Transforming Petrovietnam: Leading and Creating Value in a New Era

The Vietnam National Oil and Gas Group (Petrovietnam) is entering a new development phase with more ambitious goals, accelerated pace, and stricter governance requirements. In this context, management practices and the role of corporate representatives are being elevated to a new standard: process-driven governance based on execution results and the value created for the corporation.

The Transformation Context of Petrovietnam

As a cornerstone of Vietnam's national energy sector, Petrovietnam faces significant challenges and opportunities amidst the global energy transition. This new phase demands changes not only in scale but also in the quality of growth and effectiveness of governance.

In a recent podcast, Petrovietnam's leadership shared insights into the strategic vision and new approaches in shaping the role of representatives at member units. This represents not merely a change in title but a fundamental transformation in mindset and execution methods.

New Requirements in State-Owned Enterprise Governance

According to Petrovietnam representatives, the new phase imposes higher requirements on the state-owned enterprise governance system:

• Accelerating digital transformation across all operations
• Enhancing governance efficiency with market-oriented approaches
• Innovating in the energy sector through creative solutions
• Developing sustainability in the context of climate change
• Strengthening accountability to the state and society

Management Based on Results and Value Creation

The core of governance reform at Petrovietnam in this new phase is shifting from process-based management to results and value-driven governance. This model focuses on:

1. Clearly defining performance measurement indicators (KPIs)
2. Evaluating actual work outcomes
3. Linking responsibility to decision-makers
4. Basing rewards and penalties on substantive contributions

Changes in the Role of Representatives

In the new era, Petrovietnam's representatives are not merely decision executors but have evolved into:

Value Creation for the Corporation

The evaluation of Petrovietnam representatives is based not only on task completion but on the actual value they create for the corporation. Key values include:

• Sustainable revenue and profit growth
• Improved efficiency in capital and asset utilization
• Development of high-quality human resources
• Innovation in technology and production processes
• Market expansion and enhanced international cooperation

Transformation in Leadership Thinking

Petrovietnam representatives need new leadership thinking characterized by:

• Long-term strategic vision
• Adaptability to change
• Innovative and creative mindset
• Risk management capabilities
• Team leadership and development skills

Prospects and Challenges

The implementation of the new governance model at Petrovietnam presents both opportunities and challenges:

Opportunities

• Enhancing corporate competitiveness
• Creating motivation for leadership teams
• Promoting innovation throughout the system
• Increasing transparency and accountability

Challenges

• Changing management mindsets and habits
• Building objective evaluation systems
• Training and developing new leadership capabilities
• Establishing appropriate incentive mechanisms

Conclusion

The transformation of governance models and the elevation of representative roles represent a strategic move for Petrovietnam in its new development phase. By focusing on results and value creation, Petrovietnam aims to build a talented, innovative, and responsible leadership team that contributes to the corporation's sustainable development and maintains its position as a pillar of the national energy sector.

This process requires not only changes in policy mechanisms but also profound transformations in the thinking and actions of each representative, aiming toward the highest goal: sustainable development and value creation for the corporation, the industry, and the nation.