Elevating Corporate Governance: Petrovietnam Implements OECD Standards

The Vietnam National Oil and Gas Group (Petrovietnam) is undertaking a significant transformation in corporate governance by setting the goal of upgrading its governance system according to the standards of the Organisation for Economic Co-operation and Development (OECD). This initiative is built upon the impressive results of the 2024 Corporate Governance Assessment (ACGS), which shows an average score of 63.7/130, surpassing the average of listed companies in Vietnam.

Outstanding Achievements in Corporate Governance Assessment

According to the latest report from Petrovietnam, the ACGS score of 63.7/130 is a clear testament to the group's continuous efforts in improving its governance system. This score not only outperforms the market average of Vietnam's stock exchange but also demonstrates Petrovietnam's deepening international integration.

Particularly within its ecosystem of member units, one of Petrovietnam's enterprises has shown outstanding results, approaching the threshold for meeting ASEAN Asset Class standards—a high-level governance standard recognized in the region.

Context and Significance of Governance Standard Enhancement

As a key economic group of the nation operating in the energy sector—a crucial industry for Vietnam's socioeconomic development—Petrovietnam's enhancement of governance standards according to OECD guidelines is not merely an internal requirement but a strategic move to enhance competitiveness and investment attraction capabilities.

OECD corporate governance standards focus on principles such as transparency, accountability, protection of shareholder and stakeholder rights, along with effective internal control systems. Implementing these standards helps Petrovietnam operate more efficiently while strengthening the confidence of domestic and international investors.

Achievements in Petrovietnam's Governance System

• Improving organizational governance structure towards professionalism and transparency
• Establishing a robust internal control system
• Enhancing risk management capabilities
• Improving information disclosure to shareholders and investors
• Strengthening social responsibility and sustainable development

Comparison of Governance Standards

The Path Toward OECD Standards

To achieve the goal of upgrading governance according to OECD standards, Petrovietnam has been and is implementing a series of synchronized solutions. First, the group is focusing on perfecting the corporate governance framework with a clear distinction between management and supervisory functions. At the same time, Petrovietnam emphasizes enhancing the capabilities of its management team through specialized training programs on modern corporate governance.

Another important focus is increasing the application of information technology in governance, from building risk management systems to implementing data governance solutions. Digitalizing processes helps increase transparency and efficiency in the group's operations.

Strategic Solutions Being Implemented

• Perfecting corporate governance regulations in line with international practices
• Building a set of key performance indicators (KPIs) for governance effectiveness compatible with OECD standards
• Training and developing senior management personnel
• Strengthening cooperation with international organizations on corporate governance
• Applying modern governance tools such as technology-based risk management

Positive Impact on Petrovietnam's Ecosystem

The move toward OECD governance standards not only benefits Petrovietnam but also creates a positive ripple effect throughout its entire ecosystem of member units. When the parent company applies advanced governance standards, subsidiaries and member units are also compelled to enhance their governance capabilities to remain compatible.

Particularly, with one enterprise approaching ASEAN Asset Class standards, Petrovietnam is asserting its pioneering position in improving governance quality in the region. This not only enhances its reputation but also opens up opportunities to attract high-quality financial resources from the regional and international markets.

Vision and Future Orientation

According to its plan, Petrovietnam aims to continue improving its ACGS score in the coming years, targeting the 80/130 mark—a level considered good by international standards. At the same time, the group also aims to have more member enterprises meet ASEAN Asset Class standards, forming a robust governance ecosystem.

The enhancement of governance standards according to OECD guidelines is not just a short-term goal but a long-term strategic orientation for Petrovietnam. This reflects the group's commitment to building a modern, efficient state-owned enterprise model with global competitiveness in the context of deepening international integration.

It can be said that the journey toward OECD governance standards is opening a new chapter in Petrovietnam's development, not only enhancing its internal capabilities but also making a significant contribution to Vietnam's process of reforming its growth model.

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