Petrovietnam: A model national enterprise in the journey of national development

Economic pillar - national energy security fulcrum

Looking back on Petrovietnam 's 50-year journey with the country, Dr. Nguyen Quoc Thap, Chairman of the Vietnam Petroleum Association, acknowledged that the most outstanding point is that the Group has undertaken a heavy and glorious responsibility: being both a national energy pillar, a key economic force and a symbol of Vietnam's mettle at sea.

Experts, managers, and guests attending the Seminar.

During 50 years of development, Petrovietnam has exploited more than 440 million tons of oil, brought nearly 200 billion m³ of gas ashore, contributing to the operation of Phu My and Ca Mau Fertilizer Plants. Despite market fluctuations, the Group has maintained operational discipline and sustainable revenue for the state budget.

Petrovietnam’s role goes beyond economics. Under the leadership of the Party and the State, the Group carries out the mission of ensuring “5 Security”: Energy security, economy, food, national defense and maritime sovereignty, together with social security, becoming an important driving force for national development.

Nhon Trach 3 and 4 LNG Power Plants are completing preparations for inauguration day.

Petrovietnam also affirmed its position with "5 Bests": Largest scale with total consolidated assets exceeding 1 million billion VND, equity of more than 556 trillion VND; highest budget contribution, an average of 160 trillion VND/year, accounting for more than 80% of the budget contribution of state-owned enterprises; highest profit, in the 2020-2025 period reaching 316 trillion VND (an average of 2.2 billion USD/year); the only enterprise to receive many noble science and technology awards, including 6 Ho Chi Minh Awards and 4 State Awards.

Sharing the same opinion with Dr. Nguyen Quoc Thap, from the perspective of the agency assigned by the National Assembly to examine and supervise economic policies, Ms. Pham Thuy Chinh - Vice Chairwoman of the National Assembly's Economic and Financial Committee also highly appreciated the role of Petrovietnam, holding a special position in many core components of the economy.

Petrovietnam is a pillar of growth and macroeconomic stability, maintaining a high contribution to GDP and the budget, creating jobs for tens of thousands of workers. The oil and gas value chain from exploration to distribution ensures strategic supply, supports growth and stabilizes prices. The Group makes an important contribution to the Marine Economic Strategy and security and defense tasks. Offshore oil and gas activities help affirm sovereignty, while also leading to the development of seaport infrastructure, logistics and supporting industries.

Along with that, Petrovietnam is a key factor in ensuring energy security. Despite the world's fluctuations, the Group still maintains a stable supply of petroleum, gas, electricity, and fertilizer, helping Vietnam avoid energy shocks. The Group is also a pioneer in innovation and digital transformation, strongly implementing technology programs in the spirit of Resolution 57-NQ/TW, thereby improving competitiveness and contributing to the country's autonomy.

Petrovietnam ecosystem - the strategic foundation of Vietnam's economy

Analyzing more clearly the foundation for Petrovietnam's achievements, as well as the driving force for the new development path, from an economic perspective, Associate Professor Dr. Nguyen Thuong Lang, senior lecturer at the National Economics University, said that to properly understand the role of Petrovietnam, we cannot only look at the tons of crude oil exploited, but need to look more broadly at the ecosystem and the spreading value that the Group has created in the economy.

Associate Professor, Dr. Lang analyzed that in economics, energy technology is always considered a strategic technology, thereby affirming the special role of Petrovietnam in the industrialization and modernization process. Petrovietnam's role must be seen in the entire "industrial - energy ecosystem" with a complete structure and deep connection, not only in crude oil output, but also in the chain of exploration - exploitation, refining - petrochemicals, gas - electricity - fertilizer and oil and gas services, manufacturing, maritime transport all developing strongly, creating great spillover value and leading the transition to green energy. Petrovietnam's activities create core added value, strongly impact inter-sectoral balances and play a fulcrum role for many other economic sectors.

Referring to another factor that has created Petrovietnam's stature today, Mr. Nguyen Van Phung, a senior expert on tax and corporate governance, former Director of the Large Enterprise Tax Department (Ministry of Finance), said that the most important management lesson lies in long-term vision and financial discipline, very strict cash flow management. This is the prerequisite for Petrovietnam to become a rare enterprise that tax authorities can be completely assured of "real business - real data". Cash flow, investment, budget allocation, revenue - expenditure are all managed tightly, transparently, approaching international standards.

Petrovietnam's offshore wind power base construction site in Vung Tau - Ho Chi Minh City.

In addition, Petrovietnam has a long-term mindset in strategy and investment. This is a vital factor, because oil and gas, gas - electricity - fertilizer or petrochemical projects all have long life cycles, great complexity and are subject to strong market fluctuations. The Group also focuses on investing in human resources and risk management, building a team that understands the profession, understands the market and has the capacity to respond to fluctuations. The 'three-legged stool' - financial discipline, long-term thinking and human investment - has created the foundation for Petrovietnam's position and sustainable efficiency today.

Looking ahead to the new journey, Petrovietnam is still facing the requirements of energy transition, emission reduction, high-tech development, meeting ESG standards and responding to global geopolitical fluctuations. Therefore, experts at the seminar all agreed that Petrovietnam needs to continue promoting the energy-industrial ecosystem, but must restructure in a green - smart - efficient direction. The Group has enough foundation to become a pioneer in renewable energy, hydrogen, deep processing, gas industry, and LNG infrastructure. However, a specific, strategic mechanism is needed for Petrovietnam to maximize its resources, commensurate with its role as an economic pillar - energy security.

Sharing her appreciation for reading the book “Managing volatility and crisis” edited by Petrovietnam Chairman Le Manh Hung, Vice Chairwoman of the National Assembly’s Economic and Financial Committee Pham Thuy Chinh said she was pleased that Petrovietnam had recognized the increasingly rapid level of volatility in the world and proactively innovated its management thinking.

At the same time, according to Ms. Pham Thuy Chinh, a synchronous legal framework is needed, and tax and financial policies must be consistent with the long-term investment characteristics of the energy industry. With projects of billions of dollars and long life cycles, the tax and fee mechanism needs to be stable and clear so that Petrovietnam can confidently invest in LNG, hydrogen, or deep petrochemical refining - areas of national strategy.

“From the perspective of voters and National Assembly deputies, Petrovietnam is a model to prove that state-owned enterprises can operate effectively, transparently and competitively if there is a suitable mechanism. This is a very important message for policymakers in the current state-owned enterprise reform process. With its vision and long tradition, Petrovietnam will make progress worthy of the expectations of the Party, State and People,” Ms. Pham Thuy Chinh hopes.

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