PSD: new journey after 10 years of establishment and development

Petroleum General Distribution Services J.S Company (code: PSD) established in 2007 is a member of PetroVietnam General Services J.S. Corporation (PETROSETCO). After 10 years of establishment and development, PSD has been proved to be a professional and leading distributor in Vietnam. PSD is an official and faithful partner of many global brand names from mobile phones to IT products such as Samsung, Dell, Sony, etc.

At the present, growth rates of mobiles and IT products’ distribution market have being gradually decreased. Therefore PSD actively finds a new strategy of creating new motivation for the development. As a result, in December 2016, PSD signed an investment contract at a dominated ratio of 51% charter capital with Binh Minh Electronics refrigeration J.S. Company (Binh Minh). Binh Minh who was established in 2006 mainly distributes refrigeration and household electric appliances. Binh Minh is currently an executive distributor of some global brands such as Tefal, Whirlpool, Candy, Cuchen, Ferroli, etc. and has clients across the country, including electric supermarkets (Nguyen Kim, DienmayXanh, Vinmart/Vinpro, etc.); other supermarket systems ( Coop Mart, Big C, Lottet Mart, etc.)

Consumption on household items accounts for 9% of total personal consumption. Market research results from Gfk showing that average growth rate of household appliances is around 10-16% per num thanks to a new focus on youth consumers. Improvement in average earnings has great affected household consumption expenditure, especially in household electronic and electrical appliances. Besides, domestic rising demand in the electronic and electrical retail markets has not been fully tapped. Expenditure on electronic and electrical appliances is particularly estimated approximately VND 157 trillion ($6.8 billion), of which, household electrical products accounted for VND97 trillion. It is considered to be such a potential market so that BOD of PSD decided to corporate with Binh Minh aiming to expand their business and find a new opportunity for the company.

Binh Minh has experienced many years in distribution market of electrical appliances and worked with many electrical brands around the world as well as a wide system of clients across the country. Besides, the market of distributing refrigeration and electrical appliances is still potential for coming years. Because of lack of capital and other resources, Binh Minh wasted many chances in the past and could not utilise their advantages during their development period. As a result of the shake hand between PSD and Binh Minh, PSD will give a great support to Binh Minh in terms of capital, human resource, clients and experiences as a large distributor in the market. It is expected that this investment will result in increasing by 10% in term of revenue for PSD in 2017 as well as improving margin of profit which currently stays at a low level. It is believed that the corporation between PSD and Binh Minh will create a motivation for both parties and lead to business diversification as well as take a part for helping PSD in market share expansion and withstand their position as a leading distributor in Vietnam.