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Petrovietnam expands into Laos
Petrovietnam, one of the largest fuel distributors in Vietnam, has expanded its business into Laos as it eyes growing fuel consumption in the landlocked nation.
The Vietnamese state-owned enterprise on Sunday held a grand opening ceremony of its Lao subsidiary, PV Oil Laos, in Vientiane after completing a takeover of Shell Laos from Shell Eastern Petroleum, which decided to leave the Lao market at the end of 2009.
Standing Deputy Prime Minister Somsavat Lengsavad, Minister of Industry and Commerce Dr Nam Vinhaket, management of Petrovietnam, PV Oil Laos and various dignitaries attended the grand opening ceremony.
According to a press release from PV Oil Laos, the decision by Petrovietnam to purchase 100 percent of Shell Laos was part of its business strategy to expand investment into foreign countries, while building economic cooperation between Laos and Vietnam.
The company also considers that fuel consumption in Laos has risen rapidly over the past five years due to strong economic growth. The move has created investment and business potential for the Vietnamese to run businesses in Laos.
According to a report from the Lao Petroleum and Gas Group, fuel consumption in Laos is about 750 million litres a year, a 10 to 15 percent annual increase. About 17 percent of the fuel is imported from Vietnam and the rest comes from Thailand.
PV Oil officials said it would continue to purchase fuel from Shell Eastern Petroleum for distribution in Laos while importing some fuel from its parent company in Vietnam to distribute to Lao provinces that share a border with Vietnam.
PV Oil officials said the quality of the fuel they will distribute in Laos will meet international standards. It will be the same quality as that distributed by Shell Eastern Petroleum in the past so consumers should feel confident about the fuel they buy from PV Oil petrol stations.
According to luxury vehicle importers, the fuel sold at Shell petrol stations is one of the top quality fuel brands in Laos.
PV Oil officials also said that although they had completed the takeover of Shell Laos from Shell Eastern Petroleum, they plan to keep their management policy unchanged, including staff salaries, hoping staff will continue to work for the company.
They said over the past several months, PV Oil was able to secure and expand a new fuel market in Laos, adding that the quantity of fuel distributed to petrol stations was in line with expectations.
At present, the headquarters of PV Oil Laos is located in Vientiane with registered capital of US$3 million. The company has 70 fuel distribution networks in 11 provinces of Laos. The company also has 5 fuel warehouses - two in Vientiane and the rest in Champassak, Savannakhet and Khammuan provinces.
The Vietnamese company also exports Lao timber, coffee, tea and other agricultural products.
vientiane times
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