Petrovietnam moves towards OECD-aligned risk governance framework

Petrovietnam moves towards OECD-aligned risk governance framework

The move comes in response to Resolution No 79-NQ/TW issued by the Politburo on January 6, which sets a target for all state-owned groups and corporations to adopt OECD corporate governance principles by 2030.

The Sư Tử Trắng oil condensate and gas production platform is located in the Sư Tử field cluster. — Photo pvn.vn

Petrovietnam is speeding up efforts to modernise its corporate governance framework and strengthen risk management in line with the principles of the Organisation for Economic Co-operation and Development (OECD), aiming to approach international standards by the end of 2026.

The move follows Resolution No 79-NQ/TW issued by the Politburo on January 6, which requires State-owned groups and corporations to adopt OECD corporate governance principles by 2030.

As one of Việt Nam’s largest State-owned enterprises, Petrovietnam has introduced a range of measures to implement advanced governance practices ahead of the national deadline.

Trần Quang Dũng, Standing Deputy Secretary of Petrovietnam’s Party Committee, said the group had adopted modern governance models and proactive management approaches based on international standards at an early stage. These efforts have helped Petrovietnam overcome challenges, maintain growth and preserve its brand value.

The group has set a target of becoming one of the world’s 500 largest enterprises by 2030 while implementing OECD-based governance standards from 2026.

“Completing the internal regulatory system and strengthening control, risk management, legal and supervision functions are key tasks to build a protective framework for the enterprise amid growing uncertainties,” Dũng said.

Petrovietnam has cooperated with Deloitte Vietnam to assess its current governance practices and develop a tool to measure governance maturity in line with Resolution 79.

Phạm Thị Minh Hương, director of Business Consulting & Assurance Services at Deloitte Vietnam, said Petrovietnam already has several advantages, including a clear separation of responsibilities between the Members’ Council and executive management, as well as a relatively comprehensive risk management system.

The group has also effectively implemented policies on safety, environmental protection and sustainable development, while taking steps toward adopting International Financial Reporting Standards (IFRS).

However, Hương noted that Petrovietnam needs to continue improving governance effectiveness, developing specialised committees, integrating environmental, social and governance (ESG) standards into strategy, increasing transparency and strengthening supervision of State capital.

“Corporate governance is not only a system of regulations, but also a tool that protects management decisions, helping enterprises operate transparently, develop sustainably and improve competitiveness,” she said.

According to Bùi Thị Nguyệt, head of Petrovietnam’s Internal Control Board, the group has asked subsidiaries to assess their governance maturity using the ASEAN Corporate Governance Scorecard (ACGS), which is based on the G20/OECD framework.

Assessments of 16 subsidiaries showed positive results in areas such as shareholder rights, information disclosure, internal governance systems and related-party transaction controls. Several units have also advanced ESG initiatives, greenhouse gas inventories and risk management systems.

Petrovietnam Chairman Lê Ngọc Sơn said adopting OECD corporate governance principles is an essential step in improving the management capacity of State-owned enterprises. The initiative not only responds to Resolution 79 but also supports the group’s long-term sustainable development goals.

He said Petrovietnam had approached OECD principles early, but implementation must follow a systematic roadmap based on comprehensive assessments and practical development needs.

The group has set a target of approaching OECD enterprise standards by the end of 2026.

Regarding risk management, Nguyễn Thành Hưởng, head of Petrovietnam’s Risk Management and Compliance Supervision Department, said the group is developing an OECD-aligned roadmap focusing on improving governance structures, identifying major risks, strengthening supervision and building digital reporting systems.

To support this transformation, Petrovietnam’s Party Executive Committee issued an action plan on April 17 to implement Resolution 79. The group is also working with ministries and agencies to review policies on State-owned enterprise evaluation, State capital management and investment mechanisms.

Petrovietnam continues to improve performance assessments for subsidiaries, focusing on financial efficiency, capital use, investment results, political tasks and sustainable development. It is also strengthening inspection, supervision and audit activities while applying digital technology to improve management efficiency. 

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