CONTENTS MESSAGE FROM THE CHAIRMAN OF THE BOARD OF MANAGEMENT [4,5] DEVELOPMENT HISTORY [6] GENERAL INTRODUCTION [7] BOARD OF MANAGEMENT [8]

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3 CONTENTS MESSAGE FROM THE CHAIRMAN OF THE BOARD OF MANAGEMENT [4,5] DEVELOPMENT HISTORY [6] GENERAL INTRODUCTION [7] BOARD OF MANAGEMENT [8] BOARD OF GENERAL DIRECTORS [9] BOARD OF SUPERVISION [10] ORGANIZATION STRUCTURE [10,11] FIELDS OF BUSINESS [12] BUSINESS TARGETS [14] IMPLEMENTATION PLAN [15] 10 SIGNIFICANT ACHIEVEMENTS OF PVC IN 2009 [16-17] REPORT OF THE BOARD OF MANAGEMENT [20-23] PVC COMMITMENTS [13] REPORT OF THE BOARD OF GENERAL DIRECTORS [26-31] DEVELOPMENT PLAN ( ) [32-36] AUDITED CONSOLIDATED FINANCIAL REPORT [38-72] MAJOR PROJECTS [74-81] COMPANY MEMBERS [82-86]

4 MESSAGE FROM CHAIRMAN OF THE BOARD OF MANAGEMENT Dear Shareholders, Hanoi April 2010 The year 2009 has witnessed remarkable footprints of Petrovietnam Construction Joint Stock Corporation (PVC) on the way of renovation and speedy development. In the context that Vietnamese economy was affected by extensive global financial crises and economic recession. However, with the unity, proactiveness, creativity, motivation, determination, self-responsibility, PVC has gained successes in any aspect to re-affirm the role and position of a leading enterprise in the field of petroleum installation and construction, contributing to the overall development of Petro Vietnam. In 2009, PVC s major economic targets were increased approximately 100% compared to The output value was 4,775 billion VND, with turn over of 4,247 billion VND and profit of billion VND. From the role of a Sub-contractor for international Contractors, PVC has become an EPC Contractor for large scale projects with complicated technical requirements including Thai Binh Thermal Power Plant II, Nhon Trach Thermal Power Plant II, Phu Tho Bio-ethanol Plant, Dinh Vu Polyester Plant. PVC also continued to re-affirm its strength in the field of petroleum installation and construction by implementing all of the projects that related to oil and gas transportation and storage in the form of EPC such as Cu Lao Tao Storage, Go Dau LPG, and Dung Quat Tank Loading Station... In addition, PVC experienced significantly progress in the construction technology of large scale high-rise buildings, such as Petroleum Hotel Complex, Petroleum Financial Center, Office of Petroleum Institute, Phu My Hung Petroleum Building, Vung Tau Petroleum Hotel, Dragon Tower Office Building. 4

5 MESSAGE FROM CHAIRMAN OF THE BOARD OF MANAGEMENT The year 2010 opens new opportunities and challenges. With the spirit and foundation developed in 2009, PVC is striving to overcome difficulties and obstacles, to take advantages of all resources and exploit every opportunity for continuing sustainable and stronger development, with an aim to achieve the output value of 8,000 billion VND, revenue of 7,000 billion VND and profit of 731 billion VND. Ambitious goals require enormous efforts. This is the momentum that PVC staffs and leaders deeply understand. With the firm foundation built along the development road and the determination of PVC people, PVC is resolved to continue engraving their footprints on the new development and contribute to the overall development of PetroVietnam in particular and Vietnam in general. On behalf of the Board of Management, I would like to express my gratitude for the trust, credibility and support of Shareholders, Investors in country and overseas, for the efforts of PVC leaders and the creativity of staffs who have made an important contribution to the success of PVC today and tomorrow! TRINH XUAN THANH Chairman of Board of Management 5

6 DEVELOPMENT HISTORY 08/1983: Chairman of the Council of Ministers approved Petroleum General Department to establish Petroleum Construction Complex Enterprise. 14/09/1983: Petroleum General Department decided to establish Petroleum Construction Complex Enterprise. 19/09/1995: The name of Petroleum Construction Complex Enterprise was changed into Petroleum Design and Construction Company. 17/03/2005: Minister of Industry approved the plan for privatization and to change Petroleum Design and Construction Company into Petro Construction Joint Stock Company. 26/10/2007: Vietnam Oil and Gas Group approved the plan to change Petroleum Construction Joint Stock Company into Petrovietnam Construction Joint Stock Corporation (PVC). 21/11/2007: The General Shareholders Meeting of PVC adopted the plan to change Petroleum Construction Joint Stock Company into Petrovietnam Construction Joint Stock Corporation (PVC). 27/06/2008: The Annual General Shareholders Meeting of PVC adopted the plan to increase legal capital up to 1,500 billion VND. 16/5/2009: The Annual General Shareholders Meeting of PVC adopted the plan for stock listing to Hanoi Stock Exchange and development strategy up to the year 2015, plan direction for the year /8/2009: PVC listed 150 million stocks with the stock code PVX on the Hanoi Stock Exchange. 20/1/2010: The Extraordinary General Shareholders Meeting of PVC adopted the plan to increase the charter capital up to 2,500 billion VND. 6

7 DEVELOPMENT HISTORY- INTRODUCTION INTRODUCTION PETROVIETNAM CONSTRUCTION JOINT STOCK CORPORATION (PVC) Head office: CEO Building, Pham Hung Road, Tu Liem District, Hanoi city, Vietnam Tel: (0084) /3/4/5 Fax: (0084) / info@pvc.vn Website: Stock code: PVX Professional strength: - Construction and installation in petroleum industry; - Industrial and civil engineering; - Construction investment of industrial and urban zone; - Investment of real estate, business in office, supermarket and housing; - Financial investment Charter capital in 2009: 1,500 billion VND Charter capital in 2010: 2,500 billion VND Chairman of the Board of Management: Mr. Trinh Xuan Thanh General Director: Mr. Vu Duc Thuan Number of company members: 43 Number of staff members: 6266 (*) (*) as at March

8 BOARD OF MANAGEMENT Mr. TRINH XUAN THANH Chairman of the Board of Management Mr. NGUYEN NGOC QUY Vice Chairman of the Board of Management Mr. VU DUC THUAN Member of the Board of Management Mr. BUI TIEN THANH Member of the Board of Management Mrs. NGUYEN THI THU HUONG Member of the Board of Management 8

9 BOARD OF MANAGEMENT - BOARD OF GENERAL DIRECTORS BOARD OF GENERAL DIRECTORS Mr. VU DUC THUAN President & C.E.O Mr. NGUYEN HUY HOA Permanent Standing Vice President Mr. PHAM HUU NGHIA Vice President Mr. LE CHUNG DUNG Vice President Mr. NGUYEN NGOC DUNG Vice President Mr. CHU VAN MINH Vice President Mr. LY NGOC TUAN Vice President Mr. NGUYEN MANH TIEN Vice President 9

10 BOARD OF SUPERVISION Mr. NGUYEN VAN LAI Head of Board of Supervision Mr. HUA XUAN NAM Member of Board of Supervision Mr. VU HUU NGHI Member of Board of Supervision Mrs. NGUYEN HONG ANH Member of Board of Supervision Mrs. TRAN THI TRANG Member of Board of Supervision ORGANIZATION STRUCTURE GENERAL SHAREHOLDERS MEETING BOARD OF MANAGEMENT BOARD OF SUPERVISION BOARD OF GENERAL DIRECTORS FUNCTIONAL DEPARTMENTS PROJECT MANAGEMENT UNITS COMPANY MEMBERS 10

