Petroleum industry faces four major challenges

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Illustrative photo. Sources: PVN

This is one of the assessments of the Standing Vice President of Vietnam Journalists Association Ho Quang Loi at the seminar "Vietnam Oil and Gas in development together with the country" held by the Vietnam Oil and Gas Group (PVN) in collaboration with the People’s Army Newspapers on 13 December 2018 in Hanoi.

Besides challenges, the Vietnam Petroleum Industry has 4 great opportunities, including great potential with the reserve volume of 4.4 billion barrels, raking third in Asia and 28th in the world; having a glorious tradition; regularly receiving the attention of the Party and State; having the contingent of dynamic and creative staff, engineers and workers.

According to Nguyen Hung Dung, member of PVN's Board of Members: Despite facing many challenges, the total oil production of the Group in the first 11 months of 2018 reached 22.1 million tons, completing 96, 8% of the year plan. The output of electricity, petroleum and nitrogen in the first 11 months achieved the target. The total revenue of the Group in 11 months reached VND 542,344 billion, exceeding 2.2% of the year plan.

Especially, only in 11 months, the Group contributed over VND 108,122 billion to the State budget, exceeding 46.5% of the plan 2018. In terms of profit, the group achieved VND 45.561 trillion, up 88% compared to the plan.

Regarding the promotion of the development of the Industry in the coming time, the economic expert Nguyen Minh Phong said that PVN should complete the development plan for stable and feasible exploitation. Besides, the Group should develop the list of projects and call for large foreign investments such as from Russia, the US, Japan…

The Government, ministries and sectors should review current mechanisms, supplement and amend new ones, especially establish a National Steering Committee for inter-sectoral coordination; develop supporting industries, oil and gas processing and diversify products for export.

According to expert Nguyen Minh Phong, the Petroleum Industry also needs a mechanism for foreign investment to ensure the maintenance of revenue, maintain the position and acquire new technologies for further investment in the country.

Vietnam spends US$3.6 million on petrol imports Vietnam imported more than 5.56 million tonnes of oil and petroleum products worth nearly 3.6 billion USD ...

Around this issue, Vice President Ho Quang Loi said that in fact, determining the important position and role of the Petroleum Industry, the Politburo issued a resolution on "Development of Vietnam's petroleum Industry up to 2025 and vision to 2035". However, it is important to urgently institutionalize the Party's policy into basic and specific measures to support the Petroleum Industry.

"In addition, the Petroleum Industry has made a great contribution to the country's finances, but the Industry should save on expenditure. Meanwhile, the Industry requires the advance technology and huge investment. Thus, it is necessary to invest more financial resources in the Petroleum Industry to explore new oil fields ... "- Vice President Ho Quang Loi emphasized.