Petrovietnam - a strategic pillar in Vietnam's development journey

Speakers participating in the discussion

On December 6, New Energy Magazine/PetroTimes organized a seminar “ Petrovietnam on the journey of development with the country”, gathering many leading experts to analyze and clarify the role and contributions of the Vietnam National Industry and Energy Group (Petrovietnam) throughout the process of formation and development associated with the history of the nation.

A solid foundation for national growth

Looking back at 50 years of formation and development, Petrovietnam emerges as a special economic and technical force, simultaneously undertaking many strategic responsibilities.

According to Dr. Nguyen Quoc Thap, Chairman of the Vietnam Petroleum Association, the most outstanding feature of Petrovietnam is its ability to shoulder three major roles: national energy pillar, main economic force and symbol of Vietnam's bravery at sea.

Dr. Nguyen Quoc Thap, Chairman of Vietnam Petroleum Association

The accumulated figures over the decades have clearly reflected the Group's endogenous strength. More than 440 million tons of oil and nearly 200 billion m³ of gas exploited and brought ashore have created an important foundation for energy security, macroeconomic stability and GDP growth. Despite the violent fluctuations in the world energy market, Petrovietnam has maintained strict operational discipline, contributed to the budget steadily and is one of the enterprises with the largest budget contributions in the country.

Not stopping at economic achievements, Petrovietnam also carries out the mission of “5 An”: energy security, economic security, food security, national defense security, maritime sovereignty and social security. The presence of offshore oil and gas projects not only fulfills economic tasks but also contributes to affirming sovereignty and protecting national interests at sea.

Mr. Nguyen Van Phung, senior expert on tax and corporate governance, former Director of the Large Enterprise Tax Department, Ministry of Finance, assessed Petrovietnam as one of the few Vietnamese enterprises that have achieved transparent financial and accounting standards, tight cash flow management and reliable business forecasting capabilities.

“Petrovietnam is a rare enterprise that the tax authority can be completely assured of as a real enterprise with real data,” he emphasized.

Mr. Nguyen Van Phung, former Director of the Large Enterprise Tax Department, Ministry of Finance

The factor that creates this long-term stability is the comprehensive value chain structure: exploration - exploitation, gas - electricity - fertilizer, refining - petrochemicals and oil and gas technical services. When oil prices fall sharply, the electricity, gas, fertilizer and petrochemical sectors continue to generate stable revenue, helping the Group avoid dependence on a single pillar. This is also a characteristic of the world's leading energy corporations.

The oil and gas ecosystem also brings many spillover values: developing supporting industries, technical services, logistics, promoting marine infrastructure, creating livelihoods for millions of people. Programs such as “Golden Pearls” have proven that the fertilizer industry, a component in the oil and gas value chain, brings direct benefits to domestic agricultural production.

Petrovietnam’s forecasting and adaptation capabilities have also been continuously improved. Dung Quat Refinery, which was previously only suitable for Bach Ho crude oil, can now process oil from more than 30 countries, helping to optimize costs, increase operational efficiency and reduce supply chain risks. Even during the crisis period of 2008-2012, the Group maintained a high level of budget contribution, demonstrating its role as the country’s “fiscal cushion”.

Pillars of maritime economy, energy security and national sovereignty

From the perspective of the agency assigned by the National Assembly to examine and supervise economic policies, including the activities of state-owned enterprises, Ms. Pham Thuy Chinh, Vice Chairwoman of the Economic and Financial Committee, commented: Petrovietnam plays a special role in many core components of the Vietnamese economy.

Deputy Chairwoman of the Economic and Financial Committee Pham Thuy Chinh

Firstly , Petrovietnam is a pillar of growth and macroeconomic stability. The Group maintains a large contribution to GDP, the budget and creates jobs for tens of thousands of workers. The supply from the oil and gas value chain has helped the economy have a strategic energy foundation, supporting price and production stability.

Second , Petrovietnam plays a prominent role in the strategy of sustainable maritime economy and sovereignty protection. Offshore drilling rigs and structures are not only production facilities but also “economic milestones” affirming Vietnam’s presence in offshore waters. Many oil and gas projects entail the development of seaports, logistics, and technical services, creating a strong spillover effect for coastal economic zones.

Third , Petrovietnam is a key factor in ensuring national energy security. In the context of the world constantly facing energy shortages, geopolitical conflicts and supply chain disruptions, the Group still maintains a stable supply of petroleum, gas, electricity and fertilizer for the domestic market. This is a value that many countries have to pay a high price to obtain.

