PetroVietnam is stronger, more innovative, and contributes more to the country.

On the occasion of Vietnam Entrepreneurs' Day (October 13, 2004 - October 13, 2024), PetroVietnam Party Secretary and Chairman of the Board of Directors Le Manh Hung wrote an article about the development and contributions of the Vietnamese business community, in which he expressed new expectations to continue making important contributions to the country's strong development.

PetroVietnam Party Secretary and Chairman of the Board of Directors Le Manh Hung spoke at the meeting of outstanding businessmen of the Prime Minister and the Government Standing Committee on October 4. (Source: PVN)

Vietnam National Oil and Gas Group (PetroVietnam) is aiming to become a national industrial and energy group, playing a pioneering role in developing renewable energy and new energy fields. To do that, in addition to the support of the Government, Ministries/Industries to institutionalize into policy mechanisms, PetroVietnam needs to transform its business model more strongly and innovatively to be able to catch up with other groups in the same industry in the region, thereby contributing more to the country's strong development process.

Immediately after the founding of the country, on October 13, 1945, our President Ho Chi Minh sent a letter to the Vietnamese business community - He affirmed: "The business community is a part of the great national solidarity bloc and the National Salvation Industry and Commerce Union - an organization of business people is a member of the country's political system".

And exactly 20 years ago, to promote the role and tradition of the Vietnamese business community, on September 20, 2004, the late Prime Minister Phan Van Khai signed Decision No. 990/QD-TTg, taking October 13 every year as "Vietnamese Businessmen's Day".

During the development process, the achievements that the business community has achieved have always received the attention, support and companionship of the Party and the State.

The 13th National Party Congress continued to affirm that the state economy plays a leading role in the socialist-oriented market economy. In particular, state-owned enterprises (SOEs) focus on key areas, important areas, national defense and security; operate according to market mechanisms, modern management according to international standards; take economic efficiency as the main criterion, compete equally with enterprises (DN) in other economic sectors.

Reality shows that SOEs/enterprises with State capital are present in all sectors of the economy (airports, seaports, oil and gas, coal, minerals, railways, banks, etc.), holding large resources of capital, assets, technology, high-quality human resources, making important contributions to the State budget. In particular, SOEs are also present in risky sectors, low profit margins, and difficult locations, etc.

In the period of 2021-2023, 100% state-owned enterprises will maintain holding about 7% of total assets and 10% of equity of all enterprises in the market, accounting for about 25.8% of total production and business capital and 23.4% of fixed assets and long-term financial investments of enterprises. SOEs contribute about 28% of state budget revenue, attract about 0.7 million workers, accounting for about 7.3% of the total workforce of the enterprise sector.

In this context, it requires great efforts from within the enterprises themselves and along with that is the support as well as the creation of policy mechanisms by the Government for SOEs to be able to develop stably and sustainably. Specifically:

For State-owned enterprises: it is necessary to focus on investing in science and technology; innovate corporate governance towards modernity, digitalization, and transparency; improve operational efficiency, and increase financial capacity accumulation.

For the State and Government, we wish to:

Firstly, promptly complete the legal system on state-owned enterprises, legal regulations on corporate governance, capital management, land assets...

Second, promulgate mechanisms for decentralization and delegation of authority, ensuring unified management, effectiveness and efficiency of operations; ensuring respect for and enhancing the autonomy and self-responsibility of state-owned enterprises, especially for State-owned corporations/groups holding key and important industries of the country and having large scale.

Third, allow a number of large state-owned economic groups whose business activities are subject to many risks, market fluctuations, natural disasters, and the responsibility to invest/open new business areas to establish a financial reserve fund from annual after-tax profits to compensate for losses (if any) that occur, ensuring stable and sustainable development of the enterprise.

Fourth, the State has a pilot mechanism to enhance the financial capacity of a number of key SOEs to expand into international markets and create a national brand.

