91 68,773,160 5.32%

PLX STOCK TRANSACTIONS IN 2019 »»Individuals 213 1,085,850 0.08%
Total Foreign (II) 305 173,387,486 13.4%
Total trading
Number of sessions 250 volume 188,229,290 shares Total (I)+(II) 8,715 1,293,878,081 100%
Total trading Average trading

value VND 11,493 billion volume/day 752,917 shares Vietnam National Petroleum Group 7.97%
Committee for Management of State Capital 75.87% DOMESTIC

Highest trading volume in 52 SHAREHOLDERS
Other domestic individuals and institutions 2.38%
weeks (July 12th, 2019): 3,474,210 shares
Trade Union 0.39%
JX Nippon Oil & Energy Vietnam 8.0%

FOREIGN
TOTAL SHARES LISTED AS AT SHAREHOLDERS
Other foreign individuals and institutions 5.4%
31/12/2019
1,293,878,081 TREASURY SHARES

SHARES »»Total treasury shares as at 31 december 2019: 103,064,846 shares
Type of shares »»Transaction of treasury shares during the year: 32,000,000 shares
ORDINARY SHARES: 1,293,878,081
OTHER SECURITIES
PREFERENCE SHARES: 0 (None)
None
DIGITAL TRANSFORMATION CORPORATE GOVERNANCE
TRANSFORMATION
04
DIGITAL

The Board of Management’s structure and activities
The Supervisory Board’s structure and activities
FORWARD
Report of Supervisory Board
Transactions, remuneration and benefits of the Board of
Management, Board of General Directors, Supervisory Board
Transactions of internal shareholders and related persons
Internal control system
Risk management
Legal affairs and compliance
THE BOARD OF MANAGEMENT’S STRUCTURE
AND ACTIVITIES
THE BOARD OF MANAGEMENT’S MEMBERS AND STRUCTURE THE BOARD OF MANAGEMENT’S ACTIVITIES
As at 31 December 2019, the BOM consists of 07 members, with no independent non-executive member, Throughout 2019, the BOM held 09 direct meetings and collected written opinions of the BOM members for 72 times,
04 non-executive members and 03 executive members. There was no change of members in the Board of issued 241 Resolutions and 17 Decisions on issues within decision-making authority. The Board of Management’s
Management in 2019. meetings were monthly organized. Main contents under the BOM’s authority and duties to guide, manage and monitor
the Group’s activities are as follows:
Number
Benefit Related No. Date Activities Result
Number of shares
Member Percentage of Legal conflicts benefits
No. Title of shares owned by
of BOM voting shares violation with with
owned related
parties
Petrolimex Petrolimex »»Evaluate the business performance in 2018 and orientate The Resolution No.
plans for 2019;
07/PLX-NQ-HDQT
1 11 January 2019
Mr. 15,87% »»Report on the 2019 GMS’s agenda of the Group; dated 14 January
Chairman 2019
1 PHAM VAN
(full time)
205,359,775 (representative of 0 None None None »»Other contents.
THANH the State Capital)
Mr. Non-
8% (representative »»Evaluate the business performance in 2018, report briefly
of strategic on the performance for the first 2 months of 2019;
2 YOSHIHIRO executive 103,528,476 0 None None None
shareholder’s
SATO member »»Discuss on the financial supervision report in 2018; The BOM members
capital) 2 11 March 2019 agreed on the
»»Report on the GMS preparation in 2019; meeting’s contents
11%
142,326,589 (representative of
»»The Group’s restructuring status;
Mr. Member
3 PHAM DUC (General the State Capital) 0 None None None »»Other matters.
THANG Director) 0.00175%
22,600
(individual)
»»Evaluate the business performance of the First quarter of
7% (representative 2019;
Mr. Member 90,571,466 of the State
NGUYEN (Deputy Capital) »»Report on the current context of the petroleum retail
4 0 None None None market and solutions, recommendations for improvement
THANH General
SON Director) 0.00175% of the Group’s petroleum retail performance; The Resolution No.
22,700
(individual) 3 16 April 2019 »»Report on development of the Group’s strategy, brand and 55/PLX-NQ-HDQT
7% (representative communication plans; dated 16 April 2019
90,571,466 of the State
Mr. Non-
Capital)
»»Approve on the 2019 GMS agenda of the Group;
5 LE VAN executive 3,700 None None None
HUONG member 0.00053%
»»Report on the Group’s sales of treasury shares;
6,800
(individual) »»Other matters.
7% (representative
Member 90,571,466 of the State »»Evaluate the business performance in the first 4 months of
Mr.
(Deputy Capital) 2019;
6 TRAN 0 None None None
General
NGOC NAM
Director) 5,000
0.00039% »»Discuss on the Group’s financial supervision report in the The Resolution No.
(individual) First quarter of 2019;
4 10 May 2019 69/PLX-NQ-HDQT
»»Report on the implementation plan of follow-up works of dated 14 May 2019
Mr. Non- the Group’s GMS in 2019;
0.00086%
7 NGUYEN executive 11,100 0 None None None
ANH DUNG member
(individual) »»Other matters.
AND ACTIVITIES (continued)
THE BOARD OF MANAGEMENT’S ACTIVITIES (continued)
In addition to prescribed periodic meetings, the BOM collected written opinions of BOM members on issues within
No. Date Activities Result
decision-making authority for 72 times to direct, manage and monitor the Group’s activities. Main tasks:
»»Evaluate the business performance for the first half of
2019; key solutions to the business performance for the
remaining months of 2019; CORPORATE GOVERNANCE CORPORATE DEVELOPMENT
»»Report on the plan for divestment from PJICO;
The Resolution No. »»Assigning the 2019 targets to: The Group’s Parent »»Approving and supervising investment projects under
5 15 July 2019
»»Report on the results of the 3rd annual summit between 108/PLX-NQ-HDQT company, Corporations/One-member Limited Liability authority of BOM.
Petrolimex and JXTG in June 2019;
dated 18 July 2019 Companies; Representatives who administer the
»»Report on the signing of Memorandum of Understanding Group’s capital at Joint Stock Companies and Joint »»Continuing implementing the Group restructuring
(MOU) between Petrolimex and JXTG and Japan Venture Companies. project in accordance with the guidelines, requirements
Cooperation Center Petroleum (JCCP); of Government and the Committee for Management
»»Other matters. »»Staffing under authority of BOM. of State Capital.
»»Evaluate the business performance for the first half of 2019; »»Supervising investing activities under authority of BOM. »»Exercisingthe process of mobilizing and appointing
report briefly on the business performance of July 2019; personnel at the Group’s companies and departments.
The Resolution No.
»»Report on financial supervision for the first 6 months »»Implementing, preparing, and issuing new Economic
133/PLX-NQ-HDQT
6 12 August 2019 of 2019; - Technical norms, regulations of hierarchically internal »»Reviewing, amending, and approving the list of
dated 16 August
management. personnel planning for the period 2016 - 2020 and the
»»Implementation status of LNG project; 2019
vision 2025 under the Group’s control.
»»Other matters. »»Approving the 2019 total short-term credit limit of the
Group’s Parent company.
The Document No.
»»Evaluate the business performance for the first 8 months of 1221/PLX-HDQT
2019; key solutions for the implementation of the business »»Approving undertakings of purchasing, selling,
dated 12 September liquidating, investing, etc., fixed assets at the Group’s
plans for the remaining months of 2019;
7 10 September 2019 2019 on the units in hierarchy.
»»Report on the Group’s sales of treasury shares; conclusion of the
BOM meeting dated
»»Other matters. 10 September 2019
»»Evaluate the business performance for the first 9 months
of 2019; key solutions for the implementation of business
plans for the remaining months of 2019;
The BOM members
8 15 October 2019 »»Report on Petrolimex Binh Dinh Limited Company’s agreed on the
performance for the first 9 months of 2019; meeting’s content
»»Report on the Group’s brand and image promotion;
»»Other matters.
»»Evaluate the business performance for the first 10 months
of 2019; key solutions for the implementation of the
business plans for the remaining months of 2019. The Document No.
1545/PLX-HDQT
»»Prepare and develop the Group’s business plans for 2020. dated 15 November
9 11 November 2019 »»Discuss on the Group’s financial supervision report for the 2019 on the
first 9 months of 2019. conclusion of the
BOM meeting dated
»»Report on Petrolimex Laos One Member LLC’s business 11 November 2019
performance for the first 10 months of 2019.
»»Other matters.
SUBORDINATING DEPARTMENTS UNDER THE BOM AND THEIR ACTIVITIES Department’s activities in 2019
GENERAL ADMINISTRATION DEPARTMENT In 2019, the General Administration Department has fulfilled its duties as follows:
The General Administration Department is part

of governance structure of the Vietnam National
»»Consulting the BOM on successfully holding 9 convened
meetings, assisting Chairman of the BOM in collecting
Petroleum Group.
written opinions of BOM members for 72 times to issue
over 200 Resolutions regarding matters under authority
of the BOM (already published information on the
Group’s website and reported to the State Securities
Commission and representatives of the State capital).
»»Well implementing the corporate governance; chaired/

coordinated with related departments to research,
prepare, amend and supplement some internal control
regulations to be issued by BOM in accordance with the
new organizational structure and the prevailing legal
regulations in order to manage, supervise and direct
the Group’s activities.
»»Consulting and proposing the BOM on issuance,

amendment, supplement of the Organization and
Operation Charter, Regulations of appointing legal
FUNCTIONS »»Consulting and assisting the BOM in exercising its leadership and management of the representatives of 05 one member LLCs owned by the
Group’s activities. Group in line with the new organizational structure
(the Company’s Chairman, the Company’s Director)
»»Being the contact point for regular relationship and work-related content gathering and the law.
between the BOM, shareholders, internal and external institutions.
»»Consulting
and proposing the BOM on issuance,
»»Being the Group’s secretary, BOM Chairman’s secretary as well as Board members’ amendment, supplement of the Group’s CSR
secretary in the Group’s management. management regulations.
»»Chairing, coordinating with related departments to
»»Chairing, coordinating with other departments consult the BOM on evaluating performance and rating
under the BOM to formulate the process for prompt enterprises and enterprise managers in 2018 for the
and accurate appraisal and reporting of 2019 GMS’s Group’s Parent Company and 52 member units.
RESPONSIBILITIES »»Gathering information, preparing periodic and unusual meeting agenda for the BOM; documents in Corporations/Joint Stock Companies of
monitoring the implementation process as well as the results of executing the BOM’s Petrolimex to the Group’s Board of Management for »»Consulting and proposing the BOM on supplement
resolutions. approval. of business activities for petroleum companies under
regulations.
»»Compiling and drafting report documents containing the Group’s Parent company’s »»Coordinating with related departments to consult and
long-term and yearly strategies and plans as proposed by the BOM to be approved at propose to the BOM on 2019 GMS agenda. »»Gathering reports of supervisors at wholly owned
the GMS; coordinating with other departments to report the yearly targets, operating corporations/one member LLCs of the Group; gathering
activities of the Group’s wholly-owned subsidiaries, assigning tasks to representative »»Coordinating with related departments to publish periodic reports of capital representatives, Head of
groups which administer the Group’s capital at Joint stock companies. information about corporate governance for 2018 and the Supervisory Board at corporations/joint stock
the first 6 months of 2019 under regulations. companies, multiple member LLCs under regulations.
»»Gathering and monitoring the business results of the Group and its one-member
limited liability petroleum companies to report to the BOM based on the Group’s »»Chairing and coordinating with related departments »»Accomplishing tasks assigned by the Group’s
reporting regime. Coordinating in preparing and drafting related documents for the to consult the BOM on assigning 2019 business plans Shareholder Management Department and CSR
BOM’s consideration and approval under its authority. to the Group’s Parent company, 46 corporations/one Management Department.
member LLCs, capital representatives in corporations/
»»Gathering and monitoring the performance of joint stock companies, multiple joint stock companies and multi-member LLCs. »»Implementing other tasks assigned by the Group’s
members limited Liabilities Companies and joint venture companies partly owned leadership.
by the Group.
SUBORDINATING DEPARTMENTS UNDER THE BOM AND THEIR ACTIVITIES
(continued) Department’s activities in 2019
STRATEGY AND INVESTMENT DEPARTMENT In 2019, the Strategy and Investment Department fulfilled its duties as follows:
The Strategy and Investment Department is part of governance structure of the Vietnam National Petroleum Group.
Regarding the corporate governance
»»Completing opinion collection and issuance of two important rules: Investment and
Construction Management Rule and House and Land Use and Management Rule.
»»Preparing, supplementing, completing, and archiving the Group’s documents on project

FUNCTIONS »»Preparing development strategies, evaluating the results and proposing changes of and plan management under the request of The Central Inspection Committee.
the Group’s strategies.
»»Enhancing implementation of the Group’s strategies and development plans.

Regarding the management activities
»»Formulating policies and rules of short-term, middle-term, long-term investment and
development.
»»Completing assignment and supplement of 2019 annual plan of the Group.
»»Proposing, reviewing, checking, supervising, and assessing the effectiveness of
investment projects under the authority of the BOM. »»Monitoring results of the whole Group’s re-arrangement, equitization and restructuring;
consulting preparation of periodic reports on equitization and restructuring as required by
»»Monitoring the implementation of the Group’s investment projects. the State authorities.
»»Proposing,
monitoring, and assessing the effectiveness of implementation and »»Implementing re-arrangement of the Group’s houses and lands in accordance with Decision
management of the Group’s capital in subsidiaries and associates. No. 167/2017/QD-TTG.
»»Preparing and completing house and land documents managed by the Group as a basis for
RESPONSIBILITIES Regarding the Group’s development strategy the Group’s effective and optimal housing and land management.
»»Chairing the research and co-operating with other related functional departments in »»Preparing for development of an SAP ERP module for sufficient, synchronous and consistent
building the Group’s general development strategies. housing and land management.
»»Identifying the basic development targets of the Group’s in each period, ensuring they
are in line with the Group’s general development strategy, reporting to the BOM for
approval. Regarding the investment and development activities
»»Researching, proposing the BOM on governance measures to accelerate the »»Consulting and assisting the BOM on inspection and review of the Group’s investment
implementation of the Group’s development orientation and strategy approved by projects including the Group’s Office Building, Petrolimex Thanh Hoa storage tanks,
the BOM. Engaging in and supervising the implementation of targets and solutions to Petrolimex Hai Duong Dispatching-warehouse Project, Petrolimex Hung Yen Storage tank
the development orientation and strategy approved by BOM. Project, jet fuel supply project for Long Thanh Airport, some projects investing in petroleum
station network, etc.;
»»Proposing solutions to amendment and improvement of the Group’s development
strategies as well as business strategies of its subsidiaries, associates in accordance »»Effectively implementing, ensuring the quality and schedule of LNG investment project
with current regulations and the Group’s development strategy. with the cooperation of EVN, in which, Planning Proposal of My Giang LNG Terminal, My
Regarding the Group’s investment management Giang Power Center were completed and reported to the Ministry of Industry and Trade
and owners to supplement to the electric, gas and port planning;
»»Proposing, formulating, amending, and appraising the Group’s rules, regulations on
investment management and economic - technical norms. »»Effectively coordinating with the strategic partner JXTG in LNG project, Marifu Refinery
Plant and Kaizen Board;
»»Proposing solutions to improve the investment efficiency, quality, and scope of
corporations with over 50% of stakes owned by the Group.
»»Responsibly preparing and developing big projects of the Group, including Strategic
»»Chairing the evaluation of the investment policies, investment results based on the Development Plan, Petroleum Warehouse Automation Plan, Restructuring Plan of Petrol &
Group’s portfolio and criteria, reporting the evaluation result to the BOM. Gas Construction Company (PGCC), etc.
AUDIT DEPARTMENT In 2019, the Audit Department accomplished the assigned tasks and plans as follows:
The Audit Department is one of five sub-departments directly under the Board of Management. »»Consulting the BOM on finance, accounting, business management mechanism, auditing cost norms, preparing
periodic financial supervision reports, etc., to meet requirements on timeliness and quality, especially of periodic
internal financial supervision reports.
»»Proactively inspecting and supervising the compliance on timeliness and completing audit plans in 2019. From
the end of November to the beginning of December 2019, inspecting and supervising Petrolimex Petrochemical
Corporation (“PLC”)’s activities with the cooperation of the Supervisory Board and departments of Board of General
Directors. After auditing member units and evaluating the business organization, sales policy development and
implementation, management of goods, receivables, payables and costs/expenses, the Audit Department gave
specific recommendations to units and reported to Chairman of BOM to provide guidance and correction documents
after the audits.
»»Regarding GMS-related works: Reviewing the GMS’s documents of subsidiaries which are joint stock companies,
auditing financial statements of the Parent company, wholly owned subsidiaries, profit and dividend distribution
plan and submitting to the BOM for GMS’s approval.
»»Periodically analyzing, evaluating the Group’s financial supervision report.

»»Giving opinions on supplement and amendment of some management processes and rules of the Group.
FUNCTIONS »»Assisting the Board of Management in: Supervising, developing and reforming internal
control system, risk management and legal compliance in the Group; Assisting the
BOM in finance and accounting.
»»Independently, objectively evaluating and consulting the Group’s internal activities;

identifying and proposing remedy for possible mistakes, shortcoming, risks in business
operations and management of the Group and member units.
»»Proposing solutions to renovation and completion of business, finance, accounting

management system in the Group.
RESPONSIBILITIES »»Auditing and submitting the annual financial statements of the Group and member
companies to the Board of Management for approval.
»»Assisting the BOM in the financial and accounting fields under its authority.
»»Constructing plans and implementing internal audit in the Group and member
companies.
»»Based on the results of internal auditing, proposing advice and solutions to the BOM.
»»Monitoring, supervising the post-audit execution of recommendations and directions.
HUMAN RESOURCES AND REMUNERATION DEPARTMENT
FUNCTIONS Consulting and assisting the BOM in directing and managing
»» Human resource development strategy. REGARDING ORGANIZATION AND STAFFING REGARDING LABOR, REMUNERATION
AND POLICIES
»»Staffing in the Group under the BOM’s authority.
»»Organization: To implement Staff Management »»Promptly monitoring and implementing
»»Labor, salary and bonus management and entitlements, policies in the Group. Rule of Vietnam National Petroleum Corporation entitlements for staff managed by the Group’s
for the corporations, one member LLC owned Board of Management under the regulations;
by the Group, the Human Resources and
Remuneration Department developed plans »»Appraising remuneration fund in 2018 and
and reported to the Group’s leadership for plans for 2019 of the BOM and Supervisory
approving and implementing the segregation Board proposed by units before GMS is held.
RESPONSIBILITIES Regarding human resource development strategy of the titles of Chairman and Director in some
one member LLC in the Group. »» Maintain
monthly advance payment of wage
»»Researching, preparing and proposing human resource development strategies that and annual settlement for capital representatives
are suitable for each period to the BOM for approval »»Personnel planning: The Department reviewed, of companies invested by the Group.
reported, and submitted personnel planning of
»» Inspecting and supervising the implementation of the targets of and solutions to some subsidiaries to the BOM for approval.
human resource development strategies set by the Group.
»»Personnel appointment: In 2019, the Department
Regarding staffing appointed personnel under the Group’s
management in compliance with the regulation
»» Researching, developing and proposing the Group’s hierarchically organizational and of hierarchy and assigned the Chairman of the
operational models in line with each period of development. Company to appoint staff in units; re-appointed
staff; appointed representatives who administer
»»Developing personnel planning, training the Group’s personnel, reviewing the staff the Group’s capital at joint stock companies.
assessment process and staff exchange schemes.
»»Directing the management of personal
Regarding labor, remuneration and policies documents of staff, the Party’s members,
evaluating and supplementing staff’s resume;
»»Researchingand building protocols and policies on management of labor, wage, annually implementing (additional) asset and
bonus, remuneration and benefit package for the Group’s staff. income declaration in accordance with the
regulations.
»»Monitoring the compliance with the Labor Code as well as labor and training policies.
SUBORDINATING DEPARTMENTS UNDER THE BOM AND THEIR ACTIVITIES Department’s activities in 2019
(continued) The Risk Management Department was established and put into operation since 01 July 2018. In 2019, the Risk
Management Department recruited more staff and operated stably, completed works with professional consultants,
RISK MANAGEMENT DEPARTMENT and submitted draft reports and template to the risk management project Steering Committee for the risk management
system to be put into operation in 2020.
»»The Risk Management Department met and worked with domestic and foreign investors to successfully sell the
Group’s treasury stocks at good price.
FUNCTIONS The Risk Management Department has functions of consulting and assisting the BOM
in directing and managing:
»»Initially
consulted the BOM on capital divestment from
companies which are non-related to the Group’s core
business.
»»Riskmanagement strategy, organization, management, review, assessment of the
Group’s risk management activities under the law.
»»Completed and issued annual reports and sustainable
development report which promoted the Group’s
»»Investor relations (IR): Meeting and coordinating with financial institutions, investment transparency and were highly appreciated by investors.
funds, domestic and foreign investors owning or having interest in investment in the
Group’s shares.
RESPONSIBILITIES »»Researching, developing, and proposing risk management strategy, overall risk
management rules and policies of the Group to the BOM for consideration and approval.
»»Inspecting, urging, and supervising implementation of strategic targets and solutions
to risk management given by the Group.
»»Proposing solutions to amendment and completion of the Group’s risk management
strategy to meet requirements on the Group’s enterprise development and business
operation.
»»Reporting, consulting the Group’s BOM in accurately, comprehensively understanding
risk management to direct and supervise the Group’s business operations in order
to ensure that members in the Group follow general development orientations and
strategies and strive for the Group’s targets in line with the law.
»»Managing risk management activities performed by Risk Management Division, EVALUATION OF INDEPENDENT BOM MEMBER’S PERFORMANCE
including preparing institutional documents on risk management; receiving and
Currently, Petrolimex has no independent BOM members. With the large State capital contribution (75.87% of the
reviewing periodic and ad-hoc risk management reports from the General Director and
charter capital), most of the BOM members of Petrolimex are representatives of the State Capital (5/7 members). Under
Risk Management Division regarding status and effectiveness of management of risks
the Prime Minister’s direction in Decision No. 1232/QD-TTg dated 17 August 2017 regarding the approval on the List of
and key risks before submitting to the BOM for consideration.
the State-owned enterprises to be divested during 2017-2020 (“Decision No. 1232”), State holdings at Petrolimex will
»»Supervising and examining risk management and response activities, giving timely be reduced to 51%. Petrolimex actively developed plan on supplementing the number of BOM independent members
opinions on important risk issues to departments under control of the BOM, Board of under the regulations and reports to the Committee for Management of State Capital. However, due to objective
General Directors and member units in the Group. and subjective factors impacting the progress of divestment from State-owned enterprises (including Petrolimex),
»» Taking responsibility for reporting, consulting on risks, managing and handling risks for the the Government directed the Ministry of Planning and Investment to focus on reviewing and properly amending
BOM to make decisions regarding some issues under authority of the BOM, including issues of: Decision No. 1232 and the divestment process of enterprises. Therefore, in the upcoming time, after the Prime Minister
• Orientating the structure and growth rate of asset - equity, efficiency of asset - equity has official direction on amendment of Decision No. 1232, Petrolimex will consult the Committee for Management of
on balance sheet of the Group in line with sustainable growth of total assets and risk State Capital about the divestment and decrease of the State-owned capital in Petrolimex, at the same time, assess and
management policies annually approved by the BOM. select qualified independent BOM member in accordance with Decree No. 71/2017/ND-CP.
• Managing capital mobilization between the Group and member units and
among member units to optimize the capital resources; Receivables and liabilities THE BOM MEMBERS’ PARTICIPATING IN THE CORPORATE GOVERNANCE
management rules; Guarantee, mortgage, unsecured loans for borrowing companies. TRAINING PROGRAMS IN THE YEAR
• Making plans for investment, capital mobilization, divestment, sale of treasury stocks,
issue of valuable papers of the Group and member units, subsidiaries, associates of In 2019, the BOM Chairman attended Vietnam Executive Leadership Program organized by Harvard Kennedy School.
the Group.
• Assessing quality of major assets, investment projects of the Group and member
units, subsidiaries, associates under authority of the BOM.
THE SUPERVISORY BOARD’S STRUCTURE
AND ACTIVITIES REPORT OF SUPERVISORY BOARD
MEMBERS AND ORGANIZATIONAL STRUCTURE OF THE SUPERVISORY BOARD ACTIVITIES OF THE SUPERVISORY BOARD
The Supervisory Board is elected by GMS to be responsible for supervision activities in accordance with the laws and According to the Group’s Charter, Rules of the Supervisory Board and related regulations, in 2019, the Supervisory Board
the Group’s Charter, and the Board consists of 05 supervisors: actively and pro-actively performed works in accordance with its functions and responsibilities on an independent and
objective basis. Accordingly, the Supervisory Board performed the following key tasks:
Number
Number of shares
Benefit Related »»Making and issuing 2019 supervision plan in the database for periodic supervision, analyzing financial
Legal conflicts benefits Document No. 276/PLX-BKS on 15 March 2019; statements promptly and effectively.
No. Member Title of owned by
violation with with Assigning tasks to each supervisor.
shares related
parties
Petrolimex Petrolimex »»Periodically analyzing and assessing performance and
»»Preparing, completing and submitting Reports of corporate governance of the Group and member units.
Head of the Supervisory Board and Proposal for Selection of
1 Mr. Dinh Viet Tien Supervisory 8,000 0 None None None Financial Statement Auditor to 2019 GMS of the Group. »»Reviewing, assessing, amending, supplementing, and
Board completing the Group’s rules, regulations, processes
2 Mr. Nguyen Vinh Thanh Supervisor 1,000 0 None None None »»Monitoring and assessing implementation of the GMS of governance (investment rules; financial rules,
and the BOM’s Resolutions. management rules of petroleum stations, etc.).
3 Ms. Pham Thi Dung Supervisor 4 0 None None None
»»Implementing and directly supervising 03 petroleum »»Performing duties of the State capital representatives
companies, 01 one member LLC; verifying result of in the Group and the Group’s capital representatives in
4 Ms. Hoang Mai Ninh Supervisor 4,120 0 None None None
BOM’s guideline implementation after supervising member units under the law.
01 joint stock company; Coordinating with other
5 Mr. Tong Van Hai Supervisor 1,000 0 None None None operational departments to inspect and supervise 06 »»Participatingmeetings and giving opinions to the
member companies/corporations of the Group. Group’s Board of Management.
THE SUPERVISORY BOARD’S ACTIVITIES »»Collecting information, and developing, completing »»Performing other related tasks of the Group.
In 2019, the Supervisory Board organized quarterly meetings with full participation of members to summarize work
results performed in the period and to plan for the next period. Detailed contents of the meetings are as follows:
No. Meeting Date of meeting Main contents Participant

Developing supervision plan for 2019; Preparing the
1 The 1st time 15 February 2019 Supervisory Board’s Reports and Statements for the 2019 100%
GMS of the Group.
Evaluating task implementation and results in the first

2 The 2nd time 17 April 2019 100%
quarter; direction and main tasks in the second quarter.
Evaluating task implementation and results in the second

3 The 3rd time 23 July 2019 100%
quarter; direction and main tasks in the third quarter.
Evaluating task implementation and results in the third

4 The 4th time 16 October 2019 100%
quarter; direction and main tasks in the fourth quarter.
Summarizing, evaluating task implementation and results