11 BOARD OF SUPERVISION - ORGANIZATION STRUCTURE FUNCTIONAL DEPARTMENTS - PROJECT MANAGEMENT UNITS- COMPANY MEMBERS FUNCTIONAL DEPARTMENTS PROJECT MANAGEMENT UNITS 1. Office of PVC 1.1 Administration Division 1.2 General Emulation Division 1.3 Secretary and Archive Division 2. Personnel Organization Department 2.1 Training and Human Resource Development Division 2.2 Personnel Organization Labor Division 2.3 Salary and Welfare Division 3. Finance Accounting Department 3.1 Finance Division 3.2 Accounting and Internal Auditing Division 4. Technical Safety Department 4.1 Safety Environment Division 5. Commercial Department 6. Planning Department 7. Economic Tendering Department 7.1 Tendering Division 8. Project Investment Department 8.1 Business Division 1. Project Management Unit Polypropylene Plant 2. Project Management Unit Nghi Son Petro-Chemical Refinery Complex 3. Project Management Unit for Projects in Hanoi 4. Project Management Unit Thai Binh II Thermal Power Plant 5. Project Management Unit Vung Ang Power Plant 6. Project Management Unit Ethanol Plant 7. Project Management Unit Nhon Trach II Power and Gas Plant 8. Project Management Unit Polyester Plant 9. Project Management Unit Petroleum Cement Plant 12/9 10. Project Management Unit Southern Gas Pipeline Project 11. Project Management Unit Building Materials Mechanical Manufacturing and Production Plant 12. Project Management Unit LPG Storage Project 13. Project Management Unit Petroleum University and Urban Area 9. Legal Department 10. Communication Department 10.1 Brand Development and Events Organization Division 10.2 Internal Communication and Media Relation Division COMPANY MEMBERS 1. PVC SHAREHOLDING CONTROL COMPANIES 2. PARTNERSHIP, CAPITAL INVESTMENT COMPANIES 11

12 FIELDS OF BUSINESS PVC HAS NEARLY 30 YEARS OF EXPERIENCE AND PROFESSIONAL CAPABILITY IN THE FOLLOWING FIELDS: A. Petroleum installation and construction Construction of petro-chemical refinery plants Design, manufacture, installation of petrol and gas pipelines Design, construction, repair oil rig, platform and tank Manufacture, installation of petrol and gas drilling accessories Ship building and trading petroleum equipment B. Industrial engineering EPC Contractor to develop thermal power plants, power and gas plants, installation of power cable up to 35 kv. Investment and development of mechanical manufacture plants, ship building, building materials. Design and EPC Contractor for transportation and irrigation infrastructure projects. Installation of industrial equipment system, control equipment, automation for industrial projects. C. Civil engineering Investment, consultancy, design civil projects; EPC Contractor for development projects including office, hotel and high quality apartment, especially steel structured building, high rise buildings and sky buildings. D. Investment in development of industrial zone Construction of industrial and new urban areas Land fill, road construction Development of cement plants, concrete mixing station and building materials E. Financial investment Investment and capital contribution to subsidiaries / company members Exploit external financial resources, joint venture, partnership and issuing stock Joint venture with foreign partners to invest in large scale projects F.Investment in real estate Office, supermarket and residence 12

13 SCOPE OF BUSINESS- PVC COMMITMENTS PVC COMMITMENTS Staff: Respect and create the best condition for professional development. Customers: Provide the best quality product/service. Partners: Bring benefit and successful cooperation. Investors/shareholders: Generate highest profit; Community: PVC develops for the community 13

14 BUSINESS TARGETS A. ECONOMIC TARGETS IN 2010 PVC REVENUE AND OUTPUT VALUE (bil. VND) 10,000 8,000 6,000 4,000 2,000 2,406 4,776 8, Plan in 2010 Revenue 1,866 4,247 7,000 Output 2,406 4,776 8,000 PVC PROFIT BEFORE TAX (bil.vnd) DIVIDEND IS 15% Plan in 2010 Profit before tax B. INVESTMENT PROPORTION IN DIFFERENT FIELDS IN ,000 2,500 PVC CHARTER CAPITAL (bil.vnd) 2,000 1,500 1, ,500 1, ,500 2,500 Construction and installation of petro-chemical refinery plant, gas processing and other industrial plants; Construction of storage system and transportation of petroleum products; Petroleum equipment manufacture and mechanical; Investment in industrial areas, petroleum service base; Construction of high rise building; Business in real estate; Construction and installation of off shore petroleum projects 14

15 BUSINESS TARGETS - IMPLEMENTATION PLAN IMPLEMENTATION PLAN Year To build and to develop PVC brand, to enhance competitiveness in the market of petroleum civil and industrial construction and installation. Year To expand and occupy the market in country and in the region. To build professionally qualified project management staff with international management qualification in order implement EPC contracts for overseas projects. Year To continue re-affirming the leading role in Petro Vietnam, to strengthen the position and brand of PVC in domestic and international market. 15

16 TEN SIGNIFICANT ACHIEVEMENTS OF PVC IN 2009 Having completed the schedule target and 2. ensured construction quality of major projects, most significantly was the inauguration and commencing operation of Go Dau LPG Storage after 16 months with a total investment of 196 billion VND. This was the largest LPG Storage in the Southern area with hi-tech application, each year it supplies to the market more than 100,000 tons of LPG. This is also the first project that PVC carried out in the form of EPC, marking an important step forward relating to the design, manufacture, construction and installation capability for a petroleum professional project, becoming one of the leading EPC in Vietnam. Having restructured capital contribution 4. of PVC at Incomex, PVNC, PVE and coordinated with Petro Vietnam to sell part of state capital at PVC, earning 1,520 billion VND. Having completed the reform of 6. enterprise administration in the direction of setting up Project Management Unit to directly manage on site; The internal regulations, and management policy were improved to meet with the practical business requirement. Having completed all and exceeded the 1. production and business targets for Having successfully implemented the 3. listing of PVX stock code at Hanoi Stock Exchange. Soon after the listing, PVX was evaluated by the Investor as strong stock, with high liquidity and positive transaction. Having expanded international cooperation 5. by signing Agreement on Strategy Cooperation with Zarubezneft of Russian Federation, partnership with major international groups like Huyndai, Daewoo (Korea), JGC (Japan), Cornell Wagner and Worley Parson (Australia) in order to implement large scale projects in the field of petroleum, energy and civil engineering. Having completed enterprise reform and 7. development plan for the year as assigned by the Group in 2009; Having re-organized, restructured subsidiaries in appropriate way, which contributed to the improvement of business effectiveness in subsidiaries. 16

17 TEN SIGNIFICANT ACHIEVEMENTS OF PVC IN 2009 Having signed Contract and 8. constructed major national projects like: the Gas Pipeline for Lot B in O Mon, Vung Ang 1 Thermal Power Plant, Nhon Trach II Thermal Power Plant, Bio-ethanol Plant in the North, Thi Vai LPG Storage, Landfill in Nghi Son Petro-chemical Refinery Complex, Thai Binh II Thermal Power Plant, Long Phu 1 Thermal Power Plant with the total value of more than 7,500 billion VND. Having made the reputation, brand of 9. PVC reinforced and recognized at Prize Award Ceremonies, namely Vietnam Land Golden Star ; Golden Brand, Enterprise for Community, Commerce and Service - Year Especially PVC and its subsidiaries was awarded by the Party and the Government with Labor Medals of First, Second, Third Grade; received emulation flag of the Government and many Certificates of Merit. 10. Having actively implemented social welfare activities like supporting to develop Unity House, school, donation to the flood and storm victims and disadvantaged families; the contribution to other social welfare funds was worth billion VND. 17

