As per the newly ratified plan, by 2025, PetroVietnam is mandated to reduce its ownership in PVcomBank from the current 52 per cent to 15 per cent. This move is part of a larger objective to transform PetroVietnam into a leading, trend-aligned enterprise.

Deputy Prime Minister Le Minh Khai on October 26 has signed off Decision No. 1243/QD-TTg, approving the restructuring project for PetroVietnam until the end of 2025.

Specifically, the government's mandate to PetroVietnam for rapid development of a divestment plan at PVcomBank demonstrates commitment to not only reinforcing the group's financial foundation but also to guide it towards sustainable, forward-looking growth.

Established in 2013, PVcomBank emerged from a merger between the Vietnam Oil and Gas Finance Corporation (PVFC) and Western Bank (WesternBank).

This bank currently has a charter capital of VND9 trillion ($379.75 million), with total assets of $8.43 billion, and operates a network of hundreds of transaction offices nationwide. The two major shareholders are PetroVietnam (owning 52 per cent) and Morgan Stanley International Holdings Inc. (6.67 per cent), while the remaining 41.3 per cent is held by various organisations and individuals.

The restructuring plan also indicates that PetroVietnam will continue as a state-owned enterprise with the government retaining 100 per cent ownership, in line with Decision No. 1479/QD-TTg dated November 2022. Affiliated units like the Petroleum Vocational College (PVCollege) and the Vietnam Petroleum Institute will remain under PetroVietnam's umbrella.

However, the government has directedPetroVietnam to develop a plan for the restructuring or transfer of the Petroleum University (PVU) and to dissolve the PetroVietnam branch responsible for Southwest Pipeline Operating Company, aligning with the strategic divestment from BCC Block B - O Mon.

The restructuring document notes, "PetroVietnam is reorganising to emerge stronger, especially in contributing to the development of renewable energy power plants, thereby playing a pivotal role in advancing the nation's renewable energy industry. The group is targeting an average revenue growth of 3-6.5 per cent annually and an approximate 10 per cent increase in state budget contributions each year."