5 The 5th time 12 December 2019 100%
in 2019; direction and main tasks in 2020.
REPORT OF SUPERVISORY BOARD (continued)
SUGGESTION OF THE SUPERVISORY BOARD
ACTIVITIES OF THE SUPERVISORY BOARD (continued) For safely and effectively continuous development of the Group’s operations, the Supervisory Board proposed the
following suggestions:
RESULTS OF SUPERVISION AND VERIFICATION ON 2019 FINANCIAL STATEMENTS
»»Continuously reviewing, evaluating, amending, supplementing, and completing the rules, regulations, management
The Parent company’s separate financial statements and the Group’s consolidated financial statements for the year ended process, internal economic and technical norms for higher consistency and compliance with the applicable laws as well
31 December 2019 were audited by KPMG Vietnam Co., Ltd. and issued on 06 April 2020. The Supervisory Board agreed as the operating practices of the Group and its subsidiaries.
with the auditor that the Parent Company’s financial statements and the Group’s consolidated financial statements in
2019 give a true and fair view, in all material respects, of the financial position as at 31 December 2019, and of its results »»Actively implementing the Group’s development strategy for 2020 - 2030 period with a vision towards 2045 while
of operations and its cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the finalizing and approving the planning of technical facilities for petroleum trading by 2030 with a vision towards 2045.
Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable to financial reporting. Accordingly, reviewing, evaluating, and selecting appropriate and effective investment projects.
Financial indicators: »»Building plan and restructuring the Group and its member units under the direction of the Government and the Owners.
As at 31 December 2019 »»Continuing to review, analyze, evaluate, and provide positive solutions to finalize the business mechanisms, financial
No. Items Unit mechanisms, corporate governance, as well as improve the competitiveness and operational efficiency.
Separate Consolidated
I Total assets VND billion 40,640 61,762 »»Continuing to review and evaluate potential risks in production and business activities of the Group and its member
1 Current assets VND billion 28,014 38,753 units. Correspondingly, having feasible, synchronous, and appropriate solutions for remaining problems, especially in
some member units.
2 Long-term assets VND billion 12,626 23,009
II Total resources VND billion 40,640 61,762
ORIENTATION OF THE SUPERVISORY BOARD IN 2020
1 Liabilities VND billion 20,273 35,839
2 Owner’s Equity VND billion 20,367 25,923 In 2020, the Supervisory Board will focus on the implementation of the Supervision Plan as elaborated in Document No.
277/PLX-BKS dated 10 March 2020 with the following main activities:
III Resources structure
1 Liabilities/Total resources % 50 58 »»Monitoring the implementation and results of
Resolutions provided by the GMS and BOM;
2 Owner’s Equity/Total resources % 50 42
IV Liquidity ratio »»Supervising the formulation, assignment, and
implementation of the business plan; focusing on cost
1 Current ratio Time 1.38 1.13
reduction to improve the competitiveness and the
2 Quick ratio Time 0.94 0.79 business performance;
V Profitability
»»Supervising the review, evaluation, amendment,
1 Profit after tax VND billion 3,139 4,677 supplementation, completion and issuance of internal
2 ROE (Profit after tax/Owner’s Equity) % 16.2 19.0 management rules of the Group and its member units;
3 ROA (Profit after tax/Total assets) % 8.2 7.9 »»Monitoring the restructuring of the Group and its
VI Basic earnings per share VND 3,166 member units under the direction of the Government
and the Owners;
RESULTS OF SUPERVISING THE BOARD OF MANAGEMENT AND THE GENERAL DIRECTOR »»Supervising and evaluating the completion of the
business management mechanism and the financial
Result on the Board of Management: Basically, the BOM exercised its authority and obligations in accordance with mechanism; Periodically reviewing and analyzing
the legal provisions, the Group’s Charter, and the Resolutions of the GMS. In 2019, the BOM continuously renewed and financial statements;
promoted its activity efficiently; organized meetings and issued resolutions in compliance with legal provisions and
the Group’s regulations. The BOM provided the General Director with strict and prompt directions and gained positive »»Supervising the implementation of labor and
results in business and production activities and corporate governance. remuneration management and other regimes for
Result on General Director: Basically, the General Director and other managers performed their functions and missions employees and managers in accordance with the State
under their authority and directions of the Board of Management, legal provisions and the Group’s regulations; and the Group’s applicable regulations and some other
proactively implemented every task assigned by the GMS and BOM while contributing great efforts and innovations to contents regarding business operation and corporate
the business operations. governance.
TRANSACTIONS, REMUNERATION AND BENEFITS OF
THE BOARD OF MANAGEMENT, BOARD OF GENERAL INTERNAL CONTROL SYSTEM
DIRECTORS, SUPERVISORY BOARD
STRUCTURE OF INTERNAL CONTROL SYSTEM
SALARIES, BONUSES, REMUNERATION AND BENEFITS The Group has had its internal control system developed and gradually perfected. Principally, the internal control
system is composed of three lines of defense under the following model:
» »The payment of salaries, rewards and other income of • Salary and remuneration paid to concurrent
the Board of General Directors, Chief Accountant are members of the Group’s BOM and executive board
paid in accordance with the regulations on salaries, (including the General Director, Deputy General
rewards and other prevailing regulations of the Group BOARD OF MANAGEMENT
Directors, Chief Accountant): VND 11,409,591,000.
and in accordance with the regulations of the State;
» »Bonuses(if any) of the executive board will be

• Salary paid to full-time members and other
concurrent members of the Board of Management:
deducted from profit after tax and executed in BOARD OF GENERAL DIRECTORS
VND 3,901,016,000. In which: salary paid to full-time
accordance with the Group’s regulations of financial
BOM members: VND 3,345,405,000.
management;
LEGAL EXECUTION AGENCY

INDEPENDENT AUDIT FIRM
» »Other income will be paid in accordance with the • Salary and remuneration paid to the Supervisory
State’s labor policies applied by the Group; Board: VND 4,519,231,000. Other costs for activities
of supervisors and the Supervisory Board comply FIRST LINE OF SECOND LINE OF THIRD LINE OF
» »According to 2019 salary and remuneration payment with the Charter, applicable rules, and regulations of DEFENSE DEFENSE DEFENSE
plan for the BOM members and the Supervisory Board the Group.
members approved by 2019 annual GMS, amount of FINANCIAL CONTROL
paid salary and remuneration:
Control activities in
SECURITY ASSURANCE
variety of tasks
RISK MANAGEMENT INTERNAL AUDIT

Control activities of
Parent Company and QUALITY MANAGEMENT
its subsidiaries’ Board of
Management SUPERVISION
COMPLIANCE
First line of defense refers to operational and front offices of the Parent Company and its subsidiaries. All processes
and operations shall observe the internal control principles and the legal provisions to minimize errors arising from
daily operations. This line of defense is responsible for identifying, assessing, preventing, reporting, and monitoring any
risks arising in the business activities and other operational processes; protecting the interests of Petrolimex through
self-assess and monitor the effectiveness of risk management and internal control measures.
Second line of defense refers to the Legal Department, Risk Management Department, and the risk management
division under the Group’s Finance and Accounting Department. The responsibilities of this line include developing
policies and guidelines on risk management, controlling the compliance and giving critical comments (if necessary),
TRANSACTIONS OF INTERNAL SHAREHOLDERS summarizing the general risk profile reports, monitoring and reporting the implementation of risk response plans,
AND RELATED PERSONS developing a risk management methodology, and providing implementation guidance to all units throughout the
Group.
Transactions of internal shareholders: No transaction occurred in 2019. Third line of defense refers to the Internal Audit Division. The Internal Audit Division provides independent
assessments of the first and second lines of defense to assist the BOM and Board of General Directors in the design and
Contracts or transactions with internal shareholders: None the effectiveness of the Internal Control System for better corporate governance, maximization of resource efficiency,
asset protection, and sustainable development.
INTERNAL CONTROL SYSTEM (continued)
FUNCTIONS AND RESPONSIBILITIES INTERNAL CONTROL TOOLS

Petrolimex’s Internal Control System was established with four objectives, including: Petrolimex’s asset protection, ONLINE CENTRALIZED DATABASE SYSTEM
information reliability, implementation of legal regimes, and operational efficiency.
Information technology (IT) has played a significant role
in the Group’s internal control system. Specifically:
»»Asset protection: The Internal Control System is accuracy and reliability of Petrolimex’s operational
developed and designed with various procedures and situation. This will assist the BOM and Board of General
Directors to provide timely and reasonable decisions
»»At the Parent Company and 43 petroleum member
lines of defense to protect Petrolimex’s assets including companies: All business activities have carried out
material and non-material assets such as accounting for higher business efficiency of the Group.
on the SAP-ERP system where employees perform a
books, important documents, etc., against being variety of tasks in their assigned roles.
stolen, or used for other purposes than Petrolimex’s »»Implementation of legal regimes: Petrolimex’s
business operation. Internal Control System is implemented to ensure its
compliance with legal provisions. »»At petroleum stations: EGAS and AGAS systems have
facilitated users to control all economic transactions of
»»Information reliability: Financial and economic
2,600 Petrolimex’s petroleum stations network from a
information processed and aggregated by the »»Operational efficiency: The control procedures are
designed to prevent unnecessary double works of distance, including: merchandise, invoice issuance, bill
accounting department is an essential basis for
operations resulting in wasteful and inefficient use of collection, etc.
managers to make decisions. As a result, any
information provided must ensure the timeliness, Petrolimex resources.
»»At the petroleum terminals: Most of the primary
terminals implement automated technologies
and all the Group’s petroleum terminals apply loss
PRINCIPLES OF INTERNAL CONTROL management apps.
Petrolimex’s internal control system operates based on three general principles: segregation of duties, no concurrent
assignment, and approval, authorization. For other divisions, in member units, advances in science,
technology and information technology were also
integrated to achieve the highest efficiency in business INTERNAL CONTROL PLAN IN 2020
»»Segregation of duties: Petrolimex operates in various • Having custody of assets versus accounting.
industries and business segments, with the principal management and administration.
• Authorization tasks versus implementation tasks. In 2020, Petrolimex will continue to perfect the internal
business activities as petroleum trading. According control system to control risks better through the
to this principle, responsibilities and duties should • Management tasks versus book-keeping tasks. DATA ON RISKS AND CONTROL IN 64 YEARS
following specific activities:
be specifically assigned to different departments and »»Approval and authorization: For the purpose
OF OPERATION WERE COLLECTED
different people in each department within the Group’s of controlling, all economic transactions arising in »»Promulgating the Group’s risk management rules and
Parent Company and all subsidiaries. The intent behind the Group, including the Parent Company and its INTERNAL CONTROL ACTIVITIES IN processes and adapting them to the enterprise risk
doing so is to eliminate instances in which someone or subsidiaries, should be properly approved under the 2019 management system and process.
department could completely control any operations. order, procedures, regulations and the internal rules of
Also, by sharing responsibilities to each other, one the Group. During 2019, all lines of defense in the Internal Control »»Issuingand implementing internal audit regulations
employee’s work serves as a check on the work of other System excellently performed their functions and and procedures under Decree 05/2019/ND-CP.
employees. As a result, the clear segregation of duties • General approval: Implemented via building general
policies on the Group’s business operations. General responsibilities, and closely coordinated together for a
provides work specialization, minimizes fraud and errors,
approval ensure the business operations of the coherent and effective internal control system across the »»Preparing and amending the Group’s legal documents
and facilitates easy error detection. Group. This contributed significantly to asset protection, to ensure effective internal regulations, rules, and
Group’s member units is consistent with the Group’s
»»No concurrent assignment: The principle of development orientation. incident mitigation, and successful fulfillment of all procedures for higher management efficiency.
no concurrent assignment involves separating planned targets.
responsibilities of related operations and having • Specific approval: Implemented for each operation »»Implementing the 2020 control plan according to
them conducted by different employees. The primary and process. Specific approval will be applied for most In the context of volatility in business activities, internal the issued subjects and contents, detecting errors of
incompatible tasks that need to be segregated are: of operations arising on the entire Petrolimex system, control activities need to adapt and make the most the internal control system to have prompt response
especially important, valued or irregular ones, etc. of technical support tools for constant review and measures to improve the management and operational
assessment of potential risks in the Group and its efficiency.
subsidiaries’ operations. Thereby, feasible, synchronous,
and appropriate solutions could be proposed to
maximize the control efficiency.
RISK MANAGEMENT PROCESS
RISK MANAGEMENT
CONTEXT ESTABLISHMENT
RISK MANAGEMENT STRUCTURE
INFORMATION EXCHANGE AND
SUPERVISION AND REVIEW

SUPERVISORY RISK IDENTIFICATION
CONSULTATION
BOARD
BOARD OF RISK ANALYSIS

MANAGEMENT
RISK LEVEL DETERMINATION
HUMAN
STRATEGY
GENERAL RESOURCES
RISK MANAGEMENT AUDIT AND RISK RESPONSE
ADMINISTRATION AND
DEPARTMENT DEPARTMENT INVESTMENT
DEPARTMENT REMUNERATION
DEPARTMENT
DEPARTMENT
GENERAL
DIRECTOR
THE RISK MANAGEMENT PROCESS DEPLOYED AT THE VIETNAM NATIONAL
DEPUTY GENERAL
DIRECTORS 1 PETROLEUM GROUP INCLUDES RISK ASSESSMENT AND RISK RESPONSE ACTIVITIES,
WHICH ARE PERFORMED IN PARALLEL WITH CONTINUOUS SUPERVISION, REVIEW,
INFORMATION EXCHANGE AND CONSULTATION.
DIRECTOR/CAPITAL Context establishment the results of risk analysis (possibility and impact) to
REPRESENTATIVES THE RISK MANAGEMENT assist in making decisions to respond to the risk.
This is the process of understanding the Group’s business
IN SUBSIDIARIES/ DIVISION UNDER THE environment and operations, including internal and Risk response
SPECIALIZED GROUP’S FINANCE
AND ACCOUNTING external factors that may affect the Group’s business
DEPARTMENTS Risk response is the process of identifying appropriate
DEPARTMENT objectives and strategies in order to define the limits,
scope, and level of risk management to be able to achieve measures to deal with risk, which ensure the practicality
the Group’s objectives. and balance between costs and benefits while providing
specific steps and their timeline. The risk response
Risk assessment process shall be monitored and supervised to ensure the
In which: effectiveness and the progress of the proposed measures.
Risk assessment is an overall process of 03 tasks: risk
identification, risk analysis, and risk level determination. Supervision and review
The BOM takes the ultimate responsibility The Deputy General Directors take responsibility
for the orientation and supervision of all risk for the orientation of developing and performing »»Risk identification is the process of identifying and Supervision and review are planned in the risk
management activities. risk management activities across the Group. listing events that can potentially prevent or delay the management process, including inspection and
Group’s process of achieving its objectives. This step supervision during risk management activities. This
The Risk Management Department assists The Risk Management Division under the shall consider a range of specific consequences, identify step is conducted to ensure the effectiveness of the
the BOM and together takes responsibility for Group’s Finance and Accounting Department is the root causes of events and possible scenarios. risk management activities while providing additional
supervising risk management activities across responsible for developing and implementing risk »»Risk analysis is the process of identifying the possibility information for risk assessment and identification of new
the Group in accordance with the policies and management activities. and impact of a risk on the Group’s objectives to or emerging risks.
risk appetite. determine the risk level. Risk analysis activities shall
The internal auditors are responsible for Information exchange and consultation
consider the root causes and sources of risks as well
The General Director takes the ultimate independently evaluating the effectiveness of as their positive and negative consequences. If there The purpose of this step is to ensure that the personnel
responsibility for the Group’s risk management, risk management processes and activities, timely are available control measures corresponding to a responsible for implementing the risk management
including giving direction to his management providing independent assessments to the BOM specific type of risk, the risk analysis should be carried process and stakeholders understand the basis for each
activities. on the effectiveness of risk management and out concurrently with the analysis of the validity and decision and the causes of specific actions. Information
control. effectiveness of the existing control measures. exchange and consultation with internal and external
stakeholders should be performed in every step of the
»»Risk level determination involves ranking a risk priority enterprise risk management process.
according to the approved risk parameters based on
RISK MANAGEMENT (continued)
RISK MANAGEMENT PROCESS (continued)

EFFECTS, MAJOR RISKS AND OPPORTUNITIES
2 THE GROUP’S RISK MANAGEMENT PROCESS IS DIVIDED INTO TWO APPROACHES RISK MANAGEMENT STRATEGY ACTIVITIES IN 2019
TO IDENTIFY, EVALUATE, AND RESPOND TO RISKS
Petrolimex’s business strategy considers petroleum In 2019, to complete the risk management system, the
trading as its main line in order to select markets and Group:
business commodities/products to build a strong brand
“Top-down” approach “Bottom-up” approach position with the highest benefits and maintain its leading »»Provided training for risk management team to enhance
Identify major risks that may have adverse effects Identify risks at the process level, analyze and provide risk position as Vietnam’s largest enterprise in the petroleum their quantity and quality to effectively implement risk
on the Group’s objectives, analyze risks, and provide response plans based on the unit’s operating processes. downstream business, while maintaining the investment management activities.
remedial measures while assigning duties in These risk response plans are implemented and reported to in the retail network and increasing investment in
addressing risk across the Group based on its planned the higher level for monitoring purposes. technical facilities for labor productivity improvement. As »»Created risk culture and awareness: The roles and
objectives. a result, a solid foundation can be created to continue responsibilities for risk management of stakeholders
to develop other auxiliary lines based on available must be clarified. Individuals involved in risk
competitive advantages and invest in oil refineries for a management must be adequately trained to turn the
THE RISK MANAGEMENT DIVISION IS RESPONSIBLE FOR RESEARCHING AND stable supply and gradual development into an energy risk culture a part of corporate culture and business
3 PREPARING THE ENTERPRISE RISK MANAGEMENT PROCESS, SUBMITTING TO THE

RISK MANAGEMENT DEPARTMENT AND THE BOARD OF GENERAL DIRECTORS FOR
group with sustainable development.
To achieve this sustainable business strategy, the risk

activities.
»»Identifiedand managed major risks: The major risks

REVIEW BEFORE OBTAINING APPROVAL FROM THE BOARD OF MANAGEMENT.
management activities will act as a nuclear element for of the Group’s units operating in the petroleum
Petrolimex’s proactive and clear operating orientations sector must be identified, evaluated, monitored, and
4
THE RISK MANAGEMENT DIVISION IS RESPONSIBLE FOR REVIEWING AND
and appropriate decisions compared to its risk tolerance addressed as planned to minimize the impact and loss
UPDATING (IF NECESSARY) THE ENTERPRISE RISK MANAGEMENT PROCESS and desired risk level, better endurance and adaptability caused by adverse and unexpected events to help
PERIODICALLY OR IN CASE OF ANY CHANGE IN THE GROUP’S RISK MANAGEMENT to changes in the Group’s internal and business Petrolimex achieve its sustainable business objectives
ACTIVITIES FOR THE CONSISTENT AND EFFECTIVE IMPLEMENTATION OF THE environment, and sustainable growth even in difficult and strategies.
PROCESS. times caused by economic slowdowns.
EFFECTS, MAJOR RISKS AND OPPORTUNITIES (continued)

MAJOR RISKS
Following are the major risks affecting the Group’s operating segments:
1 Inventory risk 2 Foreign exchange risk 3 Risk of fluctuation of oil price 4 Risk of non-maintainability and non-
expandability of retail network
Identification Identification Identification Identification

»»Arising from failure to maintain reasonable »»Arising from fluctuations of foreign exchange rates. »»Arising from the fluctuations of reference oil price »»Arising from failure to maintain and expand
inventory levels for profit optimization and in the international market, the fluctuations of the retail network to provide sufficient energy to all
Measurement
national energy security. price gap between two categories of the same provinces and remote areas across the country.
Measurement
»»Measure the profit/loss of individual transaction/ commodity, and immediate delivery in case of
Measurement
portfolio (from time to time). scarce supply in the regional market and price
»»Measured by the difference between actual and »»Measure the value-at-risk in case of exchange rate increases. »»Evaluate the percentage of stations that do not
estimated optimal inventory as a basis for assessing fulfill their business plans.
fluctuations. Measurement
the necessity of adjusting the existing planning
measures, processes, models, and formulas. »»Determine the maximum losses of a transaction/ »»Measure the profit/loss (by comparing base
»»Measure the level of meeting the quality standard
of Petrolimex’s station system in the observation
portfolio that may arise over a period of time with price and monthly prime cost) within the period,
»»Measure the effects of existing inventory
a given confidence level. then conduct analysis and evaluation to take
period.
management measures, models, and formulas on
the business results, as a basis for assessing the Supervision
appropriate measures for improvement. »»Measure the number of target stations (through
bidding, leasing, purchasing) lost to competitors
need of improvement. Supervision
»»Develop daily, weekly, monthly, and annually out of the total stations for evaluation.
Supervision financial plans. »»Coordinate between related departments
Supervision
to develop the purchasing plan at the most
»»Monitor KRIs, monthly and quarterly reports »»Prepare daily report on the conditions of financial »»Establishspecialized boards to control the retail
reasonable price.
submitted by related departments to the Risk performance, outstanding foreign currency loans,
network of the Group.
Management Department and Group’s leaders. foreign currency procurement. »»Adjust the price formulas specified in import
Management »»Review and check every record of foreign currency contracts according to the base price in »»Monitor the list of stations and specific locations,
accordance with the State regulations. identify all stations that are at risk of narrowing or
trading for completeness and compliance with
»» Managed by processes and procedures. Provide
legal provisions. Management
can be improved in depth.
standard daily and monthly reports.
Management
Management »» Contract signing protocol; supplier selection process.
»»Managed by exchange-rate risk management »»Transaction history, price history, suppliers. »»Managed by specialized boards.
processes.
»»Managed by analyzing market changes (including »»Regulations on station investment and other
specialized management processes.
»»Analyze, grasp the forex trends and provide changes in crude oil price, geopolitics, product
information to make decision, and take price in the region and the world, etc.)
appropriate measures to prevent any losses
arising from exchange rate differences.

MAJOR RISKS (continued)
Risk of failure to comply with laws/ Risk of adverse changes in the State’s laws/ Risk of failure to identify change Risk of failure to promptly reform,
5 regulations related to tax and 6 regulations related to petroleum price 7 requirements of domestic market 8 renovate and inadequately invest in
financial policies policies and management mechanisms for response preparation new product research and development

»»Arising from any changes in Laws and Regulations »»Arising from adverse changes in the State’s laws/ »»Arising from failure to fully and promptly identity »»Arising from the investment in research and
related to Tax and Financial policies. regulations related to petroleum price policies and and assess: competitors, the State’s policies on development of new environmentally friendly
management mechanisms, leading to financial changing business goods (replacement of goods), products which are not commensurate with the
Measurement
losses for Petrolimex. changes in consumer trends, and others, leading enterprise potential position and the market
»»Evaluate the effectiveness of tax administration. Measurement
to a decline in market share affecting Petrolimex’s development requirements, lack of a legal corridor
business performance and untimely meeting the for new products, and lack of human resources and
»»Measure the fluctuation level of all taxes with »»Measure the compliance with petroleum price needs of society. technology for research.
uncertainty about the potential arrears to pro-
management mechanisms by all functional units
actively provide appropriate response plans. Measurement Measurement
for timely adjustments and handling measures.
»»Measure the compliance with internal tax
Supervision
»»Measure the level and trend of fluctuations in sales »»Measure Petrolimex’s competitiveness compared
regulations between periods for assessment of volume. to competitors in developing and commercializing
compliance. »»Monitor through periodic reports on changes in »»Market share fluctuation over the previous period new products in the market for improvement of
the State laws/regulations related to petroleum measures.
Supervision
price policies and management mechanisms. »»Existing customer retention rate. »»The percentage of customers understanding and
»»The specialized units regularly summarize and
»»Monitor through regular reports on the »»The percentage of satisfied customers out of the highly appreciating the new product out of the
update any changes in tax and financial policies
implementation of price adjustment process total number of surveyed customers total number of surveyed customers.
and regulations.
in case of any State’s laws/regulations on price
»»Cross-check departments to ensure the compliance adjustment.
Supervision »»Number of research and development projects
reaching the planned targets and expected profit
with tax and financial policies and regulations.
Management
»»Monitor through market research reports,
out of the total number of projects
competitors, periodic response solutions.
Management
»» Managed by the regulations on the Group’s
Management
Supervision
»» Consult,update and guide the implementation organization, operations, and petroleum market
of tax and financial policies and regulations on a information system. »»Managed by regulations, customer management »»Monitor through research reports, solutions and
preparation plans at laboratories.
monthly basis mainly through specialized units and and monitor programs to promptly identify any
tax advisory services for risk mitigation purposes.
»»Petroleum price adjustment process throughout changes in consumer trends for timely responses. Management
the Group.
»»By regulations and processes through a group
of specialized personnel in product research and
development.

9 Risk of fraud and trademark

infringement
10 Compliance risk 11 Risk of fire, environmental, and
occupational safety
12 Risk of insufficient and poor data
quality and integrity

»»Arising from the brand abuse and trademark » »Arisingfrom the non-compliance with related »»Arising from the failure to ensure fire and »»Arising from the system or transmission line errors
infringement by franchised stores and unrelated legal provisions and the Group’s internal environmental safety as well as occupational safety during data processing, transmission, and storage;
parties, inappropriate behaviors of employees regulations by the Parent Company and and hygiene. attacks by viruses, hackers and other external objects;
to customers/partners, improper information its subsidiaries which are 100% owned or intentional data theft, inappropriate or illegal data
Measurement
transmission by media companies affecting controlled by Petrolimex, and from the failure modification by employees, affecting the security,
Petrolimex’s reputation and prestige in the market, to comply with Petrolimex’s regulations by »»Measure the number of incidents during the period. safety, integrity, and confidentiality of information
leading to a decline in sales, profits and interests of capital representatives in Petrolimex-owned and the information technology system and causing
»»The percentage of units/stations not meeting
customers. companies, causing Petrolimex financial losses external information leakage, misinformation
the standards of fire and environmental safety,
and reputation damage. for decision making, reputation damage, lower
Measurement occupational safety and hygiene out of the total
competitiveness and financial losses for Petrolimex.
Measurement number of units/stations.
»»Measure the number of brand-related incidents. Measurement
»»Measure the number of brand fraud cases detected »»Measure Petrolimex’s the level of compliance »»The percentage of trained employees out of the
during the observation period.
with internal and legal policies/regulations of total number of individuals subject to training. »»Calculate the percentage of failed critical system backup
Petrolimex, the severity of incidents and non- (not working, corrupted, etc.) during the measurement
»»Calculate the number of negative feedback from »»Measured by other basic indicators
compliance activities during the observation period out of the total number of processes backed up.
customers affecting the brand. period. Supervision
»»Calculate the number of firewall attacks.
Supervision »»The percentage of policy-related incidents and »»Periodically monitor through periodic inspections
problems solved promptly out of the total number and incident statistics to conduct analysis,
»»Calculate hacked attacks (spam, malware, etc.) and
»»Periodically monitor through news and articles
assessment of causes and remedies.
firewall rules.
of policy-related incidents and problems arising in
from press agencies and reports on brand
protection of member units.
the period. Management
»»Calculatethe number of unusual/unauthorized data
access/modification
Supervision » »By
Management processes and regulations on technical
Supervision
» »By the applicable regulations, the process of
» »Periodically monitor through periodic and operations, labor rules, and rules of access
trademark management and protection of the
irregular inspections. to petroleum units and works with specific »»Periodically monitor through review reports on
provisions on basic safety rules. information security throughout the system.
Group. » »Through reports of reflected incidents and
solutions. Management
» »Appoint a reputable, experienced and specialized
consultant to build and develop Petrolimex’s Management » »By the General Regulations on information security
brand in a methodical manner. policy. Human resource security management,
»»By the regulations and processes of compliance
Information exchange management, Information
risk control and internal audit.
security incident management, and other relevant
regulatory processes.

