10:00 | 15/09/2021 Companies
(VEN) - The Vietnam Oil and Gas Group (Petrovietnam) continued its strong performance in the first seven months of the year despite the impact of the Covid-19 pandemic. However, the group needs a clear legal corridor to complete long-term growth targets and has therefore been reviewing legal regulations to identify obstacles and propose solutions.
|Petrovietnam President and CEO Le Manh Hung|
The resolution of the 13th National Party Congress views institutional reform as one of the three strategic breakthroughs of its tenure. The government’s action plan on implementing the resolution focuses on tackling institutional bottlenecks by completion of mechanisms and policies to develop the economy and society, promote trade and production and guarantee social security.
Shortcomings of existing legal regulations have affected Petrovietnam’s operations. In addition to awaiting the amendment of the current Law on Petroleum to create a driving force for sustainable development, the group has been working to review obstacles so as to submit revisions to relevant authorities.
About 60 legal provisions require amendment due to overlaps and inconsistencies, including those in the Law of Public Investment, Law on Managing the Use of State Capital, Law on Enterprises, and Law on Bidding.
For example, the Law on Bidding will present Petrovietnam with difficulties in implementing investment projects, especially those with foreign partners, resulting in delays and losses. In addition, a number of issues related to the oil and gas sector are not addressed in current laws.
In addition to reviewing legal regulations, the group is also cooperating with the Ministry of Industry and Trade to draft the revised Law on Petroleum to submit to the National Assembly for consideration.
Petrovietnam President and CEO Le Manh Hung said obstacles caused by legal regulations have been directly affecting operations of Petrovietnam and all relevant units under its responsibility. Exploration and production are increasingly difficult due to declining oil and gas resources. Mechanisms and policies for exploration and production activities, as well as investment in new projects, are posing numerous difficulties, while incentives to attract investment in exploration and production have not proven effective.
Proposals to amend inappropriate legal regulations will contribute to removing difficulties for trade and production activities, while creating a driving force and making contributions to the country’s socioeconomic development.
|Petrovietnam President and CEO Le Manh Hung said that if issues are not resolved in a timely manner, the group may lack conditions to implement its strategy, affecting the country’s economic development and energy security.|