Prime Minister Pham Minh Chính (centre) visited and encouraged the oil and gas workers at the construction site, affirming the achievements Petrovietnam has made in recent years. — Photo courtesy of Petrovietnam

HÀ NỘI — This year Petrovietnam has achieved significant growth, marking a key point in its recovery following an unprecedented crisis from late 2014 to 2019.

During this challenging period, the company faced both external and internal obstacles, including the economic downturn, falling oil prices, reduced production and flawed policies. It also struggled with legacy issues, such as underperforming projects, excessive expansion and a shift from its core focus.

These factors severely impacted its operations, reputation and finances, with some projects stalled and many units incurring losses. In 2017, Petrovietnam warned the Prime Minister of a looming cash flow imbalance and significant financial difficulties.

Since 2020, Petrovietnam has made a remarkable recovery from its biggest crisis in history. This success stems from creative and innovative management solutions applied in the firm's operations during this time.

In 2024, for the first time in ten years, the Vietnam Oil and Gas Group made three new oil and gas discoveries, strengthening its role in the energy sector. With revenue surpassing VNĐ1 quadrillion (roughly US$43 billion) for the third year in a row, Petrovietnam has exceeded its financial goals, contributing almost 10 per cent of Việt Nam’s GDP.

Petrovietnam’s growth is reflected not just in revenue, but in its overall performance.

Compared to 2020, its total assets have increased by 19 per cent in 2023, while its revenue has risen by 81 per cent, and its contribution to the State budget has grown by 83 per cent. Petrovietnam’s brand value has tripled, reaching nearly $1.4 billion.

Petrovietnam surpassed its five-year targets for 2021-2025 two years ahead of schedule in 2023. With such a solid track record, 2024 looks set to be another year of success, with the company expected to exceed its five-year revenue goals and continue its upward trajectory.

The state-owned company’s operations are vital to Việt Nam’s energy needs, providing around 9-11 billion cubic metres of gas annually, which accounts for 35 per cent of the country’s electricity production and 70 per cent of its fertiliser output. With total assets now exceeding VNĐ1 quadrillion, Petrovietnam has firmly positioned itself as a leader in the non-financial sector.

At the heart of Petrovietnam’s success is its ability to adapt and manage change.

When the COVID-19 pandemic and oil price crash struck in 2020, Petrovietnam took swift and decisive action under the motto “Managing fluctuations, optimising value, seizing opportunities and ensuring safety". This approach helped the company recover and achieve profits of nearly VNĐ20 trillion, while many others faced difficulties.

The management strategy evolved in 2021 with a focus on “Maximising value, expanding markets and investing in growth”. This approach bore fruit in 2022, when Petrovietnam’s revenue surged by 48 per cent, reaching VNĐ931.2 trillion. Contributions to the State budget nearly tripled, surpassing expectations. The company broke its own records again in 2023, with total revenue hitting VNĐ942.8 trillion, exceeding its annual target by 39 per cent.

Petrovietnam’s success is also about its corporate culture. Since late 2019, the company has embraced values including aspiration, intelligence, professionalism and compassion. This cultural shift has helped turn challenges into opportunities. Petrovietnam has been recognised as one of Việt Nam’s top 75 companies for business culture since 2021.

Looking ahead, the group remains focused on building a robust ecosystem that optimises resources and enhances operational efficiency. The company’s strong corporate culture, combined with its effective management strategies, is expected to help it maintain long-term success, making it one of the most resilient and powerful state-owned enterprises in Việt Nam. — VNS