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20 REPORT OF THE BOARD OF MANAGEMENT 2009 SUCCESS AFTER SUCCESS 2009 was the year for PVC to stabilize its organization, maximize resources to implement major tasks set forth, with economic targets being double than 2008 and with the requirement to speedily complete key projects of the Investors. In the context of Vietnam s being affected by global financial crisis and economic recession, long lasting inflation, fluctuating market price, especially in the field of building investment, which seriously affected the business activities of enterprises. However, with strong and timely measures, together with the unity, unanimous determination of leaders, staff members, the consideration and support of shareholders, PVC has successfully completed its business tasks in 2009, namely: Charter capital: 1,500 billion VND Output value: 4, billion VND, equivalent to % plan Revenue: 4, billion VND, equivalent to % plan Profit before tax: billion VND, equivalent to % plan Profit after tax: billion VND, equivalent to % plan Total tax and contributions to State budget: billion VND, equivalent to % plan Ratio between dividend/ charter capital: 10% RE-STRUCTURE, REFORM AND DEVELOP THE ENTERPRISE In 2009, the Board of Management continued to improve the organization structure of the holding Company and subsidiaries in the direction of specialization, concentration according to areas, locations to maximize the strength of each subsidiaries, to avoid competitiveness between subsidiaries within the Corporation. At present, PVC has 43 subsidiaries, in which there are 9 joint stock companies hold controlling share and controlling right, among them 4 companies were successfully converted to limited companies with one member; new joint stock companies were set up including Hanoi Petroleum Construction and Installation JSC (basing on Hanoi Petroleum Construction and Installation JSC Branch); Petroleum Mechanical Construction and Machinery Installation JSC (basing on Petroleum Mechanical Construction Branch); Petroleum Housing Management and Development JSC, Petroleum Housing Management and Development JSC, Southern Area; 32 partnership companies, 2 joint ventures - Vietubes Joint Venture Company and Heerim PVC International Design JSC. All PVC subsidiaries are key players to contribute to the success of PVC at projects. At the holding Company, in addition to functional departments, supporting to the leaders, PVC has established Project Management Units for major projects. PVC Board of Management, acting as representative for shareholders, have strived hard to issue accurate, timely decisions and to direct, monitor the implementation progress of plans, decisions of PVC in order to implement the Resolution of General Shareholders Meeting in 2009, reflecting in the following actions In parallel with the improvement of organization structure, the Board of Management also completed key personnel and recruited, trained qualified and experienced staff members. At the companies where PVC contributed capital, the Board of Management decided to nominate management officers to manage the capital contribution and to stipulate in details the obligation, authority of capital representatives at such companies. Through this representative, PVC manages its subsidiaries on the business result, quality, 20

21 REPORT OF THE BOARD OF MANAGEMENT project progress and effectiveness of project investment. SUPERVISING BUSINESS AND PRODUCTION OPERATION. The Board of Management always tried to strengthen the supervision and management to the Board of Directors, functional departments and capital representatives of PVC in other enterprises via resolutions and decisions of the Board of Management, and regulations on managing representatives, financial management, capital management of PVC in other enterprises, regulations on management hierarchy for branches, regulations on operation and financial economic management hierarchy for dependent accounting management units. Through internal management regulations, PVC strongly delegated tasks for subsidiaries and project management units to proactively and timely act in their operation process to ensure meeting the schedule, economic effectiveness and to enhance the role and responsibilities of heads of units and directors of the Project Management Units, to improve the transparency, professionalism in business management tasks of PVC. Further more, with hundreds of civil and specialized projects locating along the country, the Board of Management always stood by and supported PVC Board of Directors to overcome difficulties, obstacles in the construction work, so as to complete and to handover the projects on time, with good quality according to the requirement of the Investor, namely, Hanoi Petroleum Finance Center, Go Dau LPG Storage, Cu Lao Tao Petroleum Storage, Hai Phong LPG Storage, Vung Tau Petroleum Hotel, Nha Be General Store, Phase II. FINANCIAL MANAGEMENT The Board of Management issued regulations on internal financial management in order to strengthen financial supervision; issued internal norm, unit price in order to reduce cost and increase business effectiveness. In addition, the Board of Management always directed PVC Board of Directors and its subsidiaries to improve accounting mechanism to ensure health and stable accounting policy while complying with the law. Reporting was relatively in good timing, especially with regards to the notifying dates for listing enterprises. Obligations to the State budget was well completed. INVESTMENT With regards to the investment in basic construction: The Board of Management approved and invested in major projects within its authority, directed the Board of Directors to adjust the plan timely according to the Government plan on inflation control, analyzed, evaluated the effectiveness of project, the importance of project so as to suspend, extend the progress due to its non urgency, poor effectiveness or inability to secure funding in order to have reasonable investment plan, to prevent extensive investment. In addition to the accelerating construction work, the Board of Management concentrated on directing the speed of projects for petroleum construction and installation, investment in machinery, equipment so as to timely supplement the technical infrastructure and equipment used for business production development demand. The value of investment in basic construction and fixed asset in 2009 was 1, billion VND. Further more, for specialized investment projects, PVC was able to attract investment capital some strategic counterparts like Welded Steel Pipeline Manufacture Project (Korean counterpart) Hoang Mai Industrial Zone (Japanese, British counterpart). In financial investment: PVC reviewed and restructured subsidiaries and re-arranged investment structure to other enterprises during the time when stock market suffered from fluctuation in order to maximize effectiveness in financial investment, collected funding for business purpose. 21

22 REPORT OF THE BOARD OF MANAGEMENT LISTING PVX STOCK ON THE STOCK EXCHANGE In August 2009, PVC officially listed on Hanoi Stock Exchange the PVX Stock Code. Becoming a public company helped PVC to easily access capital sources from the public for expansion and development purpose. Major shareholders holding PVC shares including Petro Vietnam, Petroleum Financial Corporation, Petroleum Insurance Corporation, Ocean Bank, VIB with potential financial capacity and capital mobilization not only commit long term holding of PVC stock but also support and advise PVC in its development strategy, management experience, and market expansion. In addition, PVC concentrated on the cooperation with strategic counterparts and prestigious organizations. At present, PVC has signed Agreement on Strategic Cooperation with Zarubezneft a leading company in the field of petroleum construction in Russian Federation. PVC is actively completing procedures to increase legal capital from 1,500 billion VND to 2,500 billion VND. At present written approval from the State Securities Commission was obtained. After completing the capital increase procedures, PVC will immediately list the stocks, which are newly issued in PVC always complied well and timely to provide information according to the regulation for a listing company, namely Quarterly/ Yearly Financial Report, International Stock Transaction Report, Report on closing the list of shareholders and other reports according to the requirement of State Securities Commission, Hanoi Stock Exchange as well as the information provided upon request of the clients. PVC has advanced first dividend of 2009 with the value of 7%/ per value. Further, the PVC Board of Management developed good international relation, maintained sustainable and trustworthy partnership with investors, state management authorities and always proactively strives to look for new partners and markets. Over the past year, under the direction of Board of Management and the Board of General Director, PVC becomes stable and growing, which is clearly reflected in the business result in Together with the excessive growth, the position and brand of PVC on the construction market become stronger and stronger. 22