Risk of adverse changes in laws/

13 regulations related to petroleum 14 Other risks
product
Identification In addition to specific risks of the petroleum

business, the Group, as well as other economic
»»Arising from the unpredictable changes in legal entities, will be affected and will suffer losses if
regulations on petroleum products, the limited force majeure risks occur. Force majeure risks such OPPORTUNITIES
ability to promptly adapt to new regulations due as earthquakes, natural disasters, floods, fires, wars,
to the large size of the business, leading to sudden epidemics, terrorism, etc., will cause damage to As the leader in Vietnam’s petroleum business with it be recognized by the community for its efforts in
adjustments in business strategy and lower property, people, environment, and the general infrastructure and management system developed environment protection and contributions to the social
operational efficiency. situation of the Group as well as other enterprises and perfected for the last over 64 years, Petrolimex has community.
Measurement in the economy. great advantages due to well fulfillment of the industry
specific requirements. By meeting strict requirements The risk management process is a useful tool for
»»Measured by the percentage of compliance on safety and environment, Petrolimex gained a lot of Petrolimex to control risks arising from related economic,
assurance projects being implemented on opportunities for market expansion as well as reaching environmental, and social aspects. In 2019, Petrolimex
schedule out of the total number of projects to be more supplier and customer. With the advantage of a witnessed no occurrence of any significant adverse
implemented for compliance assurance. warehouse system meeting high safety standards and events or incidents that negatively affected the Group’s
Supervision incident prevention measures, more and more new strategy and business operations. The early research and
partners cooperate with Petrolimex. implementation of the risk management process since
»»Monitor through periodic and irregular reports as 2018 showed the vision of Petrolimex’s Board of General
prescribed. In addition, significant contributions to community Directors in strengthening the corporate governance
»»Through separate inspection programs of the programs, social security, and a large contribution to method for a closer approach to international progress
Petroleum Technical Committee and related the State budget also help Petrolimex gain support and standards. This will open up more opportunities for
Departments. and assistance from the authorities and consumers. Petrolimex, since risk management not only minimizes
The leading position in the business of high-quality disadvantages and solves crisis, but also make use of new
Management and environmentally-friendly petroleum products not opportunities.
»» By the regulations on petroleum quality and only brings Petrolimex higher revenue but also help
system of written quality control reports.
LEGAL AFFAIRS AND COMPLIANCE
FUNCTIONS AND RESPONSIBILITIES RESPONSIBILITIES OF THE DEPARTMENT OF LEGAL AFFAIRS AND INSPECTION
»»Performing the tasks of the Inspection Commission of the Group’s Party Committee:
Implementing Instruction No. 17-HD/BTCTW dated 05 October 2018 of the Central Organizational Commission and
Resolution No. 950-NQ/DU dated 26 June 2019 of the Party Standing Committee, the Vietnam National Petroleum Group • Developing and implementing inspection and supervision plans of the annual term of Party Committee and its Inspection
has perfected the organizational structure of the specialized departments and consolidated the Party’s advisory and Commission.
assisting agencies with the Group’s specialized departments sharing similar functions and responsibilities. Accordingly,
the Department of Legal Affairs and Inspection takes over the inspection and supervision duties of the Party to give • Counselling and assisting the Party Committee and its Inspection Commission in the settlement of denunciations and
advice and support the Group’s Party Inspection Commission. complaints about party discipline under the Party’s Charter, guidelines provided by the Party Central Committee and the
Group’s Party Committee.
FUNCTIONS
»»Leading and/or coordinating with related departments and units to support Petrolimex’s leaders:
Pursuant to Decision No. 429/PLX-QD-TGD dated 30 July 2019 of the General Director of the Vietnam National Petroleum
Group on promulgating the regulations on functions, responsibilities, and authorities of the Department of Legal Affairs • Advising on the formulation, amendment and supplement of Petrolimex’s charter; developing and promulgating
and Inspection. Accordingly, the main functions of the Department of Legal Affairs and Inspection are: Petrolimex internal rules, regulations, and internal management rules;
»»Counselling and assisting the Group’s Party Committee and its Inspection Commission in inspection, supervision, • Preparing contract forms; providing legal opinions and appraising contracts, internal management rules and
and enforcement of party discipline of the Group’s Party Committee. regulations drafted by other departments before submitting to Petrolimex’s leaders; engaging in contract negotiation
and conclusion (if required by Petrolimex’s leaders).
»»Counselling and supporting the Group’s leaders in directing, managing, and implementing legal affairs and inspection
activities of the Group. • Giving comments on the drafted legal documents submitted by agencies and organizations; requesting the competent
agencies to amend and supplement any legislations related to Petrolimex operating activities.
• Counselling and managing the General Director’s authorization to Petrolimex’s units, Deputy General Directors and
officers as specified in the legal provisions.
• Creating a program for developing and reviewing amendments of the internal management documents within
Petrolimex’s management scope, then monitoring and inspecting the implementation.
• Leading, monitoring, updating, reviewing, and systematizing domestic and foreign legal documents, international
customs and practices related to the Group’s operations and conducting law dissemination within the Group.
• Consulting on legal issues related to operations and management of the Group to protect the legal rights and interests
of the enterprise and its employees.
• Leading and consulting Petrolimex and subsidiaries’ managers, leaders represent to manage the Petrolimex’s
contributed capital in other enterprises and consider and settle disputes arising in production and business activities
and management under their ranks for proper procedures as prescribed by the law.
»»Developing annual inspection to submit to the General Director for approval and implementation.
»»Managing complaints and denunciations and taking charge of legal proceedings: Providing direct assistance
to the General Director in task performance, citizen reception, consideration and settlement of complaints and
denunciations under the procedures of the law.
»»Coordinating work between Petrolimex and competent agencies for sufficient compliance with the legal provisions
and the Group’s obligations on economic security protection.
»»Counselling and supporting Petrolimex managers and Party Committee in corruption prevention. Assisting the
Steering Committee in implementing Petrolimex anti-corruption law.
»»Assisting the Steering Committee in implementing Petrolimex’s democratic regulations.
2019 ANNUAL REPORT

LEGAL AFFAIRS AND COMPLIANCE (continued)
LEGAL AFFAIRS AND COMPLIANCE IN 2019

KEY MISSIONS IN 2020
With the above functions and responsibilities, the Group’s Department of Legal Affairs and Inspection has completed
the following legal, compliance, inspection, and supervision tasks in 2019:
REGARDING THE PARTY’S INSPECTION AND

SUPERVISION ACTIVITIES
»»Advice and information on legal documents were also
provided to member units timely and sufficiently. 1 Developing and implementing the 2020 inspection and supervision program
of the Party Committee and its Inspection Commission.
»»Developing and implementing the 2019 Inspection REGARDING THE LEGAL COMPLIANCE
and Supervision Program of the Party Committee and
its Inspection Commission. »»In 2019, the Group held 49 inspections and supervision Establishing a plan for law dissemination and training in 2020. By appropriate
»»Organizing conferences for a thorough understanding
on the compliance with the State’s and the Group’s
regulations at its member units. The inspection 2 methods, the Group will disseminate laws and other legal documents related
to the Group’s business operations to managers and officers in charge of legal
and implementation of the Party’s Resolution on found that some units did not fully comply with the
affairs and inspection at the unit.
functions and responsibilities, as well as inspection management regulations. The Group required its
and supervision plan in 2019; making preliminary and member units to review rules and regulations for
final reviews of inspection and supervision activities; timely amendment and supplement in line with the
providing professional training for officers in charge of actual situation at the unit; and to immediately rectify
inspection and supervision. and resolve the existing problems while intensifying Implementing the plan of establishing and promulgating the internal
REGARDING THE LEGAL AFFAIRS

inspection activities and taking strict measures against
violations committed by related collectives and 3 management documents as proposed while continuously reviewing and
systematizing the Group’s internal management documents.
individuals.
»»In 2019, the Group developed 2019 law dissemination
and training plan to be deployed across the Group, »»In 2019, the Group received 25 proposals, petitions,
including: new legal documents taking effect in complaints, reports, and denunciations about
2019; legal guidelines, especially those related to management and administration activities in some Counselling the Group’s managers and specialized departments on legal
petroleum management and trading activities; internal
management documents under the Group’s issuing
member units, in which, 02 denunciations under
the Group’s jurisdiction were accepted, verified, and 4 issues related to the Group’s operations to ensure legal compliance and
protect the legal rights and interests of the Group and its employees.
authority. Methods of dissemination: posting on the concluded. Petitions under a unit’s jurisdiction were
Group’s internal information system, handing out handed over to that unit for settlement and reported
copies, organizing courses and seminars on legal affairs, to the Group.
etc., for the Group’s employees and member units.
»»The Group regularly disseminated legal provisions
Developing 2020 legal affairs and inspection program of the Group. Inspecting
»»In 2019, the Group amended, supplemented and on anti-corruption in appropriate methods. In the
5
the management fields, focusing on management of measurement, delivery,
issued 07 internal management documents including first quarter of 2019, the Group declared its income
and quality of petroleum, technical safety, fire and explosion prevention,
rules, regulations, internal rules, and management and assets in 2018 and made public as prescribed.
environmental protection; inspecting the management of cash flow, goods,
procedures. The Group also inspected the compliance with the
and liabilities; inspecting the establishment and promulgation of management
provisions in the Anti-Corruption Law at 03 member
rules and regulations, inspection and control, anti-corruption activities, and
units. In general, the Group and its member units
the implementation of democratic regulations; inspecting upon request of
proactively implemented the Anti-Corruption Law; the
the Group’s managers for better management, etc.
Group and units’ managers respected, concerned, and
directed the implementation of anti-corruption.
Actively addressing petitions under the Group’s jurisdiction. Maintaining the
6 instruction, inspection, and settlement of complaints and denunciations

at units; assigning responsibilities to heads of all levels in implementing
the regulations on citizen reception and settlement of complaints and
denunciations according to the law.
DIGITAL TRANSFORMATION SUSTAINABLE DEVELOPMENT
DIGITALTRANSFORMATION REPORT
05
DISTINCTION DRIVES US
Report overview
Goals and orientations of sustainable development strategy
FORWARD Stakeholder engagement
Environmental standards
Economic efficiency
Social standards
REPORT OVERVIEW
REPORT CONTENT CONTACT

The sustainable development report of Vietnam National Petroleum Group Sustainable development is a key strategy of the Group affecting stakeholders. Any feedback and suggestion related to
(Petrolimex) – the ticker symbol is PLX, has been prepared to review and re- our sustainable development, please send to:
evaluate the principles of sustainable development practices at the Parent
Company and its subsidiaries. The report contents state Petrolimex’s approach
to sustainable development issues, mentioning material issues, clearly Vietnam National Petroleum Group (Petrolimex)
demonstrating the medium and long-term strategic development objectives
of the Group. Figures and information presented in the report include: Website: www.petrolimex.com.vn
Activities related to sustainable development were implemented in 2019,
development strategies in the following years and Petrolimex’s commitment Phone: (024) 3851 2603
to its stakeholders.
Headquarters: No. 1 Kham Thien, Kham Thien Ward, Dong Da District, Hanoi, Vietnam.
SCOPE OF REPORT Office: 24th Floor, VCCI Building, No. 9 Dao Duy Anh, Dong Da District, Hanoi, Vietnam.
Information and figures in the report are updated for Petrolimex’s fiscal year
2019, started from 01 January 2019 and ended on 31 December 2019. Reports
on economic, environmental and social activities are compiled from the main
operations carried out by the Parent Company and its subsidiaries. The report
is prepared in Vietnam, in the business operations: Petroleum, Petrochemical,
Gas, Transportation, Others etc. of Vietnam National Petroleum Group and its
subsidiaries. Ms. Nguyen Minh Anh Mr. Tran Tuan Linh
Email: anhnm@petrolimex.com.vn Email: linhtt@petrolimex.com.vn

APPROACH OF THE REPORT CONTENT
Position: Risk and IR Officer Position: Chief Risk Officer
Petrolimex’s approach to sustainable development issues is derived from the
Group’s long-term sustainable growth goals combined with the goals of social
development and environmental protection, thus contributing positively
to the general society development. The issues related to the sustainable
development goals continue to be assessed and reviewed by Petrolimex in
relation to its current operations, clearly identifying material issues to conduct
reviews and improvements as detailed in the content of the Sustainable
Development Report 2020.
GOALS AND ORIENTATIONS OF SUSTAINABLE
DEVELOPMENT STRATEGY
Trading petroleum products always has potential risks of fire, explosion In particular, the Group is the pioneer in the field of petroleum business
and environmental pollution. Petrolimex has always determined that in Vietnam that has studied, applied, and successfully implemented
“Sustainable development” is an urgent need and an indispensable the system of petroleum vapor recovery unit (VRU) at Duc Giang Oil
trend in the overall development strategy and orientation of the Terminal. With the largest frequency of petroleum input and output in
industry; Economic development must always be accompanied by the North, averagely 4,000 m3 of gasoline is dispatched daily at the
environmental protection and social development. Depot with hundreds of vehicles coming and going. After operating
the system, gasoline vapor has been significantly reduced, even during
Sustainable development is associated Since its foundation, Petrolimex has always considered the task peak hours, the smell of gasoline has been virtually eliminated. The
with environmental protection, in of preserving, protecting the environment and safety for its result of continuous monitoring at the beginning of the exhaust gas
order to bring a green environment employees as the top priority. Therefore, Petrolimex has invested flow discharged into the environment of the device shows that the
to the community and make an in building and implementing industry development programs concentration of Hydrocarbon is always in the range of 18-20g/m3
important contribution to ensuring and long-term plans on environmental protection and safety.
social security, national defence The annual plan is implemented specifically and synchronously (European standard: 35g/m3).
and security, which is the central at the production and trading units and petroleum sites.
and cross-cutting perspective of
Petrolimex. In recent years, Petrolimex has invested trillions of VND in
environmental protection such as installing modern technology
systems and equipment for petrol and oil production and
trading units in the Group to minimize environmental pollution,
prevent leakage. Research and applications of science and
technology on environmental protection has always been
focused and successfully implemented many projects and items
such as investing in wastewater treatment systems to meet
environmental requirements in all petroleum stations and
terminals; installing buoy roofs, reflective paint in tanks to
minimize the amount of gasoline vapor emitted into the
environment; deploying steam recovery system; equipped with
oil spill buoy system, fire-fighting foam, rescue ship on the river
and sea; building a system to collect and treat contaminated oil
etc.
GOALS AND ORIENTATIONS OF SUSTAINABLE
DEVELOPMENT STRATEGY (continued) STAKEHOLDER ENGAGEMENT
SUSTAINABLE DEVELOPMENT MODEL

From the early days of its establishment, Petrolimex has clearly determined
Under the direction of the Board of Management, Petrolimex regularly reviews the operating processes related to that the success of the Group must be associated with building
the Group’s sustainable development goals by actively interacting with stakeholders. The positive dialogue process sustainable relationships with stakeholders. The core cultural values of
between Petrolimex and its stakeholders always aims to ensure the effective implementation of solutions in line with
Brand Values (Heritage, Diversity, Development, Humanity) and Brand
the Group’s strategy and sustainable development orientation.
Personality (Optimism, Enthusiasm, Responsibility, Trust) are the principles
in building the sustainable relationship of Vietnam National Petroleum
Group in order to bring long-term value and benefits to stakeholders.
Roles:
BOM Chairman Stakeholders are those who are likely to affect Petrolimex’s operations, or be affected by Petrolimex’s business and
Orientating and directing
production activities. Accordingly, stakeholders identified by Petrolimex include:
Steering committee
BOM Chairman
and General Director
Roles:
General Director Directing and
organizing implementation
GOVERNMENT
AND STATE
MANAGEMENT
AGENCIES
EMPLOYEES CUSTOMERS
Standing and Roles:
coordinating Monitoring and coordinating implementation
committee
COMMUNITY PARTNERS
Group Roles:
SHAREHOLDERS,
implementing report Implementing
INVESTORS
STAKEHOLDER ENGAGEMENT (continued)
Stakeholders Concerns Petrolimex’s approaches Frequency of engagement Petrolimex’s actions
»»Regularly, continuously; »»Implementing successfully and strictly Decision No.49/2011/QD-TTg and Decision No. 53/QD-
»»Pioneering in applying new policies and regulations of the State; TTg, and fully preparing to meet conditions on goods sources, technical facilities ready for
Government, »»Fully implementing obligations and deploying,
»»Actively participating and contributing ideas at conferences, »»Regularly; business, putting into circulation of new commodity fuels in compliance with the International
seminars and specialized programs;
State supporting guidelines and policies of the State;
»»Actively interacting, proactively proposing and contributing ideas »»Upon request; Maritime Organization (IMO)’s Regulation on Sulphur limits, on time as from 01 January 2020;
Management »»Complying with laws’ regulations; to adjust and supplement legal documents;
»»Amending and supplementing regulations and stipulations related to business administration,
Agencies »»Ensuring effective business; »»Participating in conferences of petroleum organizations and investment, legislation etc. to implement consistently across the Group;
associations. »»Regularly; »»Continuing to implement the electronic invoice program;
»»Complying with obligations of paying to the State budget.
»»Ensuring to use investment capital effectively; »»Meeting and consulting at the General Meeting of Shareholders »»Periodically/when arising; »»Organizing the Annual General Meeting of Shareholders in 2019;
»»Ensuring publicity, transparency and timeliness of
(annually / extraordinarily according to the Decision of the law);
»»Organizing Roadshow in Vietnam market and in 3 countries including Singapore, United
information; Kingdom and Korea.
Discussing with major shareholders related to investment projects;
Shareholders, »»Stabilizing and increasing value of enterprises and stock »»Organizing Roadshow programs, meeting investors; »»Meeting 40 investment funds, most of which are from big asset management companies in
Investors value on the stock market;
»»Consult, collect comments in writing, website, email, social »»When arising; the world and have invested in Vietnam.
»»Constantly enhancing the corporate governance networks etc.;
»»Regularly: »»Roadmap for dividend payment in 2019: 20% advance payment, payment date 27 April 2020;
capacity; The remaining 10% after the General Meeting of Shareholders;
»»Treating equality, ensuring the benefit of shareholders. »»Releasing Annual Report, Sustainable Development Report. »»Periodically. »»Releasing the Annual Report and Sustainable Development Report 2019.
»»Ensuring quality and transparency in products’
information;
»»Providing products meeting customers’ requirements; »»Often; »»Continuing to trade high quality fuel (Euro V-standard diesel, Euro IV-standard Ron 95 gasoline),
»»Product portfolio is diversified in types and prices, meets »»Conducting comments and listening to customers via website, »»Regularly; environmentally friendly (E5Ron92 gasoline). Focus on researching and developing new and
demand for each demand of customer group; environmentally friendly energy products such as LNG;
Customers email, social networks, etc.;
»»Constantly improving and enhancing service quality »»Holding retail customer conferences; »»When arising; »»Implementing pilot payment by domestic ATM cards, electronic wallets at petroleum stations;
and sales process. Applying cashless payment method in large-scale to optimize customer experience, improve
»»Increasing interaction and listening to demands of »»Providing information through the mass media. »»Regularly; customer care efficiency.
customers.
»»Meeting and negotiating directly in work programs and

»»Regularly; »»Regularly providing information and contact;
»»Cooperating for development; conferences;
»»Regularly; »»Actively sourcing, sharing difficulties in the
context of domestic oil refinery constantly
Partners »»Operating business responsibly. »»Getting feedback from customers via email, telephone, documents; experiencing technical problems;
»»Organizing customer conferences. »»Periodically. »»Organizing the Nationwide Customer Conference 2019.
»»Implementing regulations on environment to ensure fire

safety and environmental safety at petroleum works;
»»Providing medical, educational facilities, etc. for localities; »»Coordinating with local authorities; »»Regularly; »»Operating business associated with the responsibility on environment protection, and social
»»Supporting economic development for localities; security. In 2019, Petrolimex spent VND 75.2 billion for social security activities to support the
Community »»Providing advanced and environmentally friendly »»Popularizing and enhancing awareness of
environment safety;
»»Regularly. construction of compassion houses, educational and medical facilities, etc.;
products; »»Voluntarily contributing to support funds;
»»Contributing to the State budget and the development
of localities where Petrolimex member units operate.
»»Ensuring income sources, welfare, and labor safety »» Responding and exchanging directly via email, or telephone; »»Regularly;
regime; »»Labor Conference; »»Periodically; »»Buying health care insurance for employees;
»»Creating civilized working environment with no »»Discussing through Trade Union; »»Regularly; »»Organizing Laborer Conference in 2019;
Employees discrimination; »»Surveying and getting laborers’ opinions; »»Regularly; »»Organizing exchange programs, tournaments, sports festivals; Organizing employee travel
»»Training to enhance capability, skills and having personal »»Launching movements of Shopkeepers, Excellent »»Periodically; programs;
development opportunities; Sales Staff; »»Organizing end-year and New-Year events, etc.
»»Recognizing dedication and contribution. »»Organizing health exercise movements. »»Regularly.
ENVIRONMENTAL STANDARDS (*)
Petrolimex is a national petroleum corporation with special political duties

in ensuring energy security and social development. “An abundant and
economical energy supply is a mandatory requirement for the socio-
economic pillars for sustainable development”. In this context, balancing
the role of ensuring national energy security and the goal of sustainable
development is a challenge for Petrolimex. Petrolimex must have the
responsibility for meeting the needs of the entire society for gasoline at
a reasonable cost, with safety and minimal environmental impact.
EMISSIONS
ANALYSIS OF GREENHOUSE GAS EMISSIONS FROM PETROLIMEX’S BUSINESS OPERATIONS
The business areas that Petrolimex engages in are the fields of trade and services, not the manufacturing sector. The
analysis of greenhouse gas emissions from Petrolimex’s operations is listed in the following table:
The level of
Activities causing Scope of
direct emissions
No. Business area greenhouse gas greenhouse gas
from business
emissions emissions
operation
From means of trading
Indirect Low
petroleum transport
1 Trading in petroleum Petroleum vapors from
stations and storage Direct Often
systems, tanks, pipes
Trading in lubricants and
2 N/A(**) N/A N/A
petrochemical products
3 Trading in liquefied gas N/A N/A N/A
Transporting gasoline
Emissions from
4 Petroleum transportation Indirect Low
operating in-land and
water transportation
Emissions from
Mechanical design and construction
5 Indirect Low
construction machinery and
vehicles
6 Trading in petroleum equipment N/A N/A N/A
Commercial services Use energy for office
7 Indirect Trivial
(insurance, banking, etc.) areas
(*): All figures in the “Environmental standards” section are statistics of the Parent Company and the Petroleum Division (**) N/A: Below the limit of detection
ENVIRONMENTAL STANDARDS (continued)
SOLUTIONS FOR GREENHOUSE GAS REDUCTION
For direct emissions

3 Evaporate from joints
in petroleum storage
The most significant emissions generating VOCs directly are from technology pipelines
Petrolimex’s petroleum facilities.
VOCs (Volatile organic compounds): are organic substances in

solid or liquid form that can evaporate naturally when exposed to »»Maintenance of storage tanks and »»This Regulation unifies the requirements
atmospheric pressure at room temperature. Once evaporated into pipelines is managed by the regulations on for the inspection and maintenance of
the air, many VOCs can combine with each other or connect to other inspection and maintenance of pipelines petroleum pipelines at petroleum stations
molecules in the air to form new compounds. Within a certain limit in petroleum depots, issued together under Petrolimex in order to improve the
VOCs are harmful to human health. with Decision No. 286/PLX-QD-TGD of 08 management efficiency and organize the
June 2017 of General Director of Vietnam implementation of pipeline inspection
National Petroleum Group. and maintenance in petroleum depots,
thereby detecting and preventing the
Sources generating VOCs at petroleum stations are identified and managed as follows: maximum of leaking pipes which may
4
cause loss of vapor or petrol liquid.
1 Evaporate at the mouth of xitec

Evaporate from covers of
underground fuel storage
tanks when loading cargo
vehicles when there is operation from xitec trucks to tanks
of discharging cargo into tanks
»»According to Vietnam standards (QCVN: »»However, the application of gas vapor

»»At Duc Giang Oil Terminal - in 2015, VRU »»For petroleum traders and petroleum 2013/BCT), the petroleum input into tanks recovery system right now is not
vapor recovery system- recovering gas transportation that have not yet applied, at petroleum station must use the method mandatory. Currently, Petrolimex is
vapor during the process of importing when receiving goods at Duc Giang Oil of sealing by using quick couplings at the pioneer that has completed the
into cars, was completed. All xitec vehicles Terminal, they are supported by using the two ends imported from xitec trucks installation of vapor recovery system at all
under the management of Petrolimex synchronous coupling details, to ensure to intake pipes at underground tanks at stores belonging to the Group’s system.
have been synchronized to ensure a tight that gasoline vapor will not escape into petroleum station.
fit with this system. the environment when importing.
5
2 Evaporate from storage tanks of
Evaporate at the fuel tank
lid when refilling fuel tanks
gasoline when having an increase
of the vehicle
in temperature phenomenon
through the valve
»»Petrolimex applies the installation of »»In 2019, Nha Be Petroleum terminal tested »»The phenomenon of gasoline vapors (VOCs) »»Petrolimex has studied to invent gas vapor
floating roofs in tanks in petrol depots to the project of growing beggar sticks weed emitting into the atmosphere at petroleum recovery pumps, but the compatibility
prevent evaporation when the ambient around the tank area, creating a green stations when refilling fuel has long been issue between fuel pump heads and tank
temperature changes; Reflective paint to landscape and reducing the temperature identified and studied by Petrolimex. The caps has not been resolved. This needs the
reduce the phenomenon of temperature surrounding the petroleum tank. It is difficulty in solving this problem is: the synchronous investment and coordination
increase affecting the volume of gasoline expected that in 2020, it will continue to asymmetry of the lid of the container of of many related units and industries.
vapor in the tank. expand in other areas of Nha Be Petroleum individual vehicles.
terminal.
For indirect emissions According to the Group’s statistics (excluding Petrolimex Singapore and Petrolimex
Laos), the output of gasoline Ron95 Euro IV and Diesel Oil 0.001S Euro V as follows:
Indirect emissions from power consumption sources of offices, energy consumption of transportation vehicles are
considered insignificant.
The amount of emissions that can be measured at petroleum stations is caused by vehicles coming for purchasing. DIESEL OIL (DO)
95 GASOLINE RON95 DO
Over the years, Petrolimex has constantly improved the processes of selling gasoline and oil at petroleum stations,
0.001S EURO V
including the regulation that requires customers to turn off their vehicles while buying fuel. However, the compliance EURO IV
with regulations depends heavily on the consciousness of customers, so the phenomenon of emissions in petroleum
1,207 883
stations is still happening.
MILLION
TRADING IN CLEAN PRODUCTS TO REDUCE EMISSIONS
Petrolimex is a key petroleum trading unit, Completing the replacement of all RON92 M3,TON M3,TON
accounting for the largest market share in the products with
E5
country. The selection of Petrolimex’s business
products has a major role, affecting the quality
of emissions into the environment.
Being aware of this, Petrolimex has been a pioneer Emission reduction thanks to consumption of DO 0.001S Euro V and Ron95 Euro IV
Ron95
in 2019
EURO IV
in complying with the Government’s regulations
in selecting clean and environmentally friendly
Unit: Ton
products:
250,000
»»Completing the replacement of all RON92
products with E5 by 15 December 2018 - 15 20,346
Diesel Oil 0.001S
days before the deadline according to the
EURO V
200,000
Government’s regulation.
»»In 2019, being the first and only unit at the 150,000
present time to supply gasoline Ron95 Euro IV,
Diesel Oil 0.001S Euro V and 0.5S FO ship’s fuel
(15 days prior to the deadline). ship’s fuel 100,000
FO 0.5S 50,000
1,035
441
2,765
2,765
0
Based on the output of these two products and based on the emission standard data sheet for tourism and individual
cars, the emissions that the whole Group (excluding Petrolimex Singapore and Petrolimex Laos) have indirectly
reduced thanks to the selection of its business products can be estimated as follows:
Total Hydrocarbons (THC) NOx +HC
Total Hydrocarbons
NOx NOx +HC PM CO NOx
(THC) CO
Ton Ton Ton Ton Ton

PM
2,573 2,765 441 20,346 1,035
(*): Refer to the emissions standard table at https://en.wikipedia.org/wiki/European_emission_standards
It can be said that oil spills are the primary concern in petroleum trading
activities. Oil spills can cause problems of environmental pollution, and are
a leading risk of fire.
WASTEWATER AND WASTE

RESPONSE AND MANAGEMENT OF OIL SPILLS
Petrolimex has prepared a strong system of manpower Currently, Petrolimex owns 9,000 meters of oil tank buoys,
and material resources to cope with oil spills throughout 25 buoy tugs, and 24 skimmers. The number of employees
its system. All depots and petroleum stations are planned involved in the management and implementation of the
to respond to oil spills. All petroleum units have a Steering oil spill response task is 3,500 - accounting for about 10%
Committee for responding to oil spills. Oil spill response of the total number of employees in the Group.
exercises are planned annually, internally or in collaboration
with local units. From 2015 to the present, the whole sector In 2019, Petrolimex did not allow significant oil spills.
has organized 855 oil spill response drills. From 2015-2019, Small incidents (a few tens of cubic meters or less) have WASTEWATER TREATMENT
Petrolimex units have invested about VND 35 billion for the been handled in time without causing any harm to the
purchase of oil spill response equipment. environment.
Domestic wastewater
In 2019, the total number of petroleum stations completed overhaul was 250 stores. Newly renovated stores focus
Training on oil spill response in 2015 - 2019 on investing in toilets with a system of qualified treatment tanks - beside serving employees at the store, also serving
customers buying gasoline.
855 42 Oil contaminated wastewater
Oil contaminated wastewater at oil depots and stores is controlled by a system of collection and treatment of
oil spill response drills oil spill response’s training courses contaminated oil wastewater:
»»At petrol stores: The system of 3-compartment sedimentation tanks is designed with a drainage system to collect
2,293
oil spill response training’s participants
the entire amount of rainwater that may be contaminated with oil in the areas of the stores and then skim oil before
discharging into the area’s general drainage system.
»»» At petroleum depots: The drainage systems are separated: the rainwater system overflowing in clean convention
areas is directly discharged into the environment and the system gathering water which is likely to be contaminated
with oil, after controlled, it will be led to the wastewater treatment system to treat before reaching the discharge
Training on oil spill response in 2019 standards into the environment.
150
managers all over the Group are trained on oil
4.2 VND BILLION
oil tank buoys at B12 Oil Terminal investment

