[E-Magazine] Petrovietnam – Strong steps to realize the “Epochal Transformation”

Strategic vision

At the Conference to summarize the work in 2024 and deploy tasks in 2025, Chairman of the Board of Directors of Petrovietnam Le Manh Hung commented on the "era shift" of the oil and gas industry divided into two stages: 2025 - 2035 and 2035 - 2045. In that context, Chairman Le Manh Hung also pointed out 6 main growth drivers in 2025 of the Group, aiming to create a strong transformation to open a new era.

Putting growth drivers into practice, realizing vision

Petrovietnam Chairman of the Board of Directors Le Manh Hung emphasized that the country's high economic growth target of 8% or more in 2025 and "double digits" in the next period is both a challenge and a driving force for Petrovietnam. As a key economic group, leading in the state-owned enterprise sector, Petrovietnam annually contributes about 9-10% of the country's GDP. With that role and position, Petrovietnam is under high growth pressure to contribute to the implementation of the Government 's goals. However, the Group also sees great opportunities when the strong economic growth will lead to increased demand for energy and Petrovietnam's key products. This is the driving force for the Group's development and expansion of production and business. In addition, the Government's reform efforts to create a favorable business environment will also create conditions for Petrovietnam to achieve its goals.

Turning pressure into motivation, Petrovietnam set a high growth target from the beginning of the year, at least 8% and strived to achieve "double-digit" growth. The Group synchronously deployed many solutions to maximize market opportunities and promote internal strength. Since the beginning of the year, the Party Committee and the Group's leaders have issued many specific resolutions and action programs, both orienting goals and actions and providing key solutions to achieve the set goals, especially strategic breakthroughs in science and technology, innovation and digital transformation have been raised to new heights, along with the policies of the Party and the Government.

With efforts to reform and innovate to reach the country's level, the Group has also established a specialized Steering Committee to review and complete the system of internal normative documents. The goal is to institutionalize the Politburo's resolutions and new legal regulations, thereby removing obstacles, unlocking resources and improving management and operational capacity, creating momentum for growth breakthroughs.

General Secretary To Lam and President of the Republic of Korea Lee Jae Myung witnessed the signing ceremony of the Memorandum of Understanding on cooperation in human resource development in the field of nuclear energy between the Vietnam National Energy Industry Group and the Korea Electric Power Corporation.

With the support of the Party and Government, taking advantage of opportunities from tightening, promoting and strengthening the country's international cooperation, international trade has been boosted at Petrovietnam and its member units, becoming an important growth driver.

Since the beginning of the year, there have been notable high-level cooperations such as: within the framework of General Secretary To Lam's State visit to Korea, Petrovietnam signed and reached many important agreements with Korean partners; The Group has promoted the expansion of relations with Brazilian energy enterprises within the framework of Prime Minister Pham Minh Chinh's working trip at the BRICS Summit; ... Petrovietnam has also worked, discussed and reached many agreements, commitments, and promoted cooperation with many other international partners such as: Russia, Japan, Singapore, Kazakhstan, Azerbaijan, ...

In the consolidated revenue structure for the first 7 months of the year, Petrovietnam recorded more than VND67,300 billion in revenue from international business, demonstrating the important contribution from this driving force.

Along with the Group, in the first half of this year, Petrovietnam units also achieved remarkable progress in international cooperation. For example, PVCFC achieved Level One certification in March 2025 - the highest level in Australia's inorganic fertilizer import control system, thereby promoting and facilitating increased exports to the Australian market, as well as developed markets with the strictest global standards. The company's products are now available in nearly 20 countries. PVFCCo - Phu My promotes fertilizer import and export, expands markets and diversifies supply sources, thereby increasing revenue and profit. At PVOIL, international business is also a highlight. In the first 6 months of 2025, PVOIL Singapore recorded revenue that more than doubled compared to the same period, making an important contribution to PVOIL's overall results...

Another important growth driver pointed out by Petrovietnam Chairman of the Board of Directors Le Manh Hung at the beginning of the year is to accelerate and strengthen the field of oil and gas exploration and exploitation. To realize this driver, Petrovietnam has implemented many comprehensive solutions: Promoting technical solutions for well intervention, increasing reserves, expanding existing mines, developing new mines; promoting new cooperation at home and abroad,...

