DONG THAP PETROLEUM TRADING IMPORT EXPORT JOINT STOCK COMPANY

DONG THAP PETROLEUM TRADING IMPORT EXPORT JOINT STOCK COMPANY, locally known as CÔNG TY CỔ PHẦN THƯƠNG MẠI DẦU KHÍ ĐỒNG THÁP (PETIMEX), is a key player in Vietnam’s fuel trading industry. Established in 2010, the company operates as a publicly held joint stock company, with 98.63% of shares owned by state capital. PETIMEX is headquartered in Cao Lanh City, Dong Thap Province, and plays a significant role in the wholesale distribution of petroleum and gaseous fuels.

According to Vanguard Business Information LLC (VBI), PETIMEX reported total assets of USD 305.69 million in 2023, reflecting an 11.68% increase from the previous year. However, the company faced a decline in total sales, dropping by 7.01% to USD 825.65 million, signaling challenges in the fuel trading market. More concerning is the 40.83% decline in profit, which fell to USD 2.39 million, indicating rising operational costs and decreasing margins. The company’s working capital also turned negative (-USD 14.01 million), highlighting liquidity constraints that could impact its financial flexibility.

PETIMEX is led by Chairman Tran Quang Si, with General Director Le Thanh Man and Vice General Director Le Thi Hong overseeing operations. With 236 employees, the company manages petroleum imports, distribution, and storage, ensuring a steady fuel supply in Dong Thap and surrounding regions. Beyond fuel trading, the company has diversified into agricultural trading, inland freight transport, warehousing, and even tourism-related services, but its primary revenue driver remains petroleum sales.

Despite its strong market position, PETIMEX faces several operational difficulties. VBI’s business risk analysis highlights that volatile fuel prices, government regulations, and increasing competition from private fuel distributors have created financial pressures on state-owned enterprises like PETIMEX. Additionally, the company’s declining equity (-1.91%) and shrinking profit margins suggest it rethink cost-efficiency strategies and revenue diversification.

To improve financial performance, VBI recommends that PETIMEX focus on supply chain optimization, alternative energy investments, and expanded retail fuel operations. The company’s state-backed ownership provides economic stability, but its ability to innovate and adjust to market changes will determine its long-term sustainability. If PETIMEX can successfully address liquidity challenges and operational inefficiencies, it can potentially remain a dominant fuel distributor in the Mekong Delta region.