SOLID WASTE
Waste generated from petroleum trading activities is managed in accordance with the law on domestic waste and
hazardous waste. The main components of hazardous waste are: sludge from wastewater treatment systems, gloves
spill response and rags contaminated with oil, drums, cans containing samples, etc. To the waste, Petrolimex hire units that collect
and handle oil contaminated waste in the locality to deal with.
96
Hazardous waste is stored in designated containers at Petrolimex’s facilities, in specially marked areas. Domestic waste
is also collected and managed in standard containers.
In 2019, Petrolimex has completely replaced all sample storage bottles with standard containers. This action significantly
oil spill response drills all over the Group reduces the number of short-lived sample storage bottles that are considered hazardous waste.
RAW MATERIAL SOURCE MANAGEMENT INTENSITY OF ENERGY USE
Petrolimex prioritizes the use of reusable, long-lasting materials to reduce waste to the environment. Petrolimex energy consumption is mainly in petroleum transportation activities. Every year, the Group requires the
Vietnam National Shipping Lines (PGTANKER) and Petroleum Services Corporation (PTC) - the two key energy users (>
Started in 2018, the Group standardized the fuel sample containers in the system of petroleum stations and stores. As 5,000 tons of TOE/year) to report the energy consumption to the Group.
a rule, gasoline must be kept samples to control the quality of goods every time it enters the warehouse and store. In
2019, Petrolimex has completed the replacement of the entire system of short shelf life plastic sample bottles with a
The total energy consumption of these two units in 2019 as follows:
with longer shelf life tin cans, thereby reducing a large amount of hazardous waste into the environment.
Petrolimex’s fuel dispensing systems all reach international standard. Petrolimex Equipment Joint Stock Company Electricity Coal DO FO Gasoline Others Exchange
(PECO) - a reputable unit in the market that supplies petrol dispensers is a subsidiary of Vietnam National Petroleum
Group. Fuel gauges provided by PECO meets Japanese quality standards - approved by the General Department of (1,000 (1,000
(kWh) (ton) (ton) (ton) (ton) (measure) (TOE)
Vietnam Quality Measurement for circulating and using. The system of warranty and maintenance of fuel gauges is litres) litres)
specified in the technical procedures and is carried out periodically. Providing quality products and good maintenance 3,596,361 0 11,299 30,393 80,894 55 218 0 121,859
systems also contribute to reducing the amount of waste released into the environment.
In 2019, Petrolimex launched the program “Reduce plastic waste”, replacing disposable plastic water bottles with
SOLUTIONS TO SAVE ENERGY
reusable bottles and glass jars.
The Group has implemented economical lighting solutions according to the regulations on lighting at petroleum
stations. This regulation defines lighting requirements to ensure labor safety and hygiene, fire safety, energy efficiency
and aesthetics at petroleum stations. Newly built and repaired petroleum stations have replaced energy-efficient
fluorescent light bulbs with less energy-efficient LEDs.
ENERGY CONSUMPTION
As a group operating in the field of energy, Petrolimex fully understands the impact of consuming each type of fuel on
the environment. The role of Petrolimex in protecting the environment in business, in using energy towards the goal of
environmental protection is expressed in two aspects:
1 Select products using

environmentally friendly energy
to provide to the society.
2 Manage the use of energy

in the organization.
WATER COMPLIANCE WITH LAWS ON

ENVIRONMENTAL PROTECTION
Petrolimex’s business activities do not use water as input material. The amount of
clean water is consumed due to the daily needs of officials and employees. With In 2019, there is no unit of Petrolimex to violate environmental laws.
the number of 18,300 employees in 2019 (43 petroleum member companies), the
equivalent of water supply (according to the standard) is 915 m³ (1 person - 50 Petrolimex currently has over 300 specialized environmental officials out of a total
litres/day and night). of 5,000 full-time safety officials. Annually, planning units coordinate with local
functional agencies to organize professional environmental protection training for
A small amount of surface water is used as stored fire water, industrial sanitary employees working directly at petrol and oil trading establishments.
water, etc. The amount of the water used in each facility is <5m³/day and night
(not subject to monitoring according to the Law on Water Resources). This
amount of water, depending on the quality and purpose of use, will be controlled
before being discharged into the environment. For industrial sanitary water mixed
with grease, it will be put into the wastewater treatment system before being
discharged into the environment.
ECONOMIC EFFICIENCY (*)
BUSINESS RESULTS REVENUE BY GEOGRAPHIC REGION
Unit: VND billion Unit: VND billion
Changing Revenue by geographic region

Year 2017 2018 2019 percentage Year Total revenue
2019/2018 In Vietnam Outside of Vietnam
3 4 5 6=5/4
2017 136,811 16,925 153,736
Net revenue from business
153,697 191,932 189,604 -1%
activities 2018 163,711 28,269 191,980
Expenses from business activities 149,539 187,143 184,776 -1% 2019 159,454 30,203 189,656
Profit before tax 4,785 5,178 5,648 9%
Profit after tax 3,912 4,155 4,677 13% CONTRIBUTION TO THE STATE BUDGET
Total assets 61,769 56,283 61,762 10% The total amount of Petrolimex taxes paid to the State budget in 2019 reaches VND 45,010 billion. In particular, the total
amount of Petrolimex income tax paid to the State budget in 2019 reaches over VND 997 billion.
Liabilities 38,385 33,187 35,839 8%
Owners’ equity 23,384 23,092 25,923 12% TOTAL AMOUNT OF

CONTRIBUTION TO STATE PETROLIMEX INCOME TAX
Share capital 12,939 12,939 12,939 0%
BUDGET IN 2019 REACHES PAID TO THE STATE BUDGET
According to the consolidated report, net revenue of the Group in the fiscal year 2019 reached over VND 189,000 billion, IN 2019 REACHES
45,010 997
a deceasing of -1% compared with that of the fiscal year 2018. Profit before tax in 2019 reached VND 5,648 billion, an
increase of 9% compared with that of 2018. The Group maintains financial stability in revenue and profit in 2019.

CONSOLIDATED PROFIT BEFORE TAX 2017 - 2019
Unit: VND billion

Unit: VND billion
6,000 5,648 50,000
5,178 45,010
5,000 4,785
40,000 38,181 39,102
4,000
30,000
3,000
2,000 20,000
1,000 10,000
0
0
2017 2018 2019
2017 2018 2019
(*): All figures in the section “Economic efficiency” are statistics of the whole Group (including the Parent
Company, Petroleum Companies and joint-stock Companies)
SOCIAL STANDARDS (*)
MANAGEMENT OF HUMAN RESOURCE DEVELOPMENT POLICIES, REGIMES FOR LABORERS
OVERVIEW OF LABOR FORCE
Building a strong, enthusiastic, professional human resource which is cohesive with the Group is a goal Petrolimex
always aims to. At Petrolimex, we cherish the values created by employees and contributing to the overall success of AVERAGE SALARY
10,726,245
the Group. Therefore, in the strategy of human resource management, concentrated solutions for building, training
and developing highly qualified personnel in the key field are always paid attention by Petrolimex. At the same time,
the Group also constantly enhances the employee’s remuneration and welfare policies to create trust and long-term
VND
commitment to the Group.
/PERSON/MONTH
NUMBER OF EMPLOYEES
(This figure is statistic of the Parent Company and Petroleum Companies)
As at December 31, 2019, Petrolimex has a total of 24,009 employees. The Group’s Parent company and 43 petroleum
member companies have 18,300 employees, an increase of 1% compared with that of 2018, mainly for the Group’s
business expansion needs.
(For detailed information on Human Resource Structure, please see page 97).
VND 9,965,000
/PERSON/MONTH
(This figure is statistic of the whole Group)
»»Build a fair, dynamic and friendly working environment »»Organize travel tours, physical training and sports
with many development opportunities. movements, create conditions for all employees to
have opportunities to learn and exchange, as well as to
»»Implement reasonable salary, remuneration, and entertain to re-create labor force.
welfare policies, creating favourable conditions for
employees to attach to the Group in long-term. In addition, Petrolimex also applies other welfare policies
and regimes such as:
»»The regimes on social insurance, health insurance,
unemployment insurance, maternity benefits, shift »»Pay for welfare properties equivalent to 01-month
meals and labor protection are fully implemented in salary (in accordance with the Circular No. 151/2014/TT-
accordance with the Government’s regulations. BTC dated October 10, 2014 of the Ministry of Finance
guiding the implementation of Decree No. 91/2014/
»»Fully comply with the terms and conditions of the ND-CP dated October 01, 2014 of the Government);
collective labor agreement between employees and
employers on birthdays, illness etc. »»Implement health insurance regime for people (at
PJICO) with an average of VND 1,800,000/person;
»»Annually improve the promotions policies for excellent
employees. At the same time, conducting many »»Implement the purchase of life insurance, voluntary
training courses to create environments for employees retirement insurance from business costs for all
to maximize their capacity. employees at a rate of VND 1.5 million to 3 million/
person/month.
»»Constantly improve the organizational structure, create
dynamism towards excitement at work for employees,
create a healthy competitiveness in each job position
so that all employees can maximize their capacity.
(*): All figures in the “Social Standards” section are given by the Parent Company and 43 regional petroleum companies
SOCIAL STANDARDS (continued)
EDUCATION AND TRAINING SOCIAL ACTIVITIES

With the view that employees are the most important factor for development, the Group has a clear policy on the task
of upgrading and improving employee efficiency, including managers, senior engineers and other workers.
In recent years, along with well performing political tasks on production
and business, Petrolimex has always paid attention to social activities,
actively participating in charitable social work, considering this as
AVERAGE TRAINING HOURS PER YEAR FOR EMPLOYEES IN 2019
one of the key tasks, in parallel with the process of construction and
development of Petrolimex.
NO. ITEMS RESULTS
The result of implementing the Government’s Resolution
696,525 hours (increasing more than 11% compared 30A on the extremely poor districts support program
1 Total training hours
with that of 2018) is a typical example. Following the direction of the
2 Average hours of training/employee 37 hours/person Government, the Ministry of Industry and Trade, the
Group has implemented comprehensive support to
3 Number of training hours for male workers 42 hours/person Dong Van district. In particular, it focuses on supporting
and creating physical resources to promote hunger
4 Number of training hours for female workers 34 hours/person
eradication, poverty reduction, social welfare care for
42,652 people (increasing nearly 13% compared with people in the district.
5 Total number of people being trained
that of 2018)
6 Number of managers participating in the training 6,689 As of October 29, 2019, after 10 years of the support
program, the Group has provided cash and in-kind
7 Average training hours for managers 85.5 hours/person resources to Dong Van district with a total value of over
VND 38,175 billion (increasing more than 17% compared VND 78.3 billion. With the above support, it contributed
8 Training costs significantly to Dong Van district to achieve important
with that of 2018)
results such as: the value added per capita in 2019 Leaders of Dong Van district awarded the Certificate of Merit of the
reached 18.7%, the average income per capita, reached Chairman of the Provincial People’s Committee to individuals with
VND 17.1 million/person/year. outstanding achievements in social security in Dong Van district.
TRAINING COURSES
26.7 78.3
584 ATTENDANTS 226 ATTENDANTS
VND BILLION
Support for localities in Phu Tho, Dak Lak,
Dak Nong and Ben Tre, etc. in 2019
VND BILLION
Cash and in-kind support for Dong Van district after
10 years of organizing the implementation of the
Program to support districts with extreme poverty
584 attendants participated in Chief 226 attendants participated in Training
Store Training Programs programs for middle managers
On that basis, in the coming time, Dong Van district
and the Group will discuss and agree to continue
109 1,370
providing support to the district on socio-economic
infrastructure. In particular, focusing on the fields of:
support the construction of standard educational works,
ATTENDANTS
ATTENDANTS build new schools; assist in the health sector; support
the Love Shelter Fund and the Study Encouragement
109 attendants participated in Training 1,370 attendants participated in IT Fund; support to complete the system of rural roads
programs for Admin Training programs and concrete. Besides, support Dong Van district on
connecting, developing tourism services, supporting
vocational training, creating jobs for workers.
76 ATTENDANTS 40 ATTENDANTS
Mr. Nguyen Van Su - Deputy General Director of Petrolimex gave
Moreover, in 2019, Petrolimex has also actively
implemented community support activities in localities
such as Phu Tho, Dak Lak, Dak Nong, Ben Tre, etc., with the
76 attendants participated in Training 40 attendants participated in Training gifts to students of Lung Cu Primary School - Ha Giang total amount of support to eliminate temporary houses,
programs at Japan (hold by JXTG) programs at Japan (hold by JCCP) poor households, great unity houses, gratitude houses of
VND 26.7 billion.
FINANCIAL STATEMENTS
DIGITALTRANSFORMATION
DISTINCTION DRIVES US
06
VIETNAM NATIONAL PETROLEUM GROUP
Consolidated Financial Statements

FORWARD for the year ended 31 December 2019
Statement of the Board of General Directors

Independent auditor’s report
Consolidated balance sheet
Consolidated statement of income
Consolidated statement of cash flows
Notes to the consolidated financial statements
VIETNAM NATIONAL PETROLEUM GROUP STATEMENT OF THE BOARD OF
CORPORATE INFORMATION GENERAL DIRECTORS
ESTABLISHMENT DOCUMENTS Decision No. 224/QD-TTg dated 14 April 1995 of the Prime Minister on The Board of General Directors of Vietnam National Petroleum Group (“the Group”) presents this statement and the
establishment of Vietnam National Petroleum Corporation. accompanying consolidated financial statements of the Group for the year ended 31 December 2019.
Decision No. 828/QD-TTg dated 31 May 2011 of the Prime Minister on the approval of The Group’s Board of General Directors is responsible for the preparation and fair presentation of the consolidated
the equitisation and restructuring plan of Vietnam National Petroleum Corporation. financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for
enterprises and the relevant statutory requirements applicable to financial reporting. In the opinion of the Group’s
Business Registration Certificate No. 0100107370 initially issued by the Hanoi Board of General Directors:
Department of Planning and Investment on 5 May 1995. The Business Registration
Certificate has been amended several times, the most recent of which is by (a) the consolidated financial statements set out on pages 194 to 255 give a true and fair view of the consolidated financial
Business Registration Certificate dated 3 May 2018. position of the Group as at 31 December 2019, and of the consolidated results of operations and the consolidated cash
flows of the Group for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese
Accounting System for enterprises and the relevant statutory requirements applicable to financial reporting; and
BOARD OF MANAGEMENT Mr. Pham Van Thanh Chairman
Mr. Nguyen Thanh Son Member (b) at the date of this statement, there are no reasons to believe that the Group will not be able to pay its debts as and
when they fall due.
Mr. Nguyen Duc Thang Member
Mr. Tran Ngoc Nam Member On the date of this statement, the Group’s Board of General Directors has authorised the accompanying consolidated
Mr. Le Van Huong Member financial statements for issue.
Mr. Nguyen Anh Dung Member On behalf of the Board of General Directors
Mr. Yoshihiro Sato Member
BOARD OF GENERAL DIRECTORS Mr. Pham Duc Thang General Director

Mr. Luu Van Tuyen Deputy General Director
Mr. Tran Ngoc Nam Deputy General Director
Mr. Nguyen Quang Dung Deputy General Director
Mr. Nguyen Van Su Deputy General Director
Mr. Dao Nam Hai Deputy General Director Pham Duc Thang
General Director
Mr. Nguyen Thanh Son Deputy General Director
Mr. Nguyen Xuan Hung Deputy General Director Hanoi, 6 April 2020
SUPERVISORY BOARD Mr. Dinh Viet Tien Head of Supervisory Board

Mr. Nguyen Vinh Thanh Supervisor
Mr. Tong Van Hai Supervisor
Ms. Pham Thi Dung Supervisor
Ms. Hoang Mai Ninh Supervisor
REGISTERED OFFICE No. 1, Kham Thien Street, Dong Da District

Hanoi, Vietnam
AUDITOR KPMG Limited

Vietnam
KPMG Limited
46th Floor, Keangnam Landmark 72
E6 Pham Hung Road, Me Tri Ward
South Tu Liem District, Hanoi, Vietnam
+84 (24) 3946 1600 I kpmg.com.vn AUDITOR’S OPINION
In our opinion, the consolidated financial statements give a true and fair view, in all material respects, of the consolidated
financial position of Vietnam National Petroleum Group as at 31 December 2019, and of its consolidated results of
INDEPENDENT AUDITOR’S REPORT operations and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting
Standards, the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable to
financial reporting.
TO: THE SHAREHOLDERS EMPHASIS OF MATTER – CORRESPONDING FIGURES

THE BOARD OF MANAGEMENT AND THE BOARD OF GENERAL DIRECTORS
VIETNAM NATIONAL PETROLEUM GROUP As described in Note 35 to the consolidated financial statements, corresponding figures as at 1 January 2019 and for
the year ended 31 December 2018 have been restated in accordance with audit results of the State Audit of Vietnam
We have audited the accompanying consolidated financial statements of Vietnam National Petroleum Group (“the announced in the audit report dated 19 July 2019 on the financial statements, activities relating to the management
Group”), which comprise the consolidated balance sheet as at 31 December 2019, the consolidated statements of income and use of the State capital and assets for 2018 of Vietnam National Petroleum Group. Our auditor’s opinion is not
and cash flows for the year then ended and the explanatory notes thereto which were authorised for issue by the Group’s qualified in respect of this matter.
Board of General Directors on 6 April March 2020, as set out on pages 194 to 255.
BOARD OF GENERAL DIRECTORS’ RESPONSIBILITY KPMG LIMITED

Vietnam
The Group’s Board of General Directors is responsible for the preparation and fair presentation of these consolidated Audit Report No. 19-02-00109-20-2
financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for
enterprises and the relevant statutory requirements applicable to financial reporting, and for such internal control as
the Board of General Directors determines is necessary to enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted
our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement. Wang Toon Kim Phan My Linh
Practicing Auditor Registration Practicing Auditor Registration
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Certificate No. 0557-2018-007-1 Certificate No. 3064-2019-007-1
consolidated financial statements. The procedures selected depend on the auditor’s judgement, including the Deputy General Director
assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the Group’s preparation and fair Hanoi, 6 April 2020
presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by the Group’s Board of General Directors, as well as evaluating the overall presentation of the consolidated
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
CONSOLIDATED BALANCE SHEET Form B 01-DN/HN
(Issued under Circular No. 202/2014/TT-BTC
as at 31 December 2019 dated 22 December 2014 of the Ministry of Finance)
Code Note 31/12/2019 1/1/2019 Code Note 31/12/2019 1/1/2019

VND VND VND VND
Restated Restated
ASSETS Long-term assets (200 = 210 + 220 + 230 + 240 + 250 + 260) 200 23,009,577,920,137 21,592,900,052,658
Current assets (100 = 110 + 120 + 130 + 140 + 150) 100 38,752,835,917,822 34,690,220,241,011 Accounts receivable – long-term 210 23,490,700,263 20,644,627,553
Accounts receivable from customers – long-term 211 936,366,193 764,038,491

Cash and cash equivalents 110 5 11,275,206,410,674 10,220,835,547,036
Other long-term receivables 216 52,215,675,631 38,879,930,623
Cash 111 4,970,650,724,196 4,153,214,642,077
Allowance for doubtful long-term debts 219 (29,661,341,561) (18,999,341,561)
Cash equivalents 112 6,304,555,686,478 6,067,620,904,959
Fixed assets 220 15,405,590,711,585 15,139,456,296,266
Short-term financial investments 120 5,397,276,850,139 4,714,407,291,361 Tangible fixed assets 221 10 13,302,917,707,455 13,106,336,273,527
Trading securities 121 5,256,246,000 5,256,246,000 Cost 222 32,418,595,448,976 30,565,481,230,714
Allowance for diminution in the value of trading securities 122 (2,336,196,354) (2,858,302,864) Accumulated depreciation 223 (19,115,677,741,521) (17,459,144,957,187)
Intangible fixed assets 227 11 2,102,673,004,130 2,033,120,022,739

Held-to-maturity investments 123 6(a) 5,394,356,800,493 4,712,009,348,225
Cost 228 2,771,695,239,069 2,653,048,915,542
Accounts receivable – short-term 130 8,343,572,216,689 7,555,938,652,072
Accumulated amortisation 229 (669,022,234,939) (619,928,892,803)
Accounts receivable from customers 131 7 8,025,564,257,065 7,006,307,772,371
Investment property 230 12 189,753,274,993 199,379,225,971
Prepayments to suppliers 132 286,675,126,466 345,559,164,182 Cost 231 274,607,545,147 269,571,985,795
Other receivables 136 8 454,769,968,171 611,402,724,774 Accumulated depreciation 232 (84,854,270,154) (70,192,759,824)
Allowance for doubtful debts 137 (423,792,707,931) (408,848,335,935) Long-term work in progress 240 989,693,974,370 872,797,997,626
Construction in progress 242 13 989,693,974,370 872,797,997,626

Shortage of assets awaiting resolution 139 355,572,918 1,517,326,680
Long-term financial investments 250 3,886,589,966,898 3,117,146,838,404
Inventories 140 9 11,772,652,098,200 10,302,681,983,396
Investments in associates, joint-ventures 252 6(c) 2,892,383,603,365 2,938,694,268,977
Inventories 141 11,828,763,594,451 10,886,562,079,765
Equity investments in other entities 253 6(d) 303,709,219,507 301,127,119,507
Allowance for inventories 149 (56,111,496,251) (583,880,096,369)
Allowance for diminution in the value of long-term financial
254 (109,502,855,974) (125,674,550,080)
investments
Other current assets 150 1,964,128,342,120 1,896,356,767,146
Held-to-maturity investments 255 6(a) 800,000,000,000 3,000,000,000
Short-term prepaid expenses 151 224,177,928,912 221,273,166,950
Other long-term assets 260 2,514,459,292,028 2,243,475,066,838
Deductible value added tax 152 418,591,717,390 327,914,211,464
Long-term prepaid expenses 261 14 2,460,216,900,717 2,233,369,481,918
Taxes and others receivable from State Treasury 153 16 1,298,617,777,022 1,324,618,669,843 Deferred tax assets 262 50,777,293,848 6,847,349,789
Other current assets 155 22,740,918,796 22,550,718,889 Long-term tools, supplies and spare parts 263 22,118,300 22,118,300
Other long-term assets 268 3,442,979,163 3,236,116,831
TOTAL ASSETS (270 = 100 + 200) 270 61,762,413,837,959 56,283,120,293,669
The accompanying notes are an integral part of these consolidated financial statements The accompanying notes are an integral part of these consolidated financial statements
CONSOLIDATED BALANCE SHEET (continued) Form B 01-DN/HN
as at 31 December 2019 (Issued under Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance)
Code Note 31/12/2019 1/1/2019 Code Note 31/12/2019 1/1/2019

VND VND VND VND
Restated Restated
RESOURCES EQUITY (400 = 410) 400 25,923,320,952,118 23,092,271,891,081
LIABILITIES (300 = 310 + 330) 300 35,839,092,885,841 33,190,848,402,588 Owners’ equity 410 21 25,923,320,952,118 23,092,271,891,081
Current liabilities 310 34,172,727,078,043 31,579,473,703,563
Share capital 411 22 12,938,780,810,000 12,938,780,810,000
Accounts payable to suppliers 311 15 13,749,116,735,981 12,488,351,421,421
Ordinary shares with voting rights 411a 12,938,780,810,000 12,938,780,810,000
Advances from customers 312 162,293,868,246 120,644,200,273
Share premium 412 3,925,554,119,365 2,246,997,553,623
Taxes and others payable to State Treasury 313 16 2,925,730,309,628 1,900,496,226,242
Payables to employees 314 862,793,217,930 846,917,404,773 Other capital 414 1,098,901,628,522 1,093,793,763,574
Accrued expenses 315 17 355,835,202,843 314,903,716,858 Treasury shares 415 22 (1,030,648,460,000) (1,350,648,460,000)
Unearned revenue – short-term 318 4,937,001,897 7,066,875,730 Differences upon asset revaluation 416 21 (1,294,725,514,734) (1,294,725,514,734)
Other payables – short-term 319 18 343,226,948,685 235,974,754,720
Foreign exchange differences 417 12,208,664,629 12,242,160,703
Short-term borrowings 320 19(a) 13,953,303,834,187 13,357,481,938,226
Investment and development fund 418 1,191,340,602,264 971,137,171,719
Provisions – short-term 321 73,247,891,649 64,578,033,000
Other equity funds 420 23 1,342,885,880,538 1,337,042,365,416
Bonus and welfare fund 322 308,742,511,042 312,537,788,096
Petroleum price stabilisation fund 323 20 1,433,499,555,955 1,930,521,344,224 Retained profits 421 4,851,950,503,696 4,390,059,643,735
Long-term liabilities 330 1,666,365,807,798 1,611,374,699,025 Retained profits brought forward 421a 694,171,768,250 -
Long-term advances from customers 332 25,168,503,103 11,397,060,920 Retained profit for the current year 421b 4,157,778,735,446 4,390,059,643,735
Long-term unearned revenue 336 3,142,044,867 931,818,164
Non-controlling interest 429 2,887,072,717,838 2,747,592,397,045
Other payables – long-term 337 134,390,148,742 159,757,079,402
TOTAL RESOURCES (440 = 300 + 400) 440 61,762,413,837,959 56,283,120,293,669
Long-term borrowings 338 19(b) 1,444,938,387,482 1,350,371,049,841
Deferred tax liabilities 341 10,046,723,604 7,797,690,698 6 April 2020

Provisions – long-term 342 48,680,000,000 81,120,000,000 Prepared by: Approved by:
Tran Xuan Duc Nguyen Ba Tung Pham Duc Thang

Accountant Chief Accountant General Director
CONSOLIDATED STATEMENT OF INCOME
for the year ended 31 December 2019 Form B 02-DN/HN
Code Note 2019 2018 Code Note 2019 2018

VND VND VND VND
Restated Restated
Revenue from sales of goods and provision of services 01 189,656,389,732,451 191,979,671,307,358 Attributable to:
Revenue deductions 02 52,864,325,572 47,197,358,198 Equity holders of the Parent Company 61 4,157,778,735,446 3,747,899,031,187
Net revenue (10 = 01 - 02) 10 4 189,603,525,406,879 191,932,473,949,160 Non-controlling interest 62 518,783,023,476 406,664,904,462
Cost of sales 11 4 175,434,116,763,035 178,026,370,937,695 Earnings per share
Gross profit (20 = 10 - 11) 20 14,169,408,643,844 13,906,103,011,465 Basic earnings per share 70 32 3,166 2,859
Financial income 21 26 1,004,290,830,755 995,307,209,114
Financial expenses 22 27 966,448,473,825 1,508,439,852,702 6 April 2020

Prepared by: Approved by:
In which: Interest expense 23 791,223,776,592 865,487,977,236
Share of profit in associates and joint ventures 24 28 646,119,755,477 636,650,090,314
Selling expenses 25 29 8,702,295,255,390 8,543,576,177,634
General and administration expenses 26 639,668,300,698 573,152,566,951
Net operating profit {30 = 20 + (21 - 22) + 24 - (25 + 26)} 30 5,511,407,200,163 4,912,891,713,606
Other income 31 201,623,852,721 349,070,900,460
Other expenses 32 65,259,497,239 84,306,448,754 Tran Xuan Duc Nguyen Ba Tung Pham Duc Thang
Results of other activities (40 = 31 - 32) 40 136,364,355,482 264,764,451,706
Accounting profit before tax (50 = 30 + 40) 50 5,647,771,555,645 5,177,656,165,312
Income tax expense – current 51 31 996,924,043,108 994,430,612,244
Income tax (benefit)/expense – deferred 52 31 (25,714,246,385) 28,661,617,419
Net profit after tax (60 = 50 - 51 - 52) 60 4,676,561,758,922 4,154,563,935,649
CONSOLIDATED STATEMENT OF Form B 03-DN/HN
CASH FLOWS dated 22 December 2014 of the Ministry of Finance)
for the year ended 31 December 2019 (Indirect method)
Code 2019 2018 Code 2019 2018

