“Financial analysis in PetroVietnam Energy Technology Corporation (PVEIC)”

ACKNOWLEDGMENTS
It is a great pleasure to thank everyone who helped me write my dissertation successfully.
I am truly indebted and thankful Mrs Lespine Bachelard Sophie for her patience,
flexibility, genuine caring and concern, and faith in me during the dissertation process
In particular, I would like to thank Mr Vu Thuy Tuong – Chief Accountant, Nguyen Thi
Thanh Hien – Accountant of PV EIC for their guides and advises in helping me to complete this
dissertation.
I owe also sincere and earnest thankfulness to all teachers at International Education
Faculty of Vietnam Commercial University and at University de Lyon for their academic
support, flexibility in scheduling, gentle encouragement and education
At the same time, many thanks hearty thanks go to the Mrs Vu Thi Hoan – Director of
Hanoi Branch, Mr Nguyen Quang Hung and all of my colleagues at PetroVietnam Energy
Technology Corporation (PVEIC) who supported me during the implementation of this
dissertation.
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Table of contents
ACKNOWLEDGMENTS 1
INTRODUCTION 4
1. Research context 4
2. Research questions 4
3. Dissertation structure 5
CHAPTER 1: THEORETICAL FRAMEWORK 6
1.1. Overview on corporate financial analysis 6
1.1.1. Conceptions 6
1.1.2. Role of financial analysis of the firm 7
1.1.3. Literature review on corporate financial analysis 8
1.2. Analytical methods of cooperate financial analysis 13
1.2.1. Method of comparison 13
1.2.2. Method of Ratio 14
1.2.3. Dupont Method 16
1.3. Corporate financial analysis in Vietnamese enterprises 17

1.3.1. Rules and forms of financial statements 17
1.3.2. Content in financial statement analysis in Vietnamese enterprises 18
1.3.3. Implementation phases in Vietnam 19
1.3.4. Information used in financial statement analysis in Vietnam 19
1.3.5. Limitations of financial statement analysis in Vietnam 21
CHAPTER 2: METHODOLOGY 23
2.1. Research phases realized 23
2.1.1. Reasons of subject choice 23
2.1.2. Research objectives 24
2.1.3. Research object and limits 24
2.2. Presentation of case study of PVEIC 25
2.2.1. History of PVEIC 25
2.2.2. Services and products 25
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2.2.3. Actual situation of financial analysis at PVEIC 26
2.3. Data collection and treatment 27
2.3.1. Data collection 27
2.3.2. Processing data 28
CHAPTER 3: RESEARCH RESULTS – ANALYZING FINANCIAL HEALTH OF
PVEIC 29
3.1. Financial structure and balance of PVEIC 29
3.1.1. Financial structure 29
3.1.2. Financial balance of PVEIC 31
3.1.3. Liquidity of PVEIC 32
3.2. Analyzing the income statement 32
3.3. Assessing the financial ratios 35
3.3.1. Analysis of operating margin 35
3.3.2. Return on assets ROA 35
3.3.3. Return on equity ROE 36
3.3.4. Implementation of the Dopunt method 36

3.4. Analyzing the cash flow of PVEIC 37
3.4.1. Cash flow from business operation 38
3.4.2. Cash flows from investment activities 38
3.4.3. Cash flow from financial activities 39
3.5. Discussions and recommendations 39
3.5.1. Assessing the current situation of the activities of financial analysis at PVEIC 39
3.5.2. Recommendations 41
CONCLUSION 46
BIBLIOGRAPHY 48

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INTRODUCTION
1. Research context
Financial analysis is the combination of the methods used for assessing the past and
present financial situations, which will enable information users to assess the financial health,
profitability and prospects of an organization. Financial analysis therefore is of great significance
not only to the enterprise owners, administrators but also is beneficial to investors, providers,
credit institutions, employees in enterprises. Particularly, to those joint-stock companies
managed by the State by holding most of the shares, financial analysis plays an essential role,
since it has effect on the State management over the enterprise and ensures transparency in a
joint-stock company’s operations.
In recent years, the Vietnamese economy has been being changing gradually towards
diversifying forms of corporate ownership in a market-oriented economy. Being a WTO member
is synonymous with to join the international economy, thereby increasing the number of
information users of enterprises. Not restricted to tax agencies, now investors, shareholders,
managers, financial intermediators, insurance firms, international economic institutions are
becoming more and more interested in the situation of financial operations and information.
For an organization, financial management helps to make financial decisions,
implementation decisions to achieve its financial performance. The role of corporate finance
shown at the right place to determine the needs of capital for the business activities of the

enterprise during the period and then have to choose the appropriate methods and forms of
mobilization capital from within and outside timely meet capital needs for the operation of the
business. Therefore, the role of corporate finance is increasingly more important in the choice of
form and methods to raise capital to ensure business activities smoothly and continuously with
the cost of raising capital at lower.
In this context, along with my work at PVEIC, I selected the theme on “Financial
analysis in PetroVietnam Energy Technology Corporation (PVEIC)” as a research topic for his
master's dissertation. This topic brings practical and in accordance with the actual requirements
of enterprises today.
2. Research questions
The research questions are the following:
- What are the models of financial analysis organization and financial analysis norm
system?
- What effects do the factors have on financial analysis?
- What are the organization, contents, and methods of financial analysis being applied
at enterprises like?
- What are shortcomings that still exist in the process of financial analysis and the
system of financial analysis, the solutions for perfecting and conditions for
implementing such solutions?
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- How to improve the efficiency of capital use of PetroVietnam Energy Technology
Corporation.
- How to attract the investors both domestic and foreign investors for the company?
3. Dissertation structure
The scope of this dissertation comprises three chapters as following:
• Chapter 1 consists to a theoretical framework on corporate financial analysis.
• Chapter 2 present the methodology such as case study implanted at PVEIC that
include a general presentation of the Group and our data collection and treatment.
• Chapter 3 involve the research results, precisely an analysis of financial health of
PVEIC and some discussion, recommendation for the Group.

