Revenue of Vietnam Oil and Gas Group over the years 2001-2015

increased sharply to over 50 thousand people, the highest number of workers was in 2011 (over 60 thousand people), to meet the labor demand for maintaining and increasing exploration and exploitation activities both domestically and internationally. However, after that, with the policy of restructuring and focusing on 5 core areas, the number of employees decreased in 2012, then there was a small increase in the period 2013 - 2014. The number of employees according to statistics up to 2015 was nearly 59 thousand people.

The strong increase in quantity and scale has helped PVN grow rapidly, creating a large source of revenue, contributing significantly to the country's budget.

Table 4.3. Revenue of Vietnam Oil and Gas Group over the years 2001-2015

every 5 years

2001-2005

(1)

2006-2010

(2)

2011-2015

(3)

Increase speed (2)/(1)

Speed increase (3)/(2)

Total revenue of PVN through the stages (unit: billion VND)

460,168

1,452,087

3,517,511

216%

142%

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Source: Planning Department of Vietnam Oil and Gas Group

Revenue increased very rapidly in the period 2006-2010 compared to 2001-2005, increasing by 216% when a series of investment projects were completed and put into use such as Nam Con Son Gas Project, Phu My Power Plant, Phu My Fertilizer Plant, Son La Hydropower Plant, Dung Quat Oil Refinery... In the period 2011 to 2015, revenue increased by 142% compared to the period 2006-2010, in which in 3 years 2012, 2013, 2014, each year revenue reached more than 74 trillion VND. In 2015, revenue decreased compared to the previous 3 years and decreased by 25% compared to 2014, mainly due to the sharp decline in oil prices from October 2014 to present. Oil prices in the first 9 months of 2015 decreased by an average of 49% compared to the average price in the first 9 months of 2014. However, the amount of oil and gas exploited in 2015 increased by 6.6% compared to 2014 (29.42 million tons of oil equivalent compared to 27.6 million tons of oil equivalent).

Chart 4.2. Total Group revenue over the years

(Unit: billion VND)

900000

800000

700000

600000

500000

400000

300000

200000

100000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

This is achieved because Vietnam still has great potential in oil and gas exploitation and production. According to BP's global energy report, by the end of 2010, Vietnam ranked 4th in oil and 7th in gas in the Asia Pacific region, compared to the world, they were 25th and 30th respectively. Vietnam has a very high reserve/production (R/P) ratio, the crude oil R/P ratio is 32.6 times, ranking first in the Asia Pacific region and 10th in the world; and the gas R/P is 66 times, ranking first in the Asia Pacific region and 6th in the world. Currently, 100% of the exploited gas is used to serve domestic industrial production needs, prioritizing electricity and fertilizer.

Thus, it can be seen that the increase in the scale of PVN's human resources in recent times is completely reasonable, it helps increase the total revenue of PVN, exploit development potentials well and promote the development of all stages.

However, compared to domestic corporations in the mining sector such as the Coal and Minerals Group with over 100,000 employees, or the Textile and Garment Group with about 900,000 employees, the Post and Telecommunications, Electricity and Rubber Group, the number of employees of PVN is lower.

4.4.2.2. Human resource structure

 Human resource structure by production and business sector : shown in table 4.4.

Table 4.4. Number of employees by production and business sectors, 2006-2010-2014

STT

Field	2006		2010		2014		Increase/decrease 2014/2006
		SL	Proportion %	SL	Percentage	SL	Proportion %	SL	Proportion %
1	Exploration - Exploitation	6,757	31.11	8,214	15.04	8,551	15.41	1,794	26.55
2	Oil filter	1,790	8.24	3.209	5.87	5,450	9.82	3,660	204.47
3	Economics – Finance	800	3.68	2,887	5.28	3.905	7.04	3.105	388.13
4	Management – HCSN	545	2.51	498	0.91	551	0.99	6	1.10
5	Research & Training	688	3.17	905	1.66	1,096	1.98	408	59.30
6	Electricity	211	0.97	1,520	2.78	2.241	4.04	2,030	962.09
7	Technical services	4,634	21.34	13,729	25.13	16,557	29.84	11,923	257.29
8	Comprehensive services	1,351	6.22	2,704	4.95	3,689	6.65	2,338	173.06
9	Oil business	2,961	13.63	14,057	25.73	12,188	21.97	9,227	311.62
10	Oil and gas construction	1,982	9.13	6.909	12.65	7,319	13.19	5,337	269.27
Total		21,719	100%	54,632	100%	55,488	100%	33,769	155.48

Source: Human Resources Department of Vietnam Oil and Gas Group

Chart 4.3. Human resources by production and business sector

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

Exploration Refinement Economics – Management of R&D Electricity Services Economic Services Construction

- Oil and Gas Exploitation Finance - HCSN & General Technical Training for Oil and Gas Exploitation and Production

2006 2010 2014

The occupations of the workforce at PVN are extremely diverse, from those directly related to oil and gas activities such as exploration - exploitation, oil refining to those serving these activities such as electricity, technical services, general services... and other service industries. In recent years, the occupational structure at PVN has shifted, the technical services, electricity, economic - financial, and oil and gas business sectors have seen a strong increase in the number of workers, due to the strong development of activities in the later stages. This has resulted in a decrease in the proportion of workers in the first stage: from 31.11% in 2006 to 15.41% in 2014, although in absolute terms it has still increased.

