Petrovietnam Unveils Advanced Governance Framework Aligned with OECD Standards

Petrovietnam Implements Comprehensive Governance Enhancement Plan According to OECD Standards

On June 22, 2026, the Vietnam National Oil and Gas Group (Petrovietnam) held a meeting of its Board of Members (BoM) Executive Board to review a report evaluating the company's corporate governance status according to the principles of the Organisation for Economic Co-operation and Development (OECD). The meeting focused on examining the implementation plan for recommendations aimed at enhancing corporate governance capabilities, aligning with international standards.

Background and Strategic Importance

As one of Vietnam's key economic conglomerates, Petrovietnam has consistently strived to enhance its competitive edge and international integration. The adoption of OECD governance principles marks a significant step in modernizing the group's governance system, particularly in the context of profound global energy transformations. With energy markets undergoing unprecedented changes due to geopolitical shifts, climate concerns, and the transition to sustainable energy, robust governance has become critical for state-owned enterprises like Petrovietnam.

The OECD governance standards are widely recognized globally, encompassing principles regarding shareholder rights, equitable treatment of shareholders, the role of stakeholders, transparency and compliance, as well as the supervisory board's responsibilities. Implementing these principles will help Petrovietnam improve operational efficiency, enhance investor confidence, and strengthen its position in international markets. This initiative aligns with Vietnam's broader economic reforms aimed at improving corporate governance across state-owned enterprises.

Evaluation Results

According to the report presented at the meeting, the evaluation of Petrovietnam's governance status and its member units was conducted by an independent group of experts in Q1 2026. The assessment focused on five key areas:

• Corporate governance structure and distribution of power
• Decision-making processes and operational supervision
• Information transparency and financial reporting
• Risk management and compliance
• Stakeholder relations

The evaluation results indicate that Petrovietnam has made significant progress in establishing its governance system, but several areas require improvement to fully meet OECD principles. The assessment identified particular gaps in information transparency and risk management frameworks, which are critical for international investors and regulatory compliance.

Key Recommendations

Based on the evaluation results, the expert group has provided five main recommendation areas for Petrovietnam to improve its governance system:

1. Enhance the independence of the Board of Members: Additional independent members should be appointed to the BoM, particularly in specialized committees. This includes establishing clearer criteria for independence and implementing robust conflict-of-interest policies.
2. Improve information transparency: Comprehensive and timely disclosure of information regarding operations, financial performance, risk management, and sustainability issues should be implemented. This includes enhancing digital reporting platforms and establishing real-time disclosure mechanisms for material events.
3. Strengthen supervision mechanisms: The role of committees within the BoM should be enhanced, particularly the audit committee and the human resources and compensation committee. This includes expanding their authority, resources, and expertise to provide more effective oversight.
4. Develop a comprehensive risk management framework: An integrated risk management framework should be developed, including climate change and energy transition risks. This requires establishing specialized risk committees and implementing enterprise-wide risk assessment protocols.
5. Enhance stakeholder engagement: Effective dialogue mechanisms with shareholders, employees, communities, and social organizations should be developed. This includes establishing formal engagement channels and implementing regular stakeholder consultation processes.

Implementation Roadmap

At the meeting, the BoM Executive Board approved an implementation plan for the recommendations with specific phases:

Significance and Impact

Mr. Nguyen Van Nhiem, Chairman of Petrovietnam's Board of Members, emphasized: "Implementing OECD governance principles is not merely an integration requirement but an internal necessity for Petrovietnam's sustainable development. We are committed to implementing this roadmap decisively and effectively to enhance the group's competitive capabilities in the context of global energy transformations."

According to industry experts, implementing OECD governance standards will bring numerous benefits to Petrovietnam:

• Enhanced investor confidence, both domestically and internationally
• Improved operational efficiency and optimized resource utilization
• Greater access to international capital at favorable costs
• Increased adaptability to climate change and energy transition challenges
• Strengthened position for Petrovietnam in the international arena
• Improved compliance with international environmental, social, and governance (ESG) standards
• Enhanced reputation and brand value in global markets

Market Response

Financial experts have welcomed Petrovietnam's decision. Ms. Tran Thi Mai, an analyst from VPS Securities, commented: "Petrovietnam's commitment to implementing international governance standards will be a positive development, increasing transparency and governance effectiveness. This is not only beneficial for internal operations but will also help attract strategic investors, especially as Vietnam accelerates capital market development."

However, some experts note that implementing this roadmap will require significant resources and strong commitment from the entire system. Changing governance culture is a long-term process that demands perseverance and high determination. The transition may also face challenges related to organizational resistance, capacity constraints, and the need to balance international standards with local regulatory requirements.

International Context

Petrovietnam's governance enhancement initiative aligns with global trends in state-owned enterprise reform. According to a 2025 OECD report, state-owned enterprises in emerging markets that implement international governance standards show 20-30% higher operational efficiency and better access to international capital markets. The energy sector, in particular, is under increasing pressure to improve governance due to climate concerns and the energy transition.

Several energy companies in the Asia-Pacific region have successfully implemented OECD governance standards in recent years, including Petronas (Malaysia), Saudi Aramco (Saudi Arabia), and PTT (Thailand). These companies have reported improved operational performance, increased investor confidence, and better crisis management capabilities following governance reforms.

Conclusion

The Board of Members Executive Board of Petrovietnam has unanimously approved the implementation plan for recommendations aimed at enhancing corporate governance capabilities according to OECD standards. This strategic move demonstrates Petrovietnam's determination to modernize its governance system, enhance competitive capabilities, and integrate internationally.

Successful implementation of this roadmap will not only help Petrovietnam meet international governance standards but will also contribute significantly to the sustainable development of the group, as well as positively contribute to Vietnam's energy sector development in the new context. This initiative positions Petrovietnam as a leader in governance reform among state-owned enterprises in Vietnam and the region, setting a benchmark for others to follow.