Petrovietnam: National energy pillar, symbol of Vietnamese symbol

On December 6, in Hanoi, New Energy Magazine (PetroTimes) organized a seminar " Petrovietnam on the journey of development with the country", gathering many economic and energy experts.

The seminar is an opportunity for experts and managers to share multi-dimensional perspectives on the role of the Vietnam National Industry and Energy Group (Petrovietnam) during 50 years of formation and development.

Attending the discussion were Dr. Nguyen Quoc Thap - Chairman of the Vietnam Petroleum Association; Ms. Pham Thuy Chinh - Vice Chairwoman of the National Assembly's Economic and Financial Committee; Mr. Nguyen Van Phung, former Director of the Large Enterprise Tax Department ( Ministry of Finance ); and Associate Professor Dr. Nguyen Thuong Lang - economist.

*Overview of the seminar "Petrovietnam on the journey of development with the country".*

Strategic pillar of the economy and national security

Speaking at the seminar, Dr. Nguyen Quoc Thap emphasized that in 50 years of construction and development, Petrovietnam 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. From more than 440 million tons of oil exploited and sold to nearly 200 billion m³ of gas brought ashore, from Phu My and Ca Mau fertilizer plants to the chain of power - gas - petrochemical refineries, Petrovietnam has always maintained a stable and sustainable contribution to the State budget, even in periods of strong fluctuations in the global oil and gas market.

*Dr. Nguyen Quoc Thap - Chairman of Vietnam Petroleum Association spoke at the seminar*

Not only carrying out an economic mission, Petrovietnam also undertakes strategic tasks through the implementation of the “5 An”: energy security, economic security, food security, national defense security and national sovereignty at sea. From offshore mining systems to key industrial projects, the oil and gas industry has made an important contribution to protecting sovereignty, strengthening national defense potential and ensuring social security on a large scale.

On the basis of implementing that mission, the Group has affirmed its position as a leading economic enterprise with a series of outstanding achievements. Total consolidated assets exceed 1 million billion VND, equity is more than 556 trillion VND. For many years, Petrovietnam has maintained an average budget contribution of about 160 trillion VND/year, accounting for more than 80% of the total budget contribution of 18 State-owned corporations and groups. Profit in the period of 2020-2025 reached 316 trillion VND, an average of about 2.2 billion USD/year. The Group is also the only enterprise to have received many noble awards in science and technology, including 6 Ho Chi Minh Awards and 4 State Awards, along with dozens of domestic and foreign inventions. In particular, social security activities have been maintained continuously with a total value of more than 5.13 trillion VND in the period of 2020-2025.

Meanwhile, Ms. Pham Thuy Chinh, Vice Chairwoman of the National Assembly's Economic and Financial Committee, said: Petrovietnam is a key element in many core components of the economy and national security.

Firstly, Petrovietnam is one of the important pillars of growth and macroeconomic stability. The Group has maintained a high and stable contribution to the budget and GDP for many years; at the same time, it has created direct and indirect jobs for tens of thousands of workers. The oil and gas value chain - from exploration, exploitation, processing to distribution of energy products - helps the economy have a strategic supply, thereby supporting growth and stabilizing prices.

Second, Petrovietnam makes a very important contribution to the implementation of the Sustainable Marine Economic Strategy and ensuring national security and defense. Oil and gas activities take place mainly in offshore areas; the process of exploration, survey and exploitation helps affirm and enforce national sovereignty. In addition, many oil and gas projects entail the development of seaport infrastructure, logistics and supporting industries, creating a strong value chain that spreads throughout the marine economic region.

Third , Petrovietnam is a key factor in ensuring national energy security. In the context of many unpredictable changes in the world, Petrovietnam still maintains a stable supply of gasoline, gas, electricity, fertilizer, etc. for the economy. The capacity to operate petrochemical refineries, power-fertilizer plants and gas systems has helped Vietnam avoid sudden energy shocks like many other countries.

Fourth, Petrovietnam is a pioneer in innovation, science and technology and digital transformation. The Group actively implements technology transformation programs, improves management capacity and aims at new development requirements in the spirit of Resolution 57-NQ/TW of the Central Committee. Technological innovation not only enhances the competitiveness of enterprises but also creates more endogenous capacity for the country in the energy and industry sector.

“Finally, looking back at the 50-year journey, it can be affirmed that Petrovietnam has developed comprehensively and become the number 1 enterprise in Vietnam. The Group has always been in the leading group in terms of revenue, budget contribution, production and business efficiency, and has increasingly demonstrated its role as an economic pillar. In the context of global fluctuations and increasing requirements for transformation, Petrovietnam continues to be an important force contributing to ensuring the country's sustainable growth,” Ms. Pham Thuy Chinh emphasized.

