With large inventories, Nghi Son Refinery and Petrochemical faces many challenges

According to Mr. Kazutaka Yamato, General Director of NSRP, since the beginning of 2025, NSRP has encountered many difficulties in distributing products, especially in the first and second quarters, due to decreased market demand and large inventories at the warehouses of major distributors.

Panoramic view of Nghi Son Refinery and Petrochemical Plant from above

Faced with this situation, in March 2025, NSRP was forced to export about 62,000 tons of products to reduce inventory and maintain stable operations of the factory. However, exporting is not a long-term solution because international selling prices are often lower than domestic prices, directly affecting the profit margin of the enterprise.

High inventory levels have put NSRP under great pressure on cash flow, affecting the plant’s ability to operate stably. NSRP has repeatedly requested the Ministry of Industry and Trade to direct the Vietnam Oil and Gas Group (PVN) and major distributors to maximize domestic product consumption to support the business through this difficult period.

In fact, in recent years, NSRP has been facing financial difficulties due to many factors. The Covid-19 pandemic and global economic fluctuations have reduced fuel consumption demand. Oil prices have fluctuated sharply, causing profits from refined products to decline. Competition from imports and other domestic refineries has put great pressure on NSRP.

Despite many difficulties, NSRP still achieved an average operating capacity of 113% in 2024. The plant processed 83 million barrels of crude oil, equivalent to 11.4 million tons, and produced more than 9.7 million tons of various products, including 8 million tons of gasoline.

In addition, in 2024, NSRP imported 42 large crude oil tankers with an output increase of 13.62% compared to the previous year. The enterprise also contributed more than 996 million USD (equivalent to 24,700 billion VND) to the state budget, higher than the 820 million USD in 2023.

Faced with high inventory, NSRP proposed a number of solutions to stabilize production and optimize consumption. Specifically, the Ministry of Industry and Trade should have policies to encourage domestic enterprises to prioritize using NSRP products to reduce inventory pressure; seek potential export markets with better prices to optimize profits; cooperate more closely with distributors to ensure effective consumption of goods; and develop a roadmap to transition to cleaner energy products to keep up with market trends.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan stated that 2025 is the year that requires a strong breakthrough, so the domestic demand for gasoline and oil is still high. Mr. Tan emphasized that NSRP needs to maximize its business advantages to adapt to the market, while also researching long-term solutions such as energy conversion.

The Ministry of Industry and Trade pledged to coordinate with PVN and distributors to find solutions to remove difficulties, thereby helping NSRP maintain stable production, contributing to national energy security.

Source: https://thoibaonganhang.vn/ton-kho-lon-loc-hoa-dau-nghi-son-doi-mat-nhieu-thach-thuc-161880.html