The largest growth in employment was in the oil and gas technical services sector, due to the scale of development of oil and gas services, especially technical services.

to a high level, both in breadth and depth. Oil and gas services are developing rapidly and diversely, present in most stages and areas with oil and gas activities, from upstream to downstream, from North to South and gradually expanding abroad. Vietnam's oil and gas services can provide most types of services for all aspects of oil and gas activities. Some areas have created significant strengths such as base services, ship services, manufacturing and assembling services for offshore oil and gas projects. Many new service areas have high technology content such as FSO/FPSO, manufacturing and assembling services for offshore oil and gas projects, drilling and well services, oil and gas transportation services... These professional service units have provided many types of high-tech services that previously had to be outsourced, and have gradually expanded to provide oil and gas services in the region. Revenue and the proportion of service revenue over total industry revenue have increased continuously, averaging 15-20%/year.

However, the development strategy of the Vietnam Oil and Gas industry has determined that the upstream stage is still the key stage, orienting the development and leading the downstream activities and other service activities of PVN. Therefore, the Group needs to focus on and have a strategy to build, train and develop the workforce in the upstream professions to ensure enough high-quality human resources to serve the search, exploration and exploitation activities, as a premise for the development of the following stages.

In addition, although the number of human resources serving scientific research and training activities has increased, the increase is still small and the number of human resources for these activities is still very thin, so compared to the increase in human resources in other stages, the rate of human resources in science and technology and training tends to decrease. This is also a point to note for the Group's leadership and member units in the strategy of developing CLC human resources.

A commendable point in the development of human resources at PVN from 2006 to 2014 is that although the total number of employees has grown significantly, the number of employees (absolute number) working in management and administrative work has remained almost unchanged. The reduction in the proportion of indirect employees shows that PVN's management capacity is increasingly effective, thereby helping to increase profits.

Human resource structure by age

The average age of employees at PVN over the years has been around 33 to 35 years old. It can be seen that they are young, energetic and with enough working time to accumulate experience, they can complete their tasks well, if trained appropriately and systematically.

Table 4.5. Human resource ratio by age

Age

2010	2011	2012	2013	2014	2015
<30	42.9%	44.3%	40.5%	38.1%	35.5%	33%
31-39	29.4%	30.7%	33.9%	36.2%	38%	40%
40-49	16.9%	16.2%	15.3%	16%	16.6%	17.2%
50-55	7.3%	6.8%	7.6%	7.4%	7.4%	7.2%
>55	2.5%	2.1%	2.7%	2.3%	2.5%	2.6%

Source: Human Resources Training and Development Department, Vietnam Oil and Gas Group

The structure of human resources by age has remained almost unchanged over the years. In recent years, 2014-2015, the average age of workers was in the 2nd scale, meaning between 31-39 years old. The average age of the whole industry in 2010 was 33 years old, the average age increased by 2 years, reaching 35 years old in 2015. The current age distribution ensures long-term succession and helps human resources to be able to receive new technology and working skills.

Gender structure of NNL

Due to the nature of the oil and gas industry, which is hard, toxic and dangerous labor, most oil and gas activities take place on offshore rigs, petrochemical refineries, rig base construction works... which are places that often have high potential risks and harsh working conditions, so the number of female workers is low, about 20% of the total oil and gas workforce. The majority of female workers participate in indirect labor, with over 85% of female workers participating in indirect labor in specialized economic occupations.

economics, finance-accounting, foreign languages and some other fields. Among direct workers, they only account for about 10% of the total direct workforce.

4.4.2.3. Quality of human resources

Workers at PVN are trained at a basic level and at a high level of training compared to the general level of the whole country and other corporations. The rate of trained workers is always from 80% to 90% of the total number of workers, twice as high as the rate of developing countries and five times higher than the general level of Vietnam. (According to data from the General Statistics Office on the rate of workers working in the economy classified by professional and technical level, trained workers in Vietnam in the period 2010 - 2014 accounted for about 14.6 - 18.4%, workers without technical and professional training accounted for the majority with 81.8 - 85.4% of the total number of workers in Vietnam).

Table 4.6. Statistics on human resource qualifications 2001-2005-2010-2015

Year

Total number of employees (people)	Above university		University, college		Intermediate + Technical		Primary
Total number of employees (people)	SL	%	SL	%	SL	%	SL	%
2001	14,850	303	2.04	5,916	39.84	7,334	49.39	1,297	8.73
2005	20,723	466	2.25	8,159	39.37	9,605	46.35	2,493	12.03
2010	55,767	1,871	3.36	24,705	44.30	19,983	35.83	9,208	16.51
2015	58,858	3,654	6.21	30,203	51.32	19,783	33.61	5.218	8.87
Increase/decrease further (%) 2005 vs 2001	39.55	53.80		37.91		30.97		92.21
Increase/decrease further (%) 2010 vs 2005	169.11	301.50		202.79		108.05		269.35
Increase/decrease further (%) 2015 vs 2010	5.54	95.30		22.25		-1.00		-43.33

Source: Human Resources Department of Vietnam Oil and Gas Group

Chart 4.4. Human resource level 2001-2005-2010-2015

Above university

2015

University, college

2010

2005

Intermediate + Technical

2001

Primary

5000

10000 15000 20000 25000 30000 35000

The labor structure by level in the period 2001-2005 did not change significantly, however, in the following years, there was a change in the direction of workers with college, university and post-graduate degrees, which tended to increase in both absolute and relative numbers. The rate of workers with college degrees or higher has always been above 40% since 2001, and this rate has increased day by day, such as 47.66% in 2010 and 57.53% in 2015. This rate is always superior when compared with other economic groups such as Textile (approximately 9%), Steel (approximately 14%), Vietnam National Coal-Mineral Industries Group (TKV) (15-21%). Or if compared with a group with a corresponding rate of trained human resources, Vietnam Electricity Group (EVN), the rate of human resources with university degrees is

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