Petrolimex Chairman warns that without changes, the group will fall behind in its own market.

Petrolimex Chairman Phạm Văn Thanh warned at the Technical-Investment Conference 2021–2025 and outlined directions for 2026–2030 that the factors determining the group’s survival and real competitiveness depend on how its assets are invested in and developed. Over the next 10–20 years, he said Petrolimex’s growth will be defined either by scale or by governance and efficiency.

Cause: Investment and development management will determine competitiveness

Thanh argued that the key lies in Petrolimex’s technical work and development investments. In the new era, he said, the competitive advantage of a large energy group is no longer tied to owning many assets, but to how effectively those assets are exploited.

From Petrolimex’s current operations, he pointed to several bottlenecks. Investment thinking still focuses on expanding scale, while the next phase requires improving efficiency. Technology investments have been deployed, but operating capability and mastery of technology have not kept pace. He also said the system is large but not integrated as a single coherent network, with data not fully cross-cutting and shared assets not fully exploited. In addition, he described the energy transition as dispersed and lacking a clear focus.

Development: Global peers shift toward discipline, focus, and integrated energy services

Thanh said global large energy conglomerates are adjusting strategies toward “realism, discipline, and sharper focus.” ENEOS’s mid-term plan, he noted, emphasizes restructuring investment portfolios, tightening project selection discipline, and prioritizing areas with early cash flow such as LNG, biofuels, and SAF. On hydrogen, ENEOS remains engaged but takes a selective approach focused on feasible areas.

He also cited changes in retail strategies. BP and Shell, Thanh said, no longer view the retail system as before. Gas stations are no longer only fuel sellers; they have become energy-service hubs and integrated convenience centers, combining fuel, charging, and retail. This, he said, implies that future energy stations will be less about selling products and more about retaining customers.

Data and operational priorities: Efficiency, data-driven management, and system integration

Thanh said the lesson for Petrolimex is not to chase every trend, but to select directions that match its strengths. He proposed a unified investment philosophy: “Invest not to grow bigger—but to be more efficient and smarter.” Investments, he said, must not be scattershot; each dong invested should answer what value it creates, how it can be measured, and who is responsible.

He outlined five strategic directions:

• Restructure investment activities around efficiency: every project must have clear KPIs, post-implementation checks, and accountability.
• Shift to data-driven operations: he said global enterprises use real-time data and AI to optimize the entire value chain, and Petrolimex should adopt this approach.
• Redefine the retail system: gas stations should become energy-service centers linked to highway rest stops, truck stations, and value-added services.
• Pursue energy transition substantively and selectively: based on experience from ENEOS and Shell, he said Petrolimex should prioritize viable areas such as biofuels and transitional fuels rather than spreading resources thin.
• Apply science and technology across the system: to optimize operations.

Technology examples and implementation gap

Thanh said international experience shows leading firms apply technologies such as Coriolis mass-flow measurement, automated tank farms, real-time inventory management, and end-to-end quality traceability. He noted that Petrolimex has begun moving in this direction with automated level measurement, LIMS, and data systems, but “speed and synchronization must improve.”

Impact: A new state-owned enterprise narrative focused on efficiency and adaptability

Thanh stressed that the state-owned enterprise narrative is no longer about scale or role, but about meeting higher requirements—to become a core, competitively capable force with real efficiency and rapid adaptability. He said Petrolimex cannot continue with old practices, cannot invest with a safety-only mindset, and cannot accept prolonged low efficiency.

“If we do not change, we will fall behind on our own market,” Thanh said.

Analysis and expert direction: Breakthrough mindsets for engineering and investment

To achieve these goals, Thanh said the engineering and investment function must adopt three breakthrough mindsets. First, innovation is the core of engineering: engineering requires mastering core technology, continuous improvement, and applying AI and IoT to monitor and optimize the supply chain. Second, investment must be holistic across three pillars—People, Processes, Technology—so that the three pillars are aligned. Third, culture is the foundation for breakthroughs: a culture of safety, customer experience, and innovation is essential for smooth operation as technology evolves. He added that investing in culture is investing in mindset and efficient habits, noting that machines can be purchased but a workforce with a strong culture is not easily replicated.

Thanh concluded that Petrolimex’s historical advantage was scale, while the future advantage must be efficiency, technology, and governance. He said the competitive edge will come from investing effectively rather than investing the most.

“Going forward, the winner will not be the one who invests the most—but the one who invests most effectively. The competitive edge of a business will not lie in asset scale, but in the ability to optimize and extract value from those assets,” Thanh said.