Petrovietnam is one of the mainstay enterprises of the country's economy with the task of managing and implementing oil and gas activities, developing a complete and synchronous oil and gas industry in 5 areas: Oil and gas exploration and exploitation; Gas industry; Oil and gas processing; Electricity and renewable energy industry; High-quality oil and gas technical services. Over the years, Petrovietnam has performed the role of the National Oil and Gas Company on behalf of the Vietnamese State to sign contracts and manage and operate oil and gas activities at sea. Through that, generations of oil and gas workers have contributed to building and developing Petrovietnam to the scale, depth and potential it has today.
However, the fluctuations in the development journey require the oil and gas industry to have comprehensive and synchronous changes and reforms, from state management methods to the application of modern scientific and technological achievements to oil and gas activities in the direction of effectiveness, efficiency, decentralization, division of management functions and tasks, reduction of focal points and creation of favorable conditions for investors.
Oil and gas exploitation activities in Vietnam's waters. (Photo: Tran Thinh)
In order to update and adjust activities in the oil and gas sector to suit business conditions, natural environment, legal environment, and new investment environment, Petrovietnam has been very active in proposing, researching, and evaluating with ministries and branches to propose to the Government and submit to the National Assembly to include in the Law amendment program. The Law amendment aims to perfect the legal corridor, increase efficiency and effectiveness in State management, remove barriers, create a favorable legal corridor for investors, and contribute to improving the attractiveness of the investment environment in this sector.
Efforts to build a favorable legal corridor for the Oil and Gas industry
Demonstrating the responsibility, sentiment, desire and aspiration of Oil and Gas workers in building a sustainable development of the Oil and Gas industry, promoting the highest spirit and responsibility in the process of researching, evaluating and giving comments on the Draft Law on Petroleum, Petrovietnam has organized many seminars, discussions, soliciting comments and contributions from member units, partners, oil and gas contractors, and individuals and organizations, contributing to the completion of the Law on Petroleum.
Implementing the Law on Dissemination and Education of Law and in order to effectively and practically contribute opinions in the process of competent state agencies developing and promulgating legal documents, Petrovietnam always focuses on reviewing legal regulations, assessing difficulties and obstacles in the process of implementing management and operation of production and business activities. The Group regularly organizes seminars on difficulties and obstacles in legal regulations in various aspects of operation, with the aim of exchanging and discussing practical issues that the Group and its member units are facing in the process of implementing projects. This is also an opportunity for in-depth exchanges, identifying and removing difficulties related to current obstacles; thereby having timely reflections and suggestions to make recommendations to state management agencies to increase efficiency and facilitate the development of enterprises in the Oil and Gas industry.
Petrovietnam organizes a workshop on legal issues in investment and construction
Legal documents with Petrovietnam's participation in comments include the draft Electricity Law (amended); the draft Enterprise Law (amended); the draft Special Consumption Tax Law (amended); the draft Public Investment Law (amended); the Bidding Law; the draft Law on Management and Investment of State Capital in Enterprises, the draft Value Added Tax Law (amended); the draft Corporate Income Tax Law (amended); the Petroleum Law; etc.
Regarding the Law on State Capital Management and Investment in Enterprises, Petrovietnam has made proposals through two written channels and organized two workshops with many comments. Typically, the proposal for a stronger decentralization mechanism in corporate finance matters; the proposal to remove the regulated entity of F2 enterprises was accepted by the drafting agency.
Petrovietnam also made recommendations to resolve the draft Law on Value Added Tax (amended). Including fertilizers subject to VAT instead of not subject to VAT as before, is expected to help fertilizer enterprises improve the value of production investment.
The draft Law on Corporate Income Tax (amended) focuses on supplementing regulations against global tax erosion. In particular, the regulation that has a material impact on enterprises is that taxable income from the transfer of exploration activities arising has not been offset against other projects of the Group.
In the draft Law on Electricity (amended), Petrovietnam also sent a document to the Ministry of Industry and Trade with many recommendations, focusing on comments related to gas/LNG and offshore wind power projects.
A meeting to review problems related to legal documents in Petrovietnam's production and business.
The Party and Government's policy is to consider institutional reform as an important breakthrough, focusing on adjusting laws to create a favorable business environment. The improvement of laws requires a change in thinking, focusing on quality and consulting with businesses to improve policy effectiveness... From the perspective of businesses, Petrovietnam clearly understands the need to be proactive, focusing on recommending outstanding problems so that relevant ministries and branches can quickly grasp and amend them. This is also a viewpoint supported by ministries and branches.
“In the process of actual implementation, when discovering problems and difficulties, enterprises need to be responsible for speaking up promptly to complete the laws, create favorable conditions for enterprises and help increase the efficiency of State management agencies,” emphasized Petrovietnam General Director Le Ngoc Son.
Efforts to turn the oil and gas industry into a national industrial and energy locomotive
In the current context, the way to perceive and orient our country's energy and oil and gas activities in the coming period is extremely important, in order to perfect the legal framework and create motivation for businesses to develop stably and sustainably, in line with the general trend of the world economy, in line with and meet the energy needs of the country's economy, as well as ensure national energy security.
Faced with this reality, the Party and the State have issued many directives, promulgated and amended legal corridors to respond to and facilitate the operations of businesses. Most recently, on April 24, 2024, the Politburo issued Conclusion No. 76-KL/TW on the implementation of Resolution No. 41-NQ/TW dated July 23, 2015 of the Politburo on the orientation of the Vietnam Oil and Gas Industry Development Strategy to 2025, with a vision to 2035 and some orientations for the new period (Conclusion No. 76-KL/TW).
Offshore wind power base fabrication site at PTSC Vung Tau port.
Conclusion No. 76-KL/TW of the Politburo has opened up a number of development orientations for Petrovietnam to become a national industrial - energy group associated with development, improving operational efficiency in traditional energy fields; participating in the value chain of new energy and renewable energy.
In order for Conclusion No. 76-KL/TW to be quickly and smoothly implemented in practice, ministries and branches need to institutionalize the Politburo's policies and orientations, creating a complete legal corridor to implement specific goals for the development of the Vietnamese Oil and Gas industry set out in Conclusion 76.
On the Petrovietnam side, the Group will focus resources to build and implement a development strategy in accordance with the spirit of Resolution No. 41-NQ/TW and Conclusion No. 76-KL/TW; including working with ministries, branches and central agencies to build mechanisms and policies, creating a suitable legal corridor for the Group to develop; continue to make maximum efforts to fulfill its political tasks, worthy of the role and position of the country's leading economic group, contributing to building a sustainable economy and energy sector for Vietnam in the future./.
Truc Lam
Source: https://www.pvn.vn/chuyen-muc/tap-doan/tin/100d8b64-7597-4dac-8c6e-a7074e453f99
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