VND VND VND VND
Restated Restated
CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES
Accounting profit before tax 01 5,647,771,555,645 5,177,656,165,312 Payments for additions to fixed assets and other long-term assets 21 (2,421,742,277,474) (2,332,161,095,285)
Adjustments for Proceeds from disposals of fixed assets and other long-term assets 22 53,993,325,551 23,225,069,296
Depreciation and amortisation 02 2,030,469,201,225 2,068,564,629,989 Payments for granting loans, purchase of debt instruments of other entities 23 (15,795,047,452,268) (9,332,011,396,096)
Allowances and provisions 03 (542,626,170,089) 744,284,561,083 Receipts from collecting loans, sales of debt instruments of other entities 24 14,315,700,000,000 7,119,541,579,359
Exchange losses arising from revaluation of monetary items Collections on investments in other entities 26 193,872,373,894 95,156,012,443
04 20,004,988,312 4,446,903,525
denominated in foreign currencies
Receipts of interests, dividends and shares of profit 27 1,186,078,692,936 1,061,687,817,639
Profits from investing activities 05 (1,423,527,343,639) (1,274,070,701,604)
Net cash flows from investing activities 30 (2,467,145,337,361) (3,364,562,012,644)
Interest expense 06 791,223,776,592 865,487,977,236
CASH FLOWS FROM FINANCING ACTIVITIES
Other adjustments
07 (501,374,908,564) (1,121,563,656,502)
(Movement in petroleum price stabilisation fund – Note 20) Proceeds from capital contributed by owners, sales of treasury shares 31 2,016,749,365,742 -
Operating profit before changes in working capital 08 6,021,941,099,482 6,464,805,879,039 Proceeds from borrowings 33 69,300,966,222,627 99,067,573,679,267
Change in receivables 09 (877,437,265,592) (535,435,948,286) Payments to settle loan principals 34 (68,608,569,594,605) (100,388,168,061,012)
Change in inventories 10 (942,201,514,686) 1,591,550,716,931 Payments of dividends 36 (3,370,968,637,702) (3,688,530,405,684)
Change in payables and other liabilities 11 2,091,522,825,478 (882,100,684,374) Net cash flows from financing activities 40 (661,822,643,938) (5,009,124,787,429)
Change in prepaid expenses 12 81,872,456,996 (44,030,968,455) Net cash flows during the year (50 = 20 + 30 + 40) 50 1,051,543,005,193 (4,002,399,513,658)
Change in trading securities 13 - (2,906,257,914) Cash and cash equivalents at the beginning of the year 60 10,220,835,547,036 14,223,421,508,261
6,375,697,601,678 6,591,882,736,941 Effect of exchange rate fluctuations on cash and cash equivalents 61 2,827,858,445 (186,447,567)
Interest paid 14 (779,986,039,267) (865,515,827,354) Cash and cash equivalents at the end of the year
70 11,275,206,410,674 10,220,835,547,036
(70 = 50 + 60 + 61) (Note 5)
Income tax paid 15 (948,989,300,457) (967,768,822,649)
6 April 2020
Other receipts from operating activities 16 4,353,120,295 12,004,405,847
Other payments for operating activities 17 (470,564,395,757) (399,315,206,370)
Net cash flows from operating activities 20 4,180,510,986,492 4,371,287,286,415

NOTES TO THE CONSOLIDATED Form B 09-DN/HN
FINANCIAL STATEMENTS dated 22 December 2014 of the Ministry of Finance)
for the year ended 31 December 2019
These notes form an integral part of and should be read in conjunction with the accompanying consolidated 2. BASIS OF PREPARATION
financial statements.
(a) Statement of compliance
1. REPORTING ENTITY
The consolidated financial statements have been prepared in accordance with Vietnamese Accounting
(a) Ownership structure Standards, the Vietnamese Accounting System for enterprises and the relevant statutory requirements
applicable to financial reporting.
Vietnam National Petroleum Group (the “Group”), previously known as Vietnam National Petroleum Corporation,
a state-owned company operating in the petroleum business, was established under Decision No. 224/QD- (b) Basis of measurement
TTg dated 14 April 1995 by the Prime Minister. The Group was granted a special rank by the Prime Minister
under Decision No. 186/TTg dated 28 March 1996, aiming at enhancement of concentration, specialisation The consolidated financial statements, except for the consolidated statement of cash flows, are prepared on
and cooperation in production and business to execute the functions assigned by the State, improving the accrual basis using the historical cost concept. The consolidated statement of cash flows is prepared using
the competence and efficiency of member companies and the Group and meeting the requirements for the indirect method.
development of the economy.
(c) Annual accounting period
In accordance with Decision No. 828/QD-TTg dated 31 May 2011 by the Prime Minister on the approval of the
equitisation and restructuring plan of Vietnam National Petroleum Corporation and Business Registration Certificate The annual accounting period of the Group is from 1 January to 31 December.
No. 0100107370 dated 1 December 2011, Vietnam National Petroleum Corporation officially changed to a joint
stock company on 1 December 2011 and became Vietnam National Petroleum Group. The Group inherited all (d) Accounting and presentation currency
rights and obligations from Vietnam National Petroleum Corporation in accordance with legal regulations.
The Group’s accounting currency is Vietnam Dong (“VND”), which is also the currency used for consolidated
(b) Principal activities financial statement presentation purpose.
The Group undertakes the function of investment and development of petroleum trading activities according 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
to the State’s scheme on commercial industry development. The Group’s principal activities include operating
petroleum warehouses, petroleum ports; surveying, designing and constructing petroleum and civil works; The following significant accounting policies have been adopted by the Group in the preparation of these consolidated
importing/exporting and trading petroleum, petrochemical products and materials and equipment for financial statements.
petroleum industry and other industries, hospitality services and travel services. In addition, the Group has the
rights to operate in multi-industry business according to the State’s regulations, as well as to perform other (a) Basis of consolidation
functions assigned by the State.
(i) Subsidiaries
(c) Normal operating cycle
Subsidiaries are entities controlled by the Group. The financial statements of the subsidiaries are consolidated in
The normal operating cycle of the Group is generally within 12 months. the consolidated financial statements from the date that control commences until the date that control ceases.
(d) Group structure (ii) Non-controlling interests
The Group structure comprises of the Parent Company - Vietnam National Petroleum Group (“the Parent Company”) Non-controlling interests are measured at their proportionate share of the acquiree’s identifiable net assets at
and member companies. date of acquisition.
As at 31 December 2019, the Group had 55 subsidiaries including 43 petroleum companies fully owned by the Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as
Group within its Petroleum Division and 12 other subsidiaries (1/1/2019: 55 subsidiaries including 43 petroleum transactions with owners. The difference between the change in the Group’s share of net assets of the subsidiary
companies fully owned by the Group within its Petroleum Division and 12 other subsidiaries) as listed in Note 6(b), and any consideration paid or received is recorded directly in retained profits under equity.
9 joint ventures and associates (1/1/2019: 11 joint ventures and associates) as listed in Note 6(c).
As at 31 December 2019, the Group had 24,009 employees (1/1/2019: 24,726 employees).
FINANCIAL STATEMENTS (continued) dated 22 December 2014 of the Ministry of Finance)
(iii) Loss of control (vi) Business combination
When the Group losses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and Business combinations are accounted for using the acquisition method as at the acquisition date, which is the
any related non-controlling interests and other components of equity. Any resulting gain or loss is recognised in date on which control is transferred to the Group. Control exists when the Group has the power to govern
the consolidated income statement. Any interest retained in the former subsidiary when control is lost is stated the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control,
at the carrying amount of the retained investment in the separate financial statements adjusted for appropriate potential voting rights that presently are exercisable are taken into account.
shares of changes in equity of the investee since the acquisition date, if significant influence in the investee is
maintained, or otherwise stated at cost. (b) Foreign currency
(iv) Associates and jointly controlled entities (equity accounted investees) (i) Foreign currency transactions
Associates are those entities in which the Group has significant influence, but not control, over the financial and Transactions in currencies other than VND during the year have been translated into VND at rates approximating
operating policies. Jointly controlled entities (“joint ventures”) are those entities over whose activities the Group actual rates of exchange ruling at the transaction dates.
has joint control, established by contractual agreement and requiring unanimous consent for strategic financial
and operating decisions. Associates and jointly controlled entities are accounted for using the equity method Monetary assets and liabilities denominated in currencies other than VND are translated into VND at the
(equity accounted investees). The consolidated financial statements include the Group’s share of the income exchange rates quoted at the end of the annual accounting period. The actual rates of exchange applied to
and expenses of the equity accounted investees, after adjustments to align the accounting policies with those retranslate monetary items denominated in foreign currency at the end of the annual accounting period are
of the Group, from the date that significant influence or joint control commences until the date that significant determined as follows:
influence or joint control ceases. When the Group’s share of losses exceeds its interest in an equity accounted
investee, the carrying amount of that interest (including any long-term investments) is reduced to nil and the »» For monetary assets (cash on hand, cash in banks and receivables): the foreign currency buying rate at the
recognition of further losses is discontinued except to the extent that the Group has an obligation or has made end of the annual accounting period quoted by the commercial banks where the Parent Company and its
payments on behalf of the investee. subsidiaries most frequently conducts transactions.
One of the Group’s associates is Petrolimex Joint Stock Insurance Company (“PJICO”) which operates in the »» For monetary liabilities (payables and borrowings): the foreign currency selling rate at the end of the annual
insurance sector and one is Petrolimex Group Commercial Joint Stock Bank (“PG Bank”) which operates in accounting period quoted by the commercial banks where the Parent Company and its subsidiaries most
the banking sector. The Board of General Directors of the Parent Company assessed the effect of prevailing frequently conducts transactions.
regulations on capital contribution in insurance and banking activities under Decree No. 91/2015/ND-CP dated
All foreign exchange differences are recorded in the consolidated statement of income.
13 October 2015 and Decree No. 32/2018/ND-CP dated 8 March 2018 of the Government on investment of
state capital in enterprises and management and use of capital and assets in enterprises. Accordingly, the Group
had a plan for divestment from these associates. (ii) Foreign operations
(v) Transactions eliminated on consolidation The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated to VND at exchange rates at the end of the annual accounting period. The income
and expenses of foreign operations are translated to VND at the exchange rates which approximate those ruling
Intra-group transactions and balances, and any unrealised income and expenses arising from intra-group
on the dates of transactions.
transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains and losses
arising from transactions with equity accounted investees are eliminated against the investment to the extent
of the Group’s interest in the investee. Foreign currency differences arising from the translation of foreign operations are recognised in the consolidated
balance sheet under the caption “Foreign exchange differences” in equity.
(c) Cash and cash equivalents
Cash comprises cash balances and call deposits. Cash equivalents are short-term highly liquid investments that
are readily convertible to known amounts of cash, are subject to an insignificant risk of changes in value, and are
held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.
(d) Investments (f) Inventories
(i) Trading securities Inventories are stated at the lower of cost and net realisable value. Cost is determined on a first-in-first-out basis
and includes all costs incurred in bringing the inventories to their present location and condition. Cost in the
Trading securities are those held by the Group for trading purpose i.e. purchased for resale with the aim of making case of finished goods and work in progress includes raw materials, direct labour and attributable manufacturing
profits over a short period of time. Trading securities are initially recognised at cost which include purchase overheads. Net realisable value is the estimated selling price of inventory items, less the estimated costs of
price plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at completion and direct selling expenses.
cost less allowance for diminution in value. An allowance is made for diminution in value of trading securities if
market price of the securities item falls below its carrying amount. The allowance is reversed if the market price The Group applies the perpetual method of accounting for inventories.
subsequently increases after the allowance was recognised. An allowance is reversed only to the extent that the
securities’ carrying amount does not exceed the carrying amount that has been determined if no allowance had The Group provides allowance for inventories for obsolete, damaged and sub-standard inventories and for
been recognised. those which have costs higher than net realisable values at the end of the annual accounting period.
(ii) Held-to-maturity investments (g) Tangible fixed assets
Held-to-maturity investments are those that the Board of General Directors has the intention and ability to hold (i) Cost
until maturity. Held-to-maturity investments include term deposits at bank. These investments are stated at
costs less allowance for diminution in value of investments. Tangible fixed assets are stated at cost less accumulated depreciation. The initial cost of a tangible fixed
asset comprises its purchase price, including import duties, non-refundable purchase taxes and any directly
(iii) Investments in equity instruments of other entities attributable costs of bringing the asset to its working condition for its intended use.
Investments in in equity instruments of other entities are initially recognised at cost which include purchase Expenditure incurred after tangible fixed assets have been put into operation, such as repair, maintenance and
price plus any directly attributable transaction costs. Subsequent to initial recognition, these investments are overhaul cost, is charged to the consolidated statement of income in the year in which the cost is incurred.
stated at cost less allowance for diminution in value. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the
future economic benefits expected to be obtained from the use of tangible fixed assets beyond their originally
An allowance is made for diminution in investment values if the investee has suffered a loss, except where such assessed standard of performance, the expenditure is capitalised as an additional cost of tangible fixed assets.
a loss was anticipated by the Group before making the investment. The allowance is reversed if the investee
subsequently made a profit that offsets the previous loss for which the allowance had been made. An allowance (ii) Depreciation
is reversed only to the extent that the investment’s carrying amount does not exceed the carrying amount that
would have been determined if no allowance had been recognised. Depreciation of tangible fixed assets is computed on a straight-line basis over the estimated useful lives in
accordance with Circular No. 45/2013/TT-BTC dated 25 April 2013 of the Ministry of Finance providing guidance
(e) Accounts receivable on management, use and depreciation of fixed assets (“Circular 45”). The estimated useful lives are as follows:
Trade and other receivables are stated at cost less allowance for doubtful debts.
Buildings and structures 5 – 50 years
Allowance for doubtful debts is made for receivables that are overdue for six months or more, or when the debtor Machinery and equipment 2 – 20 years
is in dissolution, in bankruptcy, or is experiencing similar difficulties and so may be unable to repay the debt. Motor vehicles 6 – 30 years
Office equipment 3 – 10 years
Others 5 – 10 years
(h) Intangible fixed assets (ii) Investment property held for capital appreciation
Intangible fixed assets comprise land use rights, software, software licence and other intangible fixed assets. Investment property held for capital appreciation is stated at cost less any devaluation in market price. The
carrying amount of an investment property item held for capital appreciation is reduced when there is evidence
(i) Land use rights that its market price falls below its carrying amount and the loss can be measured reliably. Any reduction in
value of investment property held for capital appreciation is charged to cost of sales.
Land use rights are any costs actually incurred in conjunction with securing the land use rights including costs
for land clearance and levelling. (j) Construction in progress
Land use rights comprise: Construction in progress represents the costs of construction, machinery and costs of several software of
the Group which have not been fully completed or installed. No depreciation is provided for construction in
»» those granted by the State for which land use payments are collected; progress during the period of construction and installation.
»» those acquired in a legitimate transfer; and (k) Long-term prepaid expenses

»» rights to use leased land obtained before the effective date of the 2003 Land Law for which payments
have been made in advance for more than 5 years and supported by land use right certificate issued by (i) Cylinders
competent authority.
The Group adopted the guidance in Official Letter No. 7640/CV-BTC dated 21 June 2005, Official Letter No. 7776/
Land use rights are stated at cost less accumulated amortisation. Definite land use rights are amortised on a BTC-TCT dated 2 June 2009 of the Ministry of Finance and Circular No. 118/2010/TT-BTC dated 10 August 2010
straight-line basis over the term of the land use. No amortisation is computed for indefinite land use rights by of the Ministry of Finance guiding financial and tax regimes applicable to traders of bottled liquefied petroleum
the Group. gas in recognition and Amortisation of cylinder values and deposits for cylinders. Accordingly, cylinder values
are presented in long-term prepayments and amortised in the consolidated statement of income over a period
(ii) Software and software licence of 10 years.
Software and software licence include any costs incurred until the date that software and software licence are (ii) Business advantages related to equitisation
put into use. Software and software licence are amortised on a straight-line basis over the estimated useful lives
from 3 to 10 years. Business advantages related to equitisation of Vietnam National Petroleum Corporation are determined and
recognised in accordance with Decree No. 59/2011/ND-CP dated 18 July 2011 of the Government on conversion
(i) Investment property of 100% state-owned enterprises into joint stock companies (“Decree 59”) and Circular No. 202/2011/TT-BTC
dated 30 December 2011 of the Ministry of Finance guiding the implementation of Decree 59. Accordingly, the
(i) Investment property held to earn rental value of business advantages to be included in the valuation of an equitised enterprise comprises the value of
its trade name and potential for development. The value of trade name is determined based on actual costs
Cost incurred for formulation and protection of band names and trade names during the normal course of business
prior to the date of valuation of the enterprise. The potential for development is determined based on the book
Investment property held to earn rental is stated at cost less accumulated depreciation. The initial cost of an investment value of the state-owned capital at the date of valuation multiplied by the difference between the average ratio
property held to earn rental comprises its purchase price, cost of land use rights and any directly attributable of profit after tax to owners’ equity of three years prior to the date of valuation and the interest rate of 5-year
expenditures of bringing the property to the condition necessary for it to be capable of operating in the manner term government bonds announced by the Ministry of Finance at the date closest to the date of valuation.
intended. Expenditure incurred after the investment property held to earn rental has been put into operation, such as
repairs and maintenance, is charged to the consolidated statement of income in the year in which the expenditure The business advantages determined during evaluation for equitisation of Vietnam National Petroleum
is incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in future economic Corporation amounted to VND542,140,339,196 and are amortised in the consolidated statement of income
benefits in excess of the originally assessed standard of performance of the existing investment property held to earn over 10 years from 1 January 2012.
rental, the expenditure is capitalised as an additional cost of the investment property.
(iii) Prepaid land costs
Depreciation
Prepaid land costs comprise prepaid land lease rentals, including those for which the Group obtained land use
Depreciation is computed on a straight-line basis over the estimated useful lives of investment property for 35 rights certificate but are not qualified as intangible fixed assets under Circular 45 and other costs incurred in
to 50 years. conjunction with securing the use of leased land. These costs are recognised in the consolidated statement of
income on a straight-line basis over the term of the lease.
(iv) Asset overhaul costs (o) Share capital
Asset overhaul costs comprised periodically incurred repair costs during the useful life of tangible fixed assets. (i) Ordinary shares
These costs are initially recognised at cost and subsequently amortised in the consolidated statement of income
on a straight-line basis over a maximum period of no more than 3 years. Ordinary shares are stated at issue price less any costs directly attributable to the issue of shares. Incremental costs
directly attributable to the issue of shares, net of tax effects, are recognised as a deduction from share premium.
(v) Tools and instruments
(ii) Repurchase and reissue of ordinary shares (treasury shares)
Tools and instruments include assets held for use by the Group in the normal course of business whose costs
of individual items are less than VND30 million and therefore not qualified for recognition as fixed assets under The issued ordinary shares repurchased by the Group are classified as treasury shares under owners’ equity. The
prevailing regulations. Cost of tools and instruments are amortised on a straight-line basis over a period ranging cost of treasury shares, which is recognised as a reduction from owners’ equity, includes purchase prices and
over 3 years. any directly attributable costs.
(l) Trade and other payables When treasury shares are sold (reissue of treasury shares), the cost of the reissued shares is determined on a
weighted average basis. The difference between the treasury selling price and cost is recognised in share premium.
Trade and other payables are stated at their cost.
(p) Differences upon assets revaluation
(m) Provisions
For the purpose of enterprises valuation upon equitisation, the Group has revaluated the value of investments
Except for the provisions presented in other accounting policies, a provision, is recognised if, as a result of a past in subsidiaries and associates as per the Valuation Minutes of Vietnam Valuation and Finance Consultancy Joint
event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable Stock Company and based on the Equitisation Finalisation Documents approved by the competent authorities,
that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the Group has recognised an increase in the cost of these investments in the consolidated balance sheet with
estimates made by the Board of General Directors on necessary expenses to pay for this payable obligation at an amount of VND1,317,118,937,352, meanwhile the equity capital of those investees were not revaluated.
the end of the annual accounting period.
For the purpose of consolidated financial statements preparation, the difference between value of the
(n) Petroleum price stabilisation fund revaluated investments in subsidiaries and associates and value of equity in the investees was recognised as
a decrease in “Differences upon asset revaluation” in the consolidated financial statements. When subsidiaries
The appropriation and utilisation of petroleum price stabilisation fund are made in accordance with Joint Circular and associates are disposed, differences upon asset revaluation are recognised the consolidated statement of
No. 39/2014/TTLT-BCT-BTC dated 29 October 2014 of the Ministry of Industry and Trade and the Ministry of income in the year.
Finance on “Method of determination of basic prices and the mechanism for creation, management and use of
Price stabilisation fund and regulation of petrol and oil prices as prescribed in Decree No. 83/2014/ND-CP dated
3 September 2014 of the Government on petrol and oil trading” (“Circular 39”) and Joint Circular No. 90/2016/
TTLT-BCT-BTC amending and supplementing a number of articles of Circular 39. Accordingly,
»» Petroleum price stabilisation fund is appropriated with a specific amount, which is fixed within the basic
price of the actually sold petroleum volume and is determined as an expense item in the basic price
structure (the rate of appropriation is stipulated by the Ministry of Finance from time to time) and is
recognised in cost of sales in the year corresponding to the long-term liability;
»» The utilisation of petroleum price stabilisation fund is made in accordance with written guidelines issued
by the Ministry of Finance from time to time. The utilisation depends on the actually sold petroleum
volume multiplied by the utilisation level per liter as regulated by the Ministry of Finance. Upon utilisation
for the price stabilisation purpose, the utilised amount is recognised as an decrease in Cost of sales during
the year; and
»» Gain or loss arising (upon obtaining additional borrowings for the utilised amount exceeding the
petroleum price stabilisation fund) on the petroleum price stabilisation fund account are recognised as an
increase or decrease, respectively in the petroleum price stabilisation fund account.
(q) Income tax (s) Operating lease payments
Income tax on the consolidated profit or loss for the year comprises current and deferred tax. Income tax is Payments made under operating leases are recognised in the consolidated statement of income on a straight-
recognised in the consolidated statement of income except to the extent that it relates to items recognised line basis over the term of the lease. Lease incentives received are recognised in the consolidated statement of
directly to equity, in which case it is recognised in equity. income as an integral part of the total lease expense.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the end of (t) Borrowing costs
the annual accounting period, and any adjustment to tax payable in respect of previous years.
Borrowing costs are recognised as an expense in the year in which they are incurred, except where the borrowing
Deferred tax is provided using the balance sheet method, providing for temporary differences between the costs relate to borrowings in respect of the construction of qualifying assets, in which case the borrowing costs
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation incurred during the period of construction are capitalised as part of the cost of the assets concerned.
purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of
the carrying amounts of assets and liabilities using the tax rates enacted or substantively enacted at the end of (u) Earnings per share
the annual accounting period.
The Group presents basic and diluted earnings per share (EPS) for its ordinary shares. Basic EPS is calculated by
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available dividing the profit or loss attributable to the ordinary shareholders of the Parent Company (after deducting any
against which the temporary difference can be utilised. Deferred tax assets are reduced to the extent that it is amounts appropriated to bonus and welfare fund for the annual accounting period) by the weighted average
no longer probable that the related tax benefit will be realised. number of ordinary shares outstanding during the year. As at 31 December 2019 and for the year then ended,
the Parent Company did not have any dilutive potential ordinary shares. Therefore, requirement for disclosure
The Group determines income tax obligations based on current tax regulations. However, these regulations of diluted earnings per share is not applicable.
may change from time to time and the ultimate determination of income tax obligations is subject to review
by competent tax authorities. (v) Segment reporting
(r) Revenue and other incomes A segment is a distinguishable component of the Group that is engaged either in providing related products
or services (business segment), or in providing products or services within a particular economic environment
(i) Goods sold (geographical segment), which is subject to risks and rewards that are different from those of other segments.
The Group’s primary format for segment reporting is based on business segments and the Group’s secondary
Revenue from the sale of goods is recognised in the consolidated statement of income when the significant risks format for segment reporting is based on geographical segment.
and rewards of ownership have been transferred to the buyer. No revenue is recognised if there are significant
uncertainties regarding recovery of the consideration due or the possible return of goods. Revenue on sales of (w) Related parties
goods is recognised at the net amount after deducting sales discounts.
Parties are considered to be related to the Group if one party has the ability, directly or indirectly, to control the
(ii) Services rendered other party or exercise significant influence over the other party in making financial and operating decisions,
or where the Group and the other party are subject to common control or significant influence. Related parties
Revenue from services rendered is recognised in the consolidated statement of income in proportion to may be individuals or corporate entities and include close family members of any individual considered to be
the stage of completion of the transaction. The stage of completion is assessed by reference to surveys of a related party.
work performed. No revenue is recognised if there are significant uncertainties regarding recovery of the
consideration due. Related companies refer to the joint-venture and associates of the Group.
(iii) Rental income
Rental income from leased property is recognised in the consolidated statement of income on a straight-line
basis over the term of the lease.
(iv) Interest income
Interest income is recognised on a time proportion basis with reference to the principal outstanding and the
applicable interest rate.
(v) Dividend income
Dividend income is recognised when the right to receive dividend is established.
4. SEGMENT REPORTING
(a) Business segments
Consolidated balance sheet as at 31 December 2019
Petroleum segment
Petroleum Internal elimination

member Non-petroleum Petrochemical Transportation Other goods and and consolidation
companies member companies products Gas products services services adjustment Total
VND VND VND VND VND VND VND VND
Assets
Cash and cash equivalents 7,646,910,298,556 2,519,050,998,512 416,998,526,083 42,445,765,155 560,974,010,728 88,826,811,640 - 11,275,206,410,674
Short-term financial investments 4,066,109,751,146 - 260,000,000,000 714,880,000,000 355,880,298,500 406,800,493 - 5,397,276,850,139
Accounts receivable – short-term 4,675,894,001,233 5,464,545,422,724 1,568,634,391,937 356,454,614,433 419,616,873,539 23,028,094,651 (4,164,601,181,828) 8,343,572,216,689
Inventories 9,447,072,172,805 755,065,195,199 989,890,962,425 167,872,451,164 476,966,232,657 11,896,876,472 (76,111,792,522) 11,772,652,098,200
Other current assets 1,662,619,612,543 40,551,028,782 72,936,599,061 36,253,680,116 148,292,854,008 3,474,567,610 - 1,964,128,342,120
Accounts receivable – long-term 240,168,175,465 333,150,000 4,671,357,437 558,574,040 5,876,213,907 158,712,000 (228,275,482,586) 23,490,700,263
Fixed assets 7,855,137,553,183 629,610,051,242 767,704,213,470 366,595,476,168 4,350,641,819,501 1,565,213,517,811 (129,311,919,790) 15,405,590,711,585
Investment property 48,645,508,853 - - 7,008,697,877 129,514,914,399 4,584,153,864 - 189,753,274,993
Long-term work in progress 357,961,768,712 103,068,662,548 187,356,203,753 13,891,863,931 304,570,703,413 22,844,772,013 - 989,693,974,370
Long-term financial investments 7,373,321,973,223 10,000,000,000 31,533,030,158 - 59,332,308,257 13,254,815,032 (3,600,852,159,772) 3,886,589,966,898
Other long-term assets 1,800,986,762,304 120,739,901,084 164,745,761,551 282,701,376,450 123,709,798,297 6,353,333,839 15,222,358,503 2,514,459,292,028
Total assets 45,174,827,578,023 9,642,964,410,091 4,464,471,045,875 1,988,662,499,334 6,935,376,027,206 1,740,042,455,425 (8,183,930,177,995) 61,762,413,837,959
Liabilities
Current liabilities 24,090,413,335,557 7,773,527,961,323 3,023,818,407,804 1,004,990,898,956 1,499,349,938,648 861,755,344,931 (4,081,128,809,176) 34,172,727,078,043
Long-term liabilities 158,668,660,744 17,500,000,000 118,791,258,276 119,039,944,150 1,464,236,063,577 16,405,363,637 (228,275,482,586) 1,666,365,807,798
Total liabilities 24,249,081,996,301 7,791,027,961,323 3,142,609,666,080 1,124,030,843,106 2,963,586,002,225 878,160,708,568 (4,309,404,291,762) 35,839,092,885,841
Capital expenditure 1,413,552,521,998 100,570,805,677 181,545,844,152 25,942,080,112 864,451,093,606 31,837,459,625 (34,568,435,092) 2,583,331,370,078
Depreciation of tangible fixed assets 855,060,184,001 91,204,235,448 75,002,794,559 54,811,864,810 695,279,366,149 127,243,949,868 (18,778,873,453) 1,879,823,521,382
Amortisation of intangible fixed assets 50,606,804,068 3,021,321,948 708,642,812 1,051,037,098 1,894,203,054 292,168,740 - 57,574,177,720
Depreciation of investment property 2,120,635,447 - - 182,593,332 6,406,286,756 432,733,248 - 9,142,248,783
Consolidated statement of income for the year ended 31 December 2019
Petroleum segment