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CHAPTER 1: THEORETICAL FRAMEWORK
1.1. Overview on corporate financial analysis
1.1.1. Conceptions
According to some scientists, the corporate financial analysis today is one of the main
prerequisites for successful management of financial resources, and it is one of the most
important factors of financial management. Effective operation requires the manager to make a
decision based on the analysis of current activities and financing activities. According to the
classical view, financial analysis is the investigation of key parameters, factors and multiples,
offering an objective assessment of the financial situation, as well as the stock price analysis of
the company with the aim of making decisions in the field of capital investment. However, there
are many different opinions on the exact definition of what financial analysis is?
Martin et al. (1990) suggest that financial analysis includes all stages of financial
management analysis connected with financial resources management including capital market.
As a process, its aim is to assess financial situation at present as well as in the past, and the
performance of the business. The most important thing is to estimate and forecast future
conditions as well as the subsequent operations of a company. Helfert (2003), the economist,
believes that financial analysis is a research, as well as a support in answering the questions
arising in the management of the company. Sharpe et al. (1998) have a different approach by
narrowing its scope, paying attention on financial indicators.
Keown et al. (2007) believes that financial analysis is not a separate branch of science; it
is an important factor of the financial management system. Financial analysis is used to make
management decisions. With the same point of view, White et al. (2002) suggests that financial
analysis is an important factor of the financial management as well as in the formation of
economic relations with partners, financing and loan system of the company. However, as
mentioned previously, there are different approaches to this question. Some scholars believe that
financial analysis is a separate science and problems of financial management to conduct
financial analysis should be considered separately. However, most scholars agree that financial
analysis is an integral part of corporate governance, to help businesses make decisions
accurately.

Financial analysis is the process of determining the operation and financial characteristics
of a company in the term of accounting and financial statement. The objective of this financial
analysis is to identify and implement effective financial management of the company through the
data reflected in the financial records and reports. Analysts are trying to measure the solvency,
profits and other indicators of the business, to ensure sufficient profits to shareholders in order to
maintain its market value. The ability in financial analysis is essential to improve its competitive
position in the market. Through careful analysis, organizations can identify opportunities to
improve the performance of the department, unit and organizational level.
Typically the financial analysis is conducted as the following steps: (1) information
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collection, (2) handling Information and (3) forecast and making decision.
One of the basic principles of corporate governance mentioned in OECD is to publicize
the quality and transparency of financial information (OECD, 2004). A key characteristic of
financial information quality is the possibility of impact on the decision-making process of users
in general and investors in the capital market in particular through the quality of financial
statement analysis (Francis et al., 1999). Financial analysis is considered as a process, the aim is
to assess your current financial situation as well as in the past, and the performance of the
business, and it also indicates the future trend for enterprises.
According to the opinion of the quality management system ISO, quality is a set of
inherent characteristics of an entity to meet the requirements of customers. Thus, the quality of
financial analysis can be understood as follows: The quality of financial analysis is an economic
category reflecting the reliability and relevance of information systems, processes, methods and
analysis content used to evaluate and make the best financial decisions contributes to improve
operational efficiency and financial performance of the overall objectives of the business.
Analysis quality is good when it meets the high requirements of the user, reflects the
financial performance closely, and finds out the strengths and weaknesses of the business as a
basis for decision- making.
The indicators reflecting corporate financial analysis quality are:
- The quality of the input information.
- The methods applying in appropriate analysis.

- The suitability of financial analysis indicators.
- The accuracy of analysis results.
- The rationality of analysis time and density of analysis statement
1.1.2. Role of financial analysis of the firm
Financial analysis has always been considered as an important factor in the decision-
making since it relates to investment and finance in the short term. Financial management
designed and implemented seriously will contribute greatly to the value creation of a company.
The dilemma in financial management is to achieve the desired trade-offs usually exchanges
between liquidity and profitability (Lazaridis, 2007). Working capital management, liquidity
ensure and profitability management are essential for the good financial activities because they
have a direct impact on the profitability of the firm (Rajesh and Ramana Reddy, 2011). A key
part of the working capital management is necessary to maintain liquidity in daily activities to
ensure the smooth running. The ultimate goal is to achieve profit by using resources efficiently.
It is related to maximizing the value for the owner. Effective financial management can be
achieved through effective financial analysis. Financial analysis means examining the overall
financial situation of the business in a certain time.
The financial analysis is particularly important in the management of corporate finance; it
helps the interested people capture the financial situation of enterprises, thereby making
decisions timely and properly. In business, the enterprises of different ownership forms are equal
before the law in selection industries and business sectors. Thus, there will be many interested
people to the financial situation of enterprises, such as: Business owners, sponsors, suppliers,
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customers including State agencies and employees. Each actor is interested in the financial
situation of enterprises in the different perspectives as following:
+ Financial analysis for business managers: Atrill (2006) suggests that financial analysis
exists to manage companies, plan for a long term and make daily decision. Helfert (2003) also
believes that financial analysis will provide an effective support in managing the operations of
the company. Therefore, the financial information not only gives business leaders an overview of
the financial situation of the business but also helps them to make decisions in the investment,
financing and profit distribution promptly and properly.

+ Financial analysis for investors: Corporate financial analysis is considered as a tool for
risk management of the company (Atrill 2006). For investors, as well as business leaders, their
ultimate goal is to maximize the value of the owner and financial information with the market
value target of the business in general and the value of the shares in particular, if the business has
shares traded on the stock market; the potentially lucrative will help investors make investment
decisions effectively.
+ Financial analysis for creditors: White et al. (2002) suggests that financial analysis is
an important factor of the financial management as well as in the formation of economic
relations with partners, financing and loan system of the company. Creditors are always
interested in the repayment capacity of the business and financial information, in particular, the
information on the solvency and the potentially lucrative will help them offer lending decisions
suitable with the financial situation of enterprises.
+ Financial Analysis for State management agencies: Based on the financial information,
State management agencies can assess, inspect and control the businesses performance, the
financial and monetary activities of enterprises in accordance with policies, regimes and
provisions of the law.
+ Financial Analysis for workers: Workers in enterprises are also concerned about the
financial information of the business, especially the profitability. Because the results of business
operations have a direct impact on the wages of workers. Moreover, in joint-stock enterprises,
employees participate in the equity, they are also the business owners, so they should have the
rights and responsibilities associated with business.
Thus we can see the importance of financial analysis for the various components
involved in the business. Financial analysis helps the users from different perspectives not only
evaluate comprehensively, generally, but also review the corporate finance activities specifically,
to find out the strengths and weaknesses of business activities to recognize, judge, predict and
make suitable decisions in finance, funding and investment.
1.1.3. Literature review on corporate financial analysis
Business effectiveness is the most importance concern of every company. Financial
analysis is the most necessary and important operation as it reflects, measure, estimates the
business results. This is also an interesting subject for many local and international researchers.

