The Ministry of Finance (MoF) has proposed a draft decree outlining specific operational and financial mechanisms for the Vietnam National Industry - Energy Group (PVN).
This proposal aims to inherit existing legal frameworks established under the Government's Decree No. 36/2021/ND-CP.
The first is about handling costs of unsuccessful overseas investment projects.
Second, PVN projects operating on behalf of the host country before July 1, 2023 will continue to be applied according to Article 37 of Decree 45/2023/ND-CP, from the time PVN takes over the project after the petroleum contract ends until the new legal framework is completed and takes effect.
Third, PVN proposes to allow the Board of Members to use more than VND13.3 trillion ($504 million) of “other capital of the owner” and legal capital sources to supplement the charter capital of 100% state-owned enterprises, and at the same time be decentralized to decide on state capital investment – including from assigned public assets – in accordance with legal procedures.
Fourth, PVN proposed to empower the Board of Members to decide on the time and depreciation plan for re-evaluated fixed assets or change the structure and function, and to be responsible for these decisions.
According to the MoF, the process of drafting decrees guiding Law No. 68/2025/QH15 has recognized the highly specific nature of oil and gas activities. Therefore, establishing a separate mechanism for PVN is necessary to address practical inadequacies where general regulations are no longer suitable.
Based on these grounds, the issuance of a Government Decree regulating the operational and financial mechanisms specific to the PVN is deemed essential to institutionalize the Party and State's policies and directions, ensuring compliance with new legal regulations, and providing a legal basis to enhance operational efficiency and resolve longstanding difficulties and obstacles at PVN.
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