23 REPORT OF THE BOARD OF MANAGEMENT 2010 CONTINUE ACCELERATION AND DEVELOPMENT Based on the business results in 2009, on the current capability of PVC, the Board of Management submitted to the General Shareholders Meeting to adopt PVC Business Plan of 2010, details are: - Charter capital: 2,500 billion VND Output value: 8,000 billion VND, increasing % compared to Total revenue: 7,000 billion VND, increasing % compared to Profit before tax: 731 billion VND, increasing % compared to Profit after tax: 642 billion VND, increasing 280.4% compared to Contribution to State budget: 248 billion VND, increasing % compared to Ratio between dividend/ charter capital: 15%, increasing 150% compared to Investment in basic construction, fixed asset and financial investment: 3, billion VND, increasing % compared to 2009 To achieve the target and plan of 2010, PVC Board of Management have set out specific and effective action plan, namely: + To continue improvement and re-structure the organization of PVC to be in line with the function, obligation of a holding company and subsidiaries according to the Law on Enterprise. To continue improving management mechanism at the head quarter and subsidiaries in the form of simple, specialization so as to enhance working efficiency and business effectiveness of the entire Corporation. + To continue development, perfection of regulations, stipulations on internal financial control of PVC according to the holding-subsidiary model so as to strengthen the supervision of financial status and close control of business implementation of PVC. + To continue monitoring the project implementation progress in order to exercise appropriate investment plan, to avoid extensive investment, and to proactively accelerate the progress of key projects including Welded Steel Pipe Plant, Anh Son Cement Plant, Dung Quat Plastic Packaging Manufacture, Long Son Petroleum Industrial Area, Nam Dan Plaza Project in Hanoi, Petroleum Urban Area in Hoai Duc, Hanoi, Phu My Hung Trade Centre, Petroleum Landmark in Ho Chi Minh City and explore other effective investment opportunities. To strengthen investment in high-tech projects and materials to serve for petroleum industry in order to enhance investment effectiveness and production development. + To strengthen the monitoring, direction, management, especially in major projects of the State, the industry to ensure quality, architecture and to hand over the project on time. + To direct the implementation of major projects in 2010 including: 5 star Hotel Complex, Thai Binh 2 Thermal Power Plant, Nhon Trach 2 Thermal Power Plant, Long Phu Thermal Power Plant, Vung Ang Power Plant, Dinh Vu Polyester Plant, Phu Tho Ethanol Plant, O Mon Gas Pipeline Project, Lot B. + To pay attention and to protect maximum legitimate rights of shareholders and to considerate the income, welfare and working conditions of staff members in PVC. + To concentrate on the development, training and to apply appropriate policy to attract qualified staff members who have acquired international qualification, and project management officers according to the international standard. Besides, to study to apply project management technology, advanced production management with high efficiency, to incorporate advanced software in the management areas of PVC. TRINH XUAN THANH CHAIRMAN OF THE BOARD OF MANAGEMENT 23

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26 REPORT OF THE BOARD OF GENERAL DIRECTORS Revenue BUSINESS OUTCOME IN 2009 In 2009, PetroVietnam experienced excessive development with multi operation, continuing affirm its position as a leading economic group in Vietnam, actively contributing to the national development. Being a member of PetroVietnam, PVC plays an important role in the development process. In addition, PVC always receives direction from the Party, the Government, Central Ministries and Petro Vietnam, as well as the collaboration with internal and external agencies. To successfully completed the business tasks of 2009, with an united, dynamic, proactive, self responsible leadership mechanism, PVC has well prepared from the beginning of the year. The objective is clearly analyzed, identified advantages, difficulties and developed appropriate, complete solutions to maximize opportunities in order to speed up the development. In 2009, PVC has excessively completed business targets compared to the plan approved at the General Shareholders Meeting in ENSURING PROJECT PROGRESS AND QUALITY In 2009, PVC completed and handed over a number of large scale projects such as Cu Lao Tao Petroleum Storage, Hai Phong LPG Petroleum Storage, Vung Tau Petroleum Hotel, Nha Be Petroleum Storage, Phase 2, Petroleum Financial Centre at No. 22 Ngo Quyen, Hanoi, ground levelling for Phase I of Nghi Son Petrochemical Refinery Complex, Petroleum Vocational College etc. Especially, one of the remarkable achievements of PVC was the completion and putting into operation of Go Dau Petroleum Storage, the largest LPG storage in the South, which supplies more than 100,000 tons of LPG to the market. This is the first project that PVC completed in the form of EPC. The project was applied high technoplogy that completed after 16 month construction, marking an important growth of PVC in terms of design capacity, manufacture, specialized installation and construction, demonstrating high competitiveness to become one of the largest EPC Contrators of Vietnam. PVC also inaugurated a number of large scale projects in the form of EPC, namely Bio Ethanol Plant in the North, Thai Binh 2 Thermal Power Plant, Dinh Vu Polyester Plant in Hai Phong, Vung Ang 1 Thermal Power Plant, 12/9 Petroleum Cement Plant in Nghe An. Almost all other large scale projects completed by PVC, for example, Office of Petroleum Institute, Office of Ministry of Home Affairs. The Dung Quat Polypropylene Plant had met construction schedule, quality and valued by the Investors. TECHNICAL, QUALITY MANAGEMENT AND LABOR SAFETY Identifying science technology and technique as an important levelling to enable PVC to 26

27 REPORT OF THE BOARD OF GENERALDIRECTORS develop, to reach the competitiveness with other contractors in the world, PVC is currently completing and systematically applying of the quality standard according to ISO 9001:2008; PVC applied technologies in project management, advanced production management and software to the management of schedule, planning and finance. project management officers according to international standards. At present PVC has 6,266 staffs, among them 5 PhD, 48 Masters, 1,610 University graduates, 2,355 technical workers. The management officers are 185 people, most of them are young, dynamic at an average age of 39. In addition, PVC always strives to proactively update advanced technology in the world and in the field of construction to develop petroleum and civil projects. Especially, all production and business process of PVC strictly complied with Health Safety Environment Quality (HSEQ) policies and procedures. The technology, quality, administration and management of construction schedule of PVC and its subsidiaries were well completed and excessively improved, making significant contribution to the assurance of project progress and quality. PVC always directed, supervised strict execution of the safety and labor protection; to ensure providing sufficient labor safety equipment and to improve the working conditions for staff members. CONTINUE DEVELOPING HUMAN RESOURCES In their development plan, PVC always valued human resources, science technology and management science to be the most important foundation. Therefore, over the past few years, the human resource planing and attracting qualified personnel was focused. To realize the ambition to become a leading construction enterprise, PVC was continuing recruitment of qualified, experienced staffs to place them to key positions, to develop policies to attract well qualified managers and engineers, to create convenient, equal and flexible working environment, to promote motivation effort from all staff members. PVC also continued offering professional training program for technical officers specialized in petroleum construction; for skillful workers to obtain international certificate and for In 2009 in PVC, there was 4,901 times of staff, workers and laborers being sent for training program, the cost of which was almost 9.7 billion VND. EFFECTIVE AND SUSTAINABLE INVESTMENT PVC has concentrated its efforts to strengthen investment and to enhance the value of investment; especially it developed investment plan and direction to high-tech projects and projects specialized in petroleum industry. PVC and its subsidiaries has been implementing more than 70 investment projects in major provinces, cities, localities over Vietnam with the total investment value of 70,000 billion VND, among them 15 projects belonged to industrial production, infrastructure system in industrial area; 55 projects belonged to residence, office, infrastructure system in urban area, tourism areas. The typical projects including Welded Steel Pipeline Plant to serve petroleum projects in the South, 12/9 Petroleum Cement Project in Nghe An, Plastic Packaging Manufacture Plant in Dung Quat, Quang Ngai, Long Son Petroleum Industrial Area in Vung Tau, Hoang Mai Industrial Area in Nghe An. To enhance construction capacity, PVC has invested in advanced construction equipments, especially equipment specialized in petroleum industry with the value of 293 billion VND, which enhances construction capacity in technically complicated projects. SIGNING MAJOR ECONOMIC CONTRACTS In 2009, PVC won 40 tendering packages with a total value of 12,535 billion VND; signed 34 economic contracts with a total value of 7,553 27