• On the international plan
- Friedlob and Schleifer (2002) show how to analyze a company as a prospective
investment. This one-stop resource includes a basic introduction to accounting; shows how to use
ratio analysis to evaluate a company's profit, liquidity, and solvency; and provides actual
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financial statements of a variety of companies as illustrations.
- Singh A J and Raymond S. Schmidgall in the article “Analysis of financial ratios
commonly used by U.S. lodging financial executives”, published in the Journal of Leisure
Property, August 2002, has shown the importance of analysis criteria for business efficiency in
financial terms, in which the criteria reflecting the profitability indicators were rated as the most
important.
- Timothy R. Mayes, Todd M. Shank (2012) address today's most important corporate
finance topics, including financial statements, budgets, the Market Security Line, pro forma
statements, cost of capital, equities, and debt. This edition now covers Excel tables, pivot tables
and pivot charts and other areas that have become increasingly important to today's employers.
The book's reader-friendly, self-directed learning approach and numerous study tools help
readers build upon basic skills for the Excel 2010 proficiency and the solid finance knowledge
business professionals need for success.
- In the “Performance evaluation for airlines including the consideration of financial
ratios”, the Cheng-Min Feng and Rong-Tsu Wang (2000) have developed the process of
evaluating business efficiency of the aviation company in Taiwan. First, the two authors follow
an old study to systematize the assessment criteria applied to both transportation and financing of
the company. The particular problems when analyzing the performance of aviation are:
difficulties in accessing information for sampling operations research (so they have to accept
small sample), ignorance of sample distribution law. To solve these problems, they combine two
relational analysis model GREY (grey relation analysis) and the TOPSIS method. Finally, an
experimental study was conducted and the results are very valuable: the combination of the
financial indicators analysis for the airlines (which are less focused on the past) and the norms
analysis of transport has brought a better analysis results.
- Follett Robert (2012) shows you exactly how to "keep score" in business by reading and

interpreting company financials. Step by step, Follett helps you capture crucial insights buried in
balance sheets, income statements, and other key reports. Follett shows how to apply core tools
for analyzing financial reports and investment opportunities, and demystifies key accounting
terms every business decision-maker and investor needs to know.
- Wahlen James M, Stephen P. Baginski, Mark Bradshaw (2010) present a balanced,
flexible, and complete Financial Statement Analysis book that is written with the premise that
students learn financial statement analysis most effectively by performing the analysis on actual
companies. Students learn to integrate the concepts from economics, finance, business strategy,
accounting, and other business disciplines through the integration of a unique six-step process.
- Fridson Martin S, Alvarez Fernando (2011) provide the analytical framework you need
to scrutinize financial statements, whether you're evaluating a company's stock price or
determining valuations for a merger or acquisition. This will help you to evaluate financial
statements in today's volatile markets and uncertain economy, and allow you to get past the
sometimes biased portrait of a company's performance.
- Research by Stephen H. Penman and Luis Palencia, “Financial Statement Analysis and
Security Valuation” (2001) at the University of Columbia - United States, have used financial
analysis tools to analyze financial statements for the purpose of business valuation. The authors
refer to the importance of the input information the quality and make the criteria for evaluating
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the quality of information. A very valuable content of this study is the relationship between the
results of the financial analysis and the forecasts of the company's prospects for the company's
shares. The criteria used by the authors to analyze include: P / B, RE, ReOI
- In “Measuring performance in a changing business environment”, Mike Kennerly and
Andy Neely (2003) have pointed out that the financial analysis of businesses in the UK has been
paid much attention in recent years; many large enterprises and credit institutions have tried to
find ways to redesign the financial analysis system and business performance assessment system
to ensure that it reflects the situation of the business in a timely and accurate manner. However,
the rapidly changing business environment requires businesses to always be ready to change
business strategy as well as the mode of operation to adapt. The question is whether or not the
financial analysis system of the business has taken steps to change, develop in line with the new

business environment. It is a problem that very few businesses can solve thorough research at the
time of the research. Through this work, the authors came up with an experimental study that
proposed the solutions to evaluate and develop financial analysis system effectively in a
fluctuated business environment.
- “Measuring business performance in the high-tech manufacturing industry: A case
study of Taiwan's large-sized TFT-LCD panel companies” of Fang-Mei Tseng, Yu-Jing Chiu
and Ja-Shen Chen (2007) is a research on the indicators of business efficiency at high-tech
industrial production companies in Taiwan. The authors suggest that the nature of competition in
high-tech manufacturing industry was rapidly changing and the assessment indicator system of
business results (at the time of the study) was no longer appropriate. From that point on, the
research has given financial and non-financial targets just for high-tech manufacturing industry,
and also has developed a model of the new performance evaluation. This model consists of three
basic components as follows: A data envelopment analysis DEA, an Analytic Hierarchy Process
- AHP, a multi-criteria decision-making approach.
- In “Determinants of the profitability of China's regional SOEs” of Shuanglin LIN, Wei
ROWE (2005), the authors have identified the factors determining the profitability of state-
owned companies in China.
- Haitham Nobanee, Modar Abdullatif, Maryam AlHajjar (2011) in “Cash conversion
cycle and firm's performance of Japanese firms” have studied the relationship between currency
conversion cycle and business performance of companies in Japan.
- Fengyi Lin, Deron Liang and Enchia Chen (2011) have written “Financial ratio
selection for business crisis Prediction”, a study at Taiwan National University. Three authors
brought a “timely” research in 2011, which is the use of financial ratios to build forecasting
models for economic crisis. After researching and refining numerous financial criteria, the
research team selected five indicators as a basis for analysis; 2 of them are not widely used so
far: the tax rate and EPS index of 4 consecutive quarters.
- George E. Halkos and Nickolaos G. Tzeremes (2012) have written “Industry
performance evaluation with the use of financial ratios: An application of bootstrapped DEA” - a
research at the University of Thessaly, Greece that applied Bootstrap statistical methods
(developed in 1979 by the statistician Bradley Efron, widely applied in wide range of science and

now considered as a standard statistical methods) to study a model that uses financial ratios to
evaluate performance of 23 manufacturing and assembly enterprises in Greece. The results have
shown that the new financial model analysis (applied Bootstrap method) could give more reliable
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results than the previously applied model.
- Mariluz Mate-Sanchez, Fernando A. López Hernández and Jesus Mur Lacambra (2012)
in “Analyzing long-term average adjustment of financial ratios with spatial interactions,” a study
at the University of Zaragoza, Spain, have shown the change and the average coefficient of
financial analysis index at small and medium-sized enterprises in the Mediterranean region.
- Moscalu Maricica and Vintila Georgeta (2012) in “Business Failure Risk Analysis using
Financial ratios”, from Procedia - Social and Behavioral Sciences magazine, have studied
bankruptcy risk assessment based on the analysis of financial ratios. 2 authors have assessed the
financial targets of the two business groups: the bankrupted business and business about to
bankrupt (business research data dated 7 years before bankruptcy).
In addition, there are many other studies mentioned issues related to corporate financial
analysis.
• In Vietnam
Some authors with related topics in recent years:
- Nguyen Tuan Phuong in “Completion of the financial activities analysis at joint venture
companies in associated with foreign business” (1998) has pointed out the situation and
measurement to improve the financial operations analysis, one of the company’s basic
operations. Another advantage of joint ventures business that the author has chosen to compare
to other types of businesses is: business leaders are very interested in financial analysis. At the
time of the study, it was a new concept to base on the results of the financial analysis to support
the business management.
- In the first group of authors, author Nguyen Trong Co referred to the “Completion of
the indicators system of financial analysis at non-financial joint stock companies in Vietnam”
(1999) and focused on the analysis indicators system. At non-financial joint stock companies
(operated in areas such as: manufacturing, tourism, travel, training, consulting ), the difference
between business financial analysis of financial and non-financial enterprises is that the analysis

