Petrovietnam fuels sustainable recovery

(VEN) - Vietnam’s biggest oil and gas business, the Vietnam National Oil and Gas Group (Petrovietnam) has acknowledged the decisive significance of organizational culture and human resource management for sustainable growth, making it an integral part of the group’s development strategy.  

Corporate culture, a driving force of growth

Since it was founded on September 9, 1977, Petrovietnam has gone through ups and downs, overcoming numerous difficulties and challenges to become an internationally and nationally renowned brand, which has been contributing significantly to the country’s construction and development.

In recent years, the oil and gas industry faced major challenges, including prolonged low oil prices, the COVID-19 pandemic, delayed and substandard projects, all of which have significantly affected employees' mindset and the sector’s reputation. Nonetheless, Petrovietnam has preserved its corporate culture and business ethics through effective risk control and production and trading administration.

petrovietnam fuels sustainable recovery

President Nguyen Xuan Phuc (fourth from left, first row) meets leaders and high-achieving employees of the oil and gas industry

The year 2020 was the most difficult in Petrovietnam’s 45-year history, combining the impact of the pandemic with the unprecedented, prolonged decline in crude oil prices (bottoming out at US$37 per barrel). The group has recovered strongly, paid VND83 trillion in taxes to the state budget, achieving all the annual 2020 targets and contributing to Vietnam’s gross domestic product (GDP) growth.

In 2021, the increasingly complicated COVID-19 pandemic and the oil price crisis inflicted heavy losses, and even bankruptcies, on oil and gas conglomerates worldwide. But Petrovietnam reached or exceeded all of its production and trading targets, paying VND112.5 trillion in taxes to the state budget, 80 percent higher than the annual plan and up 36 percent from 2020. Petrovietnam topped 19 groups and corporations managed by the Commission for the Management of State Capital at Enterprises (CMSC). The group also donated more than VND1 trillion to the COVID-19 Vaccine Fund and pandemic control activities.

petrovietnam fuels sustainable recovery
Petrovietnam donated more than VND1 trillion to the COVID-19 Vaccine Fund and pandemic control activities

In the first seven months of 2022, the world in general and Vietnam in particular continued facing major challenges and difficulties – the Russia-Ukraine war, the US-China trade war, interest rate hikes, inflation, increased production and trading costs and input material prices, supply chain disruptions and signs of a global recession. Petrovietnam issued accurate forecasts, adapted promptly and flexibly to changes, made effective use of market opportunities and resources in the value chains to minimize damage and maintained stable, efficient operations. The group paid an estimated VND79.6 trillion in taxes to the state budget, 74 percent higher than the target and 23 percent more than the 2022 target, and up 47 percent from the same period of 2021.

petrovietnam fuels sustainable recovery
Petroleum Culture Week celebrated at Petrovietnam

The group has been promoting and implementing a corporate culture preservation and promotion project called Petrovietnam Cultural Regeneration since 2020. The project encourages employee performance and contribution to the country’s and the group’s development.

At a June 25 meeting with the oil and gas industry’s staff, President Nguyen Xuan Phuc praised Petrovietnam’s achievements and efforts, and emphasized its increasingly important role in the country’s industrialization and modernization.

petrovietnam fuels sustainable recovery
Petrovietnam is honored as an enterprise meeting the standards of Vietnamese business culture

Harmonious development

Petrovietnam Chair Hoang Quoc Vuong said the harmonious combination of economic growth and corporate culture development is key to Petrovietnam’s sustainable progress.

The Petrovietnam Cultural Regeneration Project themed “Solidarity - Discipline - Creativity - Efficiency”, in combination with Enterprise Resource Planning (ERP), and a culture of cooperation, sharing, working with technology platforms, studying and communications all have created a breakthrough in the project’s implementation and helped the group reach its targets.

In the second half of 2022, Petrovietnam will continue to keep a close watch on market developments, monitoring world crude oil prices and market fluctuations to optimize reserves and operate oil production efficiently to stay in the black. The group will also enhance digitalization and create positive changes in business and governance models to improve its operational efficiency.

petrovietnam fuels sustainable recovery
petrovietnam fuels sustainable recovery
Oil and gas workers pursue the motto “Aspiration - intelligence - professionalism - gratitude”

Petrovietnam General Director Le Manh Hung said difficulties remain in the second half of the year with growing indications of a global recession. The group will continue following market and macroeconomic indicators, focusing on fluctuation governance, controlling risks of inflation to moderate oil production at optimal performance.

Accordingly, Petrovietnam and its member units are focusing on increasing reserves to achieve exploitation outputs at the highest level. They are also focused on intensifying solutions to expand markets, especially the market for gas products, oil refining, fertilizers, and technical services. The group will continue to strengthen linkage chains and promote investment to control risks and take advantage of opportunities to increase scale and implement investment strategies and key projects. In addition, Petrovietnam will continue to carry out long-term scientific research and development projects, creating a steppingstone for the group's products and industries as the traditional field is affected by energy transitions.

In 2021, Petrovietnam was listed among three biggest companies in Vietnam behind Samsung Vietnam and Vietnam Electricity (EVN), according to the VNR500 rankings by Vietnam Report JSC. The rankings were compiled based mainly on enterprises’ total revenues and other performance criteria, such as total asset value, employment, growth, profit, and media prestige.
Quang Dung

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