BSR has established itself as a leader in a whole spectrum of refined petroleum products in Vietnam. Through established distribution networks with sister companies in Petro Vietnam, BSR seeks to reinforce its strong foothold in two product lines across all geographical regions:
- Refined Petroleum Products, primarily:
- Gasoline (A 92, 95 and 97) - supplying 35% of national consumption
- Diesel oil - producing 32% of national consumption
- LPG - accounting for 30% of market share
- Kerosene/Jet A1 and fuel oil - delivering 9% of domestic consumption
- Petrochemical products - primarily Propylene and Polypropylene (PP) and Paraffin/Asphalt, satisfying 15% of the market demand.
BSR has stayed focused on its core business without venturing into noncore sectors. It provides over 30% of Vietnam’s supply of refined oil. Gasoline (RON92 and RON95) and diesel oil are BSR’s two major products accounting for 80% of BSR’s revenue and cost of goods sold. Through expanding its research and development capabilities it has successfully enlarged its portfolio of products to include new derivatives such as E5 and A97. All products meet strict national standards and technical regulations.
Recently, BSR products have occupied about 30% of total domestic market demand. With the fast and stable growth and development of Vietnam, the market for BSR’s products are expected to increase rapidly. BSR continues to implement strategies to expand production capacity and trade activities to gain more market share. With the wider and deeper economic integrations between Vietnam and other countries in the ASEAN region, in Asia, and around the world, BSR will look for opportunities to implement necessary strategies to penetrate international markets.
BSR has entered in the domestic market since 2010, all products of the company with the Dung Quat Refinery brand name have received the highest evaluations in terms of quality and stable supply. Currently, the Dung Quat Refinery brand is recognized as the highest in quality and brand recognition in Vietnam.
TRADING & SALES ACTIVITIES
In trading, currently BSR sells products directly to trading companies (wholesalers) in the North, Central, and South Vietnam. The petroleum products are distributed via twelve trading firms, many of them are the largest in Vietnam, such as, Petrolimex, PVOil, SaiGon and Petro. These distribution channels are helping BSR to deliver products to all customers quickly and efficiently. BSR plans to develop its own retail chain, aiming to control a significant market share and gain more benefits.
While we remain true to our heritage of refining petroleum, our vision is to become a major player in the refined petroleum industry of the ASEAN Economic Community (AEC). To this end we will make use of our visionary strength and our physical, financial and human capital advantage to exploit the untapped international reach potential in this growing market. In the pursuit of expanding our operation and business, both domestically and regionally, we will create superb value for our customers and superior returns for our investors and strategic partners. Our motive is to diligently safeguard the long-term interest of our stakeholders by staying focused on our core competences.
Our strategy is to play a proactive and pivotal role in staying attentive to and connected with market dynamics and developments and to chart our strategic directions in three focused areas:
Penetrate deeper into the local market for petrochemicals processing products through capacity expansion, leveraging our facilities and intangible assets and experience;
Expand our refined petroleum product lines with new derivatives by applying advanced technologies and enhanced research and development;
Broaden the scale of production and revenue through regional and international reach, leveraging our regional knowhow and competitive advantage in using natural gas (Ca Voi Xanh) as a cost-effective supplemental feedstock for our refinery..
To implement this strategy, BSR has planned to undertake the following set of initiatives:
- We will increase our CDU capacity to 8.5 million tones per year (130% of the current capacity) while enhancing the operational capability of current facilities and minimizing production disruptions during the investment and installation process.
- We will optimize all of our production and service operations for improved productivity, efficiency and product quality.
- We will diversify our crude refining capability and petrochemical products. For example, demand for A97 and Asphalt is very high in Vietnam). These and other new additions to the product range will help us to exploit the untapped demand in the domestic market.
- We will explore various combinations of crude oil mixes to raise highest product quality and performance. For example, by mixing ESPO with Murban, or by blending crude oil from Bach Ho fields with crude oil extracted from other sources (including imports), higher mixing ratios will be developed, produced and marketed.
- We will take proactive measures to Meet EURO IV and EURO V standards by upgrading and expanding our refinery.
To maintain our regional competitive advantage we plan to embark on a major project of upgrading and expanding our production capacity, volume and market dominance. We intend to complete the required investment by November 2021. The investment calls for affirmative actions planned to:
- Increase the refinery’s overall annual throughput from 6.5 million tons to 8.5 million tons per year through planned upgrading of facilities and production expansion.
- Create and maintain access to additional sources of crude oil and attain new sources of saving in costs of crude supply.
- Adopt measures to secure more stringent product specifications while meeting environmental regulations.
- Make use of the existing facilities in ways that result in greater efficiency and productivity by providing new process units and minimizing inadequately justified modifications to the critical equipment.
- Following the takeover of the FEED (Front-End Engineering Design) from the contractor, re-evaluate and optimize the production and operation processes for improved product volume and quality.
- Acquire and use required capital through a mix of equity and debt financing for financial institutions, strategic partners, and institutional and individual investors.
HUMAN CAPITAL DEVELOMENT POLICY
Our strategic plans call for the development of a highly qualified cadre of technical, managerial and administrative personnel.
To enrich the quality of our human resources and close the gap between current and potential productivity, the management will make use of a comprehensive system of incentives and rewards, progressive promotion and compensation and continuous training and development. Key elements of our human resource policy are as follows:
After ten years in business, BSR has developed and acquired high quality personnel. The major attributes of people working at the company currently are young, dynamic, creative, knowledgeable, and highly skilled. The Human resource is considered to be the key factor to the success of the company. The abilities of all employees are always enhanced through continuous training and retraining activities and programs. In 2017, there were 1,545 employees working at BSR. The remarkable characteristics and also strengths of human resources are shown below:
OUR HUMAN CAPITAL DEVELOPMENT POLICY
ØMaintain a High Performance Corporate Culture
The mission of BSR demands that employees operate in a high performance corporate culture, where lean operation is maintained, efficiency is valued, productive work is rewarded, creative ideas are welcomed and continual improvements are applied at all levels of the organization. The management will undertake proactive measures to strengthen the capabilities, skills, competencies and talents of all our people.
- Select and Recruit Competent Personnel of Superior Skills
BSR is applying a comprehensive system of staff selection and recruitment based on job analysis, academic and technical knowledge base, relevant skills and the experience needed to fulfill the requirements of the announced position. The management shall maintain its competency based recruitment and training model and ensure that the workforce remains current with developments in the fast-moving marketplace and the external environment
ØReinforce Employee Motivation and Loyalty
BSR shall continue to develop and apply a range of managerial tools designed to improve employee motivation, morale and commitment. Specific measure shall include a consistent process for applying fair and equitable compensation, performance evaluation, promotion, job rotation, career path development, conflict resolution and professional conduct.
ØExpand Career Development Paths
BSR shall continually provide proactive support for employees to improve their competencies, skills and perspectives needed to succeed in the market-based, competitive business environment. The management shall maintain a healthy work environment and an enriching infrastructure for learning, on-the-job training and professional development as well as sharing experiences and best practices with others. Continual efforts will be made to raise employees levels of proficiency in relevant tasks, efficiency at work, knowledge transfer throughout the company and recognition and sharing of our employees creative and productive ideas.
ØEnhance Teamwork and Cross-functional Collaboration
BSR shall maintain a healthy and enjoyable atmosphere of teamwork, creativity, collaboration and cross-functional cooperation. The management will ensure that employees clearly understand their specific job requirements, performance expectations, scope of authority and responsibility. The work processes and procedures shall also be improved continually to encourage teamwork and innovation and to maximize benefits from cross-functional collaboration.