is more focused on the indicators such as: inventory turnover, active capital turnover
- Meanwhile, author Nguyen Ngoc Quang (2002) studied the “Completion of the
indicators system of financial analysis at construction companies in Vietnam” until 2008.
- The group of authors: Nguyen Dang Phuc, Nghiem Van Loi, Nguyen Ngoc Quang
(2006) in “Analysis of joint stock companies” have presented the indicators system of financial
analysis at joint stock companies and all approaches applied to the analysis process.
- Author Tran Thi Minh Huong (2008) in “Completion of financial analysis indicators at
Vietnam Airlines Corporation”, has introduced a number of financial analysis indicators which
are applied in foreign airlines, thereby she has studied and selected appropriate criteria to apply
to Vietnam Airlines Corporation. The solutions found: Completion of the analysis system at
Vietnam Airlines Corporation; recommendations and guidance on the application of the
complete indicator system in the financial analysis; completion of financial analysis approach;
completion of database for the financial analysis (including financial reports and information
systems for financial analysis0; development of a finalcial analysis process associated with an
appropriate type; organization of executive structure.
Common points of these studies are related to the completion of financial analysis
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indicators system in certain specific businesses. This is just one of the aspects of financial
analysis, does not cover all aspects of this work
- In the second group of authors, many of them also mention the financial analysis but in
another aspect, is the completion of the financial reporting system (FS) and analytical work
organizations such as:
- Author Nguyen Van Hieu (2003) in “Completion of the financial reporting system with
financial analysis in the construction companies in Vietnam” has analyzed that the current
quality of the input data for the financial analysis at companies in Vietnam in general and the
construction companies in particular are not high. This is because the business leaders do not
have the full attention on financial analysis; do not apply the results of financial analysis in the
conduct of business. Thereby, the authors emphasizes the meaning and importance of the
financial analysis, provides some outstanding HR solutions serving the financial analysis and a
number of methods to apply the analysis results to business management.

- Dr Nguyen Viet Loi (2003) in “Completion of the financial reporting system to provide
information for corporate financial analysis”, has shown that the organization of financial
analysis should be carried out right from the preparation of input data, the input data needs to
ensure accuracy.
- Also in 2003, author Vu Van Hoang studies the “Completion of the financial reporting
system to strengthen financial management at construction enterprises in Vietnam” along with
the research above.
- In 2004 the author Cung To Lan thesis “Completion of the financial reporting system
for the analysis of financial situation at Election company I”.
- Author Nguyen Thi Huong (2005) in “Completion of financial reporting system and
financial analysis at Electricity companies in the North” has shown the actual situation of
electricity industry- the difficulty in the pricing of power contracts, which interferes the function
of power projects. The completion of financial reporting system and financial analysis has
contributed actively to the solution. In addition, the financial analysis is also applied to the
economic efficiency analysis of the power projects.
These studies focus on the improvement of the financial statements in order to provide
complete information, more accurate and comprehensive financial analysis.
The third group of author focuses on the actual status of financial analysis at the
companies:
- Author Do Quynh Trang in “Analysis of the financial situation in order to improve the
efficiency of financial management and procurement capacity at Traffic Construction
Corporation I”, has referred to the financial analysis associated with bidding at Traffic
Construction Corporation I, thereby offered a number of solutions to apply financial analysis to
calculate the bid price.
- Author Nguyen Thi Hang studied “Completion of the financial analysis at Vietnam
Pharmaceutical Joint Stock Companies” in 2006.
- Author Le Viet Anh 2007 wrote “Completion of the financial analysis at textile
companies in Hai Duong province”.
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- Author Pham Thi Thanh (2009) wrote her master thesis entitled “Completion of the

financial analysis at Phu Thai Group”. In this thesis, the author has studied the financial analysis
applied to a multi-industry, multi-disciplinary company. Phu Thai Group is now operated in
many different areas, including: distribution of goods, retail business, transport business,
distribution business of industrial machinery and equipment, real estate business Each industry
has a characteristic and the financial ratios need to be evaluated differently.
These researches have learned about the financial analysis at the companies. The
common point of these scientific works is that they all mentioned the financial analysis at
businesses in general or in a certain aspect (the index system, financial situation or financial
statements). They did not consider completely the entire index system, method and content of
financial analysis. None of the authors has reviewed a company in the assessment sector: energy,
oil, trading, merchandise, supplies and machinery for import and export Furthermore, none of
them have specified the arrangement, improvement of the whole process of financial analysis
from all phases of the operation. Therefore, this thesis will clarify the actual situation of the
financial analysis at PVEIC to come up with concrete measures to improve the financial analysis.
1.2. Analytical methods of cooperate financial analysis
Method of financial analysis is the manner or techniques used to process financial
information to assess the financial situation of enterprises. At present, there are many methods of
financial analysis. A few key methods are most commonly used as follows:
1.2.1. Method of comparison
There are a large number of method comparison studies have been made, including
changes in supporting the public to reduce unemployment allowance, analysis of changes in the
health care systems among countries in OECD, measuring demographic variables and
socioeconomic in cross-country studies. Method of comparison is also popular in all forms or
social groups, such as in the study of the stratification of social classes. The fundamental
objectives of this method are to look for the analog and the variances. Comparison method is
quite common in financial analysis, it is used to evaluate, locate and identify the trend of analysis
indicators. In financial analysis, the horizontal comparison is often used (also known as
horizontal analysis) and vertical comparison (also called vertical analysis). Horizontal
comparison is to compare the changes of both the absolute and relative number of each target of
each financial statement; vertical comparison is the use of margins, ratios to show the correlation

