Truly Franchise, firmly establish Franchise System

03:16 PM @ Tuesday - 13 December, 2016

On 12.12.2016, Leadership of Petrolimex Saigon worked with Petroleum Retail Enterprise about the schemes and measures to promote development of Franchise system (Franchise) in the period 2017-2020.

Overall of the meeting

Steering the meeting there were Petrolimex Saigon Chairman Nguyen Van Canh, Director Trinh Ba Bo; Participants were Leadership Board, several Managers of Petrolimex Saigon’s departments. General Manager of Petroleum Retail Enterprise Nguyen Tien Quang together with Managers Board from Retail Enterprise’s departments.

Speaking at the meeting, Petroleum Retail Enterprise General Manager Nguyen Tien Quang informed that in recent years, Franchising channel through retailer system has had unstable output and been on decline. In 2016, Retailer only has 63 Petroleum Stations, a total output is more than 97,000 m3 = 88% of the plan and only 92% in the same period.

Evaluating the development potential of the market in coming years, Ho Chi Minh City has the largest amount of vehicles and constantly increasing; since 2011, now has more than 8.5 million local vehicles. Face to such a huge demand, until 2025 Ho Chi Minh City has developing plans with more than 600 Petroleum stations to meet the transportation needs of citizens. Besides, in recent years the City together with the Central agencies and Localities has been strengthened to control and tightened the Quality Managerment of petroleum business, therefore increase the investment demand of develop the Petrolimex Saigon Petroleum Stations network with the Franchise model’s infrastructure, material and technical basis of standardized, modern, spacious and suitable to the urban landscape, increasing competitiveness, attracting customers, thereby open up many opportunities and challenges for Petrolimex Saigon Franchise channel.

Petroleum Retail Enterprise General Manager Nguyen Tien Quang is raising up several problems and difficulties in maintenance and development of Franchise Channel in recent years

In the coming time, Retail Enterprise issues policy of franchise customers with more changes on price, liabilities, sales support, as well as policies on equipment investment, commercial identifier. Besides, promoting the preferential policies such as support for technical services (Pumps verification, tanks rinse, benchmarks establish, pumps repair, materials dedicated supply, ...), providing customers the advanced training courses prescribed the Government (management skills, fire protection, work safety, environment ...).

Concluding the meeting, Petrolimex Saigon Chaiman Nguyen Van Canh confirmed that the reality is quite volatile from the sector: direct sale Mazut oil (FO), diesel oil (DO) to customers decreased rapidly because of cheap alternative fuel, cleaner than grease; imported petroleum increasing rapidly - 29 units and nearly 100 traders, ... Making major changes and adjustments of strategy and planning of business development are nesscesary.

The objective, perspective and strategic vision all have to regard Franchising as a sustainable development channel, the second key strategy follows direct retailer.

Designing, establishing Petrolimex policies system must be real and persuaded. The Franchise (trade policy, commercial credit, investment, commercial identifiers, ...) that the world has established since 1945 has been prescribed in Goverment Decree 83rd. However, we still established policies base on the old thinking, experience and lack of pressing concern.

Therefore, requesting to change the mindset base of experience - retailer, has to break through and must start from the market in order to bring sustainable and effective strategy for long-term vision. From the draft and comments at the meeting, Retail Enterprise urgently finalize the policy progress the Franchise approval before date 12.20.2016. From date 12.25.2016 Retail Enterprise helds conference to publicize widely new policies to all customers has been under franchise channel. On the basis of the new policies, requesting all the departments of the Company to coordinate at one to build up constructions, upgrading at a fundamental mechanism with higher requirements, more convincing, close to the market. Because of those, suggesting recommendations to the Vietnam National Petroleum Group strategic decisions and policies across the system.

Company Chairman requests, in 2017 generated sales of Enterprise Channel reachs at minimum of 115,000 m3 increasing 18% compared to implementation in 2016, increasing at least 17 points to 80 Franchise Petroleum Stations; in 2020 has minimum of 150 Franchise P.Stations, making a tight and sustainable system. Besides, paying special attention to customer services, understand and grasp the difficulties for mutual solving with the goal of harmoning interests between the customer and the Company / Retail Enterprise.

Petrolimex Saigon Chairman Nguyen Van Canh steering and concluding the meeting

Petrolimex Saigon Director Trinh Ba Bo is making keys note in the meeting

Some pictures at the meeting:

Head of section of Sale Department – Petroleum Retail Enterprise Dang Van Hoai (middle) is reporting Draft Policy of the Retail Enterprise Franchise Customer period 2017-2020