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| PetroVietnam strengthens management and operation of production and business activities along the chain. (Source: PVN) |
Shape, connect and exploit effectively
In recent years, promoting the implementation of value chains, linking resources, and developing internal ecosystems has helped the Vietnam Oil and Gas Group (PetroVietnam) increase its ability to respond to negative external impacts, turn challenges into opportunities, improve competitiveness, and truly become a new growth driver for the Group.
It can be said that PetroVietnam's fields of operation from upstream, midstream to downstream have a very large natural connection.
However, to shape, connect and effectively exploit this value chain, as well as form new connections to increase value, PetroVietnam has only really put it into management and operation since 2020.
Based on the ideas, orientations and directions of the Chairman of the Board of Directors, General Director of PetroVietnam Le Manh Hung, the implementation of value chains is resolutely carried out in a methodical and systematic manner within the Group through surveying, evaluating, and systematizing the overall resources and assets in each field, identifying strengths, competitive advantages, building a strategic product and service portfolio...; thereby providing orientations, plans, and selecting chains with high feasibility and efficiency to focus resources on implementation and putting into operation.
Along with that is the innovation of centralized management and operation by block to enhance information exchange, sharing, suggesting opportunities for association and cooperation in investment, production, business, market development, helping to promote the strengths of each unit, increase the proportion of participation in the oil and gas value chain, increase revenue and profit for enterprises as well as save time and costs when taking advantage of each other's strengths and available resources, improving the efficiency of the entire PetroVietnam ecosystem.
Since then, PetroVietnam's value chains have gradually been formed and continuously developed: Production chain; service chain; market development business chain (domestic and foreign); investment linkage chain (service ports, warehouse rental, etc.); integrated chain (investment, service business)... helping to optimize resources, as well as governance models.
PetroVietnam value chain?
To date, the entire Group has had over 30 production and investment linkage chains catalogued. Of these, many chains have been formed and put into operation with results, linked to the regular operations of the unit, and many feasible chains are being proposed, researched and implemented.
These include the BCC cooperation chain to produce RON91 base gasoline, DO bottom products between PV GAS and PVOIL, which has been effectively implemented since February 2021, contributing to bringing profits and improving the operational efficiency of the two units; the renewable energy chain between PV Power and PVFCCo, PVCFC with cooperation in installing rooftop solar power; BSR cooperates with PVOIL in supplying crude oil, blending, expanding the market and consuming petroleum products domestically and internationally; BSR cooperates with PVTrans in transporting crude oil; cooperation between PVD and PTSC to provide services in the E&P field...
In addition, many projects to improve product value chains have been researched and implemented such as: Masterbatch/compound filler production project; separating olefin from LPG; hydrogen peroxide production, melamine production; service port chain - gas - electricity; research and development of linked value chains in the fields of renewable energy and non-traditional/clean energy; establishing a domestic supply chain to provide services for the offshore wind power industry...
Developing a value chain in the PetroVietnam ecosystem actively contributes to member units working together to research solutions to maximize resources and innovate to develop new products.
Notably: BSR has successfully researched, produced and sold 3 new products: BOPP, RFCC Naphtha, MixC4 and maximized RON index to increase Mogas 95 gasoline output; PVChem develops high-value, environmentally friendly chemical and petrochemical products such as producing PP Filler Masterbatch/Compound from PP powder.
Linking in value chains has helped businesses take advantage of available resources, reduce training and investment costs, and also create traction for the development of businesses in the chain. Most recently, we can mention the driving forces from the domestic supply chain to provide services for the offshore wind power industry. This supply chain not only helps PTSC have a strong and potential shift, but also acts as a pulling force to help many units in the Group with the capacity to participate in the chain, especially difficult units to transform and rise up when participating in the value chain.
The development of domestic and foreign markets of the Group's units has also made great strides from the pioneering orientation of the Group's parent company, as well as taking advantage of invested resources and sharing market experience of the leading units with the following units in the same market.
Not only helping to improve its stature and competitiveness, developing along value chains also helps PetroVietnam strengthen its resilience to difficulties and market fluctuations in the context of an unpredictable world.
Specific, practical results
In fact, the value chains have helped PetroVietnam steadily overcome difficulties and major crises of market fluctuations, as well as contribute to macroeconomic stability and the country's energy security such as: oil price crisis, the global oil and gas industry facing overloaded storage systems, negative oil prices (2020); widespread Covid-19 pandemic crisis and sharp drop in oil prices (2021); gasoline shortage (2022); power shortage for production and life in the dry season of 2023...
In these urgent situations and stages, coordination and cooperation of units in the chain from production, operation, transportation, storage... to supply to the market are required. With a vision in an ecosystem, it also helps PetroVietnam develop new growth drivers to compensate for areas and units facing many difficulties and challenges in production and business due to objective market factors at each time.
In consecutive years from 2020 to present, PetroVietnam has achieved spectacular achievements in overcoming difficulties, growing, setting new records in production and business, making important contributions to the economy and national energy security in the difficult context of the global economy, major fluctuations in the energy market, while enhancing the prestige and brand value of the Group. In particular, in 2023, the total revenue of the Group reached 942.8 trillion VND, exceeding 39% of the annual plan, 11.6 trillion VND higher than the record set by the Group in 2022 (931.2 trillion VND), equivalent to 9.2% of the country's GDP.
The Group's total State budget contribution reached 151.8 trillion VND, exceeding 94% of the annual plan, accounting for about 9.4% of the total State budget revenue in 2023... One of the solutions to achieve these results is the contribution of promoting the value chain throughout the system.
The very specific and practical results achieved are clear evidence for the success of an innovative management solution implemented in practice, becoming an important growth driver for PetroVietnam in recent years and will continue in the transformation journey to "Build and develop the Vietnam Oil and Gas Group into a leading energy industry group in the country and region".
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