between the indicators in each financial statement to draw conclusions.
To make a comparison, should notice the following fundamental issues:
- Firstly, the comparison process should ensure the following conditions:
+ The indicators used to compare have to reflect the same economic content.
+ The indicators must have the same method of calculation.
+ The indicators must be based on the same unit of measurement.
+ These indicators must be collected at the same time and in the same space scale.
- Secondly, the yardstick must be chosen. Yardstick is the indicator of a selected period
as a basis for comparison, called the comparison base. Comparison base is often determined by
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time and space. Depending on each different analysis purposes, the analyst will select the
appropriate comparison base.
+ To assess the development trends of the indicators: Comparison base chosen is
the data of the previous period or the same period with last year.
+ To assess the implementation in comparison with the plan, estimates and norms:
Comparison base chosen is the planning data, estimate data, normative data.
+ To assess the results of the business compared with the others: Comparison base
chosen is the data of the equivalent units or the average data of the industry
1.2.2. Method of Ratio
Financial indicators are valuable tools for understanding and monitoring the financial
position and operations of the company. They are easy to compare because they show the impact
on financial variables. Financial indicators are generally divided into categories according to the
information they provide. Profit margin provides information about the success of a company in
generating profits. Financial leverage ratio is used to evaluate the financial obligations of the
company and the ability to serve the financial resources. Liquidity index is used to assess the
ability of a company in meeting short-term debt obligations. Performance indicators provide
information about the company's ability in management its assets.
There are a large number of financial indicators and research on financial indicators and
how to use them in corporate financial analysis (Keown et al., 2007; White et al., 2002).
Analysis of the factors is a technique used to describe the transformation between the observed

variables in size. To accomplish a task like that, it checks the correlation between variables.
Closely related variables (positive or negative) are considered to be affected by similar factors.
• The internal liquidity ratios that include:
+ The current payment capacity that shows the liquidity by comparing its current assets
with the short-term liabilities (Keown et al., 2007). It is calculated by:
Current payment ratio = Short-term assets / liabilities
+ Quick payment capacity: Some observers have questioned the use of the property in
order to assess a company's ability to meet its current obligations while inventory and other
assets have low liquidity (Reilly, Brown, 2006). This ratio is determined as follows:
Quick payment ratio = (Cash + marketable securities + receivables) / short-term liabilities
+ Cash ratio: that is a payment instrument which has high liquidity, only cash and
securities easily converted into cash are used to measure cash flow (White et al., 2002).
Cash ratio = operating cash / short-term liabilities
• Performance index that include:
+ Receivables Turnover Ratio: that measures the efficiency of the credit policy of the
company and shows the necessary level of investment to maintain it (White et al., 2002).
Formula as follows:
Receivables Turnover Ratio = Net credit Sales / Average accounts receivable.
+ Accounts payable turnover ratio: it reflects the ability in takeover capital of the
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enterprise compared with the suppliers (White et al., 2002). Formula as follows:
Accounts payable turnover = Total Supplier Purchases / Average accounts payable.
+ Inventory turnover ratio: the inventory turnover is a measure of the number of times
inventory is sold or replaced during the year, it means that the relative liquidity of inventory
(Keown et al., 2007). A higher proportion shows that the inventory is sold faster in the year
(White et al., 2002). This ratio is defined as follows:
Inventory Turnover = Cost of goods sold/ Average Inventory
+ Fixed asset turnover is sales revenue of a company divided by its fixed assets, to
measure the effectiveness of long-term capital (White et al., 2002). If the company has the below
average rate, it indicates that the company does not use fixed assets as effectively as the other

companies in the same industry.
Fixed Asset Turnover = Net Sales / Average net fixed assets
+ Total assets turnover ratio is sales of a company divided by total assets. If the company
has the below average rate, it indicates that the company does not use the property as effectively
as other firms in the same industry. Sales revenue should be increased, and some properties need
to be handled so that companies can operate more efficiently (White et al., 2002). Thi formula is
as follows:
Total assets turnover ratio = Net Sales revenue/ Average Total Assets
• Profitability index that include:
+ Gross profit margin (%): A measure of profitability is the relationship between the cost
and sales of the company. The ability to control the costs related to sales revenue and earnings.
Profit rate captures the relationship between revenue and production costs (White et al., 2002), as
the following formula:
Gross profit margin (%) = Gross Profit / Revenue
+ Operating profit margin indicates the success of business leaders in creating profit
from operations of the company. Operating profit margin is calculated by earnings before interest
and taxes (EBIT) divided by revenue. This ratio is defined as follows (Keown et al., 2007):
Operating profit margin = Earnings before interest and taxes / Revenue
+ Net profit margin: reflects the net income (profit after tax) of a business compared with
revenue. If the profit rate is below the industry average, it indicates that the sales revenue is too
low, the cost is too high, or both. This ratio is defined as follows (White et al., 2002):
Net profit margin = Profit after tax / Revenue
• Financial Leverage Ratio that include:
+ Liabilities to total capital: This ratio is necessary to assess long-term risks and
prospects. The financial leverage brings benefits along with additional risks (White et al., 2002).
This ratio is defined as follows:
Debt to capital = Total liabilities/ Total capital
+ Debt to equity ratio shows the company's capital structure and indirectly, the ability to
meet current liabilities obligations. This ratio is defined as follows (White et al., 2002):
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Debt to equity ratio = Total liabilities / Total Equity
+ Interest coverage ratio: There is a direct measurement than debt to equity of the
company's ability to meet interest payments from annual operating profit, it is interest coverage
ratio. This ratio is defined as follows (White et al., 2002):
Interest coverage ratio = Earnings before interest and taxes (EBIT) / interest expense
Method of ratio is a method which reflects structure, relationship between financial
indicators and the changes of volume through various financial ratios in a series of continuous
time and stages. Depending on the analysis objectives, analysts shall pay more attention to this
group of ratio or other groups. For example, the creditor specially pay attention to the solvency
of borrowers, long-term investors are interested in the performance and production efficiency. At
the same time, they also need to study the liquidity capability to assess the ability of businesses
to meet the current demand for payment and profit to consider the possibility of the final
repayment, the ratio of capital structure making changes significantly benefit of investors. Each
group consists of many ratios and in each case the ratio chosen will depend on the nature and
scale of the analysis.
1.2.3. Dupont Method
The origin of DuPont method was developed in 1918 by an engineer at DuPont. He found
that the products are usually calculated with two indicators are profit margin and asset revenue,
equivalent to the return on assets (ROA). The elegance of ROA is that it contains a measure of
profitability and is also an effective way to make DuPont method to become a tool widely used
in the financial analysis. In 1970, the Dopunt model was added ROE indicator which is
equivalent to net profit on equity.
To evaluate the effectiveness of management activities, Nissim & Penman (2001)
suggested using a modified version of the traditional DuPont model to remove the effects of
financial leverage and other factors that are not under the authority of the managers. The DuPont
models have been widely recognized in financial analysis documents.
Dupont method is a method which has the aim to assess the interaction between financial
ratios: operating margin and consumer product profit margin to determine the profitability of
investment.
The target of the operation is to generate net income, revenue on equity (ROE) is an