Total net revenue 138,355,048,586,246 64,255,037,289,074 6,160,045,784,751 3,169,731,801,612 8,855,160,059,317 560,700,925,141 (31,752,199,039,262) 189,603,525,406,879
In which: Internal revenue 8,587,960,828,649 16,910,606,322,492 1,298,911,123,966 897,641,031,328 3,853,597,990,961 203,481,741,866 (31,752,199,039,262) -
Net revenue from external sales 129,767,087,757,597 47,344,430,966,582 4,861,134,660,785 2,272,090,770,284 5,001,562,068,356 357,219,183,275 - 189,603,525,406,879
Operating expenses (135,795,944,098,397) (63,211,665,529,619) (5,893,445,430,331) (2,986,731,434,728) (8,496,927,057,887) (371,889,487,019) 31,980,522,718,858 (184,776,080,319,123)
Cost of goods sold and services rendered (127,459,140,276,714) (62,142,934,415,167) (5,319,485,353,753) (2,499,331,104,895) (7,966,621,736,781) (335,480,644,028) 30,288,876,768,303 (175,434,116,763,035)
Selling expenses (8,336,803,821,683) (1,055,698,326,677) (468,666,924,531) (360,010,032,436) (164,194,045,587) (8,568,055,031) 1,691,645,950,555 (8,702,295,255,390)
General and administration expenses - (13,032,787,775) (105,293,152,047) (127,390,297,397) (366,111,275,519) (27,840,787,960) - (639,668,300,698)
Operating profit (before financial activities) 2,559,104,487,849 1,043,371,759,455 266,600,354,420 183,000,366,884 358,233,001,430 188,811,438,122 228,323,679,596 4,827,445,087,756
Share of profit in associates and joint ventures 646,119,755,477
Financial income 1,004,290,830,755
Financial expenses (966,448,473,825)
Results of other activities 136,364,355,482
Accounting profit before tax 5,647,771,555,645
Income tax expense – current (996,924,043,108)
Income tax benefit – deferred 25,714,246,385
Net profit after tax 4,676,561,758,922
Consolidated balance sheet as at 31 December 2018
Petroleum segment

Restated
Assets
Cash and cash equivalents 7,036,775,509,207 1,944,447,605,473 583,654,569,745 54,075,074,424 580,516,913,339 21,365,874,848 - 10,220,835,547,036
Short-term financial investments 3,749,172,656,836 - 110,809,348,225 690,310,000,000 164,115,286,300 - - 4,714,407,291,361
Accounts receivable – short-term 3,371,392,661,280 3,466,256,518,256 1,879,061,716,476 313,747,584,059 467,015,929,655 47,232,881,787 (1,988,768,639,441) 7,555,938,652,072
Inventories 7,652,137,847,757 957,296,835,881 1,139,100,144,752 158,503,402,019 467,074,765,032 9,087,770,288 (80,518,782,333) 10,302,681,983,396
Other current assets 1,600,890,392,484 44,795,300,888 84,230,078,287 42,809,262,073 120,797,464,733 2,798,175,183 36,093,498 1,896,356,767,146
Accounts receivable – long-term 229,220,951,219 433,150,000 4,258,194,500 447,246,338 3,429,747,336 52,152,000 (217,196,813,840) 20,644,627,553
Fixed assets 7,584,847,141,902 632,661,263,785 687,069,310,400 409,128,222,590 4,332,172,954,199 1,663,430,757,248 (169,853,353,858) 15,139,456,296,266
Investment property 50,130,973,897 - 3,234,686,485 7,191,291,209 135,921,201,155 2,901,073,225 - 199,379,225,971
Long-term work in progress 336,450,041,862 103,472,438,164 161,622,078,712 1,899,285,450 246,780,465,314 22,573,688,124 - 872,797,997,626
Long-term financial investments 6,676,529,070,876 10,000,000,000 43,534,152,089 - 66,042,671,401 13,746,247,789 (3,692,705,303,751) 3,117,146,838,404
Other long-term assets 1,579,940,817,029 115,972,186,511 161,670,526,675 322,003,867,031 60,098,222,335 3,789,447,257 - 2,243,475,066,838
Total assets 39,867,488,064,349 7,275,335,298,958 4,858,244,806,346 2,000,115,235,193 6,643,965,620,799 1,786,978,067,749 (6,149,006,799,725) 56,283,120,293,669
Liabilities
Current liabilities 21,038,389,864,805 5,684,156,975,641 3,448,541,089,131 1,012,308,946,827 1,259,419,724,329 1,046,042,464,905 (1,909,385,362,075) 31,579,473,703,563
Long-term liabilities 155,728,854,346 26,068,014,480 88,354,158,642 133,897,280,285 1,416,474,168,748 8,049,036,364 (217,196,813,840) 1,611,374,699,025
Total liabilities 21,194,118,719,151 5,710,224,990,121 3,536,895,247,773 1,146,206,227,112 2,675,893,893,077 1,054,091,501,269 (2,126,582,175,915) 33,190,848,402,588
Capital expenditure 1,593,386,422,757 137,784,705,197 239,116,830,356 24,436,840,754 636,424,878,075 46,038,240,114 (164,617,476,933) 2,512,570,440,320
Depreciation of tangible fixed assets 829,321,569,669 90,205,023,944 61,194,714,438 59,408,302,273 740,656,134,855 139,779,287,003 (16,855,395,011) 1,903,709,637,171
Amortisation of intangible fixed assets 82,822,262,559 2,618,185,542 577,714,950 136,044,503 1,519,550,714 687,251,946 - 88,361,010,214
Depreciation of investment property 856,397,729 - - 182,593,332 6,406,286,756 613,034,052 - 8,058,311,869
Consolidated statement of income for the year ended 31 December 2018
Petroleum segment

Restated
Total net revenue 144,370,241,278,283 60,595,804,340,889 6,434,374,309,707 3,261,119,630,508 8,918,147,225,689 2,496,779,272,041 (34,143,992,107,957) 191,932,473,949,160
In which: Internal revenue 8,729,974,752,758 19,116,139,694,680 1,304,969,404,046 922,735,814,432 3,613,043,533,267 457,128,908,774 (34,143,992,107,957) -
Net revenue from external sales 135,640,266,525,525 41,479,664,646,209 5,129,404,905,661 2,338,383,816,076 5,305,103,692,422 2,039,650,363,267 - 191,932,473,949,160
Operating expenses (141,524,523,272,124) (59,928,945,423,433) (6,147,233,446,413) (3,078,722,112,770) (8,547,554,508,435) (2,223,370,487,708) 34,307,249,568,603 (187,143,099,682,280)
Cost of goods sold and services rendered (133,537,720,675,753) (58,927,409,891,873) (5,559,672,265,128) (2,628,983,234,825) (8,090,860,652,283) (2,055,004,525,030) 32,773,280,307,197 (178,026,370,937,695)
Selling expenses (7,986,802,596,371) (987,593,301,430) (491,712,217,641) (350,894,047,796) (158,606,243,070) (101,937,032,731) 1,533,969,261,405 (8,543,576,177,634)
General and administration expenses - (13,942,230,130) (95,848,963,644) (98,844,830,149) (298,087,613,082) (66,428,929,946) - (573,152,566,951)
Operating profit (before financial activities) 2,845,718,006,159 666,858,917,456 287,140,863,294 182,397,517,738 370,592,717,254 273,408,784,333 163,257,460,646 4,789,374,266,880
Share of profit in associates and joint ventures 636,650,090,314
Financial income 995,307,209,114
Financial expenses (1,508,439,852,702)
Results of other activities 264,764,451,706
Accounting profit before tax 5,177,656,165,312
Income tax expense – current (994,430,612,244)
Income tax expense – deferred (28,661,617,419)
Net profit after tax 4,154,563,935,649
5. CASH AND CASH EQUIVALENTS
Segment assets and capital expenditure outside the territory of Vietnam represent the total assets and total capital expenditure, respectively, of Petrolimex
191,979,671,307,358
56,283,120,293,669
2,512,570,440,320
2018
VND
Restated
31/12/2019 1/1/2019
VND VND
Consolidated
Revenue of Petrolimex Singapore Pte. Ltd. and Petrolimex (Lao) Ltd. from sales of goods to customers outside the territory of Vietnam.
Cash on hand 52,935,788,187 83,530,536,491
Cash in banks 4,663,284,032,321 3,786,618,284,917

2019
VND
28,268,582,667,126 189,656,389,732,451
61,762,413,837,959
2,583,331,370,078
Revenue of domestic companies from re-exporting and transhipment of goods to customers outside the territory of Vietnam.
In which:
- Account balance of Price stabilisation fund (i) 1,288,147,098,093 1,372,574,859,359
Cash in transit (ii) 254,430,903,688 283,065,820,669
Cash equivalents (iii) 6,304,555,686,478 6,067,620,904,959

1,456,483,593,544
17,785,831,491
2018
VND
11,275,206,410,674 10,220,835,547,036
Outside the territory of Vietnam
Singapore Pte. Ltd. and Petrolimex (Lao) Ltd. from, excluding receivables from companies within the Group.
(i) The account balance of Price stabilisation fund is monitored separately in a bank account. The account
balance of Price stabilisation fund should be used solely for the price stabilisation purpose and should not
be used for any other purpose.
(ii) Cash in transit represents the cash balances at petroleum stations of the petroleum member companies.
2019
VND
30,202,674,452,054
2,755,031,390,166
4,845,147,663
These amounts will be transferred to the petroleum member companies’ bank accounts on the next
working day.
(iii) Cash equivalents represents term deposits at local banks with maturity of less than three months.
2018
VND
Restated
163,711,088,640,232
54,826,636,700,125
2,494,784,608,829
Within the territory of Vietnam
Total revenue outside the territory of Vietnam comprises:

2019
VND
159,453,715,280,397
59,007,382,447,793
2,578,486,222,415
Geographical segments
Capital expenditure
External revenue
Segment assets
»»
»»
(b)
224
(6) FINANCIAL INVESTMENTS
225
(a) Held-to-maturity investments
31/12/2019 1/1/2019
Cost Fair value Cost Fair value
VND VND VND VND
Held-to-maturity investments - short-term
Term deposits 5,394,356,800,493 5,394,356,800,493 4,712,009,348,225 4,712,009,348,225
Held-to-maturity investments - long-term
Term deposits - - 3,000,000,000 3,000,000,000

Bonds 800,000,000,000 (*) - -
Held-to-maturity investments – short-term represent term deposits at domestic banks with maturioty ranging from more than 3 months to 12 months.
Cost of these deposits approximate their fair value due to the short-term nature of the investments.
Held-to-maturity investments – long-term represent investments in bank bonds with maturity of 6 years and an interest rate of 8% per annum which
mature on 30 December 3025. The bond’s interest are paid on an annual basis on the bond interest payment date and the bond’s principal wil be paid on
the maturity date.
NOTES TO THE CONSOLIDATED
(*) The Group has not determined fair values of these held-to-maturity investments – long-term for disclosure in the consolidated financial statements
because information about its market price is not available and there is currently no guidance on determination of fair value using valuation techniques
FINANCIAL STATEMENTS (continued)
under Vietnamese Accounting Standards or the Vietnamese Accounting System for enterprises. The fair values of this investment may differ from its
carrying amount.
DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD

Form B 09-DN/HN
(b) Investments in subsidiaries
31/12/2019 1/1/2019
% of voting % of equity % of voting % of equity
No. Name Address Principal activities rights owned rights owned
1 Petrolimex Tanker Corporation Hanoi Transportation services 100% 100% 100% 100%
2 Van Phong Bonded Petroleum Terminal Joint Khanh Hoa Storing and trading petroleum 85.00% 85.00% 85.00% 85.00%
Venture Company Limited products at border gate
3 Petrolimex Petrochemical Corporation - JSC Hanoi Processing petroleum products 79.07% 79.07% 79.07% 79.07%
4 Petrolimex Gas Corporation – JSC Hanoi Trading gas products 52.37% 52.37% 52.37% 52.37%
5 Petrolimex Transportation Services Corporation Hanoi Transportation services 100% 100% 100% 100%
6 Petrolimex Singapore Pte. Ltd. Singapore Trading petroleum 100% 100% 100% 100%
7 Petrolimex Aviation Fuel JSC Hanoi Providing fuel for airlines 59.00% 59.00% 59.00% 59.00%
8 Petrolimex (Lao) Ltd. Lao People's Trading petroleum 100% 100% 100% 100%
Democratic
Republic
9 Petrolimex Kien Giang Co., Ltd. Kien Giang Trading petroleum 51.00% 51.00% 51.00% 51.00%
10 VP Petrochemical Transport J.S.C Hai Phong Transportation services 88.88% 57.62% 88.88% 57.62%
11 Hai Chau Trading and Services Company Ho Chi Minh City Producing, trading ice, frozen seafood 92.04% 92.04% 92.04% 92.04%
Limited
12 Cai Be Trading and Services JSC Tien Giang Producing, trading ice, frozen seafood 63.04% 63.04% 63.04% 63.04%
2019 ANNUAL REPORT
226
31/12/2019 1/1/2019
227
Petroleum member companies
13 Petrolimex Quang Ninh One Member Limited Company Quang Ninh Trading petroleum 100% 100% 100% 100%
14 Petrolimex Sai Gon One Member Limited Company Ho Chi Minh City Trading petroleum 100% 100% 100% 100%
15 Petrolimex Hanoi One Member Limited Company Hanoi Trading petroleum 100% 100% 100% 100%
16 Petrolimex Da Nang One Member Limited Company Da Nang Trading petroleum 100% 100% 100% 100%
17 Petrolimex Tay Nam Bo Limited Company Can Tho Trading petroleum 100% 100% 100% 100%
18 Petrolimex Ba Ria Vung Tau Limited Company Ba Ria Vung Tau Trading petroleum 100% 100% 100% 100%
19 Petrolimex Nghe An Limited Company Nghe An Trading petroleum 100% 100% 100% 100%
20 Petrolimex Nam Dinh Limited Company Nam Dinh Trading petroleum 100% 100% 100% 100%
21 Petrolimex Phu Khanh Limited Company Khanh Hoa Trading petroleum 100% 100% 100% 100%
22 Petrolimex Ha Son Binh Limited Company Hanoi Trading petroleum 100% 100% 100% 100%
23 Petrolimex Hai Phong One Member Limited Company Hai Phong Trading petroleum 100% 100% 100% 100%
24 Petrolimex Vinh Long One Member Limited Company Vinh Long Trading petroleum 100% 100% 100% 100%
25 Petrolimex Gia Lai Limited Company Gia Lai Trading petroleum 100% 100% 100% 100%
26 Petrolimex Binh Dinh Limited Company Binh Dinh Trading petroleum 100% 100% 100% 100%
27 Petrolimex Thanh Hoa One Member Limited Company Thanh Hoa Trading petroleum 100% 100% 100% 100%
28 Petrolimex Daklak One Member Limited Company Daklak Trading petroleum 100% 100% 100% 100%

29 Petrolimex Long An Limited Company Long An Trading petroleum 100% 100% 100% 100%
30 Petrolimex Ca Mau One Member Limited Company Ca Mau Trading petroleum 100% 100% 100% 100%
31 Petrolimex Tien Giang One Member Limited Company Tien Giang Trading petroleum 100% 100% 100% 100%
32 Petrolimex Dong Nai Limited Company Dong Nai Trading petroleum 100% 100% 100% 100%
33 Petrolimex Bac Thai Limited Company Thai Nguyen Trading petroleum 100% 100% 100% 100%
34 Petrolimex Hue Limited Company Hue Trading petroleum 100% 100% 100% 100%
35 Petrolimex Tay Ninh Limited Company Tay Ninh Trading petroleum 100% 100% 100% 100%
36 Petrolimex Lao Cai Limited Company Lao Cai Trading petroleum 100% 100% 100% 100%
Form B 09-DN/HN
31/12/2019 1/1/2019
37 Petrolimex Phu Tho Limited Company Phu Tho Trading petroleum 100% 100% 100% 100%
38 Petrolimex Song Be One Member Limited Company Binh Duong Trading petroleum 100% 100% 100% 100%
39 Petrolimex Lam Dong Limited Company Lam Dong Trading petroleum 100% 100% 100% 100%
40 Petrolimex Ha Tinh Limited Company Ha Tinh Trading petroleum 100% 100% 100% 100%
41 Petrolimex Ben Tre Limited Company Ben Tre Trading petroleum 100% 100% 100% 100%
42 Petrolimex Ha Bac Limited Company Bac Giang Trading petroleum 100% 100% 100% 100%
43 Petrolimex An Giang One Member Limited Company An Giang Trading petroleum 100% 100% 100% 100%
44 Petrolimex Quang Tri Limited Company Quang Tri Trading petroleum 100% 100% 100% 100%
45 Petrolimex Quang Binh Limited Company Quang Binh Trading petroleum 100% 100% 100% 100%
46 Petrolimex Dong Thap Limited Company Dong Thap Trading petroleum 100% 100% 100% 100%
47 Petrolimex Dien Bien Limited Company Dien Bien Trading petroleum 100% 100% 100% 100%
48 Petrolimex Tra Vinh One Member Limited Company Tra Vinh Trading petroleum 100% 100% 100% 100%
49 Petrolimex Ha Giang Limited Company Ha Giang Trading petroleum 100% 100% 100% 100%
50 Petrolimex Yen Bai Limited Company Yen Bai Trading petroleum 100% 100% 100% 100%
51 Petrolimex Cao Bang Limited Company Cao Bang Trading petroleum 100% 100% 100% 100%
52 Petrolimex Tuyen Quang Limited Company Tuyen Quang Trading petroleum 100% 100% 100% 100%
53 Petrolimex Quang Ngai One Member Limited Company Quang Ngai Trading petroleum 100% 100% 100% 100%
54 Petrolimex Thai Binh Limited Company Thai Binh Trading petroleum 100% 100% 100% 100%
55 Petrolimex Lai Chau Limited Company Lai Chau Trading petroleum 100% 100% 100% 100%
2019 ANNUAL REPORT
(c) Equity investments in associates, joint-ventures
31/12/2019 1/1/2019
Allowancefor Allowancefor
% of % of % of % of
Equity accounted diminution in Equity accounted diminution in
No. Name Address Principal activities voting equity voting equity
investment value value Fair value investment value value Fair value
rights owned rights owned
VND VND VND VND VND VND
Restated
Joint ventures
1 Castrol BP Petco Co. Ltd. Ho Chi Minh City Processing lubricant products 35.00% 35.00% 404,706,775,078 - (*) 35.00% 35.00% 396,364,711,746 - (*)
Associates
Petrolimex Group Commercial Joint Stock
1 Hanoi Banking 40.00% 40.00% 1,504,166,045,552 - (*) 40.00% 40.00% 1,475,343,544,182 - (*)
Bank (i)
Petrolimex Joint Stock Insurance
2 Hanoi Insurance services 40.95% 40.95% 629,665,265,677 - 708,402,240,000 40.95% 40.95% 611,312,324,543 - 657,542,592,000
Corporation (i)
Kien Giang Trade and Tourism Company Trading agricultural products,
3 Kien Giang 38.94% 38.94% 162,914,097,099 - (*) 38.94% 38.94% 168,575,489,297 - (*)
Limited petroleum
Petrolimex Group Construction and Trading
4 Hanoi Trading 35.00% 35.00% 155,084,968,450 - (*) 35.00% 35.00% 145,884,559,733 - (*)
Corporation – Joint Stock Company
Nha Petrolimex - Tradoco Development
5 Vung Tau Real Estate Trading - - - - (*) 46.00% 46.00% 93,596,193,484 - (*)
Joint Stock Company
Investment, construction,
operation, management and
6 Vietnam Expressway Services JSC Hanoi 22.38% 22.38% 21,269,709,643 - (*) 22.38% 22.38% 21,313,651,354 - (*)
maintenance of national
expressway network
7 Mekong Riverside Resort (ii) Tien Giang Trading goods 30.00% 18.91% 9,900,000,000 (395,184,968) (*) 30.00% 18.91% 10,500,000,000 (503,752,212) (*)
Dong Nai Petroleum Material and Fuel
8 Dong Nai Trading petroleum - - - - (*) 21.32% 21.32% 11,979,816,214 - (*)
Joint Stock Company
9 Tuyen Quang Trading Joint Stock Company Tuyen Quang Commercial trading 27.73% 27.73% 2,876,741,866 - (*) 27.73% 27.73% 2,023,978,424 - (*)
10 V AUTO., JSC (ii) Tien Giang Trading goods 40.00% 40.00% 1,800,000,000 (415,266,714) (*) 40.00% 40.00% 1,800,000,000 (415,266,714) (*)
2,892,383,603,365 (810,451,682) (*) 2,938,694,268,977 (919,018,926) (*)
(i) As described in Note 3(a)(iv), the Group had a plan for divestment from PJICO and PG Bank.
On 21 April 2018, the General Meeting of Shareholders of PG Bank passed its Resolution No. 01/2018/NQ-
DHDCD-PGB, approving the scheme to merge PG Bank with Ho Chi Minh City Development Joint Stock
Commercial Bank (“HDBank”). According to this scheme, the expected ownership ratio of the Parent Company
in HDBank after the merger is 5.62%. By the date when these financial statements are authorized for issuance,
the merger had not been completed.
On 18 July 2019, under Resolution No. 108A/PLX-NQ-HDQT, the Board of Management approved the plan to
reduce the Group’s ownership percentage in PJICO from 40.95% to 35.1% and when receipt of official opinions
from the Commission for the Management of State Capital at Enterprises and the Prime Minister, the Group
will continue to hold or divest in accordance with regulations. By the date when these financial statements are
authorized for issuance, the reduction of ownership percentage had not been completed.
(ii) Investment in this associate was stated at cost in the consolidated financial statements of the Group. According to
assessment of the Board of General Directors, failure to apply the equity method in recognition for these associates has not
caused material effect on the consolidated financial statements of the Group as the investment value was insignificant.
(*) The Group has not determined fair values of these investments for disclosure in the consolidated financial statements
because information about their market prices is not available and there is currently no guidance on determination of
fair value using valuation techniques under Vietnamese Accounting Standards or the Vietnamese Accounting System for
enterprises. The fair values of these financial investments may differ from their carrying amounts.
7. ACCOUNTS RECEIVABLE FROM CUSTOMERS
market prices is not available and there is currently no guidance on determination of fair value using valuation techniques under Vietnamese Accounting
The Group has not determined fair values of these investments for disclosure in the consolidated financial statements because information about their
Fair value
VND
(*)
34,669,428,750
(*)
(*)
Standards or the Vietnamese Accounting System for enterprises. The fair values of these financial investments may differ from their carrying amounts.
Accounts receivable from customers detailed by significant customers
31/12/2019 1/1/2019
VND VND
Allowance for
Cost diminution in value
VND
(15,244,508,450)
(105,247,500,000)
(4,263,522,704)
(124,755,531,154)
Restated
Vietjet Aviation Joint Stock Company 972,624,163,512 881,910,509,824
1/1/2019
Other customers 7,052,940,093,553 6,124,397,262,547

8,025,564,257,065 7,006,307,772,371
8. OTHER RECEIVABLES – SHORT-TERM

VND
50,000,000,000
49,913,937,200
110,724,000,000
90,489,182,307
301,127,119,507
31/12/2019 1/1/2019
VND VND
Restated
Over payment of VAT on imported goods (i) 56,557,097,277 82,534,765,973
Fair value
VND
Refundable import tax of prior years - 87,566,072,184

(*)
43,922,835,000
(*)
(*)
Deductible value added tax but yet to receive invoices at reporting date 13,616,799,003 135,479,264,278
Interest receivable 171,125,096,247 87,174,105,563
Others 213,470,975,644 218,648,516,776
454,769,968,171 611,402,724,774
Allowance for
Cost diminution in value
VND
(5,991,102,200)
(96,937,053,556)
(5,764,248,536)
(108,692,404,292)
(i) This represents the amount due from local customs department which relates to overpayments of value added
31/12/2019
tax on imported goods arising from the difference between the normal import tax incentive and the special
import tax incentive under regional trade agreements for some imported petroleum products. The Group paid
value added tax for imported goods at the normal incentive rate. After customs clearance, these imported
goods were determined to be entitled to the special incentive tax rate; accordingly, the Group will be refunded
the value added tax it has overpaid.
VND
50,000,000,000
49,913,937,200
110,724,000,000
93,071,282,307
303,709,219,507
9. INVENTORIES
31/12/2019 1/1/2019
Cost Allowance Cost Allowance
Vietnam Export Import Commercial Joint
VND VND VND VND

Restated Restated
Goods in transit 1,613,007,396,246 (11,705,440,149) 1,129,214,844,112 (28,776,742,365)
Military Petrochemical Joint Stock
Equity investments in other entities
Raw materials 764,835,165,385 (260,308,371) 774,052,741,600 (8,506,435,207)

Tools and supplies 37,551,788,147 - 34,631,765,797 -
Stock Bank (Eximbank)
Work in progress 171,751,505,865 - 155,219,231,294 -

An Phu Corporation
Company - MIPEC
Finished goods 159,710,067,658 - 201,719,547,935 -

Merchandise inventories 9,064,885,404,098 (44,145,747,731) 8,579,631,997,417 (546,596,918,797)
Goods on consignment 5,544,447,404 - 2,155,324,736 -
Name
Others
Real estate merchandise 11,477,819,648 - 9,936,626,874 -

11,828,763,594,451 (56,111,496,251) 10,886,562,079,765 (583,880,096,369)
No.
Included in inventories at 31 December 2019 was VND 383,666 million of goods in transit (1/1/2019: VND 243,536
1
million) and VND 1,912,756 million of merchandise inventories (1/1/2019: VND 4,414,853 million) stated at net
(d)
(*)
realisable value.
232
10. TANGIBLE FIXED ASSETS
233
Buildings, Machinery Motor Office
structures and equipment vehicles equipment Others Total
Cost
Opening balance – as restated 12,795,825,203,694 3,860,314,364,943 13,342,000,424,308 541,491,107,155 25,850,130,614 30,565,481,230,714
Opening balance – as previously stated 12,782,744,781,800 3,858,051,262,676 13,341,677,697,036 541,491,107,156 25,850,130,614 30,549,814,979,282
Restatement according to the State Audit’s report

13,080,421,894 2,263,102,267 322,727,272 (1) - 15,666,251,432
(Note 35)
Additions 161,290,070,662 210,491,113,734 555,966,860,872 73,905,569,813 2,015,200,480 1,003,668,815,561
Transfer from construction in 649,237,952,692 153,768,540,187 268,042,625,983 6,623,979,700 1,158,947,126 1,078,832,045,688
Transfer to investment property (4,461,042,012) (839,168,572) - - (279,655,161) (5,579,865,745)
Transfer from long-term prepaid expenses 1,181,389,806 122,000,000 - - - 1,303,389,806
Disposal and written off (78,400,455,189) (48,281,307,390) (58,596,123,533) (2,816,244,580) (12,000,000) (188,106,130,692)
Decrease due to disposal of subsidiaries (31,942,558,329) (2,660,919,599) (578,987,780) (488,749,041) - (35,671,214,749)

Reclassification (32,672,432,474) 32,540,979,388 - (185,326,265) 316,779,351 -

Other movements (327,916,434) 436,631,639 (1,221,673,748) (196,172,504) (23,690,560) (1,332,821,607)