28 REPORT OF THE BOARD OF GENERAL DIRECTORS billion VND, increasing more than double compared to 2008 (3,332 billion VND), among which 5 EPC contracts worth of 3,650 billion VND, amounting 48% of the value of signed contracts. The major projects are included Nhon Trach 2 Power Plant, Dinh Vu Polyester Plant in Hai Phong, Vung Ang Thermal Power Plant, Bio Ethanol Energy Plant in the North, Vietnam Petroleum Institute and other petroleum projects such as the Head Office of Ministry of Home Affairs (393 billion VND); Ministry of Natural Resources and Environment (500 billion VND) The management of economic contracts were strictly and seriously implemented. Regulations on management, delegation or authorization in Contract signing and implementation was in place. The regular inspection, assessment, evaluation of Contract implementation has met the management of economic contract requirements. HEALTHY FINANCE CREDIT PVC has timely arranged capital sources to ensure business and investment operation. Internal finance management regulations was completed. Obligation to the State budget was timely and sufficiently fulfilled. PVC has successfully listed its stock on Hanoi Stock Exchange in August 2009 with the stock code PVX. In addition, PVC had restructured some investment contributed at PVA, PVE, ICG which brought positive effectiveness to them. In coordination with Petro Vietnam, PVC has sold part of the State capital. MAIN ECONOMIC TARGETS IN 2007, 2008, 2009 Source: Audited Financial Report of PVC in 2007, 2008 and

29 REPORT OF THE BOARD OF GENERALDIRECTORS EXPANDING INTERNATIONAL COOPERATION PVC is striving to implement strategic solutions being as cooperation, joint venture, partnership with strategically experienced counterparts in country. At the same time, expanding international cooperation by signing Agreement on Strategic Cooperation with Zarubeneft Company of Russian Federation; partnership with major Groups like Hyundai, Daewoo (Korea), JGC (Japan), Cornell Wagner and Worley Parson (Australia), Technip Consortium (France), Alfa Laval (India) in order to implement construction projects in the field of petroleum industry, petro-chemistry, energy, and civil engineering. This is an opportunity for PVC to share experience and improve the project management expertise, to expand and occupy the domestic and regional market. ATTENTION TO BUSINESS INSTITUTIONALIZATION The issue of institutionalization has been strengthened and reinforced. Most of agreements and contracts were evaluated before signing to ensure compliance with the law and to prevent risk. PVC is currently negotiating with the Ministry of Justice to conduct training cooperation and consultancy on legal aspects. ENHANCING TRANSPARENCY AND RELATIONSHIP WITH THE INVESTORS. In addition to the acceleration of business development, PVC has also promoted the disclosure of information, connected shareholders and investors. In parallel with the dissemination on public media, the website and the PVC news were the main information channels which update and upload PVC daily news. MAINTAINING EMPLOYMENT SOCIAL ACTIVITY PVC maintained stable employment for more than 6,000 staffs with an average income of more than 6.3 million VND/ person/ month. PVC offered good welfare policy to its staffs. PVC has actively been involved in social activities namely, donation to build Unity Houses, to upgrade schools for localities, for instant, Nam Hong Primary School (Hanoi), Tan Phu Primary School (Phu Tho), Ho Tung Mau Secondary School, donation for the victims of flood, for disadvantaged families and contribution to other social security funds with a total value of billion VND. Hence, after 4 years changing from the State Owned Company to Joint Stock Company, PVC has experienced steady development. In 2007, PVC charter capital was 150 billion VND with output value of 827 billion VND, revenue of 750 billion VND, profit of 20 billion VND, then in 2008, PVC reached the output value of 2,405 billion VND, revenue of 1,866 billion VND and profit of 98 billion VND. In order to meet the requirement, PVC increased its charter capital up to 1,500 billion VND at the end of In 2009, the output value reached 4,775 billion VND, revenue of 4,247 billion VND, profits of billion VND, increasing twice compared to last year. According to the business plan of 2010, major economic targets of PVC were maintained at high growth rate and PVC will increase its charter capital to 2,500 billion VND. Previously, the operation territory was mainly in the South, PVC expands operation through out the country, it has reaffirmed the role of a leading corporation in Vietnam in the field of investment and construction, especially in EPC, BOT areas for petroleum specialized projects and the large scale project. 29

30 REPORT OF THE BOARD OF GENERAL DIRECTORS BUSINESS PLAN FOR 2010 The year 2010 is significantly important to PVC. This is the year when the Party Congress at different levels takes place before progressing to 11th National Party Congress, the year to decide successful implementation of 5 year plan ( ) and to prepare conditions to further implement 5 year plan ( ). OVERALL GOAL Building and developing PVC to become a key specialized construction corporation of Petro Vietnam, PVC is striving to become professional construction and investment group, ranking number 1 in Vietnamese construction industry by SPECIFIC OBJECTIVES 1. To focus on three main business areas, namely construction, industrial manufacture and property. To strengthen operating in the field of manufacturing building materials, metal structure to serve for construction work of PVC and to supply to the market. 2. To maintain high growth rate, to ensure stable employment and to improve income for staff. 3. To direct the development of PVC and subsidiaries according to specialized direction in each field, to promote competitiveness. To expand joint venture and partnership with major groups overseas. 4. To complete on time, to ensure good quality of projects. In 2010, PVC will complete and handover 17 projects and project items such as: Polypropylene Plant, expansion of Nha Be Petroleum Store, Office of Petroleum Institute, Head office of Ministry of Home Affairs, Vina Food 1 Building, Landfill for Thai Binh II Thermal Power Plant; Nghi Son Petrochemistry Refinery Complex, LPG Storage and Dung Quat Tank Loading Station. 5. To strengthen the investment, especially investment in industrial production, to place priority to mobilize resources to implement key projects, potential and high effective projects like Welded Steel Pipeline Plant, Dung Quat Packaging Manufacture Plant, Pipeline Coverage Plant, Valve Manufacture Plant so as to put into operation as early as possible. 6. To enhance business accounting settlement to develop, issue internal unit price norm for cost management. To strongly promote saving practice, business cost reduction to ensure positively effective production and business. MAIN ECONOMIC TARGETS IN

31 7. To increase the legal capital of holding Company to 2,500 billion VND so as to proactively control capital sources, to timely arrange other capital source to meet with the business demand. 8. To continue investment in advanced equipment, to enhance capacity in design in order to carry out EPC and BOT contracts. 9. To complete regulations and rules on management and direction. To enhance qualification, quality of enterprise administration and professionalism in every aspect, to overcome weakness in order to improve business effectiveness. 10. To continue improvement of quality, quantity of management officers, technical workers to satisfy the development demand. To focus on training essential areas to serve for business activities, to ensure sufficient structure, quantity and quality. DEVELOPMENT PLAN FOR THE YEAR Looking back the past development, especially in 2009, with the excessive growth rate has been reaffirming its capabilities, credibility and brand in the fields of petroleum construction, industrial and civil engineering. The year 2010 offers a lot of opportunities but not less challenges to PVC. With the attention and support of the Party, the Government and local authorities, close direction and support of PetroVietnam, PVC is resolved to maximize its unity, proactive teaming, creativeness in order to complete the business plan of VU DUC THUAN PRESIDENT & C.E.O

32 DEVELOPMENT PLAN FOR THE YEAR BASIS TO DEVELOP 5 YEAR I. PLAN FOR PVC 5 year plan was developed on the following legal basis: - The Government Decree No. 92/2006/ND-CP dated 7/9/2006 and No. 04/2008/ND-CP dated 11/1/2008 relating to the amendment, supplement to some Articles of the Decree No. 92/2006/ND-CP relating to the development, approval and management of master plan for socio-economic development. - The Decision No. 386/QD-TTg dated 9/3/32006 of the Prime Minister to approve Development strategy of Vietnamese Petroleum Industry by 2015 and direction to The Resolution No. 7610/NQ-DKVN dated 13/10/2008 of Petro Vietnam to adopt the Development Strategy of PVC by 2015 and direction to OBJECTIVE OF 5 YEAR II. PLAN ( ) OVERALL GOAL PVC is striving to become professional construction and investment group, ranking number 1 in Vietnamese construction industry by the end of SPECIFIC OBJECTIVES To focus on three main business areas, namely construction, industrial manufacture and property. - To strengthen operation in the field of building materials, metal structure to serve for construction work of PVC and to supply to the market. - PVC is striving to ensure that by the year 2015: charter capital 10,000 billion VND, total turn over of 35,000 billion VND, average ratio of profit/ charter capital is 20%, average income is 15 million VND/ month. The ration of construction value by the year 2015 will be reduced to 50% of the total. - To maintain high growth rate, to ensure stable employment and to raise income for staffs III. IMPLEMENTATION DIRECTION FOR CONSTRUCTION AREA: - To focus on construction of onshore petroleum project. To gradually expand the operation to international petroleum development projects. At the same time, to build capacity to develop other industrial projects (like thermal power plant, bio-energy plant), civil projects using high-tech in high rise building. Based on the Development Strategy by 2015 and the development direction for 2025, approved by PVC, the specific implementation plan for is to expand and occupy the market in country, to gradually expand operation to the region and international. The specific direction of PVC during this period focuses on the following areas: 32