indicator to assess the implementation of this target. The formula is as follows:
ROE = Profit after tax / Equity
ROE reflects the profitability of equity, increasing profitability of equity is an important
goal in corporate finance management.
In addition, there is revenue on asset (ROA)
ROA = Earning before interest and taxes / Assets
Or:
ROA = Profit after tax / Assets
This is the criteria used to evaluate the profitability of the investment capital. Depending
on the specific business situation of enterprises and the range of comparison, people can choose
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earning before interest and taxes and profit after tax to compare with total assets.
Using DuPont method is to assess the interaction between financial ratios, analysts can
perform the separation of ratio ROE:
ROE =
Profit after tax
=
Profit after tax
x
Assets
= ROA x EM
Equity Assets Equity
EM - Equity Multiplier can be transformed into:
EM =
Assets
=
Total capital
=
1
=

1
Equity Equity Equity 1 - Debt ratio
Total capital
ROE reflects the profitability of the equity - the increasing value for the property owners.
ROA reflects the profitability of the entire assets of businesses - asset management capabilities
of managers. EM is equity multiplier, it reflects the level of capital mobilizing from the outside
of the enterprise. If EM increases, it shows that the businesses raised capital from outside.
Separate ROA:
ROA =
LNST
=
LNST
x
Income
= PM x AU
Assets Income Assets
PM: Profit margin reflects the proportion of profit after taxes in revenue.
AU: Assets efficiency.
When ratio PM increases, it reflects the effective revenue and cost management of the
company.
Thus, the return on equity (ROE) can be modified as follows:
ROE = PM x AU x EM
We can summarize the basic elements having impact on ROE as the follows the ability to
increase revenue, expense management, asset management and financial leverage.
1.3. Corporate financial analysis in Vietnamese enterprises
1.3.1. Rules and forms of financial statements
Financial statement is one of two types of accounting reporting systems. Financial
statement is prepared in accordance with the standards and current accounting regime. The
financial statement reflects the major economic and financial indicators, it reflects the most
comprehensive information on property condition, sources of equity, debt, cash flows as well as

the financial position, operating results of the businesses in a certain trading period. Financial
statement analysis is a very important issue and has practical significance for all people using
information, particularly for firms listed on the stock market.
According to Decision No. 15/2006 QĐ/BTC dated March 20th, 2006 of Minister of
Finance on promulgating the corporate accounting regime, financial reporting systems, including
the following four types: (1) Balance Sheet, Code B01 - DN; (2) Performance Report, Code B02
- DN; (3) Cash flows Statement, Code B03 - DN; (4 ) Notes to the financial statements, Code
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B09 - DN.
Corporate financial statement analysis provides information for not only business leaders
to help them evaluate the financial strength of the business, profitability and production outlook
of enterprises, but also for users outside the enterprise, such as: investors, lenders, suppliers,
creditors, current and potential shareholders, clients, senior managers, insurance agency,
employees and researchers, economics students Especially, for enterprises listed on stock
market, providing information about the financial situation correctly and fully for investors is
extremely important to help them select and make investment decisions effectively. The current
financial statement analysis in Vietnam is diverse but can be divided into two basic categories as
follows:
• The first type: The financial statement analysis has the major content of indicators
analysis on each financial statement. The objective is to provide information and help for the
users assess the financial situation of enterprises. If implementing depth analysis in each
financial statements is not enough, we should analyze the relationship between the targets in
each financial statements and between financial statements. Thus, financial analysis can provide
full information to help users assess the financial situation of enterprises comprehensively and
profoundly.
• The second type: The financial statement analysis has the major content which primarily
analyzes the relationship between economic - financial indicators in the financial statements.
From which, it should give conclusions about the financial situation of enterprises. The analysis
of the relationship between financial statements in order to draw conclusions about the financial
situation is very essential. However, this level of analysis is not enough, we have to make deep

analysis of indicators in each financial statement. Thus, financial analysis can provide full
information to help users assess the financial activities of enterprises comprehensively and
profoundly. Besides, analyzing each criterion in each financial statement can help users specify
the reasons causing the completion or not of economic - financial indicators in the interplay
between them, from which we can offer practical measures to enhance the financial strength of
any business in next production periods. All economic activities are continuous interaction with
each other, we can only generate true information based on detailed and meticulous analysis,
from which, corporate governance shall correctly identify the financial situation of enterprises.
1.3.2. Content in financial statement analysis in Vietnamese enterprises
In recent years, financial statement analysis of Vietnamese enterprises is to carry out to
analyze the following contents:
• Analysis of each financial statement
The analysis of each financial statement includes the following major contents: (1)
Horizontal analysis of each financial statement has the aim to see clearly the variation of each
indicator in term of scale, including the absolute and relative numbers. (2) Vertical analysis of
each financial statement (especially for balance sheet) has the aim to see clearly the variation of
each indicator in term of structure. (3) Analysis of the relationship between indicators in
financial statements is to assess the financial situation of enterprises generally.
Analyzing each financial statement allows the users to evaluate the specific variation of
economic - finance indicators. On that basis, we can give specific measures to promote financial
activities and the production for sustainable development.
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• Analysis of the relationship among indicators in each financial statement.
The analysis of the relationship among indicators in corporate financial reports is a basic
content of financial statement analysis, which provides information to assess the financial
situation of the business as follows: (i) general evaluation of the financial situation of enterprises;
(ii) analysis of the situation to ensure short-term capital for short-term assets reservation of
enterprises; (iii) analysis of the ability to raise capital for your business enterprise; (iv) analysis
of the situation and solvency of enterprises; (v) analysis of the financial risks of enterprises; (vi)
analysis of business performance of enterprises; (vii) analysis of enterprise value.