Since the beginning of the year, Petrovietnam's oil and gas exploration and exploitation sector has continuously witnessed important achievements. The Group has put into operation and exploited many key projects such as: Dai Hung Field Development Project Phase 3 welcomed the first oil flow in May 2025, reaching the finish line 20 days early; recently, Kinh Ngu Trang - Kinh Ngu Trang Nam Field Development Project, Block 09-2/09 welcomed the first oil flow and put into commercial exploitation on schedule;... contributing significantly to maintaining and increasing the Group's production output, aiming to ensure growth targets.

In particular, after a long period without new contracts, in the first half of this year, Petrovietnam signed new Petroleum Product Sharing Contracts (PSCs) such as signing a new PSC for Block 15-2, Cuu Long basin; signing a new PSC for Block 15-1 in the southern continental shelf of Vietnam; signing a new PSC with Petronas for Block PM3 CAA, and extending it for another 20 years. These contracts not only demonstrate the strong and effective cooperation between Petrovietnam and its partners, but also lay a solid foundation for future mine investment and development activities, contributing to ensuring the sustainable development of the Group.

Petrovietnam has also effectively leveraged the growth drivers from the gas and electricity industries . In particular, PV GAS has increased the supply of LNG for both power generation and industrial customers, contributing to the development goal and meeting the green transformation requirements. At the same time, the Group's electricity sector has also achieved impressive growth, thanks to making the most of market demand, especially during peak hot spells and economic periods that require a lot of energy for development.

In particular, the Group has been vigorously implementing investment as an important solution to contribute to the implementation of the 2025 plan, as well as long-term strategic orientations with the goal of high and sustainable growth. Key projects such as: Lot B - O Mon gas - power project chain, Nhon Trach 3 - 4 LNG power plant projects; upgrading and expanding Dung Quat Oil Refinery; increasing the capacity of Thi Vai LNG warehouse; ... are all actively implemented, meeting the set schedule.

Notably, the Long Phu 1 Thermal Power Plant project, after a long period of difficulties and stagnation, has been restarted and is being accelerated with the goal of generating electricity in 2027. Petrovietnam has also just started construction of the O Mon 4 Thermal Power Plant, an important link in the downstream area of the Block B project chain.

The Group also made a remarkable mark when its member unit PTSC completed the manufacture of 33 foundations for the CHW2204 offshore wind power project, marking the first time a Vietnamese enterprise won a bid and manufactured large-scale wind power foundations for export to the world...; along with many other outstanding projects and works. This determination is clearly demonstrated through the Group's investment disbursement value in the first 7 months of the year, which increased by 49% over the same period, creating a strong driving force for growth in 2025 and long-term strategic goals.

Scientific research and innovation are one of the core growth drivers of Petrovietnam, contributing to realizing the policies of the Party, Government and Resolutions of the Group's Party Committee.

Petrovietnam has quickly commercialized many new products with high added value, bringing about clear results. Highlights include: Developing lubricants and coatings using nano carbon technology to increase performance and reduce consumption; successfully researching the Advanced Oil Recovery System (VPI SP Chemical System), a breakthrough scientific and technological product; pioneering the pilot launch of E10 bio-fuel to the market and continuing to develop special fuels for the defense industry. Many other products such as granular sulfur (BSR) and green hydrogen (PV GAS) have also been initially developed and launched to the market. In the first 7 months of the year, new products from science, technology and innovation contributed VND 5,204 billion to the Group's total consolidated revenue, affirming the effectiveness of this strategy.

With efforts to unlock resources and take advantage of growth opportunities, Petrovietnam has gradually realized its goals and vision for 2025. This is confirmed by the Group's business results in the first 7 months of the year, despite many difficulties, falling oil prices, world economic and geopolitical fluctuations, etc. The Group still achieved high growth. Production targets all exceeded the same period in 2024, such as electricity production increased by 9.8%, gasoline increased by 23.4% and NPK increased by 53.8%. In terms of finance, total revenue reached VND 602,165 billion and state budget contribution reached VND 83,013 billion, both recording impressive growth.

From the strategic orientation that has been outlined, Petrovietnam is showing a close connection between vision and reality. The growth drivers forecasted from the beginning of this year have been realized, creating a clear roadmap to complete and exceed the 2025 plan. This result is not only a testament to a correct strategy but also a solid foundation for Petrovietnam to continue to develop, aiming to become an industrial - energy group with outstanding management capacity and leading competitiveness in the region and globally.