*Ms. Pham Thuy Chinh - Deputy Chairwoman of the National Assembly's Economic and Financial Committee spoke at the seminar.*

3 key factors that affirm sustainable financial capacity

To properly understand the role of Petrovietnam, according to Associate Professor Dr. Nguyen Thuong Lang, 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. Nguyen Thuong Lang said: After half a century of construction and growth, Petrovietnam is entering a new stage of development. The Group's ecosystem not only continues to operate but also expands, enhances value, and contributes to new growth drivers of the Vietnamese economy in the context of energy transition and sustainable development requirements.

The development process of an industry always goes step by step, from infancy to maturity. Petrovietnam is the same: Starting from the early industrial days with offshore rigs, then gradually accumulating and asserting internal strength to develop a complete and comprehensive oil and gas and energy industry ecosystem.

“From a starting point as a purely resource exploitation industry, Petrovietnam has built an industrial-energy ecosystem with a complete structure and deep connection. This is something that not every country can do, and even more difficult if looking back at our historical conditions in the early stages. This “upgrade” clearly shows the internal strength of the Group, reflected in international rankings” - Associate Professor, Dr. Nguyen Thuong Lang shared.

In particular, this is also reflected in the change in thinking about the governance model: From governance based on crude oil exploitation alone, to an ecosystem governance model, where components coexist and create strong spillover effects. Internal strength is the decisive factor in creating this success.
Petrovietnam's promotion also has a great influence, from upstream to midstream and downstream, creating energy and raw materials for many other industries. Each sector not only creates its own economic value, but more importantly, creates connectivity and influence, contributing to improving the structure, productivity and competitiveness of the Vietnamese economy.
“Moreover, the Group has caught up with the trend of the times: Green - clean energy, ammonia, offshore wind power, hydrogen... That is the accumulation over the past 50 years, like a compressed spring that is about to burst out” - Associate Professor, Dr. Nguyen Thuong Lang emphasized.

*Associate Professor, Dr. Nguyen Thuong Lang shared at the seminar.*

From this promotion, from the perspective of finance and business management, Mr. Nguyen Van Phung - a senior tax expert shared at the seminar that Petrovietnam is a typical example of financial discipline and cash flow management. In more than 20 years of following the Group, he assessed Petrovietnam as one of the few enterprises that the tax authority "can be completely assured" about financial data and transparency. Cash flow, investment, budget allocation and operating reports all meet high standards, thereby helping the State accurately forecast revenue and maintain fiscal stability.

Sharing further, Mr. Phung said that there are three key factors explaining Petrovietnam's sustainable financial capacity. First is financial discipline and very strict cash flow management. Petrovietnam is 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. This creates a foundation for the State to trust in the accuracy, stability and predictability of revenue sources.

The second is the broad value chain structure, capable of offsetting risks according to economic cycles. Petrovietnam does not only exploit crude oil. The Group operates a complete ecosystem: exploration - exploitation, gas - electricity - fertilizer, petrochemical refining, technical services. When oil prices fall, the fields of electricity - fertilizer, gas, petrochemical refining continue to generate stable revenue, helping to balance risks. This is also a characteristic of large national energy corporations in the world: the more complete the value chain, the more sustainable and less volatile the budget contribution. That ecosystem also entails many spillover effects: supporting industry, technical services, security - defense, people's livelihoods (for example, farmers directly benefit from the "Golden Harvest" program in the fertilizer industry). Budget revenue comes not only from oil and gas but also from the entire chain of industrial activities formed around the industry.

Third is the very high capacity for forecasting, planning and business accounting. Petrovietnam always builds scenarios for oil prices, output, costs and cash flows close to market reality. This capacity is increasingly perfected: Dung Quat Plant was previously designed to only refine Bach Ho crude oil but now can operate with oil from more than 30 other countries - that is proof of the level of forecasting, adaptation and production optimization. During crisis periods such as 2008-2012, Petrovietnam still maintained a large contribution to the budget. "A piece of food when hungry is worth a package when full", so the role of oil and gas in difficult years shows the cumulative value of the industry for national fiscal stability.

The speakers at the seminar all affirmed that during 50 years of establishment and development, Petrovietnam has affirmed its position as the number 1 enterprise in Vietnam in terms of scale, budget contribution, production and business efficiency and innovation capacity. In the face of the world's great transformation requirements and new expectations of the economy, the Group continues to play a pivotal role, making important contributions to the country's sustainable growth, worthy of its position as a symbol of Vietnam's bravery at sea and in the national economic and industrial development.

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