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Vietnam Oil and Gas Group to Complete Digital Transformation by 2030

State-owned Vietnam Oil and Gas Group (PetroVietnam) is developing solutions and coordinating with socio-political organisations to digitise its subsidiaries. A resolution issued in February to implement digital transformation in the group determined the work as imperative to increasing productivity, quality, efficiency and competitiveness. It aims to digitise all businesses and units of the group by 2030.

Digitally transforming PetroVietnam will promote innovation and improve business performance and competitiveness. It will enhance its position in the oil and gas industry, contributing to building the country’s digital economy.

Digital transformation requires huge changes in business culture. The group will have to reshape business and development strategies, reposition the supply chain, reconnect with customers across the digital business platform, and restructure to accommodate the new business platform. Maintaining network safety and security is also crucial to developing, managing, exploiting, protecting, and effectively using digital databases.

According to the group, digital transformation poses challenges to PetroVietnam’s existing business model but also creates new drivers for growth. The governance of the digital ecosystem “PVNDigiEcoSystem” requires the company to upskill employees to achieve the long-term goals of improving production and business efficiency and providing better customer care.

Despite difficulties in the first half of this year, PetroVietnam managed to increase its production, contributing to ensuring national energy security. It pumped 5.48 million tonnes of crude oil in the period, surpassing the set target by 23%. Meanwhile, gasoline production exceeded 14% of the plan, fertiliser production exceeded 8% of the plan, and the production and supply of gas, electricity and other energy products were also high. The group’s revenue in the period was estimated at VN 468.3 trillion (US$ 20 billion), up 55% year-on-year and double the goal set for six months.

The group has undertaken a series of measures to maintain output and stable operation, including the application of IT. PetroVietnam has concentrated its resources to accelerate the progress of investment projects and obtained positive results. In the second half of this year, PetroVietnam will continue updating, evaluating, and forecasting the macro-economic situation to develop operation plans, solve difficulties, and actively find solutions to maintain the output, ensuring it is not lower than in 2021.

Strengthening e-governance is a big part of the country’s national digital transformation plans. This requires implementing tech-based solutions in all government ministries and departments to reform operations. For example, in June, the Ministry of Industry and Trade (MoIT) announced it had created the necessary legal framework for the authentication of electronic contracts (e-contracts) in the country. It said it would grant operating licences to authenticators.

Online authentication significantly benefits the business sector, specifically in terms of costs. Traditional contracts involve paper and printing and transfer costs. The paperless method could save around VND 30,000-VND 80,000 (US$ 1.3-US $3.5) on each contract. In contrast to traditional contracts, which cannot be authorised in the absence of signers, e-contracts can be signed anytime and anywhere, adding flexibility to the contract-making process and saving time. Third parties, including banks and the authorities, can rely on the authenticated electronic versions of a contract to validate its origin, cutting time off the verification process and curbing forged documents. E-contracts will also allow firms to manage, store, and look up contract-related data easily and securely.

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