Closing balance 13,459,730,212,416 4,205,892,234,330 14,105,613,126,102 618,334,164,278 29,025,711,850 32,418,595,448,976
Form B 09-DN/HN
10. TANGIBLE FIXED ASSETS (continued)
Buildings, Machinery Motor Office

structures and equipment vehicles equipment Others Total
Accumulated depreciation
Opening balance – as previously stated 6,398,110,649,999 2,576,518,150,719 8,053,978,738,750 418,671,382,873 14,489,468,348 17,461,768,390,689
Restatement according to the State Audit’s report

(2,203,299,358) (64,264,641) (269,391,903) (62,935,564) (23,542,036) (2,623,433,502)
(Note 35)
Charge for the year 652,890,842,838 328,082,015,610 815,001,714,984 81,279,051,947 2,569,896,003 1,879,823,521,382
Transfer to investment property (3,865,612,832) (839,168,572) - - (279,655,161) (4,984,436,565)
Transfer from long-term prepaid expenses 226,808,804 - - - - 226,808,804
Disposal and written off (67,184,793,412) (47,678,054,498) (56,982,386,048) (3,000,615,802) (12,000,000) (174,857,849,760)
Decrease due to disposal of subsidiaries (13,213,294,639) (2,660,919,599) (578,987,780) (488,749,041) - (16,941,951,059)
Reclassification (22,617,354,746) 21,454,024,494 36,621,677 (234,572,957) 1,361,281,532 -
Other movements (28,082,575,396) 1,460,073,049 (307,294,076) 196,416,422 71,533 (26,733,308,468)
Closing balance 6,914,061,371,258 2,876,271,856,562 8,810,879,015,604 496,359,977,878 18,105,520,219 19,115,677,741,521
Net book value
Closing balance 6,545,668,841,158 1,329,620,377,768 5,294,734,110,498 121,974,186,400 10,920,191,631 13,302,917,707,455
Included in tangible fixed assets were assets costing VND 7,081,198 million which were fully depreciated as of 31 December 2019 but which are still in
active use (1/1/2019: VND 5,941,870 million).
At 31 December 2019, tangible fixed assets of the Group’s subsidiaries with a net book value of VND 3,784,770 million (1/1/2019: VND 3,539,074 million)
were pledged with banks as security for loans granted (Note 19(b)).
2019 ANNUAL REPORT
234
11. INTANGIBLE FIXED ASSETS
235
Land use rights Software license Software Others Total
VND VND VND VND VND
Cost
Opening balance 2,092,832,929,026 20,022,170,400 517,409,896,072 22,783,920,044 2,653,048,915,542
Additions 58,572,263,347 - 14,098,767,766 6,968,102,893 79,639,134,006
Transfer from construction in progress 66,157,445,569 - 6,976,611,550 - 73,134,057,119
Transfer to investment property (2,055,209,689) - - - (2,055,209,689)
Transfer to long-term prepaid expenses (12,830,452,294) - - - (12,830,452,294)
Disposal and written off (4,443,010,586) (765,364,000) (876,664,200) - (6,085,038,786)
Decrease due to disposal of subsidiaries (11,500,124,604) - (580,000,000) - (12,080,124,604)

Other movements (1,046,909,225) - (29,133,000) - (1,076,042,225)
Closing balance 2,185,686,931,544 19,256,806,400 536,999,478,188 29,752,022,937 2,771,695,239,069
Accumulated amortisation
Opening balance 171,494,117,481 14,536,066,060 421,250,276,187 12,648,433,075 619,928,892,803
Charge for the year 23,549,931,837 1,563,693,242 31,414,820,347 1,045,732,294 57,574,177,720
Transfer to investment property (534,824,982) - - - (534,824,982)
Transfer to long-term prepaid expenses (2,240,904,650) - - - (2,240,904,650)
Disposal and written off (858,731,685) (748,000,000) (876,664,200) - (2,483,395,885)

Decrease due to disposal of subsidiaries (1,587,517,592) - (580,000,000) - (2,167,517,592)

Other movements (1,039,638,695) (116,756,892) 102,203,112 - (1,054,192,475)

Closing balance 188,782,431,714 15,235,002,410 451,310,635,446 13,694,165,369 669,022,234,939
Net book value
Opening balance 1,921,338,811,545 5,486,104,340 96,159,619,885 10,135,486,969 2,033,120,022,739
Closing balance 1,996,904,499,830 4,021,803,990 85,688,842,742 16,057,857,568 2,102,673,004,130
Included in intangible fixed assets were assets costing VND454,361 million which were fully amortised as of 31 December 2019 (1/1/2019: VND360,570
million), but which are still in active use.
At 31 December 2019, intangible fixed assets of the Group’s subsidiaries with a net book value of VND64,104 million (1/1/2019: VND64,654 million) were
pledged with banks as security for loans granted (Note 19(b)).
Form B 09-DN/HN
12.
Cost
Closing balance
Closing balance
Closing balance
Net book value
Opening balance
Opening balance
Opening balance
Charge for the year

Accumulated depreciation
INVESTMENT PROPERTY
Transfer from tangible fixed assets

Transfer from tangible fixed assets
Transfer from intangible fixed assets

Transfer from intangible fixed assets
Transfer from construction in progress

Investment property held to earn rental
Investment property held to earn rental

Investment property held for capital appreciation
25,651,344,668
24,270,099,961
31,545,550,538
534,824,982
-
139,140,000
30,871,585,556
57,196,895,206
-
2,055,209,689
-
55,141,685,517
VND
Land use rights
similar property in the same location and there is no active market for such property.
189,753,274,993
-
189,753,274,993
164,101,930,325
171,874,439,525
53,308,719,616
-
4,984,436,565
9,003,108,783
39,321,174,268
217,410,649,941
635,170,403
-
5,579,865,745
211,195,613,793
VND
Buildings
VND
31/12/2019
189,753,274,993
196,144,539,486
84,854,270,154
534,824,982
4,984,436,565
9,142,248,783
70,192,759,824
274,607,545,147
635,170,403
2,055,209,689
5,579,865,745
266,337,299,310
VND
Total
199,379,225,971
3,234,686,485
196,144,539,486
VND
1/1/2019
The investment property held to earn rental belongs to a subsidiary of the Group. The fair value of the investment
property held for earn rental of the Group has not been determined as there was no market transaction for
2019 ANNUAL REPORT

13. CONSTRUCTION IN PROGRESS
Total
VND
447,814,894,445 2,233,369,481,918
441,073,173,175 2,233,354,898,790
14,583,128
615,731,027,796
(1,076,581,002)
10,589,547,644
181,031,915,615
(5,461,869,295)
(143,515,142,627) (572,552,534,918)
(1,414,087,041)
438,024,176,116 2,460,216,900,717
2019 2018
VND VND
Opening balance – as restated 872,797,997,626 777,729,469,586
Others
VND
6,741,721,270
180,395,563,245
26,438,966,665
(1,841,296,048)
(68,265,085,615)
(3,003,723,949)
Opening balance – as previously stated 875,013,410,257 777,729,469,586
Restatement according to the State Audit’s report (Note 35) (2,215,412,631) -
Additions during the year 1,500,023,420,511 1,632,490,619,548
Transfer from inventories 1,348,100,000 -
Tools and
instruments
VND
89,837,316,641
89,837,316,641
85,837,199,829
(122,000,000)
4,243,657,459
(524,247,328)
(83,929,253,340) (144,320,577,809) (84,834,409,368)
5,768,459,420
3,307,478,010
181,028,501,269 103,513,454,663
Transfer to tangible fixed assets (1,078,832,045,688) (1,183,459,359,880)
Transfer to intangible fixed assets (73,134,057,119) (112,505,493,252)
Transfer to investment property (635,170,403) (461,078,134)
Transfer to short-term prepaid expenses (2,367,587,004) (128,984,860,739)
Asset
land costs overhaul costs
VND
157,060,524,193
163,957,928,510
(6,897,404,317)
125,834,218,928
(954,581,002)
46,370,242,178
(2,528,070,012)
178,206,207
(611,461,414)
Transfer to long-term prepaid expenses (181,031,915,615) (517,932,643)
Decrease due to disposal of subsidiaries - (72,148,498,979)
Provision for major repairs utilised (46,624,300,851) (26,877,225,488)
Disposal and written off (315,316,391) (9,562,307,786)
Prepaid
VND
162,642,101,757 1,105,965,666,292
1,105,965,666,292
197,718,600,964
10,589,547,644
103,979,049,313
(254,384,229)
62,318,419,988
(1,106,379,688)
108,428,067,837 1,395,281,266,944
Other movements (1,535,150,696) (2,905,334,607)
Closing balance 989,693,974,370 872,797,997,626
Major items/ projects of construction in progress at the reporting date were as follows:
Business
advantage
related to
equitisation
VND
162,642,101,757
(54,214,033,920)
-
31/12/2019 1/1/2019
VND VND
37 Phan Boi Chau Building Project 139,635,002,706 137,953,176,564
Office Building Project at Dien Bien Phu Street 110,258,019,074 34,473,480,346
Cylinders
VND
270,048,978,590
269,878,712,415
170,266,175
25,945,444,830
(313,871,678)
(61,739,117,854)
233,941,433,888
Cam Ranh Warehouse Building Project 105,023,650,860 60,498,582,070
Others 634,777,301,730 639,872,758,646
LONG-TERM PREPAID EXPENSES

989,693,974,370 872,797,997,626
Opening balance – as previously
Restatement according to the
Transfer from intangible fixed
Transfer from construction in

Transfer to tangible fixed assets
During the year, borrowing costs capitalised into construction in progress amounted to VND 850 million
Opening balance – as restated

(2018: VND 357 million).
State Audit’s report (Note 35)
Amortisation for the year

Disposal and written off
Other movements
Reclassifications
Closing balance
Additions
progress
assets
stated
14.
238
(a)
(b)
15.
239
Others
demand.
Associates
Other suppliers
Vitol Asia Pte Ltd
Castrol BP PETCO Co. Ltd.

Shell Eastern Trading Pte Ltd
ACCOUNTS PAYABLE TO SUPPLIERS
Petrolimex Group Commercial Joint Stock Bank

Binh Son Refinery and Petrochemical Company Limited
Accounts payable to suppliers who are related parties

Nghi Son Petroleum Product Distribution Branch - Petrolimex Viet Nam
Accounts payable to suppliers detailed by significant suppliers


13,749,116,735,981
5,849,548,745,847
-
1,489,716,077,635
2,469,569,201,093
3,940,282,711,406
89,450,039,190
64,781,219,542
1,681,816,007
22,987,003,641
VND
31/12/2019
VND
31/12/2019
Restated
VND
1/1/2019
104,844,878,672
63,767,289,299
24,497,107,815
16,580,481,558
VND
1/1/2019
Cost and amount within payment capacity
12,488,351,421,421
4,535,090,094,430
420,081,214,152
1,235,016,059,511
3,134,835,927,322
3,163,328,126,006
Cost and amount within payment capacity
Form B 09-DN/HN
The trade related amounts due to the related parties were unsecured, interest free and are payable upon
16. TAXES AND OTHERS RECEIVABLE FROM AND PAYABLE TO STATE TREASURY
Details of taxes and others receivable from/(payable) to State Treasury at the reporting date are as follows:
1/1/2019 Incurred Paid/refunded 31/12/2019

VND VND VND VND
Restated
Output value added tax (*) (193,607,480,358) (4,459,267,234,721) 4,398,839,906,226 (254,034,808,853)
Value added tax – imported goods 35,192,125,789 (5,087,397,021,371) 5,067,249,522,908 15,044,627,326
Special consumption tax 404,013,013,685 (1,906,582,453,917) 2,215,743,183,105 713,173,742,873
Import-export tax 725,053,654,677 (2,112,366,044,579) 1,862,406,389,280 475,093,999,378
Corporate income tax (**) (233,993,430,520) (996,924,043,108) 948,989,300,457 (281,928,173,171)
Personal income tax (17,163,782,720) (104,879,028,460) 102,738,210,084 (19,304,601,096)
Land and housing taxes (27,838,086,242) (237,549,411,907) 278,070,808,234 12,683,310,085
Environmental protection tax (1,267,606,154,203) (29,801,100,003,373) 28,790,874,492,141 (2,277,831,665,435)
Other taxes 72,583,493 (304,667,738,224) 294,586,191,018 (10,008,963,713)
(575,877,556,399) (45,010,732,979,660) 43,959,498,003,453 (1,627,112,532,606)
In which:
Taxes and others receivable from State Treasury 1,324,618,669,843 1,298,617,777,022
Taxes and others payable to State Treasury (1,900,496,226,242) (2,925,730,309,628)
(575,877,556,399) (1,627,112,532,606)
(*) The value added tax payable presented as above represents the amount after netting off against with deductible input value added tax during the year.
(**) The corporate income tax payable as at 1 January 2019 was restated according to the State Audit of Vietnam’s report (Note 35).
2019 ANNUAL REPORT
240
17.
18.
241
Others
Others
Demurrage fees
Interest expense
Dividends payable
Major repair expenses
ACCRUED EXPENSES
Short-term deposits received

OTHER PAYABLES – SHORT-TERM
Financial support subsidiaries received from a party

Social, health and unemployment insurances, trade union fee

343,226,948,685
162,450,802,733
44,192,495,587
76,725,000,000
29,629,071,199
30,229,579,166
355,835,202,843
159,617,607,263
10,192,034,812
39,186,397,547
146,839,163,221
VND
31/12/2019
VND
31/12/2019
235,974,754,720
156,190,710,588
35,634,165,966
-
12,520,600,340
31,629,277,826
Restated
VND
1/1/2019
314,903,716,858
171,323,748,638
22,898,317,271
27,948,660,222
92,732,990,727
Restated
VND
1/1/2019
Form B 09-DN/HN
19. BORROWINGS
(a) Short-termborrowings
1/1/2019 Movements during the year 31/12/2019

Carrying amount Foreign Carrying amount
and amount within exchange and amount within
repayment capacity Additions Decreases Reclassification differences repayment capacity
Short-term borrowings (i) 12,184,599,870,581 68,880,835,292,846 (67,453,164,067,719) - (1,725,503,113) 13,610,545,592,595
Current portion of long-

1,172,882,067,645 - (1,136,020,245,016) 306,038,957,744 (142,538,781) 342,758,241,592
term borrowings (b)
13,357,481,938,226 68,880,835,292,846 (68,589,184,312,735) 306,038,957,744 (1,868,041,894) 13,953,303,834,187
(i) This mainly represents the bank loans in VND and in USD with terms ranging from 3 months to less than 12 months of the Parent Company, Petrolimex
Petrochemical Corporation - JSC, Petrolimex Singapore Pte. Ltd., Petrolimex Gas Corporation – JSC and Petrolimex Tanker Corporation which are unsecured
loans for the purposes of supplementing working capital and opening letters of credit (L/C) for petroleum import.
2019 ANNUAL REPORT
b. Long-term borrowings 20. PETROLEUM PRICE STABILISATION FUND
31/12/2019 1/1/2019 2019 2018

VND VND VND VND
Long-term borrowings 1,787,696,629,074 2,523,253,117,486 Opening balance 1,930,521,344,224 3,040,080,594,879
Repayable within twelve months (a) (342,758,241,592) (1,172,882,067,645) Increases 3,114,177,139,012 2,502,512,535,103
Repayable after twelve months 1,444,938,387,482 1,350,371,049,841 Decreases (3,615,552,047,576) (3,624,076,191,605)
Interest income from the deposit account 4,353,120,295 12,004,405,847

Long-term borrowings mainly represent bank loans with terms ranging from more than 12 months to 120
months of subsidiaries of the Group. Details are as follows:
Closing balance 1,433,499,555,955 1,930,521,344,224
31/12/2019 1/1/2019 In which:

VND VND
Account balance of Petroleum price stabilisation fund at bank (Note 5) 1,288,147,098,093 1,372,574,859,359
Van Phong Bonded Petroleum Terminal Joint Venture Company Limited 59,350,379,676 988,399,647,368
Amount deposited into the account of Petroleum price stabilisation fund after
Vietnam Tanker Joint Stock Company 423,298,698,601 467,686,987,111 145,352,457,862 557,946,484,865
the balance sheet date
Vietnam Petroleum Transport Joint Stock Company 160,732,000,000 232,606,875,000 Closing balance 1,433,499,555,955 1,930,521,344,224
Petrolimex Joint Stock Tanker Company 174,553,243,000 137,042,550,000
Hai Phong Petrolimex Transportation and Services Joint Stock Company 106,409,000,000 136,033,000,000
VP Petrochemical Transport JSC 304,598,699,618 308,340,237,990
Other subsidiaries 558,754,608,179 253,143,820,017
1,787,696,629,074 2,523,253,117,486
The purpose of these long-term borrowings is to finance the Group’s projects in investment and construction
of petroleum terminals, purchase of oil tankers, and other projects.
The long-term borrowings of the Group are mainly in USD. Most of these USD loans bear floating annual interest
rates which are equal to 6-month LIBOR, SIBOR or 12-month and 13-month USD saving interest rates of the
lending banks plus margin, but not lower than the minimum lending interest rates of the corresponding banks
at the time of adjustment or a floor interest rate specified in relevant loan agreements.
The Group’s long-term borrowings are secured over tangible fixed assets with a total net book value as of 31
December 2019 of VND 2,967,600 million (1/1/2019: VND 3,539,074 million) and intangible fixed assets with a
total net book value as of 31 December 2019 of VND 65,226 million (1/1/2019: VND 64,654 million).
21. CHANGES IN OWNERS’ EQUITY
Differences upon Foreign Investment and

asset revaluation exchange development Other equity Non-controlling
Share capital Share premium Other capital Treasury shares (i) differences fund funds Retained profits interest Total
VND VND VND VND VND VND VND VND VND VND VND
Balance at 1 January 2018 - as previously stated 12,938,780,810,000 2,246,997,553,623 1,132,410,233,797 (1,350,648,460,000) (1,317,118,937,352) 5,425,927,848 951,687,189,578 1,333,225,579,172 4,578,569,554,201 2,864,655,714,085 23,383,985,164,952
Restatement according to the State Audit’s report - - - - - - - - 506,090,653 - 506,090,653
Balance at 1 January 2018 – as restated 12,938,780,810,000 2,246,997,553,623 1,132,410,233,797 (1,350,648,460,000) (1,317,118,937,352) 5,425,927,848 951,687,189,578 1,333,225,579,172 4,579,075,644,854 2,864,655,714,085 23,384,491,255,605
Net profit during the year – as restated - - - - - - - - 3,747,899,031,187 406,664,904,462 4,154,563,935,649
Net profit during the year – as previously stated - - - - - - - - 3,649,759,187,678 398,325,115,908 4,048,084,303,586
Restatement according to the State Audit’s report (Note 35) - - - - - - - - 98,139,843,509 8,339,788,554 106,479,632,063
Dividends (Note 24) - - - - - - - - (3,476,439,705,000) (216,705,918,061) (3,693,145,623,061)
Appropriation to equity funds - - - - - - 68,556,333,941 - (68,556,333,941) - -
Appropriation to bonus and welfare fund - - - - - - - - (416,016,691,836) (35,964,722,479) (451,981,414,315)
Foreign exchange differences arising from translation of

- - - - - 6,816,232,855 - - - - 6,816,232,855
foreign operations
Subsidiaries’ increase capitals from retained profits - - 12,883,793,280 - - - - - (12,883,793,280) - -
Decrease due to disposal of subsidiaries - - (43,496,097,304) - 22,393,422,618 - (33,834,374,367) - 54,937,049,053 (279,457,960,762) (279,457,960,762)
Other movements – as restated - - (8,004,166,199) - - - (15,271,977,433) 3,816,786,244 (17,955,557,302) 8,400,379,800 (29,014,534,890)
Other movements – as previously stated - - (8,004,166,199) - - - (15,271,977,433) 3,816,786,244 (18,748,728,727) 8,190,425,609 (30,017,660,506)
Restatement according to the State Audit’s report (Note 35) - - - - - - - - 793,171,425 209,954,191 1,003,125,616
Balance at 1 January 2019 – as restated 12,938,780,810,000 2,246,997,553,623 1,093,793,763,574 (1,350,648,460,000) (1,294,725,514,734) 12,242,160,703 971,137,171,719 1,337,042,365,416 4,390,059,643,735 2,747,592,397,045 23,092,271,891,081
Net profit during the year - - - - - - - - 4,157,778,735,446 518,783,023,476 4,676,561,758,922
Dividends (Note 24) - - - - - - - - (3,044,114,411,000) (343,962,697,561) (3,388,077,108,561)
Appropriation to equity funds - - 2,295,000,000 - - - 205,431,589,289 - (207,726,589,289) - -
Appropriation to bonus and welfare fund - - - - - - - - (418,380,444,726) (48,388,673,977) (466,769,118,703)
Foreign exchange differences arising from translation of

- - - - - (33,496,074) - - - - (33,496,074)
foreign operations
Subsidiaries’ increased capitals - - - - - - - - - 18,192,800,000 18,192,800,000
Sales of treasury shares - 1,678,556,565,742 - 320,000,000,000 - - - - - 1,998,556,565,742
Associates’ appropriation to equity funds from their

- - 2,812,864,948 - - - 15,030,360,337 5,931,256,514 (23,774,481,799) - -
retained profits
Other movements - - - - - - (258,519,081) (87,741,392) (1,891,948,671) (5,144,131,145) (7,382,340,289)
Balance at 31 December 2019 12,938,780,810,000 3,925,554,119,365 1,098,901,628,522 (1,030,648,460,000) (1,294,725,514,734) 12,208,664,629 1,191,340,602,264 1,342,885,880,538 4,851,950,503,696 2,887,072,717,838 25,923,320,952,118
(i) As at 31 December 2019, item “Differences upon asset revaluation” in the Group’s consolidated balance sheet
represents the consolidation adjustments for the differences between the value of investments in subsidiaries and
associates revaluated as per the Valuation Minutes issued by Vietnam Valuation and Finance Consultancy Joint Stock
Company and the value of equity in the investees (Note 3(p)).
22. SHARE CAPITAL 25. OFF BALANCE SHEET ITEMS
The Group’s authorized and issued share capital presented at par value are: (a) Goods held under trust (Petroleum of the national reserve)
31/12/2019 1/1/2019 31/12/2019 1/1/2019

Number of shares VND Number of shares VND Gasoline RON 92 Litre 15 (*) 73,695,025 74,585,145
Authorized share capital 1,293,878,081 12,938,780,810,000 1,293,878,081 12,938,780,810,000 Diesel 0.05S Litre 15 (*) 138,911,948 139,085,788
Shares in circulation 1,190,813,235 11,908,132,350,000 1,158,813,235 11,588,132,350,000 Mazut Kg 39,737,834 39,752,150
The State 981,686,626 9,816,866,260,000 981,686,626 9,816,866,260,000
(b) Goods held under trust (third parties)
Other shareholders 209,126,609 2,091,266,090,000 177,126,609 1,771,266,090,000
Treasury shares 103,064,846 1,030,648,460,000 135,064,846 1,350,648,460,000
31/12/2019 1/1/2019
All ordinary shares have a par value of VND 10,000. Each share is entitled to one vote at meetings of the Group. Gasoline RON 92 Litre 15 (*) 17,854,485 112,929,134
Shareholders are entitled to receive dividend as declared from time to time. All ordinary shares are ranked Gasoline RON 95 Litre 15 (*) 67,759,517 18,410,072
equally with regard to the Group’s residual assets. In respect of shares bought back by the Group, all rights are Gasoline E5 Litre 15 (*) 6,228,912 5,071,874
suspended until those shares are reissued.
Diesel oil Litre 15 (*) 79,174,136 115,633,220
Movements in share capital in circulation during the year were as follows: Paraffin oil Litre 15 (*) - 105,544
Mazut Kg 1,077,555 372,133
2019 2018 E100 Litre 15 (*) 1,605,589 2,577,945
VND VND Liquified gas Kg 107,525 -
Number of shares (at par value) Number of shares (at par value) Jet A1 Litre 15 (*) 49,720,123 -
Opening balance 1,158,813,235 11,588,132,350,000 1,158,813,235 11,588,132,350,000
Treasury shares sold during (*) Litre 15 is a litre-based measurement unit with measurements made in actual temperature condition translated
32,000,000 320,000,000,000 - - into 15oC according to the formula: Litre15 = Actual litre x VCF. VCF stands for Volume Correction Factor. VCF is
the year
Closing balance 1,190,813,235 11,908,132,350,000 1,158,813,235 11,588,132,350,000
determined by looking up in the Table C.2 of Appendix C in the National Standard TCVN 7567:2006 on Liquified
Petroleum Gas (LPG) – Handling Principles, Measurement and Calculation.
(*) During the year, the Group sold 32,000,000 treasury shares, with average trading price of VND 62,455/treasury share.
(c) Foreign currencies
23. EQUITY FUNDS
31/12/2019 1/1/2019
(a) Investment and development fund Original currency VND equivalent Original currency VND equivalent
USD 28,516,008 660,808,845,443 11,379,361 254,545,009,881
Investment and development fund was established for the purpose of future business expansion. When the
JPY - - 820,393 164,718,507
funds are utilised for business expansion, the amount utilised is transferred to Share capital.
EUR 2,859 74,387,911 4,162 110,493,843
(b) Other equity funds LAK 5,947,685,263 15,463,981,684 2,483,69,082 6,770,211,944
SGD 140,364 2,420,319,297 - -
These other equity funds shall be used for profit distributions to the shareholders in the following years.
KHR 2,650 15,079 - -
24. DIVIDENDS 678,767,549,414 261,590,434,175
The General Meeting of Shareholders on 26 April 2019 passed the Resolution No. 01/2019/PLX-NQ-DHDCD on
the plan for distribution of cash dividend at the ratio of 26% of the par value, equivalent to VND 3,044,114,411,000
(2018: VND 3,476,439,705,000). These dividends were paid in 2019.
(d) Capital expenditure commitments 26. FINANCIAL INCOME
As at 31 December 2019 the Company had the following outstanding capital commitments approved but not 2019 2018
provided for in the balance sheet: VND VND
Restated
31/12/2019 1/1/2019 Interest income from deposits and loans 672,209,477,205 610,600,922,584
VND VND Dividends or profits received 12,471,716,700 10,261,686,970
Approved but not contracted 1,170,631,062,545 - Realised foreign exchange gains 202,082,965,855 326,719,141,804
Approved and contracted 8,937,696,000 - Unrealised foreign exchange gains 3,122,204,879 24,962,853,653
1,179,568,758,545 - Interest from credit sales 17,030,604,773 10,914,748,047

Gains from disposal of investments 92,726,394,257 11,776,008,892
(e) Foreign exchange contracts Other financial income 4,647,467,086 71,847,164
1,004,290,830,755 995,307,209,114
As at 31 December 2019, the Group had valid forward exchange contracts as follows:
27. FINANCIAL EXPENSES
Foreign Forward
currency exchange Date of Payment 2019 2018
Contract No. Term amount rate transaction amount VND VND
(days) USD USD/VND VND Restated
4151/HDNT-EIBHN/2019 30 7,900,000 23,229 22/01/2020 183,509,100,000 Interest expense 791,223,776,592 865,487,977,236
Interest from credit sales, payment discounts 4,719,708,614 3,442,193,191
2019.12.23/HDMBNT/TPB-PETROLIMEX 30 5,000,000 23,229 22/01/2020 116,145,000,000
Realised foreign exchange losses 150,121,031,730 592,880,097,383
FXT1912248 13 15,315,051 23,198 06/01/2020 355,278,553,098
Unrealised foreign exchange losses 23,127,193,191 29,409,757,178
Movement of allowance for investments (16,693,800,616) 15,707,522,892
4166/HDNT-EIBHN/2019 14 11,359,791 23,199 07/01/2020 263,535,791,409 Other financial expenses 13,950,564,314 1,512,304,822
FXT1912312 8 10,000,000 23,188 08/01/2020 231,880,000,000 966,448,473,825 1,508,439,852,702
FXT1911128 83 22,433,948 23,320 03/02/2020 523,159,667,360

28. SHARE OF PROFIT IN ASSOCIATES AND JOINT VENTURES
FXT1911156 95 6,997,641 23,343 18/02/2020 163,345,933,863 2019 2018

VND VND
FXT1911206 58 9,715,353 23,293 17/01/2020 226,299,717,429
Restated
3856/HDNT-EIBHN/2019 56 5,000,000 23,290 15/01/2020 116,450,000,000 Joint venture:
2019.11.20/HDMBNT/TPB-PETROLIMEX 56 5,000,000 23,290 15/01/2020 116,450,000,000 Castrol BP PETCO Co. Ltd. 510,212,224,768 497,336,768,591
FXT1912279 7 11,000,000 23,187 03/01/2020 255,057,000,000 Associates:

Petrolimex Group Commercial Joint Stock Bank 29,848,350,775 50,768,470,028
Petrolimex Joint Stock Insurance Corporation 66,587,596,087 57,985,801,868
11-2019/MBNT-FW 6 3,272,299 23,186 02/01/2020 75,871,524,614
Kien Giang Trade and Tourism Company Limited 12,650,181,967 13,384,192,449
4225/HDNT-EIBHN/2019 9 5,694,852 23,189 09/01/2020 132,057,923,028 Petrolimex Group Construction and Trading Corporation – Joint Stock Company 23,911,848,549 8,775,242,521
2019.12.31/HDMBNT/TPB-PETROLIMEX 9 6,000,000 23,189 09/01/2020 139,134,000,000 Dong Nai Petroleum Material and Fuel Joint Stock Company 1,756,813,883 4,394,912,676
3815/HDNT-EIBHN/2019 89 8,800,000 23,335 12/02/2020 205,348,000,000 Other associates 1,152,739,448 4,004,702,181
646,119,755,477 636,650,090,314
4184/HDNT-EIBHN/2019 8 3,578,864 23,190 03/01/2020 82,993,856,160
4,210,467,581,004
29. SELLING EXPENSES (b) Recognised in the consolidated statement of income
2019 2018 2019 2018

VND VND VND VND
Restated Restated
Labour costs and staff costs 3,168,831,964,714 3,056,977,724,789 Current tax expense
Tools and supplies 124,455,981,461 170,929,216,907 Current year 997,761,470,240 977,859,814,592
Depreciation and amortisation 770,549,408,220 735,609,083,216 Under provision in prior years (837,427,132) 16,570,797,652
Other cash expenses 4,638,457,900,995 4,580,060,152,722 996,924,043,108 994,430,612,244
8,702,295,255,390 8,543,576,177,634 Deferred tax (benefit)/expense
Origination and reversal of temporary differences (25,714,246,385) 28,661,617,419

30. PRODUCTION AND BUSINESS COSTS BY ELEMENT
Income tax expense 971,209,796,723 1,023,092,229,663
2019 2018
VND VND (c) Reconciliation of effective tax rate
Restated
Raw material costs 3,313,928,669,760 4,486,716,791,208 2019 2018
VND VND
Labour costs and staff costs 4,691,902,142,388 4,469,476,364,273 Restated
Depreciation and amortisation 2,030,469,201,225 2,068,564,629,989 Accounting profit before tax 5,647,771,555,645 5,177,656,165,312
Outside services 5,611,548,303,668 5,395,676,800,268 Tax at the Parent Company’s tax rate 1,129,554,311,129 1,035,531,233,062
Other expenses 1,453,628,565,768 1,322,886,042,249 Effect of different tax rates applicable to subsidiaries (21,313,666,371) (10,863,407,724)
Non-deductible expenses 15,041,048,463 21,488,851,280

31. INCOME TAX
Deferred tax assets not recognised 7,419,647,201 67,524,461,447
(a) Income tax expense by consolidated business segment Tax exempt income (132,112,115,321) (129,129,034,026)
Movements in deductible temporary differences not recognised in prior year (13,978,183,486) 39,435,251,372
2019 2018
VND VND Under provision in prior years (837,427,132) 16,570,797,652
Restated Tax losses utilised for which no deferred tax assets were recognised previously (7,632,791,089) (17,465,923,400)
Petroleum trading 815,730,324,724 845,633,352,910
Tax incentives (7,093,465,200) -
Petrochemical products 40,196,993,033 46,343,777,979
Other movements 2,162,438,529 -
Gas products 39,509,920,090 39,765,240,197
971,209,796,723 1,023,092,229,663
Transportation services 67,918,851,288 84,637,147,583
Other goods and services 7,853,707,588 6,712,710,994 (d) Applicable tax rates
971,209,796,723 1,023,092,229,663 Under the terms of the current Law on Corporate Income Tax, the tax rate applicable to the Parent Company
and its subsidiaries is 20%, except for Petrolimex Singapore Pte. Ltd and Van Phong Bonded Petroleum Terminal
Joint Venture Company Limited whose applicable tax rate is 10%.
32. EARNINGS PER SHARE 34. POST BALANCE SHEET EVENTS
The calculation of basic earnings per share for the year ended 31 December 2019 was based on the profit attributable Announcement of dividend payment plan for 2019
to ordinary shareholders after deducting the estimated amounts to be appropriated to bonus and welfare fund for the
year 2019 and a weighted average number of ordinary shares outstanding, calculated as follows: Subsequent to the balance sheet date, under the Resolution No. 048/PLX-NQ-HDQT dated 16 March 2020, the
Board of Management of Vietnam National Petroleum Group approved the roadmap and plan for payment of
(i) Weighted average number of ordinary shares dividends for 2019 to the shareholders as follows:
Number of shares - Batch 1: Advance of dividend at the rate of 20%, equivalent to VND 2,000 per share, on 27 April 2020; and
2019 2018
- Batch 2: Payment of the remaining dividend at the ratio of 10%, equivalent to VND 1,000 per share after the
Issued ordinary shares at the beginning of the year 1,158,813,235 1,158,813,235 end of the General Meeting of Shareholders on the basis of the Resolution to be approved by the General
Effect of reissuance of treasury shares during the year 31,109,036 - Meeting of Shareholders.
Weighted average number of ordinary shares during the year 1,189,922,271 1,158,813,235
The dividends payable has not been accrued in these consolidated financial statements.
(ii) Basic earnings per share
35. CORRESPONDING FIGURES
2019 2018
Restated During the year, the Group has restated some items in its consolidated financial statements for the year ended
31 December 2018 according to the audit results of the State Audit of Vietnam announced in its Audit report on
Consolidated net profit attributable to ordinary shareholders (VND) 4,157,778,735,446 3,747,899,031,187
the financial statements, activities relating to management and use of state-owned funds and assets for the year 2018
Estimated amount to be appropriated to bonus and welfare fund (VND) (391,036,940,532) (434,793,782,485) of the Group. These restatements are as follows:
3,766,741,794,914 3,313,105,248,702
Weighted average number of ordinary shares during the year A comparison of the amounts previously reported and as restated is as follows:
1,189,922,271 1,158,813,235
(number of shares)
Basic earnings per share (VND per share) 3,166 2,859 Consolidated balance sheet:
33. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES 1/1/2019 1/1/2019 1/1/2019
In addition to related party balances disclosed in other notes to the consolidated financial statements, the (As previously (Restatements of
reported) State Audit) (As restated)
Group had the following significant transactions with related parties during the year:
VND VND VND
Transaction value Accounts receivable from customers 7,005,872,124,081 435,648,290 7,006,307,772,371
2019 2018 Prepayments to suppliers 345,207,153,297 352,010,885 345,559,164,182

VND VND Other receivables 517,264,599,588 94,138,125,186 611,402,724,774
Associates, joint ventures Allowance for doubtful debts (411,260,131,686) 2,411,795,751 (408,848,335,935)
Castrol BP PETCO Co. Ltd. Inventories 10,885,554,215,474 1,007,864,291 10,886,562,079,765
Dividends received 501,870,161,436 374,154,084,406 Allowance for inventories (590,660,068,351) 6,779,971,982 (583,880,096,369)
Purchase of goods 20,090,731,297 25,484,083,846 Short-term prepaid expenses 214,190,706,717 7,082,460,233 221,273,166,950
Petrolimex Group Commercial Joint Stock Bank Deductible value added tax 328,040,723,919 (126,512,455) 327,914,211,464
Purchase of foreign currencies 9,948,778,094,980 23,538,838,487,934 Taxes and others receivable from State Treasury 1,324,555,775,906 62,893,937 1,324,618,669,843
Interest income from deposits 102,621,509,592 86,009,958,088 Tangible fixed assets 13,088,046,588,593 18,289,684,934 13,106,336,273,527
Management and warranty fees 15,470,995,715 13,434,248,823 Cost 30,549,814,979,282 15,666,251,432 30,565,481,230,714
Petrolimex Joint Stock Insurance Corporation Accumulated depreciation (17,461,768,390,689) 2,623,433,502 (17,459,144,957,187)
Purchases of services 258,533,746,954 249,918,430,040 Construction in progress 875,013,410,257 (2,215,412,631) 872,797,997,626
Board of Management and Supervisory Board Investments in associates, joint-ventures 2,937,427,661,822 1,266,607,155 2,938,694,268,977
Compensation and other benefits 13,007,095,033 14,136,129,718 Allowance for diminution in the value of long-term
(125,833,700,369) 159,150,289 (125,674,550,080)
Board of General Directors financial investments
Salaries, bonuses and other benefits 10,223,546,814 9,822,514,052
35. CORRESPONDING FIGURES (continued)
Consolidated statement of income: Consolidated statement of cash flows:
2018 2018 2018 2018 2018 2018

(As previously (Restatements of (As previously (Restatements of
reported) State Audit) (As restated) reported) State Audit) (As restated)
Long-term prepaid expenses 2,233,354,898,790 14,583,128 2,233,369,481,918 Accounting profit before tax 5,042,559,777,163 135,096,388,149 5,177,656,165,312
Deferred tax assets 24,569,042,779 (17,721,692,990) 6,847,349,789 Depreciation and amortisation 2,072,134,909,956 (3,570,279,967) 2,068,564,629,989
Accounts payable to suppliers 12,489,789,725,099 (1,438,303,678) 12,488,351,421,421 Allowances and provisions 753,635,479,105 (9,350,918,022) 744,284,561,083
Taxes and others payable to State Treasury 1,886,187,361,415 14,308,864,827 1,900,496,226,242 Exchange losses arising from revaluation of
5,332,029,314 (885,125,789) 4,446,903,525
monetary items denominated in foreign currencies
Payables to employees 847,409,526,049 (492,121,276) 846,917,404,773
Profits from investing activities (1,273,660,290,645) (410,410,959) (1,274,070,701,604)
Accrued expenses 319,384,394,810 (4,480,677,952) 314,903,716,858
Interest expense 864,678,771,880 809,205,356 865,487,977,236
Other payables – short-term 235,593,345,411 381,409,309 235,974,754,720
Operating profit before changes in working capital 6,343,117,020,271 121,688,858,768 6,464,805,879,039
Bonus and welfare fund 316,868,629,672 (4,330,841,576) 312,537,788,096
Change in receivables (440,573,782,443) (94,862,165,843) (535,435,948,286)
Retained profits 4,290,620,538,148 99,439,105,587 4,390,059,643,735
Change in inventories 1,592,558,581,222 (1,007,864,291) 1,591,550,716,931
Non-controlling interest 2,739,042,654,300 8,549,742,745 2,747,592,397,045
Change in payables and other liabilities (867,709,740,677) (14,390,943,697) (882,100,684,374)
Revenue from sales of goods and provision of
191,979,275,263,458 396,043,900 191,979,671,307,358
services Change in prepaid expenses (36,933,925,094) (7,097,043,361) (44,030,968,455)
Cost of sales 178,041,353,481,913 (14,982,544,218) 178,026,370,937,695 Other payments for operating activities (394,984,364,794) (4,330,841,576) (399,315,206,370)
Financial income 994,256,425,636 1,050,783,478 995,307,209,114
Except for the restated items above, corresponding figures as at 1 January 2019 were derived from the balances
Financial expenses 1,508,034,550,907 405,301,795 1,508,439,852,702
and amounts reported in the Group’s audited consolidated financial statements as at and for the year ended
Share of profit in associates and joint ventures 635,383,483,159 1,266,607,155 636,650,090,314 31 December 2018.
Selling expenses 8,559,770,481,125 (16,194,303,491) 8,543,576,177,634
6 April 2020
General and administration expenses 575,093,420,463 (1,940,853,512) 573,152,566,951
Other income 249,963,422,715 99,107,477,745 349,070,900,460
Other expenses 84,869,525,199 (563,076,445) 84,306,448,754
Income tax expense – current 983,535,549,148 10,895,063,096 994,430,612,244
Income tax expense – deferred 10,939,924,429 17,721,692,990 28,661,617,419
Net profit after tax attributable to equity
3,649,759,187,678 98,139,843,509 3,747,899,031,187
holders of the parent company
Net profit after tax attributable to non-
398,325,115,908 8,339,788,554 406,664,904,462
controlling interest
Basic earnings per share 2,766 93 2,859
VIETNAM NATIONAL PETROLEUM GROUP APPENDIX 1:
CONVERTED CONSOLIDATED BALANCE SHEET
as at 31 December 2019
Code 31/12/2019 1/1/2019 Code 31/12/2019 1/1/2019

USD USD USD USD
Restated Restated
ASSETS Long-term work in progress 240 42,825,356 37,767,114
Current assets (100 = 110 + 120 + 130 + 140 + 150) 100 1,676,886,021 1,501,091,314 Construction in progress 242 42,825,356 37,767,114
Cash and cash equivalents 100 487,892,965 442,268,955 Long-term financial investments 250 168,177,844 134,883,030
Cash 111 215,086,574 179,715,043 Investments in associates, joint-ventures 252 125,157,231 127,161,154
Cash equivalents 112 272,806,391 262,553,912 Equity investments in other entities 253 13,141,896 13,030,165
Short-term financial investments 120 233,547,246 203,998,585 Allowance for diminution in the value of long-term financial investments 254 (4,738,332) (5,438,103)
Trading securities 121 227,445 227,445 Held-to-maturity investments 255 34,617,049 129,814
Allowance for diminution in the value of trading securities 122 (101,090) (123,683) Other long-term assets 260 108,803,947 97,078,110
Held-to-maturity investments 123 233,420,891 203,894,823 Long-term prepaid expenses 261 106,456,811 96,640,826
Accounts receivable – short-term 130 361,037,310 326,955,372 Deferred tax assets 262 2,197,200 296,294
Accounts receivable from customers 131 347,276,688 303,172,123 Long-term tools, supplies and spare parts 263 957 957
Prepayments to suppliers 132 12,404,809 14,952,798 Other long-term assets 268 148,979 140,033
Other receivables 136 19,678,493 26,456,198 TOTAL ASSETS (270 = 100 + 200) 270 2,672,540,624 2,435,444,413
Allowance for doubtful debts 137 (18,338,066) (17,691,404) RESOURCES
Shortage of assets awaiting resolution 139 15,386 65,657 LIABILITIES (300 = 310 + 330) 300 1,550,804,536 1,436,211,533
Inventories 140 509,418,092 445,810,558 Current liabilities 310 1,478,698,704 1,366,485,237
Inventories 141 511,846,110 471,075,815 Accounts payable to suppliers 311 594,942,308 540,387,340
Allowance for inventories 149 (2,428,018) (25,265,257) Advances from customers 312 7,022,668 5,220,433
Other current assets 150 84,990,408 82,057,844 Taxes and others payable to State Treasury 313 126,600,186 82,236,963
Short-term prepaid expenses 151 9,700,473 9,574,780 Payables to employees 314 37,334,194 36,647,227
Deductible value added tax 152 18,113,012 14,189,278 Accrued expenses 315 15,397,456 13,626,297
Taxes and other receivable from State Treasury 153 56,192,894 57,317,987 Unearned revenue – short-term 318 213,631 305,793
Other current assets 155 984,029 975,799 Other payables – short-term 319 14,851,880 10,210,941
Long-term assets (200 = 210 + 220 + 230 + 240 + 250 + 260) 200 995,654,603 934,353,099 Short-term borrowings 320 603,777,751 577,995,757
Accounts receivable – long-term 210 1,016,474 893,321 Provisions – short-term 321 3,169,532 2,794,376
Accounts receivable from customers – long-term 211 40,518 33,061 Bonus and welfare fund 322 13,359,693 13,523,920
Other long-term receivables 216 2,259,441 1,682,386 Petroleum price stabilisation fund 323 62,029,405 83,536,190
Allowance for doubtful long-term debts 219 (1,283,485) (822,126) Long-term liabilities 330 72,105,832 69,726,296
Fixed assets 220 666,620,109 655,104,124 Long-term advances from customers 332 1,089,074 493,166
Tangible fixed assets 221 575,634,691 567,128,355 Long-term unearned revenue 336 135,960 40,321
Cost 222 1,402,795,130 1,322,608,448 Other payables – long-term 337 5,815,237 6,912,898
Long-term borrowings 338 62,524,379 58,432,326
Accumulated depreciation 223 827,160,439) (755,480,093)
Deferred tax liabilities 341 434,735 337,416
Intangible fixed assets 227 90,985,418 87,975,769
Provisions – long-term 342 2,106,447 3,510,169
Cost 228 119,934,887 114,800,905
Accumulated amortisation 229 (28,949,469) (26,825,136)
Investment property 230 8,210,873 8,627,400
Cost 231 11,882,629 11,664,733
Accumulated depreciation 232 (3,671,756) (3,037,333)
VIETNAM NATIONAL PETROLEUM GROUP APPENDIX 1: VIETNAM NATIONAL PETROLEUM GROUP AAPPENDIX 2:
CONVERTED CONSOLIDATED BALANCE SHEET CONVERTED CONSOLIDATED STATEMENT OF INCOME
as at 31 December 2019 for the year ended 31 December 2019
Code 31/12/2019 1/1/2019 Code 2019 2018

USD USD USD USD
Restated Restated
EQUITY (400 = 410) 400 1,121,736,088 999,232,880 Revenue from sales of goods and provision of services 01 8,206,680,646 8,307,212,086
Owners’ equity 410 1,121,736,088 999,232,880
Revenue deductions 02 2,287,508 2,042,293
Share capital 411 559,878,010 559,878,010
Ordinary shares with voting rights 411a 559,878,010 559,878,010 Net revenue (10 = 01 - 02) 10 8,204,393,138 8,305,169,793
Share premium 412 169,863,874 97,230,530
Cost of sales 11 7,591,264,248 7,703,434,485
Other capital 414 47,550,914 47,329,890
Gross profit (20 = 10 - 11) 20 613,128,890 601,735,308
Treasury shares 415 (44,597,510) (58,444,330)
Differences upon asset revaluation 416 (56,024,471) (56,024,471) Financial income 21 43,456,981 43,068,248
Foreign exchange differences 417 528,285 529,734
Financial expenses 22 41,819,493 65,272,170
Investment and development fund 418 51,550,870 42,022,379
Other equity funds 420 58,108,433 57,855,576 In which: Interest expense 23 34,237,290 37,450,800
Retained profits 421 209,950,260 189,963,637 Share of profit in associates and joint ventures 24 27,958,449 27,548,684
Retained profits brought forward 421a 30,037,723 -
Selling expenses 25 376,559,725 369,691,743
Retained profit for the current year 421b 179,912,537 189,963,637
Non-controlling interest 429 124,927,423 118,891,925 General and administration expenses 26 27,679,286 24,801,063
TOTAL RESOURCES (440 = 300 + 400) 440 2,672,540,624 2,435,444,413 Net operating profit {30 = 20 + (21 - 22) + 24 - (25 + 26)} 30 238,485,816 212,587,264
Other income 31 8,724,528 15,104,756

The converted consolidated balance sheet as at 31 December 2019, including amounts presented for the corresponding
figures, has been translated from the audited consolidated balance sheet as at 31 December 2019 expressed in VND at Other expenses 32 2,823,863 3,648,051
the foreign currency transfer rate ruling at the reporting date as quoted by the Joint Stock Commercial Bank for Foreign
Trade of Vietnam of VND 23,110 for USD1. This method of translation does not comply with Vietnamese Accounting Results of other activities (40 = 31 - 32) 40 5,900,665 11,456,705
Standard No. 10 – “The Effect of Changes in Foreign Exchange Rates” and accordingly, the converted consolidated
balance sheet as at 31 December 2019 is not intended to be a presentation in accordance with Vietnamese Accounting Accounting profit before tax (50 = 30 + 40) 50 244,386,481 224,043,969
Standards, the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable Income tax expense – current 51 43,138,209 43,030,316
to financial reporting. The converted consolidated balance sheet should be read in conjunction with the audited
consolidated balance sheet in VND. Income tax (benefit)/expense – deferred 52 (1,112,689) 1,240,226
6 April 2020 Net profit after tax (60 = 50 - 51 - 52) 60 202,360,961 179,773,427

VIETNAM NATIONAL PETROLEUM GROUP AAPPENDIX 2: VIETNAM NATIONAL PETROLEUM GROUP APPENDIX 3:
CONVERTED CONSOLIDATED STATEMENT OF INCOME CONVERTED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2019 for the year ended 31 December 2019 (Indirect method)
Code 2019 2018 Code 2019 2018

USD USD USD USD
Restated Restated
Attributable to: CASH FLOWS FROM OPERATING ACTIVITIES
Equity holders of the Parent Company 61 179,912,537 162,176,503 Accounting profit before tax 01 244,386,481 224,043,969
Non-controlling interest 62 22,448,424 17,596,924 Adjustments for
Earnings per share Depreciation and amortisation 02 87,861,065 89,509,504
Basic earnings per share 70 0.1370 0.1237 Allowances and provisions 03 (23,480,146) 32,206,169
Exchange losses/(gains) arising from revaluation of monetary items

04 865,642 192,423
The converted consolidated statement of income for the year ended 31 December 2019, including amounts presented denominated in foreign currencies
for the corresponding figures, has been translated from the audited consolidated statement of income for the year
Profits from investing activities 05 (61,597,895) (55,130,710)
ended 31 December 2019 expressed in VND at the foreign currency transfer rate ruling at the reporting date as quoted
by the Joint Stock Commercial Bank for Foreign Trade of Vietnam of VND 23,110 for USD1. This method of translation Interest expense 06 34,237,290 37,450,800
does not comply with Vietnamese Accounting Standard No. 10 – “The Effect of Changes in Foreign Exchange Rates” and
accordingly, the converted consolidated statement of income for the year ended 31 December 2019 is not intended Other adjustments 07 (21,695,149) (48,531,531)
to be a presentation in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for
enterprises and the relevant statutory requirements applicable to financial reporting. The converted consolidated Operating profit before changes in working capital 08 260,577,288 279,740,624
statement of income should be read in conjunction with the audited consolidated statement of income in VND.
Change in receivables 09 (37,967,862) (23,169,015)
6 April 2020
Change in inventories 10 (40,770,295) 68,868,486
Change in payables and other liabilities 11 90,502,933 (38,169,653)
Change in prepaid expenses 12 3,542,729 (1,905,278)
Change in trading securities 13 - (125,758)
275,884,793 285,239,406
Interest paid 14 (33,751,019) (37,452,005)
Income tax paid 15 (41,064,011) (41,876,626)

Accountant Chief Accountant General Director Other receipts from operating activities 16 188,365 519,446
Other payments for operating activities 17 (20,361,938) (17,278,893)
Net cash flows from operating activities 20 180,896,190 189,151,328
VIETNAM NATIONAL PETROLEUM GROUP APPENDIX 3:
CONVERTED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2019 (Indirect method)
Code 2019 2018 Code 2019 2018

USD USD USD USD
Restated Restated
CASH FLOWS FROM INVESTING ACTIVITIES Net cash flows during the year (50 = 20 + 30 + 40) 50 45,501,643 (173,189,080)
Payments for additions to fixed assets and other long-term assets 21 (104,791,964) (100,915,669) Cash and cash equivalents at the beginning of the year 60 442,268,955 615,466,097
Proceeds from disposals of fixed assets and other long-term assets 22 2,336,362 1,004,979 Effect of exchange rate fluctuations on cash and cash equivalents 61 122,367 (8,062)
Payments for granting loans, purchase of debt instruments of other entities 23 (683,472,412) (403,808,369) Cash and cash equivalents at the end of the year (70 = 50 + 60 + 61) 70 487,892,965 442,268,955
Receipts from collecting loans, sales of debt instruments of other entities 24 619,459,109 308,071,899
The converted consolidated statement of cash flows for the year ended 31 December 2019, including amounts
Collections on investments in other entities 26 8,389,112 4,117,525 presented for the corresponding figures, has been translated from the audited consolidated statement of cash flows
for the year ended 31 December 2019 expressed in VND at the foreign currency transfer rate ruling at the reporting
Receipts of interests, dividends and profits distributed 27 51,323,180 45,940,624 date as quoted by the Joint Stock Commercial Bank for Foreign Trade of Vietnam of VND 23,110 for USD1. This method
of translation does not comply with Vietnamese Accounting Standard No. 10 – “The Effect of Changes in Foreign
Net cash flows from investing activities 30 (106,756,613) (145,589,011) Exchange Rates” and accordingly, the converted consolidated statement of cash flows for the year ended 31 December
2019 is not intended to be a presentation in accordance with Vietnamese Accounting Standards, the Vietnamese
CASH FLOWS FROM FINANCING ACTIVITIES Accounting System for enterprises and the relevant statutory requirements applicable to financial reporting. The
converted consolidated statement of cash flows should be read in conjunction with the audited consolidated
Proceeds from capital contributed by owners, sales of treasury shares 31 87,267,389 - statement of cash flows in VND.
Proceeds from borrowings 33 2,998,743,670 4,286,783,803 6 April 2020

Payments to settle loan principals 34 (2,968,782,760) (4,343,927,653)
Payments of dividends 36 (145,866,233) (159,607,547)
Net cash flows from financing activities 40 (28,637,934) (216,751,397)

VIETNAM NATIONAL PETROLEUM GROUP
Abbreviated name: PETROLIMEX (HOSE: PLX)
No.1 Kham Thien Street, Dong Da District, Hanoi
[T] : (024) 3851-2603
[F] : (024) 3851-9203
[W] : www.petrolimex.com.vn

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DIGITAL TRANSFORMATION

DISTINCTION DRIVES US FORWARD

ANNUAL REPORT 2019

BOM Board of Management

2 3 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

LARGE MARKET THE AVERAGE TRADING

61,762 189,604 5,648

66,686 752,917 OF ANNUAL PROFITS ARE

PLX IS THE LEADING STOCK IN

LARGE MARKET CAPITALIZATION

THE HIGHEST MARKET SHARE

CORPORATE GOVERNANCE UNDER

CLEAR STRATEGIC ORIENTATION TRANSPARENT INFORMATION

CAGR 2015 – 2019

4 5 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

FORWARD General Director’s letter

BRAND VALUES BRAND PERSONALITIES

12 13 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

Dear value shareholders, customers and partners,

14 15 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

16 17 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

GROUP OVERVIEW CHARTER CAPITAL

1956 2011 2016 2018

1995 2012 2017 2019

The Group’s companies, branches Petrolimex Singapore,

PETROLEUM PETROCHEMICAL GAS PETROLEUM OTHERS Hoang Sa Islands

DISTRIBUTION DISTRIBUTION DISTRIBUTION TRANSPORTATION (insurance, banking,

Phu Quoc Island

22 23 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

MANAGEMENT STRUCTURE SUBSIDIARIES, ASSOCIATES

GENERAL MEETING OF Of which, there are:

04 4 Corporations with more than

REPRESENTATIVE OFFICE 4 CORPORATIONS WITH

Petrolimex Transportation Services

LISTS OF SUBSIDIARIES, ASSOCIATES

24 25 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

MR. PHAM VAN THANH

Year of birth 1961

Positions in other organizations: None

26 27 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

MR. NGUYEN THANH SON MR. TRAN NGOC NAM

Year of birth 1962 Year of birth 1965

MR. LE VAN HUONG MR. NGUYEN ANH DUNG

Year of birth 1963 Year of birth 1971

28 29 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

MR. PHAM DUC THANG MR. NGUYEN QUANG DUNG

Year of birth 1972

MR. NGUYEN VAN SU

Year of birth 1966

Positions in other organizations:

30 31 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

MR. DAO NAM HAI MR. LUU VAN TUYEN

Year of birth 1974 Year of birth 1969

MR. NGUYEN XUAN HUNG MR. NGUYEN BA TUNG

Year of birth 1965 Year of birth 1972

32 33 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

Year of birth 1963

Positions in other organizations: Foreign language English

34 35 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

36 37 DIGITAL TRANSFORMATION - DISTINCTION DRIVES US FORWARD 2019 ANNUAL REPORT

DISTINCTION DRIVES US FORWARD

FORWARD Growth drivers

As a leading corporation in Vietnamese petroleum industry, Petrolimex