And finally, innovation in evaluating the effectiveness of state-owned enterprises in the direction of assigning targets and goals; creating proactive creativity for enterprises in production and business activities along with inspection and supervision work to ensure that state-owned enterprises develop in the right direction and achieve their set goals.

For the Vietnam National Oil and Gas Group alone , PetroVietnam is an enterprise operating under the NOC model and is one of six economic groups in which the State holds 100% of the charter capital.

According to international organizations, PetroVietnam's activities have a significant impact on the entire energy value chain in Vietnam; PetroVietnam's production and business activities are very effective and it is the state-owned enterprise that contributes the most to the country's socio-economic development (payment to the state budget (2021-2023) accounts for an average of 8.4%/year of the total national budget revenue).

Regarding PetroVietnam's current resources: Total consolidated assets as of December 31, 2023 reached over VND 1.01 million billion, accounting for about 26.0% of the total assets of all state-owned enterprises (VND 3.82 million billion), accounting for 28.1% of the total assets of state-owned corporations/groups (VND 3.51 million billion).

PetroVietnam's return on equity (ROE) in the 2021-2023 period reached 8.3% per year. Its return on assets (ROA) in the 2021-2023 period reached 4.3% per year, 0.3 percentage points higher than that of state-owned enterprises (4.0%).

It can be seen that, compared to domestic enterprises, PetroVietnam is the leading power, but compared to the region and the world, it is still quite modest. Besides, PetroVietnam is also facing common challenges from the domestic and international market context. In the face of this trend, PetroVietnam needs to shift its business model more strongly and innovatively to be able to catch up with the same industry groups in the region.

On April 24, the Politburo issued Conclusion 76, opening up new development space and a mechanism to create resources for the oil and gas industry/Petrovietnam to develop. PetroVietnam is in dire need of support from the Government, Ministries/Industries to institutionalize specific policy mechanisms, first of all, to specify them in the Charter and Financial Regulations of the Group.

We believe that, with the attention and support of the Government and the Prime Minister, PetroVietnam has, is and will continue to make important contributions to the country's strong development process.

PetroVietnam and other enterprises/state-owned enterprises always understand that, in order to achieve success, in addition to the efforts and determination of the leaders and employees of the enterprise; the Party, State, Government and people have always accompanied and created the best conditions for enterprises to develop.

Some outstanding achievements of PetroVietnam in the period 2021-2023:

- PetroVietnam's equity as of December 31, 2023 reached over VND 531.9 trillion, accounting for 24.8% of the total equity of all SOEs (VND 1.80 trillion), accounting for 32.8% of the total equity of State-owned Corporations/Groups (VND 1.62 trillion).

- Total revenue of PetroVietnam in the period of 2021-2023 reached over 834 trillion VND/year, growth reached 20.2%/year, compared to 2020, revenue in 2023 of PetroVietnam increased by 66.6% (942.8/566.0 trillion VND), 24.2 percentage points higher than the increase of SOEs (42.4%, 2.30 million billion VND/1.62 million billion VND).

- PetroVietnam's consolidated pre-tax profit in the 2021-2023 period reached over VND 61.4 trillion/year, an increase of 60.5%/year, 55.4 percentage points higher than the growth rate of SOEs (5.1%); compared to 2021, PetroVietnam's consolidated profit increased by 9.1%.

- PetroVietnam's total State budget contribution in the 2021-2023 period reached 145 trillion VND/year, with a growth rate of 25.2% per year, accounting for 8.4%/year of the country's total budget revenue (7.1% in 2021; 9.6% in 2022 and 8.7% in 2023).

- Total number of employees by June 30, 2024: nearly 54 thousand people (of which: post-graduate degree >3,868 people; university degree >25,664 people).

Source: https://baoquocte.vn/chu-tich-hdtv-le-manh-hung-petrovietnam-manh-me-hon-dot-pha-hon-dong-gop-nhieu-hon-nua-cho-dat-nuoc-289713.html