1.3.3. Implementation phases in Vietnam
In recent times, the implementation of financial statement analysis in Vietnam has been
carried out as follows:
• The preparation phase: It is an important part which has lots effect on the quality,
duration and efficiency of financial activity analysis. Preparation works include the planning of
analysis activities and collection, the handling of analysis materials.
Analysis plan defines clearly the analysis content (all financial activities or only some
specific issues), the range of analysis (whole enterprise or a few departments), the analysis time (
including preparation time), assigning responsibility to individuals, departments and identifying
forms of analysis conference (Board of Directors or employees). In particular, the analysis plan
include analysis type.
• The implementation phase:
- Overall assessment: Based on indicators of the analysis content, the analysts use the
comparative method to evaluate the overall situation. They can make comparison on the overall
combined with each component of each indicator in the analysis period and base period. From
which, the results, development trends and the dialectical relationship among business activities
can be determined exactly.
- Identifying influence factors and level on analysis indicators: Financial activity is
influenced by many reasons, there are some reasons that can be determined and some reasons
that can't be identified the extent of their influence to the variation of analysis object. The
reasons that can be measured, quantified is called factors. After defining the necessary factors,
Vietnamese analysts will use appropriate methods (method of exclusion, balance, comparison,
econometrics ) to determine the extent of impact and analyze the influence of each factor on
the analysis objects.
- Summary of analysis results, drawing comments and conclusions about the quality of
the financial activities of enterprises: Based on the results of calculating and identifying the
influence of factors on the variation of analysis objects, Vietnamese analysts contact, integrate
the volatility of the factors to analysis objects in order to overcome the disjointed, fragmented.
From which, they can draw comments indicating the existence, causes; as well as point out the
untapped potential to make decision.

• The end phase: The end phase is the final stage of the analysis. In this phase,
Vietnamese analysts shall write analysis report, result report for those who are interested and
involved (Board of directors, investors, shareholders ) and complete analysis documents.
1.3.4. Information used in financial statement analysis in Vietnam
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• Balance sheet: this is mainly used in financial analysis in Vietnam. It allows us to study
and assess the overall financial situation and business results, levels of capital and the economic-
financial outlook of enterprises.
• Business performance report: Business performance report provides comprehensive
information about the situation and results of the potential use of capital, labor, technology and
production management level of enterprises. The content of this report is important to determine
the profit and losses and to be used in financial statement analysis in Vietnam.
• Cash Flow Statement: Based on the input and output cash flow, analysts make
balancing the budget with the opening balance to determine the ending balance. Since it is
possible to set the minimum reserve fund for businesses in order to ensure payment. This
information is very useful for Vietnamese financial analysts who use them in their financial
statement analysis.
• Notes to the Fiscal Statements: Notes to the financial statements are prepared to provide
information about the production, business situation which are not included in the system of
financial report, and explained clearly some indicators that are not shown in financial statements.
• General information about economic situation: The information reflecting the general
economic situation in a certain period which is related to the business activities of enterprises is
very important to consider. In recent years, the analysis of financial statements in Vietnam has
used the following information:
+ Information about the growth or recession, especially in the range of country and
region.
+ The major economic policy of the State, political, diplomatic, legal, financial
institutions, accountants policies involved.
+ Information about the rate of inflation.
+ Information about interest rates, foreign currency exchange rates.

• The information about business lines of enterprises: Within the scope of the industry, it
need to be considered the development of business in relationship with the operation and general
characteristics of the industry. This common information includes:
+ The pace and movement trend of industry
+ The level and requirements of technology of the industry
+ The scale of market and development prospects
+ The competitive nature of the market, relationships between suppliers and customers
+ The risk of potential competitors
• The information about characteristics of business activities: Each business has its own
characteristics in business strategy and organization, to assess the financial situation accurately,
the analysts need to study the characteristics of business activities, including major aspects as
follows:
+ Objectives and business strategies of enterprises
+ Financial policies, credit policies
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+ Technology features and investment policies of enterprises
+ Cash flow characteristics in business activities
+ Seasonality, cyclicality in business activities
+ The relationship between enterprises and banks, suppliers, customers and other objects.
1.3.5. Limitations of financial statement analysis in Vietnam
The financial statement analysis has some limitations as following:
- Inflation can affect and distort financial information which is recorded in financial
statements leading the calculation and analysis incorrectly. For example, inflation can lead to
unemployment situation (increasing demand of job hunting and rising prices) which will affect
the value of cash flow at a certain time and make cash flow in different year have different value.
This makes the comparison and analysis of data among the years different.
- Seasonal factors also affect the operations of the company and lead the financial ratios
to fluctuate. For example, the inventories increase higher than normal in season, the inventory
turnover ratio will reflect inefficiency of the company. This is an issue that leads the company to
recruit a team of efficient financial managers.

- Analysis based on financial ratios shall depend heavily on the accuracy of financial
statements. This is influenced by the principles of accounting. However, the principles and
accounting practices could be different between companies, sectors, countries and in different
periods. Therefore, the principle of accounting practices can distort the sense of financial ratios.
- Managers can take advantage of accounting rules to proactively create the financial
ratios as his desire, that makes financial statement analysis is no longer an objective assessment
tool. And this is the strength that accounting can make financial statement analysis difficult.
- There sometimes have a lot good ratios, and very bad ratios which makes the overall
assessment of financial situation become more difficult and less meaningful.
- There are also many companies operating in a large scale and multi-disciplinary, that
makes difficult build and apply the industry average ratio systems in this companies. Therefore,
analysis of financial statements usually have significance in small-size companies without multi-
disciplinary activities.
- Currently, there is no uniform consensus of the formula of indicators in books and
documents on the financial statement analysis. This makes the comparison between analysis data
from different sources have lots potential risks.
In Vietnamese enterprises in comparison with financial statement analysis in U.S
corporates, this occur some other limitations of financial statement analysis. In fact, financial
statement analysis in Vietnam is a process of learning, applying theory and practicing financial
statement analysis from U.S. companies. However, the accounting practices and business
environment in Vietnam have some differences, financial statement analysis in Vietnamese
enterprises also has some differences compared with the American including:
- First, financial statement analysis in Vietnamese enterprises is facing a big problem
with the industry average data used for comparison. This reduces somewhat meaningful in
evaluating the company's financial situation.
21
- Second, business performance report of Vietnamese enterprises don't clearly separate
costs for rent and interest, therefore, analysts seldom use interest payment ratio and solvency
ratio. Unless these ratios play an important role for banks and lenders, they must find ways to
split this cost from cost of financing activities.

