National Assembly gives thumbs up to VND3.5 trillion for PetroVietnam

November 18, 2010 | 21:12

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Vietnam’s National Assembly approved a plan to allocate VND3.5 trillion ($179.487 million) to PetroVietnam next year.

PetroVietnam is among Vietnam's largest corporations

The figure was included in a National Assembly (NA) resolution on the central budget allocation in 2011 approved by the majority of NA deputies on November 15.

According to the NA Standing Committee, the allocation to PetroVietnam is in line with the national petroleum development strategy from now until 2015 with a vision until 2025 under the prime minister’s Decision No. 386/QD-TTg dated on March 9, 2006, and conclusions by the Politburo.

Under the decision, PetroVietnam is allowed to retain at least half of its profits gained from its investment in Vietnam-Russia Oil and Gas Joint Venture (Vietsovpetro) and product-sharing contracts to feed its petroleum projects.

The committee also added that a huge investment is still needed to complete many substantial petroleum projects.

The capital of VND3.5 trillion only meets about half of the government's required capital allocation to the group in 2011 that is estimated at between VND6 trillion ($300 million) and VND7 trillion ($350 million).

To ensure effective capital use management, the committee urged the government to instruct PetroVietnam and relevant ministries and branches to make reports on the portfolio, total investment and efficiency on all PetroVietnam’s projects using the state budget in the past. The government will also intensify inspection and auditing on PetroVietnam to ensure proper capital use.

Under the NA resolution on the central budget allocation in 2011, the total central budget revenue is targeted at VND398.679 trillion ($19.93 billion) and the total central budget spending is set at VND519.279 trillion ($25.96 billion)

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