Unlocking New Frontiers for the Oil and Gas Industry

21 August, 2024

Head of the Central Economic Commission and Deputy Prime Minister Tran Luu Quang speaking. (Source: Government Portal)

On August 21st, in Hanoi, the Central Economic Commission, in collaboration with the Ministry of Industry and Trade and the Vietnam National Oil and Gas Group (PVN), organized a conference to propagate and implement Conclusion No. 76-KL/TW regarding the implementation of Resolution No. 41-NQ/TW, dated July 23, 2015, by the Politburo. This resolution outlines the orientation of the strategy for the development of the Vietnamese oil and gas industry until 2025, with a vision towards 2035, and provides new directions for the next phase.

The conference was chaired by the Head of the Central Economic Commission and Deputy Prime Minister Tran Luu Quang, along with Deputy Prime Minister Tran Hong Ha and Minister of Industry and Trade Nguyen Hong Dien.

In his opening remarks, Deputy Prime Minister Tran Luu Quang highlighted the special attention given to the oil and gas industry by the Party and the State. Given the new development requirements, on April 24, 2024, the Politburo issued Conclusion 76-KL/TW, based on a proposal by the Central Economic Commission, in collaboration with relevant ministries, sectors, and localities. This conclusion provides significant guidelines and decisions to harness the potential and strengths of the country and the oil and gas industry, enabling the sector to overcome challenges and achieve sustainable development. Conclusion 76-KL/TW offers critical guidance for the development of Vietnam’s oil and gas industry, creating new momentum and opening up new avenues for its growth.

At the conference, the delegates listened to Mr. Nguyen Duc Hien, Vice-Head of the Central Economic Commission, as he communicated the key contents of Conclusion 76-KL/TW and outlined several orientations, tasks, and solutions for its implementation, in alignment with the spirit of Conclusion 76-KL/TW and Resolution 41-NQ/TW.

Mr. Nguyen Duc Hien emphasized the need to continue improving the institutional and legal framework and to strengthen the leading role of state-owned oil and gas corporations to facilitate the development of the oil and gas industry in this new phase.

Given the context of energy transition and the Fourth Industrial Revolution, he underscored the importance of developing appropriate technical infrastructure, especially digital infrastructure, in conjunction with the implementation of digital transformation and the effective utilization of the Science and Technology Development Fund.

Mr. Hien also highlighted that for the Party’s orientations on the development of the oil and gas industry to come to life, the engagement of the entire political system is essential. It is imperative for party committees to thoroughly study, propagate, and implement these orientations comprehensively, from institutionalization to the formulation and execution of relevant strategies, programs, and plans. Additionally, timely and effective supervision and inspection are crucial.

Subsequently, on behalf of the Prime Minister, a representative from the Ministry of Industry and Trade presented the plan for implementing Conclusion No. 76-KL/TW of the Politburo and Resolution No. 38/NQ-CP of the Government. This plan aims to create a seamless, integrated, and coherent approach, aligning with the implementation of the Party’s resolutions, as well as the country’s socio-economic development strategies and plans, along with those of ministries, sectors, and localities.

The delegates also heard from Mr. Le Manh Hung, Secretary of the Party Committee and Chairman of the Members’ Council of PVN. He presented an analysis of the impacts arising from the global and regional environments, along with the challenges and difficulties faced, and assessed PVN’s resources.

With the orientation of becoming a national industrial-energy group, PVN proposed seven main tasks and solutions to effectively implement Conclusion 76-KL/TW of the Politburo and Resolution 38/NQ-CP of the Government.

Deputy Prime Minister Tran Hong Ha speaking. (Source: Government Portal)

Speaking at the conference, Deputy Prime Minister Tran Hong Ha, on behalf of the Government, highlighted some outstanding achievements of the oil and gas industry and state-owned corporations. He also analyzed the international context and its potential impacts on the industry in the coming time, especially in the context of the green energy transition.

Based on Resolution 38/NQ-CP of the Government, Deputy Prime Minister Tran Hong Ha requested that relevant ministries and sectors promptly develop implementation plans, paying attention to a few key issues. These include improving policies and laws to facilitate the rapid and sustainable development of the oil and gas industry, ensuring consistency with the Law on Oil and Gas and related legal documents; continuing to develop mechanisms and policies to attract investment; and implementing financial solutions and capital sourcing plans.

In his concluding remarks, the Head of the Central Economic Commission and Deputy Prime Minister Tran Luu Quang emphasized the significant contributions of the oil and gas industry to the country’s socio-economic development and highlighted the increasing importance of the industry in the context of Vietnam’s industrialization and modernization.

The reports presented at the conference demonstrated the stable development and growing strength of state-owned corporations like PVN and Petrolimex over the years, underscoring their role as important pillars of the state economy and contributors to macroeconomic stability.

Deputy Prime Minister Tran Luu Quang acknowledged that, alongside the challenges and difficulties, the current context also presents significant opportunities for the oil and gas industry, provided it seizes the moment and leverages its advantages in experience, infrastructure, facilities, and high-quality human resources.

In the context of energy transition, he emphasized the need to focus on harnessing the potential and strengths of the industry to develop renewable and new energy sources, representing a breakthrough direction. This ensures the sustainable development of the oil and gas industry, in tandem with promoting a rapid green and digital transformation, and advancing advanced manufacturing with a focus on enhancing autonomy and increasing localization rates.

Additionally, he highlighted the importance of developing high-quality human resources, along with policies to attract talent and provide specialized training that meets international standards, to foster the growth of the oil and gas industry in the context of deepening international economic integration.

Deputy Prime Minister Tran Luu Quang requested that party committees at the central and local levels and party cells in state-owned energy corporations thoroughly grasp Resolution 41-NQ/TW, Conclusion 76-KL/TW of the Politburo, and Resolution 38/NQ-CP of the Government. He emphasized the need for consistency in policies and direction and thoroughness in implementation. Localities were encouraged to pay attention to the development of the energy sector, as it represents a trend that will bring opportunities. He also suggested continuing to build programs and plans to effectively implement Resolution 41-NQ/TW and Conclusion 76-KL/TW, taking into account local strengths and feasibility. In doing so, it is essential to identify challenges and obstacles, such as institutional issues and coordination mechanisms, and propose solutions, while also applying advanced science and technology.

Phan Phuong