Fourth , Petrovietnam is a pioneer in science and technology and digital transformation, leading in research and development, operational optimization and automation. Many Ho Chi Minh Awards, State Awards and international inventions have affirmed the outstanding technological capacity of the Vietnamese oil and gas team.

Associate Professor, Dr. Nguyen Thuong Lang, economic expert

From an economic perspective, Associate Professor Dr. Nguyen Thuong Lang affirmed that oil and gas have always been classified as a strategic energy technology, a pillar of the country's industrialization and modernization. Since the early days of renovation, Petrovietnam has been a pioneer in attracting foreign investment, contributing to shaping the legal framework for FDI capital, an important driving force of the Vietnamese economy over the past three decades.

Petrovietnam’s role must also be recognized in the structure of the “industrial-energy ecosystem”, where exploration and exploitation, refining and petrochemical, gas-electricity-fertilizer sectors develop together, creating core added value for the economy. Oil and gas services, maritime transport, rig manufacturing, etc. contribute to promoting supporting industries and improving related economic sectors.

In the context of energy transition and sustainable development requirements, the Petrovietnam ecosystem not only operates stably but also expands into the fields of new energy, renewable energy, hydrogen, carbon capture, etc. The Group is transforming itself to maintain its role as a strategic force of the country in the new development stage.

Oil and gas people - the core strength that makes Petrovietnam

Over the past half century, Petrovietnam has affirmed its position as the number 1 enterprise in Vietnam in terms of asset size, budget contribution, production and business efficiency, science, technology and social security. But above all, the core strength that makes Petrovietnam is the oil and gas people - those who have the spirit of "dare to go, dare to think, dare to do", dare to pave the way in the harshest conditions.

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“What moves me most, every time I look back on the 50-year journey, is the image of people “searching for fire” throughout the development journey, especially in the early days of the industry.
They conducted surveys, collected, and analyzed geology, geochemistry, and geophysics to assess oil and gas potential and select locations for the first wells in a difficult situation.
They are the ones who discovered oil and gas fields and affirmed Vietnam's oil and gas on the regional and world oil and gas map.
They are the ones who build foundations weighing thousands of tons in the middle of the stormy sea, and master technologies that the world's oil and gas industry previously doubted Vietnam and Petrovietnam had the capacity for.
Dr. Nguyen Quoc Thap, Chairman of Vietnam Petroleum Association

If today Petrovietnam has a special position in the economy, it is thanks to the steadfastness, courage and unceasing aspiration of the oil and gas generations who have been and are continuing the journey of serving the Fatherland.

And in the new development phase, Petrovietnam is expected to continue to be a strategic fulcrum, contributing to ensuring energy security, promoting sustainable growth and elevating Vietnam on the world economic and energy map.

Deputy Chairman of the Economic and Financial Committee PHAM THUY CHINH

The pivotal stage of the energy industry requires a solid and synchronous legal corridor.

In my opinion, the next 10-20 years will not only be a pivotal period for the industrial-energy sector but also for the entire economy. For Petrovietnam’s industrial-energy ecosystem to maximize its value, the biggest requirement lies in a solid legal framework and institutional synchronization. This is the deciding factor in whether the linkage chains operate smoothly or are broken at key points.

We need a unified and seamless legal framework for the entire chain. Gas - electricity - fertilizer, petrochemical and LNG projects are all related to many ministries and sectors such as Industry and Trade, Finance, Agriculture and Environment, Planning and Investment, etc. Without smooth coordination, businesses will spend a lot of time waiting for procedures, increasing costs and reducing competitiveness. A synchronous legal framework helps shorten approval time, clarify responsibilities and create trust for investors.

In addition, tax and financial policies must be consistent with the long-term investment characteristics of the energy sector. Petrovietnam’s projects are billions of dollars in scale, with long payback periods; if tax and fee mechanisms change too quickly, businesses will have difficulty developing long-term strategies. Therefore, stable and sustainable policies are needed to encourage investment in LNG, hydrogen or deep petrochemical refining – areas of strategic importance.

From the perspective of voters and National Assembly deputies, Petrovietnam is proof that state-owned enterprises can operate effectively, transparently and with high competitiveness when given appropriate mechanisms. I believe that Petrovietnam will continue to affirm its mission, better fulfill its responsibility in holding national resources and deserve to be a key enterprise of the economy.

Source: https://daibieunhandan.vn/petrovietnam-tru-cot-chien-luoc-trong-hanh-trinh-phat-trien-cua-viet-nam-10399499.html