33 DEVELOPMENT PLAN FOR THE YEAR FOR SPECIALIZED CONSTRUCTION AREA: Construction of petrochemical refinery, gas processing industrial plant and other industrial plant. - To successfully complete Dinh Vu PVTex Plant, Nghi Son and Long Son Petrochemical refinery complex, Phu Tho Binh Phuoc Ethanol Energy Plant, Nhon Trach 2, Thai Binh 2, Vung Ang 1, Long Phu 1 Power Plants. - To participate in construction of some oversea projects invested by PVC. Construction of petroleum storage and transportation. - With regards to the construction of petroleum storage and transportation as EPC Contractor: PVC occupies most of the market share, it is striving to participate in tendering and complete projects which counted about 50% of external market in country, and expand to the South East Asia market. Construction of petroleum offshore projects: - To continue maintaining and repairing offshore projects. - To reinforce project management with good competitiveness compared to other contractors in the region. - To design project items which do not require complicated technology to serve for the construction work of petrochemical refinery plants, gas processing industrial plants and other industrial plants. steel processing plant, valve manufacture plant, welding rod manufacture plant, non-baking brick plant, mechanical processing and building material manufacture plant, pre-tension concrete structure plant, PVC door, aluminum glass door. - To research, explore the international market to identify export opportunities for mechanical products. 3. FOR INVESTMENT, CONSTRUCTION AND PROPERTY BUSINESS - To complete and exploit effectively the invested industrial areas. PVC is striving to fill up industrial areas by 2015, namely Hoang Mai Industrial Area, Nghe An ( hectares), Hoa Cam Industrial Area (120 hectares). To study and invest further in other potential industrial areas, it is strived to manage and operate effectively more than 2000 hectares of industrial area. - To invest and exploit petroleum services like the yard to manufacture metal structures in Sao Mai, Ba Dinh. - To specify and plan investment management for new projects during to ensure completion of development plan, to review and identify investment priority for property projects. - To determine that development of high rise building (from 30 storeys and above) is a potential market, especially for steel structure building. Development of high rise building will count about 7.5% total turnover of PVC in FOR INDUSTRIAL PRODUCTION AREA - To invest in production equipment and installation of non-standard steel structure, tank, tower for petrochemical refinery complex petroleum tank and transportation projects. - To invest in developing industrial plants such as packaging manufacture plants, pipeline coverage plants, welded steel pipe plants, tank 33

34 DEVELOPMENT PLAN FOR THE YEAR INVESTMENT PROPORTION IN DIFFERENT FIELDS BY THE YEAR 2015 SOLUTIONS TO V. IMPLEMENT IN 5 YEARS PLAN ( ) To implement 5 year plan ( ), PVC will concentrate on the development and implementation on 3 break through solutions in Science technology management and human resource development. 1. SCIENCE TECHNOLOGY SOLUTION Applying technology in project management, advanced productions management with high effectiveness. - To establish management tool for quality management and total solutions in order to enhance working effectiveness so as to gradually use the management software in PVC brand name. Construction and installation of petro-chemical refinery plant, gas processing and other industrial plants; Construction of storage system and transportation of petroleum products; Petroleum equipment manufacture and mechanical; Investment in industrial areas, petroleum service base; Construction of high rise building; Business in real estate; Construction and installation of off shore petroleum projects - To maintain and improve management system according to ISO 9001: 2008 in the entire PVC. - To develop and implement according to HSEQ procedures (Health, Safety, Environment and Quality) for all projects of PVC. MAIN TARGETS OF 5 YEAR PLAN IV. ( ) Unit: billion VND 34

35 DEVELOPMENT PLAN FOR THE YEAR To develop management program in the brand name of PVC in progress management, planning management and financial management. - In addition, PVC will work closely with the international cooperation development strategy of Petro Vietnam during the new phase, to develop their own cooperation strategy overseas in order to integrate the project construction of Petro Vietnam overseas. To review, assess the capacity of PVC at the current partnership, joint venture companies, to initiate complex measures in order to protect and develop capital. 2. ORGANIZATION AND MANAGEMENT SOLUTION a.organization and management work - To complete internal management procedures - To build standard position system for each management post - To complete organization structure of PVC in the form of holding subsidiaries Company, and to strongly delegate tasks to Project Steering/ Management Committee and subsidiaries in order to enhance the proactiveness ad to maximize resources of the Company under the supervision and control of the holding Company. - To continue improvement of leaders for units, to prepare personnel for newly established units; to develop planning and assessment of leaders, rotation and nomination, placement of leaders so as to enhance management effectiveness at the subsidiaries. - To continue improvement of management practice at PVC head office and its subsidiaries according to the simple and specialized direction in order to increase working effectiveness and business value of the Corporation. b.capital solution - To enhance the effectiveness of capital utilization by investment according to stages in response to the market demand, taking the earnings from depreciation, profit for investment and development, maximizing the capacity of investment projects. c. Restructure and reform the business - To continue evaluation, classification of units according to business areas, capacity and operational territory to focus on three main areas: construction, industrial production and property business; to develop capital road map at units and to re-structure capital investment plan of PVC; to register upgrading the grade of enterprise; to implement publication and listing stock of joint stock companies where PVC holds the stock on the stock market. - To review, analyze and assess the operational model of PVC, and to recommend method of improvement according to each development stage for strong and sustainable development. - To investigate and attract strategic shareholders who have financial capability, suitable experience. To study, recommend admission of new members to PVC. - To implement the direction of Petro Vietnam in the process of enterprise reform, year d. Social welfare policy - To implement well the welfare policy for employees; to ensure good salary policy with an average income of 2011: 9.1 million VND/ person/ month and 2015: 15 million VND/ person/ month; to improve continously living standards and working conditions for all staff members, especially for those working on the construction site. - To strengthen the assurance of social welfare, care for the living and housing condition for employees. 3. HUMAN RESOURCE TRAINING AND DEVELOPMENT SOLUTION The planning for 3 priority development areas of PVC during the year and 35

36 DEVELOPMENT PLAN FOR THE YEAR direction for 2025 including: construction, industrial production and real estate business (in which the turn over from construction account for 50%) according to the direction of concentration, specialization and developing suitable personnel development strategy according to each area and industry. Such development strategy of PVC during the years and direction of 2025 including: Objective: Being the leading construction companies in Vietnam, PVC has trained the management team and technical staffs with professional qualification, scientific knowledge and leadership skill in construction, investment fields. Annual plan: - To complete training system and human resource development, to strengthen training for management officers according to specialized direction, from the head office to PVC company members. - To develop the plan Training and re-utilizing professional personnel specialized in construction after completing labor export to overseas, in order to maximize experienced, specialized, industrial working style and foreign language after returning from the Middle East, Malaysia, Taiwan to serve for national and international projects of PVC (complete the Project in the first quarter of 2011 and expand annually to the entire phase). - To standardize and improve the quality of recruitment and to improve the utilization of labor source; to exercise breakthrough in the staff nomination policy. - To maximize delegation in managing and developing human resource. 36