- Third, in the views of Vietnamese investors and shareholders, return on equity (ROE) is
very necessary when making investment decisions. However, business performance report just
reflects the net profit, while the fact is that all net profit are not owned by shareholders because
the company has to deduct to set some other funds. So net profit ratio shall make shareholders
and investors disappointed.
- Fourth, the reliability of the figures in financial statements is not high, including the
financial statements audited, thus, the analysis results and evaluation of the financial situation
only have reference value rather than reflect reality.
- Fifth, financial statement analysis in Vietnamese enterprises is rarely conducted for the
purpose of assessment by the managers; it is mainly implemented by banks or securities
companies outside the enterprises.
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CHAPTER 2: METHODOLOGY
2.1. Research phases realized
2.1.1. Reasons of subject choice
I choose this subject of “Financial analysis in PetroVietnam Energy Technology
Corporation (PVEIC)” for the following reasons:
 The economic context has posed an ever-growing demand for the financial analysis
quality and results at enterprises. In reality, however, financial analysis at enterprises has not
really become a beneficial tool for the related objectives, thus having not yet promoted its role
and positive significance.
 In the developed states, great importance is attached to financial analysis, hence, for
a long time, it has become an independent academic subject, and over a long period of
development in this field, a system of solid theoretical grounds, with numerous valuable science
achievements and research works, has been established. Also, the process of carrying out,
applying on a long-term basis to reality has enabled them to accumulate so much experience, to
perfect their financial analysis methods and ways in almost all economic sectors. Accordingly,
financial analysis in the developed states has brought about very high performance for both
information providers and users; this is one of the reasons why they are possessed of the business
management technology which we have to step by step learn about and acquire. In Vietnamese

recently, financial management has also become an academic subject independent from the
integration process. Nevertheless, since financial analysis in Vietnam is still a novelty, quite a
few enterprises still have difficulties in this kind of job. The cause of this is not only restricted to
the lack of norms that reflect the analysis contents but also to analysis methodology, average data
of the branch as well as the personnel for implementation. This has led to the fact that business
financial analysis has not been performed on a scientific, precise, complete basis thus failing to
reflect the business operation actual situation.
 The financial analysis in general is still a rather new theme which is being gradually
perfected on a solid theoretical foundation of the states with developed economies, with taking
the specific conditions of Vietnam into consideration. From the fact above, the perfection of the
contents, norms and method of financial analysis for enterprises in the economy today is a
pressing demand, in which, consultative, supervising enterprises are not exceptions. Hence the
author’s choice of “Improving the quality of financial analysis at Petrovietnam Energy
Technology Corporation”, this stands as an issue of urgent topicality and of theoretical
significance.
 Recognizing the important role of financial analysis, Energy Technology Corporation
Vietnam Oil and Gas Corporation (PVEIC) is interested in the financial analysis. As a result, the
Corporation has made certain achievements in production and business activities. However there
are some problems in the financial analysis are limiting effective financial analysis, leading to
the lack of accurate and timely assessment of the financial situation of the Corporation.
The research questions are the following:
- What are the models of financial analysis organization and financial analysis norm
system?
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- What effects do the factors have on financial analysis?
- What are the organization, contents, and methods of financial analysis being applied
at enterprises like?
- What are shortcomings that still exist in the process of financial analysis and the
system of financial analysis, the solutions for perfecting and conditions for
implementing such solutions?

- How to improve the efficiency of capital use of PetroVietnam Energy Technology
Corporation.
- How to attract the investors both domestic and foreign investors for the company?
2.1.2. Research objectives
The research aims to the following objectives:
 Conducting literature review on financial analysis is based on the combined analysis
of researches at home and abroad;
 Conducting intensive research on the system of theories and the theories of business
financial analysis based on analysis of professional business financial theories and the actual
status of operations of construction, execution consultative entities in Vietnam;
 Conducting studies on the actual status of the financial analysis which is being
carried out at PVEIC in accordance with: determining the responsibility, powers of the
individuals, departments or sections concerned with the organization and implementation of
financial analysis; assessment of the quality of the work performed everyday and the outcomes
of financial analysis;
 Supplementing and completing the norms, contents and methods of financial analysis
to help PVEIC analyze accurately and fully the financial situation, particularly researching and
proposing for applying the Dupont analysis method to improve financial analysis performance;
 By analyzing based on the past and present data, the author uses the analysis results
to provide some forecasts about the changing trend in the future from that to propose several
business strategies and investment orientations for PVEIC;
 Assessing the performance, advantages, shortcomings of financial analysis at PVEIC
in recent time 2010 - 2012;
 Proposing solutions for completing financial analysis at PVEIC;
 Changing the awareness of the PVEIC leadership in the positive direction of the role
of financial analysis;
 Systemizing the theoretical grounds of financial analysis at PVEIC, from that to
contribute to the financial analysis contents of the enterprises in the same sector. After viewing
the actual status of the financial analysis contents and methods at PVEIC, combining with the
theoretical grounds and the specific characteristics of the sector to formulate and complete

financial analysis of these enterprises.
2.1.3. Research object and limits
Research object is the financial analysis at PVEIC, including the contents about the
24
system of norms for analysis, analysis contents and methods chiefly through the financial
statement system.
Concerning the scope of research, it will be limited by:
o Space: The dissertation research is focused on the financial analysis operation
at PVEIC;
o Secondary data: from 2009 to 2012;
o Primary data: in 2012 and 2013.
2.2. Presentation of case study of PVEIC
Name: Petrovietnam Energy Technology Corporation
Abbreviation: PVEIC
Headquarters: 7rd floor, PetroVietnam Tower, 1-5 Le Duan St, District 1, Hochiminh
City, Vietnam
Tel: (848) 3911 8565 Fax: (848) 3911 8567
2.2.1. History of PVEIC
Petrovietnam Energy Technology Corporation (PVEIC), formerly know as Vietnam
Energy Inspection Corporation (EIC) - a member of Vietnam National Oil and Gas Group
(Petrovietnam) – founded in 2008, gathering hundreds experts and specialist, professional and
qualified staff from the oil and gas and other industrial sectors. Thanks to their expertise and
diligance, PVEIC have successfully performed specialized service related to the project quality
management, consultancy, quality control and assurance to ensure risk free and integrity of the
PetroVietnam assets as well as Health, Safety and Environment for all oil and gas activities
covering up – mid and downstream;
The name EIC and now PVEIC have become familiar and close to the owners, operators
and constractors working in oil and gas sector in Vietnam, proved by the presence of PVEIC
professional staff in most of oil and gas project, particularly for the important project of
PetroVietnam, namely Dung Quat Refinery, Vietsopetro, Offshore Oil and Gas Projects, Gas

Thermal Power Plants, Oil and Gas Terminals, etc …
Through its cooperation with global partners and corporate network PVEIC have focused
in new technology to provide its Clients with Advanced Solution and complete process
equipment, technical service and specialty materials serving for their needs to develop a project
in every stage from a conceptual design up to operation.
Base on Knowledge, Procedures and Laboratories we are confident to satisfy our Clients
requirement where Quality- Health- Safety and Environment are vital. This is also a mandate for
PVEIC staff in building the core values of PVEIC.
Following the PetroVietnam Energy Development Program in future, PVEIC have set its
development target to meet the higher and more challenging requirements of our Clients.
2.2.2. Services and products
The scope of business of PVEIC includes:
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