Investment and finance play an important role in Petrovietnam's development strategy.

Aiming to become a National Energy Industry Group, Vietnam Oil and Gas Group (Petrovietnam) determines that investment and finance play an important role in the Group's development strategy in the coming period.

Outstanding results

The growth results achieved in recent times to help Petrovietnam become an economic group with total consolidated assets of VND 1.01 million billion and equity of VND 531.9 thousand billion show the significance and importance of investment and finance. However, compared to other oil and gas companies in the region, Petrovietnam is still small in scale.

The Group's investment management has many innovations in the direction of professionalism, in compliance with legal regulations. The Group has built a system, organized clear division of tasks, and effectively applied the Investment Portfolio Management Model. The work of perfecting the internal regulations system is considered important and updated regularly, in accordance with reality and newly issued legal regulations.

Petrovietnam Investment and Finance Conference 2024

Despite facing many challenges and the emergence of many new complex factors, with efforts and determination, in the 3 years of 2021-2023, Petrovietnam has completed the investment and put into operation 36 projects/works. The Group has resolved the remaining problems from the previous phase to complete and put into operation the Thai Binh II Thermal Power Plant; completed the investment in the 1 million ton Thi Vai LNG Port Warehouse Project, the first LNG warehouse in Vietnam. The Block B gas project chain has reached an important milestone, with foreign partners approving FID and signing EPC contracts. Petrovietnam received from Vietnam Electricity the O Mon III and O Mon IV Gas Power Plant Projects to implement investment under the direction of the Prime Minister.

Financial work has ensured adequate capital for investment activities, helping to create new assets and contributing to the Group's revenue and profit growth: on average, in the period of 2021-2023, consolidated revenue increased by 44% compared to the period of 2018-2020; profitability indexes ROA and ROE grew well, reaching 4.84% and 9.04% respectively, exceeding 1.38% and 2.83% respectively compared to the period of 2018-2020.

Focus on solutions to optimize financial investment

At the 2024 Petrovietnam Investment and Finance Conference held in June, Mr. Le Manh Hung, Party Secretary and Chairman of the Board of Members of Petrovietnam, pointed out 8 major groups of solutions that the Group's Parent Company and its units need to focus on implementing synchronously. These are: developing human resources; perfecting institutions and policies; perfecting the governance system and business model; digital transformation; enhancing science and technology potential; developing the market; optimizing financial investment; and enhancing corporate culture.

To overcome shortcomings and limitations, promote achieved results along with implementing new growth orientations and targets, Petrovietnam has determined to focus on implementing a number of key tasks.

Petrovietnam Group leaders chair conference on investment and finance

In particular, the Group needs to focus on researching and developing an Action Program to implement Resolution No. 41-NQ/TW and Conclusion No. 76-KL/TW of the Politburo; updating the Group's Development Strategy to 2050 to build Petrovietnam into a National Energy Industry Group; Continuing to implement investment portfolio management in a creative, effective and practical manner; updating the investment portfolio in line with the new goals and orientations according to Resolution No. 41 and Conclusion No. 76 of the Politburo; implementing solutions to improve the quality of the investment project portfolio, focusing on solutions to upgrade the group of projects facing difficulties; orienting the structure and management of the investment portfolio in other enterprises with the goal of maximizing efficiency associated with the implementation of the Group's restructuring project; organizing training courses, equipping and improving knowledge associated with professional work for officers working in investment and finance; Research shifting and changing trends to forecast, calculate risk scenarios and have proactive solutions to manage business operations.

In addition, complete internal management regulations/rules in the Group's investment work; focus on reviewing regulations related to Petrovietnam's decentralization and authorization, ensuring synchronization between investment work, bidding work and financial work; study and supplement policies and mechanisms for decentralization and supervision of enterprises in the service sector, in accordance with the characteristics and nature of the work.

The Group will continue to closely follow the Ministries/branches to promote the promulgation of legal regulations and policy mechanisms to remove difficulties and facilitate the Group's production, business and investment activities: policy mechanisms in the synchronous development of gas-electricity project chains; mechanisms for developing small and marginal mines; proposing mechanisms in the amended Law 69/2014/QH13, ensuring a legal corridor for enterprises to have the right to decide on profit distribution, allocate the Development Investment Fund...

Block B - O Mon Gas Power Project Chain, one of Petrovietnam's key projects

In addition, Petrovietnam will regularly update economic fluctuations and financial investment models of projects to have timely response solutions, minimize risks, and ensure project progress, with special attention to large-scale project chains/projects, such as Block B Project Chain, Thi Vai LNG Project Chain, Blue Whale Gas Project Chain, Dung Quat NMLD NCMR Project, Long Phu I Thermal Power Plant..., ensuring completion of the 2024 Investment Plan at a minimum of 80%.

Implement and complete the adjustment of the 5-year Investment Plan 2021-2025 in the third quarter of 2024; organize the preparation of the 2025 Investment Plan with growth but high feasibility, closely following the actual progress of project implementation, adding investment opportunities for research, as a basis for implementation in the following years; Organize the implementation of investment projects included in the plan seriously and resolutely with breakthroughs in awareness and action to complete the plan at a high level.

Based on the updated adjustment of the development strategy and the 5-year plan, the units develop a plan to handle the difference between equity and charter capital, determine retained earnings, and the ratio of the Development Investment Fund; Manage equity capital well, determine the scale of available equity capital, develop a long-term plan for investment; Focus on debt collection, balance receivables and payables, increase net cash flow for the unit; Develop a financial plan with diverse loan sources, optimal capital structure, optimize loan interest rates, loan terms, other preferential development loans combined with domestic and foreign commercial loans; Research the coordination mechanism, regulate idle capital among units in the Group; supplement derivative instruments in investment activities in accordance with modern trends and legal regulations.

Strengthen the management of financial investments, capital contributions, and investment capital at enterprises, including reviewing the organization of financial investment capital management at enterprises by regulations, focusing on regulations on efficiency assessment, risk control, distribution principles, and fund allocation.

Along with investment and financial activities, the Group and its units need to promote digital transformation throughout the Group; Deploy and operate the ERP Enterprise Management System, ensuring "Correct, Sufficient, Live, Clean" data. Systematize data on Petrovietnam's resources as a basis for assigning tasks, in line with the strengths of the units, avoid overlap and internal competition, strengthen cooperation and linkage to optimize the efficiency of resource use of member units; Build a data system with full information on the qualifications and experience of human resources in the Group.

Source: https://phunuvietnam.vn/dau-tu-tai-chinh-giu-vai-tro-quan-trong-trong-chien-luoc-phat-trien-cua-petrovietnam-20240716180339112.htm