37 VIETNAM NATIONAL OIL AND GAS GROUP PETROVIETNAM CONSTRUCTION JOINT STOCK CORPORATION (PVC) AUDITED CONSOLIDATED FINANCIAL STATEMENTS

38 PETROVIETNAM CONSTRUCTION JOINT STOCK CORPORATION (Incorporated in the Socialist Republic of Vietnam) 25th Floor, CEO Building, Pham Hung Road, Tu Liem District, Hanoi City, S.R. Vietnam AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2009 TABLE OF CONTENTS CONTENT PAGE(S) STATEMENT OF THE BOARD OF DIRECTORS AUDITORS REPORT 41 CONSOLIDATED BALANCE SHEET CONSOLIDATED INCOME STATEMENT 44 CONSOLIDATED CASH FLOW STATEMENT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

39 STATEMENT OF THE BOARD OF DIRECTORS 39

40 STATEMENT OF THE BOARD OF DIRECTORS 40

41 199 AUDITORS REPORT Deloitte Viet Nam, Ltd. No.8, Pham Ngoc Thach Rd, Dong Da Dist, Ha Noi city, Viet Nam Tel: Fax: to 72 41

42 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER to 72

43 CONSOLIDATED BALANCE SHEET 47 to 72 43

44 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2009 CONSOLIDATED INCOME STATEMENT to 72

45 CONSOLIDATED CASH FLOW STATEMENT 47 to 72 45

46 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2009 CONSOLIDATED CASH FLOW STATEMENT to 72

47 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 47

48 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

49 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 49

50 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

51 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 51

52 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

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54 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

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56 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

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58 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

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60 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

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62 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

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64 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

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66 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

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68 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

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70 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER

71 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 71

72 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2009 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 72

73 MAJOR PROJECTS 73

74 INDUSTRIAL INFRASTRUCTURE DEVELOPMENT PROJECTS INVESTED BY PVC Tien Giang Petroleum Service Industrial Zone Location: Tien Giang Province Total investment:4,200 billion VND Hoang Mai Industrial Zone Location: Nghe An Province Total investment: billion VND Welded Steel Pipeline Plant Project and Metal Structure Processing Workshop Location: Maritime Petroleum Service Area, Sao Mai, Ben Dinh, Vung Tau Total investment: 1,450 billion VND and 912 billion VND Mechanical Equipment and Metal Structure Manufacturing Workshop at Tien Giang Petroleum Service Industrial Zone Location: Tien Giang Province Total investment: 911 billion VND Nghi Son Mechanical and Building Materials Manufacturing Plant Project Location: Thanh Hoa Province Total investment: 148 billion VND PROJECT OF PETROLEUM TANKS MANUFACTURE FOR PHU MY FERTILIZER PLANT 74

75 MAJOR PROJECTS CIVIL CONSTRUCTION PROJECTS TO SERVE FOR PETROLEUM INDUSTRY Hoai Duc Petroleum Urban Zone Location: Hoai Duc, Hanoi Implementation value: 2,000 billion VND Phu My Hung Petroleum Trading and Finance Center Location: Ho Chi Minh City Implementation value: 1003,684 billion VND Vietnam Petroleum Institute Project Location: Hanoi Implementation value: 938 billion VND High Quality Apartment at 97 Lang Ha Location: Hanoi Implementation value: billion VND Nghe An Petroleum Building Location: Nghe An province Implementation value: 515 billion VND PROJECT OF PHUONG DONG HOTEL IN NGHE AN Vung Tau Petroleum New Urban Area Location: Vung Tau City Implementation value: 1,500 billion VND PROJECT OF DRAGON TOWER PROJECT OF PETROLEUM FINANCE CENTER 75

76 CIVIL CONSTRUCTION PROJECTS TO SERVE FOR PETROLEUM INDUSTRY Administration Building and Accommodation for Management Department of Ca Mau Gas, Power and Nitrogen Project, Phase 3 Location: Ca Mau Province Implementation value: 277 billion VND APARTMENT PROJECT PETROLAND DISTRICT 2 Petroleum Financial Centre, Hanoi Location: No. 22 Ngo Quyen, Hanoi Implementation value: 267 billion VND Hoang Mai Petroleum Urban Zone Location: Nghe An Province Implementation value: billion VND Petroland Apartment in District 2 Location: Binh Trung Dong Precinct, District 2, Ho Chi Minh City Implementation value: 425 billion VND PROJECT FINANCE TRADE CENTER PHU MY HUNG PETROLEUM PROJECT OF PETROLEUM INSTITUTE PROJECT OF NGHE AN PLAZA CENTER 76

77 MAJOR PROJECTS PROJECT OF VIETNAM PETROLEUM HOTEL COMPLEX THE COMMERCE- OFFICE- APARTMENT BUILDING COMPLEX IN VUNG TAU PROJECT OF NAM RONG DOI MOI OIL FIEL PROJECT OF DUNG QUAT REFINERY 77

78 THERMAL POWER PROJECTS Long Phu Thermal Power Plant Location: Soc Trang Province Total investment: 28,500 billion VND Role: EPC Contractor Ca Mau I & II Power Plant Location: Ca Mau Province Implementation value: 30 billion VND Role: Construction work Nhon Trach II Power Plant Location: Dong Nai Province Total investment: 1,366 billion VND Vung Ang 1 Power Thermal Plant Location: Ha Tinh Province Total investment: 1,454 billion VND Ground levelling work project for Thai Binh II Electric Centre Location: Thai Binh Province Total investment: 336 billion VND 78

79 MAJOR PROJECTS PROJECT OF CA MAU THERMAL ELECTRIC PLANT PROJECT OF CA MAU 1 POWER PLANT PROJECT OF NHON TRACH 2 THERMAL ELECTRIC PLANT 79

80 EPC CONTRACTOR IN INDUSTRIAL AND PETROLEUM SPECIALIZED PROJECTS Bio Ethanol Plant in Phu Tho Location: Phu Tho Province Total investment: 1,032 billion VND Dinh Vu Polyester Plant Location: Hai Phong City Total investment: 1,000 billion VND Gas Pipeline Construction, Lot B, O Mon Location: Hau Giang Province Investment valua in partneshipwith VSP-PTSC: 800 billion VND Polypropylene Plant Location: Quang Ngai Province Total investment: 560 billion VND Ground levelling for Nghi Son Petrochemical Refinery Plant Location: Thanh Hoa Province Total investment: 521 billion VND Cu Lao Tao Petroleum Tank Location: Vung Tau City Total investment: 490 billion VND Go Dau LPG Project Location: Tay Ninh Province Total investment: 168 billion VND PROJECT OF LEVELLING OF NGHI SON REFINERY 80

