Digital transformation is Petrovietnam's strategic mission

Chairman of the Board of Members of Petrovietnam, Mr. Hoang Quoc Vuong, delivered the opening speech of the workshop. (Photo: Petrovietnam)

The above information was given at a workshop on digital transformation with the theme "Digital transformation - The foundation for sustainable development," organized by the Vietnam Oil and Gas Group (Petrovietnam) on November 25.

Speaking at the workshop's opening, Chairman of the Board of Members of Petrovietnam - Mr. Hoang Quoc Vuong, said that in recent years, the world in general and the oil and gas industry, in particular, have witnessed significant fluctuations in geopolitics and business environment.

The Covid-19 pandemic has caused health problems, significant fluctuations in the world, production stagnation, sharp volatility in raw material and fuel prices, and especially the disruption in the global supply chain; unpredictable fluctuations in crude oil prices, with uncertain forecasts shortly that have created significant pressures and challenges for the energy industry in which Vietnam in general and Vietnam's oil and gas industry in particular.

In addition to the fluctuations in the business environment and political instability in some areas, Mr. Hoang Quoc Vuong said that the oil and gas industry is also facing severe pressure from the trend of energy displacement, reducing CO2 emissions. Under the impact of climate change and fuel scarcity, many years ago, the world's energy displacement trend began to take place. The use of renewable energy and clean energy was promoted, and power was focused on using efficiently.

During the COP26 event at the end of 2021, the commitments of the countries' governments have created much impetus to promote a strong and sustainable energy displacement. Accordingly, Vietnam aims to reduce greenhouse gas emissions by 35% by 2030 and commit to net zero emissions by 2050.

In the face of those trends and challenges, according to Mr. Hoang Quoc Vuong, the Vietnam Oil and Gas Group has realized that digital transformation is an inevitable trend of the times, this is no longer the done be done, but an imperative for businesses to optimize their operating methods, improve governance capacity, maximize the value chain in the oil and gas sector, and adapt flexibly to the modern business environment and help businesses grow sustainably in today's volatile world.

Vietnam Oil and Gas Group has determined that digital transformation is a task of strategic significance, especially important for businesses and units in the Group, and is a tool to carry out the business model transformation, improve business performance, enhance competitiveness, leadership position in the field of operation, contributing to building a digital economy and a green economy.

For Petrovietnam, in recent years, digitization and digital technology application have been widely deployed by many member units of the Group by applying artificial intelligence (AI), digitalization applications, and extensive data management systems (BIG DATA). Right from the early days of officially embarking on developing a digital transformation strategy to 2025, with a vision to 2030, the Group's leadership has consistently held that digital transformation is, first and foremost, a change in perception.

Since 2020, the Group has embarked on building a systematic digital transformation strategy for the parent company - PVN, towards the following objectives: Ensuring national energy security, Optimizing investment efficiency across the energy value chain, Catching up with the trend of energy displacement in the region and the world; Optimizing the operation of the administration and operation apparatus; Adapting flexibly to market changes.

In addition, the Group has issued a Digital Vision and Digital Transformation Roadmap for the Group's Parent Company, including 32 digital initiatives under four programs implemented in 2022-2026 and towards enhanced digital maturity by 2026. The roadmap includes projects to build a technology and security platform, build a national oil and gas data platform, digitize and improve business processes, optimize operational activities, and strengthen the capacity of staff implementing digital transformation work.

As a leading energy corporation in the country and the region, in the face of such trends, difficulties, and challenges, Petrovietnam's oil and gas enterprises are aware of the urgent goal of optimizing operation methods, enhancing operational efficiency, accelerating business model transformation, energy displacement, finding new revenue streams, maximizing value chains in the oil and gas sector, and adapting flexibly to market fluctuations and digital transformation is an effective tool to promote and support Petrovietnam to achieve the above goals.

At the workshop, the delegates received presentations from the Group's Office, presentations from member units Vietsovpetro, BSR, and PVCFC..., especially presentations from speakers representing the world's leading technology firms such as Microsoft, Bently Nevada... with relevant and practical contents related to the Group's activities and its member units.

Workshop attendees. (Photo: Petrovietnam)

Speaking after the workshop, Petrovietnam General Director Le Manh Hung emphasized that the fourth industrial revolution is the driving force for determination to renew thinking and action, considering it a breakthrough solution with steps and a suitable route; this is also an opportunity for Vietnam to make a breakthrough in socio-economic development.

To concretize guidelines and policies of the Party and Government, the Prime Minister has promulgated the "National Digital Transformation Program to 2025 with orientation to 2030" the National Digital Transformation Program has provided a vision, goals, perspectives, tasks, and solutions to promote digital transformation on a national scale.

Petrovietnam General Director Le Manh Hung delivered the closing speech of the workshop. (Source: Petrovietnam)

One of the priority areas for digital transformation is digital transformation in the energy sector. The Group's General Director stated that priority must be given to determining what the 4.0 technology revolution helps to change, what technology to apply, and what to transform. It can be said that digital transformation is forced to change the way and method of operation, leading to a change in business model and creating new values for customers.

General Director Le Manh Hung emphasized: "Digital transformation is associated with the role of a leader. Leadership creates change. Therefore, in order to fulfill the mission, leaders must first participate in digital transformation so as to offer solutions that integrate digital technology with business activities to change the ways, methods, business model in a comprehensive way".

Over time, the Group has faced many difficulties in production and business due to many objective and subjective factors. Conscious of the importance of digital transformation, in May 2020, the Group established a steering committee and an advisory group to build a digital transformation roadmap, the vision of the roadmap, and synchronously deploy all segments and big data, especially ERP, to promote digital culture communication, train to raise awareness about digital transformation and practical implementation in many units. However, the performance of digital transformation is still facing many difficulties, and progress is relatively slow.

Through this workshop, General Director Le Manh Hung suggested that leaders of the units show their determination in implementing direction and implementation of digital transformation; continue to train and raise awareness for all employees in the Group on digital transformation, especially at the leadership level; direct the building of corporate culture combined with digital culture suitable for the digital transformation process to promote innovation and thereby change working habits and styles in enterprises in the digital environment;

To organize training, dissemination, and awareness raising about digital transformation for all employees at the Group and units with the motto, Digital transformation is an inevitable trend, objectively required, impossible not to do, and no one can stay out of it, out of the movement; Concentrate all resources to lead and direct the successful implementation of the unit's digital transformation based on closely following the direction of the Party Committee of the National Oil and Gas Group in Resolution No. 184/NQ -DKVN dated February 15, 2022;

To accelerate the formulation of the Digital Transformation Strategy/Digital Transformation Plan and the implementation of digital initiatives in line with the unit's Development Strategy, Medium, and Long-term Plan. With such a solution, Petrovietnam General Director Le Manh Hung believes that the whole Group is determined to successfully carry out the digital transformation for Petrovietnam's sustainable development goals in the future.

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