Increasing output in oil and gas commodities

Petrovietnam’s production indicators in the first quarter of 2025 exceeded planned targets. Four major sectors saw sharp year-on-year increases: electricity up by 18.6%, petroleum by 13.8%, NPK fertiliser by 45.5% and polypropylene by 21.7%.

Breakthroughs for growth

According to the leadership of the Petrovietnam Chemical and Services Corporation (PVChem), the company recorded nearly 1,000 billion VND in total revenue in the first three months of the year, marking a 145% increase. Pre-tax profit reached 11.4 billion VND, significantly higher than the same period in 2024.

PVChem’s standout achievement in the first quarter were shown not only in the substantial revenue growth but also in the improved profit margin. The company proactively devised supply plans, controlled input prices, and maintained operational efficiency, enabling profit margins to remain stable despite fierce market competition.

In the coming period, the enterprise plans to accelerate the restructuring of its production and business segments, reorganise resources to leverage strengths, maximise asset utilisation, and enhance the operational efficiency of each unit. It also aims to closely follow customer demand to seek opportunities and promote the commercialisation of new industrial products.

The Binh Son Refining and Petrochemical Joint Stock Company (BSR) also posted positive results. Its net revenue for the past three months reached 31,863 billion VND, recording a slight increase year-on-year; post-tax profit stood at 395 billion VND.

Bui Ngoc Duong, Chairman of the BSR Board of Directors, noted that this outcome reflects the concerted efforts of all employees across the system and is a positive signal amid the global energy market suffering dual pressures: geopolitical instability and output adjustments of OPEC countries.

Forecasts suggest that the global oil market will continue to face unpredictable fluctuations, along with policy factors related to emissions, carbon credits, and technological innovation requirements.

To achieve its strategic objectives, the enterprise has identified the need to make breakthroughs in investment activities and scientific and technological development, alongside innovation and digital transformation strategies to elevate the business. At the same time, the company will focus on three strategic pillars: diversifying input materials to maintain high operating capacity; expanding market share and consumption markets; and enhancing management capacity to improve efficiency and meet consumer demand.

Nguyen Dang Trinh, General Director of Petrovietnam Oil Corporation (PVOil), reported that as of the end of April, despite a very challenging market and a 15% drop in oil prices compared to the beginning of the year, the company remained flexible in its operations, optimised activities, and achieved notable results—most significantly, maintaining output and achieving a 9% increase in revenue compared to the same period last year.

“We hope that oil prices will recover in the coming period and rising demand for petroleum products will enable the company to fulfil its annual targets ahead of schedule. At the same time, we are continuing to actively apply digital transformation and Industry 4.0 technologies to enhance governance, increase business efficiency in line with market trends, and improve customer experience with our products and services,” Trinh emphasised.

Proactive in face of market fluctuations

According to Le Ngoc Son, General Director of Petrovietnam, all production indicators of the group in the first quarter met or exceeded the assigned targets. Total revenue reached 241.237 trillion VND; contributing 34.696 trillion VND to the state budget, up 10%; and investment value reached 7.387 trillion VND, up 39% compared to the same period last year. These results reflect the group’s efforts to boost output, optimise costs, and maintain stable production and business operations amid significant challenges.

In response to developments related to the US’s reciprocal tax policy towards Viet Nam, the company swiftly conducted assessments on the world market’s impact and proposed response strategies. It also researched proposals and recommendations on support policies to the authorities to ensure the completion of the goals.

Specifically, the group will review its investment projects, update its production and business plans based on new oil price forecasts, optimise costs—particularly for high-extraction-cost oil fields—enhance the efficiency of its oil refineries, and consider crude oil reserves. “In the time ahead, the group will prioritise operational management, soon allocate production and business plans to each division, and ensure the fulfilment of targets assigned by the Government,” Son stressed.

Also according to Petrovietnam’s leadership, the immediate task is to assess the impact of US policies on Viet Nam and on oil and gas operations, thereby developing timely response solutions and policy proposals for relevant authorities. Key focus areas include expanding domestic markets for commodities and financial services through strategic partnerships; strengthening cooperation with domestic enterprises; enhancing collaboration with international strategic partners; and conducting early and proactive research into foreign markets, especially in terms of expanding cooperation in emerging sectors.

At the same time, Petrovietnam will continue to improve its governance system, revise regulations to match the business environment, implement regulations to support production and business activities, enhance productivity and efficiency, promote thrift and combat waste. The group will also focus on removing obstacles to medium- and long-term development and continue to implement groups of solutions in science and technology, innovation, and digital transformation to drive production and business growth and improve overall operational performance.