81 MAJOR PROJECTS PROJECT OF WHARFS FOR DUNG QUAT REFINERY PROJECT OF CU LAO TAO TANK 81

82 COMPANY MEMBERS HANOI PETROLEUM CONSTRUCTION J.S.C (PVC HN) Head office: 5th Floor, Sannam Building, Dich Vong Ward, Cau Giay, Hanoi Tel: Fax: PETROLEUM MECHANICAL MACHINERY CONSTRUCTION J.S.C (PVC-ME) Head office: Sannam Building, Dich Vong Ward, Cau Giay, Hanoi Tel: Fax: PETROLEUM METAL STRUCTURE AND EQUIPMENT INSTALLATION J.S.C (PVC MS) Head office: No. 35G, 30/4 Road, Ward 9, Vung Tau City Tel: Fax: Website: pvc-ms.vn PETROLEUM PIPELINE & TANK CONSTRUCTION J.S.C (PVC PT) Head office: 33A 30/4 Road, Ward 9, Vung Tau City Tel: Fax: MIEN TRUNG PETROLEUM CONSTRUCTION J.S.C (PVC-MT) Head office: 1st Floor, EVN Building, Land Central, No. 78A Duy Tan, Hai Chau District, Da Nang City Tel: Fax: PETROLEUM INDUSTRIAL & CIVIL CONSTRUCTION J.S.C (PCV-IC) Head office: No. 35D, 30/4 Road, Ward 9, Vung Tau City Tel: / / Fax: PETROLEUM CONSTRUCTION JOINT STOCK COMPANY - NGHE AN (PVNC) Head office: 45 Tran Phu, Vinh City, Nghe An Tel: / Fax: xdddaukhina@yahoo.com.vn Website: PETROLEUM INVESTMENT CONSULTANCY AND DESIGN JSC (PVE) Head office: 8th Floor, CT Plaza Building, No. 60A Truong Son, Ward 3, Tan Binh District, Ho Chi Minh City Tel: Fax: pve@pvengineering.com.vn Website: PETROLEUM URBAN DEVELOPMENT JSC (PVC-CM) Head office: No. 3 An Duong Vuong, Ward 7, Ca Mau City, Ca Mau Province Tel: Fax: pvccm@pvccm.vn Website: SAIGON PETROLEUM CONSTRUCTION AND INVESTMENT JOINT STOCK COMPANY (PVC-SG) Head office: 8th Floor, Medinanet Building, 11 Bis Nguyen Gia Thieu, Ward 6, District 3, Ho Chi Minh City Tel: ; Fax:

83 SUBSIDIARIES COMPANY MEMBERS VINACONEX PVC CONSTRUCTION AND INVESTMENT J.S.C (VINACONEX PVC) Head office: 10th Floor, CT3-3 building, Me Tri Ha Urban Area, Pham Hung Road, Tu Liem, Hanoi Tel: Fax: PETROLEUM INVESTMENT & TRADING JSC NGHE AN (PVIT) Head office: No.12 Tecco, Quang Trung, Vinh City, Nghe An Tel: Fax: Website: 12/9 PETROLEUM CEMENT JSC (PVC-12/9) Head office: Km 62, National Road No. 1, Hoi Son, Anh Son, Nghe An Tel: Fax: Website: IDICO LONG SON PETROLEUM INDUSTRIAL ZONE INVESTMENT JSC (PIV LONG SON) Head office: 3rd Floor, Hodeco Plaza, No. 36 Nguyen Thai Ho, Ward 7, Vung Tau City, Ba Ria Vung Tau Tel: Fax: GAS CONSTRUCTION AND INVESTMENT JSC (PVID) Head office: 3rd floor, No. 1A Nguyen Trung Truc, Ward 9, Vung Tau City Tel: Fax: VIETUBES CORPORATION LIMITED (VIETUBES) Head office: Road No. 11, Dong Xuyen Industrial Area, Rach Dua Ward, Vung Tau Tel: /839268/839269/ Fax: Website: PETROVIETNAM CONSTRUCTION INVESTMENT JSC (PVCI) Head office: Room 2207, 22nd Floor, 57 Lang Ha Building, Dong Da, Hanoi Tel: Fax: Website: PETROWACO PROPERTY JSC (PETROWACO) Head office: No. 52 Quoc Tu Giam, Van Mieu Ward, Dong Da District, Hanoi Tel: Fax: Website: PETROLEUM INFRASTRUCTURE AND URBAN INVESTMENT JSC (PETROLAND) Head office: No. 16 Truong Dinh, Ward 6, District 3, Ho Chi Minh City Tel: / Fax: Website: 83

84 COMPANY MEMBERS PETROLEUM CONSTRUCTION 1 JSC (PVC1) Head office: No. 242 National Road No. 9, Dong Da District-town, Quang Tri Tel: Fax: HEERIM PVC INTERNATIONAL DESIGN JSC (PVC HEERIM) Head office: 4th Floor, CEO Building, Pham Hung Road, Hanoi Tel: (844) / (844) Fax: (844) Contract@heerimpvc.com Website: SOUTHERN PETROLEUM BUILDING DEVELOPMENT AND MANAGEMENT JSC (PV SBD) Head office: Apartment 1, Long Tho Residence Area, Phuoc An, Nhon Trach, Dong Nai Tel: / / Fax: PETROLEUM BUILDING MANAGEMENT AND DEVELOPMENT JSC (PV BUILDING) Head office: CNCNVNMLD Dung Quat Residence Area, Van Tuong New Urban Area, Binh Son, Quang Ngai Tel: Fax: PACIFIC PETROLEUM CONSTRUCTION JSC (PVC-TBD) Head office: 48B Dang Dung, Tan Dinh Ward, District 1, Ho Chi Minh City Tel: ; Fax: Website: KINH BAC PETROLEUM CONSTRUCTION AND INVESTMENT JSC (PVC KBC) Head office: No. 5 Le Quy Don, Suoi Hoa Ward, Bac Ninh City, Bac Ninh Province Tel: Fax: HIGH TECH CONCRETE INVESTMENT JSC (SOPEWACO) Head office: Ong Keo Industrial Zone, Hamlet 3, Tay Khanh Village, Phuoc Khanh commune, Nhon Trach District, Dong Nai Province Tel: / Fax: PETROLEUM CONSTRUCTION 4 JSC (PVC4) Head office: No. 6 Alley 192, Giai Phong Road, Phuong Liet Ward, Thanh Xuan, Hanoi Tel: Fax: PVC TRUONG SON PETROLEUM CONSTRUCTION JSC (PVC-TS) Head office: No. 98 Huu Nghi Road, Dong Hoi, Quang Binh Tel: Fax: PETROIMICO CONSTRUCTION INVESTMENT JSC (PVC- IMICO) Head office: Office No. 1: 4th Floor, No. 623 La Thanh, Ba Dinh District, Hanoi Tel: Fax: info@pvc-imico.vn Website: 84

85 SUBSIDIARIES COMPANY MEMBERS PETROVIETNAM MECHANICAL ELECTRICITY JSC (PVM&E) Head office: Floor 4, LOD Building, No.38, Nguyen Phong Sac street, Cau Giay Dist, Ha Noi Tel: Fax: PETROLEUM HIGH-CLASS SERVICE JSC (PVR) Head office: 6th Floor, Anh Minh Building, 36 Hoang Cau, Dong Da District, Hanoi Tel: Fax: Website: HONG HA PETROLEUM JSC (PVC HONG HA) Head office: 206A Nguyen Trai, Thanh Xuan, Hanoi Tel: Fax: Website: NHA TRANG PETROLEUM INVESTMENT JSC (PVIN) Head office: 04 An Duong Vuong, Phuoc Tan Ward, Nha Trang, Khanh Hoa Tel: Fax: PETROLEUM POWER PROPERTY JSC (PVPOWER LAND) Head office: 3rd floor, CEO Building, Pham Hung Road, Tu Liem, Hanoi Tel: Fax: Website: PETROLEUM INTERNAL AND EXTERNAL EQUIPMENT JSC (PVC-METAL) Head office: 5th floor, Media building, No. 11 Bis Nguyen Gia Thieu, Ward 6, District 3, Ho Chi Minh City Tel: Fax: PVC FECON PRE-TENSION CONCRETE JSC (PVC-FECON) Head office: Thi Son Industrial Group Zone, Kim Bang District, Ha Nam Tel: Fax: Website: pvc-fecon.com.vn PETROLEUM CONSTRUCTION AND TRADING INVESTMENT JSC (PV-SSG) Head office: No. 8 Le Tai To, 7th floor, Bao Viet Building, Hanoi Tel: Fax: Website: pv-ssg.com.vn PETROLEUM FINAL AND PROPERTY JSC (PVFC LAND) Head office: No.9 CT5, My Dinh Urban Area, Me Tri, Tu Liem, Hanoi Tel: Fax: info@pvfc-land.com.vn Website: pvfc-land.vn SONG HONG CONSTRUCTION JSC Head office: No. 164 Lo Duc, Dong Mac, Hai Ba Trung, Hanoi Tel: Fax: Website: incomex.com.vn 85

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