The creative imprint behind Petrovietnam's success

(Chinhphu.vn) - The history of the world economy, especially in the energy and oil and gas industry, has witnessed many crises at national, regional and global levels. Enterprises with strategic vision promptly restructured, changed their thinking, improved their management capacity, and innovated their business models to stand firm and create momentum for growth after the crisis. The Vietnam National Energy Industry Group (Petrovietnam) is a typical example.

Prime Minister Pham Minh Chinh inspects activities at PTSC Technical Energy Logistics Center

Managing fluctuations, turning risks into opportunities

In the period 2016-2019, Petrovietnam was at the bottom of the crisis, from internal difficulties to loss of confidence, from the market to the shrinking exploitation output... At that time, many power projects were at a standstill, many units continuously suffered losses, seemingly with no way out. The nature and severity of this crisis was so great that in 2017, Petrovietnam reported to the Prime Minister, predicting that by 2019, the Group would have an imbalance in cash flow, falling into a particularly difficult situation.

Difficulties and challenges become even greater when the COVID-19 "double crisis" occurs, directly threatening the efficiency of production and business activities, the jobs of tens of thousands of workers and the state budget.

In that context, instead of being passive, Petrovietnam has chosen an approach with the mindset of "volatility management". The Group has proactively "managed volatility", considering market fluctuations as an inevitable factor that needs to be forecasted, analyzed and proactively planned. This is a big step forward in management thinking, turning "danger" into "opportunity", from being passive to leading, not being defensive but proactively adapting and optimizing resources, laying the foundation for Petrovietnam's stability and breakthrough in the future.

In the midst of the "double crisis" storm, Dr. Le Manh Hung - Party Secretary, Chairman of the Board of Directors of Petrovietnam (then General Director of the Group) quickly built flexible operating scenarios, proactively adjusted the exploitation and production plan, focused on safety, optimized costs and ensured cash flow. At the same time, Petrovietnam restructured its investment portfolio, reviewed ineffective projects, and strongly promoted digital transformation and technology application.

The spirit of permeating the management and operation of Petrovietnam is to closely follow the situation, proactively make forecasts and assessments, have specific solutions for each period, promptly report difficulties and problems to find ways to resolve them, and best implement the set plan targets, even higher and with more pressure.

Thanks to that, in 2020, in a difficult context, Petrovietnam not only stood firm but also made a spectacular breakthrough, becoming a bright spot in the Vietnamese economic picture; one of the few energy and oil and gas companies in the world to overcome the crisis and achieve positive profits of more than 20 trillion VND.

Comrade Le Manh Hung and Petrovietnam leaders surveyed the area where the petrochemical complex is planned to be built in Long Son.

Smart management, artificial intelligence application

Coming out of the crisis, "volatility management" continues to be taken to new heights by Petrovietnam and is considered the foundation for sustainable development.

Accordingly, Petrovietnam has deployed a smart management system, applied big data and artificial intelligence in market forecasting, and optimized exploitation operations. At the same time, it has promoted investment restructuring, focusing on core projects and areas with growth potential. In particular, it has improved risk management capacity, built an early warning system, assessed price fluctuation scenarios, and ensured proactive response capabilities.

Petrovietnam attaches great importance to analysis and forecasting, considering it a decisive factor in the success or failure of business operations. Under the direction of the Group's leaders, specialized units and teams of experts continuously update data, simulate scenarios of oil price fluctuations, consumption demand, geopolitical risks, etc., creating a scientific basis for leaders to make timely decisions. When the market goes down, Petrovietnam adjusts its exploitation plan, optimizes costs; when the market recovers, quickly seizes market opportunities, promotes production development. Or when geopolitical risks increase, backup scenarios help the Group maintain stable supply.

Thanks to that, in recent years, despite the unpredictable fluctuations of the world economy and geopolitics, and the trends of technology and energy... occurring faster than expected, Petrovietnam's production and business efficiency has continuously improved. Many important indicators such as revenue, profit, and budget contribution of Petrovietnam have grown impressively, creating a solid foundation for the next stage of development; affirming the important and core role in implementing the 5 "An", including: Energy security; Economic security; Food security; National defense security and national sovereignty at sea; Social security.

Petrovietnam Chairman Le Manh Hung surveyed the Hywind Tampen Project in Gulen, Norway

From implementing the 5 "An" mission, Petrovietnam has achieved great results and achievements after 50 years, including 5 indexes among the highest in the country.

Specifically, Petrovietnam is the largest enterprise in Vietnam with total assets of over 1 quadrillion VND, equity of 556 trillion VND and accumulated revenue of 605 billion USD. Petrovietnam is also the enterprise with the highest budget contribution of over 142 billion USD, accounting for an average of 8-9% of the total annual state budget revenue.

The Group is always at the top of the group of enterprises with the highest profits, reaching over 55 trillion VND in 2024 alone. In the field of science and technology, Petrovietnam leads with 6 Ho Chi Minh Awards, 4 State Awards, 46 Vifotec/WIPO Awards and 4 international patents. Not only that, Petrovietnam is also one of the largest social security enterprises in the country, with a total budget of over 10.3 trillion VND in the period 2011-2025.

In addition, with the attention, leadership and direction of the Party, the State, and directly the Prime Minister, Petrovietnam has resolutely promoted investment and development work, completely resolved the difficulties and problems of a number of key projects, such as "reviving" and putting into operation the Song Hau 1 and Thai Binh 2 Thermal Power Plants; inaugurating the 1 million ton/year Thi Vai LNG port warehouse; speeding up the progress of the Lot B - O Mon gas-power project chain, Nhon Trach 3 - 4 Thermal Power Plant projects, etc., thereby making an important contribution to stabilizing the macro-economy and ensuring the country's energy security.

Speaking at the 2023 year-end conference and 2024 task deployment, Petrovietnam General Director Le Manh Hung affirmed: "With the achievements that have been achieved, "fluctuation management" will continue to be the decisive factor in production and business results, an important premise for the Group to develop stably and sustainably, realizing the growth aspiration, developing Petrovietnam to become a leading industrial - energy group".

The new point here is the shift in thinking from a mere oil and gas corporation, Petrovietnam needs to expand into a multi-sector energy corporation, not only relying on traditional oil and gas but also pioneering in developing new energy products and technologies, renewable energy. This is a long-term orientation, associated with Vietnam's Net Zero 2050 commitment, while catching up with the global energy transition trend.

PT

Source: https://baochinhphu.vn/dau-an-kien-tao-phia-sau-thanh-cong-cua-petrovietnam-102250917011112575.htm