PVFCCo - Leader of Vietnam's Petrochemical Industry

9:24:15 AM | 6/14/2022

The achievements of Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo) in the past 19 years have confirmed the role and position of PVFCCo in Vietnam National Oil and Gas Group (Petrovietnam) and in the national economy, becoming the leader of Vietnam's petrochemical industry.

Phu My Fertilizer serves nearly 40% of the demands of the country

Vietnam is an agriculture-based country, a top rice exporter in the world and it needs more than 2 million tons of nitrogen fertilizer a year. By the end of the 1990s, the country had only Ha Bac Nitrogenous Fertilizer Factory, which was able to meet just 7 - 10% of the domestic demand, while the rest came from imports which cost a lot of money.

Besides, as the domestic urea market depended almost entirely on the international market, urea prices fluctuated with world rates. This caused farmers and fertilizer companies to suffer adverse effects whenever fertilizer prices went up and down. When fertilizer prices looked up, farmers incurred losses but when they fell, traders suffered losses and went bankrupt.

Without a doubt, the birth of Phu My Fertilizer Plant, officially inaugurated in December 2004 by PVFCCo, came from a very right policy that was of great, special significance to agriculture, rural areas and farmers in Vietnam. This was a fundamental solution to solve all the above issues.

At that time, Dam Phu My-branded nitrogen fertilizers met nearly 40% of the domestic demand, radically changed the supply and demand balance and the fertilizer market, and significantly reduced dependence on imports, mitigating adverse impacts from speculation and external influences, and stabilizing the domestic market. Eventually, the products helped stabilize input sources for agricultural production.

Besides, with the presence of Phu My fertilizer distribution system, the business performance of fertilizer agents became much more stable than when they traded imported goods. Foreign currencies that we used to spend on nitrogenous fertilizer imports were spared for other important programs of the country. Phu My fertilizers quickly affirmed their prestige and elevated the pride of Vietnamese brands, practically promoting and inspiring Vietnamese people to opt for Vietnamese goods.

Constantly expanding capacity

After two decades of development, PVFCCo has continuously improved its production, business and corporate governance capacity to become a leader in Vietnam's fertilizer industry. Currently, PVFCCo is operating two modern fertilizer factories with a yearly output capacity of 1 million tons, securing No. 1 position in the fertilizer industry by market share, competitiveness and brand value.

PVFCCo has produced and supplied tens of millions of tons of fertilizers for the agricultural industry in the past two decades, earning a profit of VND30 trillion and paying more than VND6 trillion to the State Budget. PVFCCo has successfully built a wide distribution system with thousands of distributors at all levels to bring its products to farmers in all parts of the country. As a result, the firm has directly and effectively helped the Government's macro-regulating policies, stabilized the market and eased inflationary pressures.

Especially in recent years, PVFCCo has also promoted its international business development. From a major urea importer, Vietnam has gradually affirmed its name on the urea export map, where Dam Phu My fertilizer brand is a typical example.

With the slogan "For a bumper season", since its inception, PVFCCo has always researched and invested to make high-quality fertilizer products for farmers to harvest bountiful crops. From only one product, urea, in the early stages, PVFCCo now has a wide range of fertilizer products, including Phu My Nitrogenous Fertilizer, Phu My Potassium and Phu My NPK. It has also launched new products such as Kebo fertilizer, or most recently microbial organic NPK fertilizer, the first line of inorganic fertilizer containing beneficial microorganisms for the market. This new product is also PVFCCo's way of showing practical understanding and sharing with farmers in the context of rising agricultural production costs and goes in line with the business philosophy that PVFCCo always pursues - caring, social responsibility and sustainable value for customers.

Pioneer in social responsibility

Besides doing business well, PVFCCo always plays the leading role in implementing social and community responsibility. The company has spent more than VND1,000 billion on social security in the past years. In the spirit of "responsibility-sharing", the firm has built a lot of houses, health, cultural, educational and transport projects throughout the countryside and shared them with thousands of ill-fated people.

Wherever people are struggling with hardships caused by natural catastrophes such as drought, flooding and crop failures, PVFCCo is present in a timely manner to encourage, share and support them to live through a hard time. In 2021, when the COVID-19 pandemic raged, PVFCCo ensured its safe, continuous and efficient production and business operations and actively launched many programs to support frontliners in the fight against the pandemic, support hard-hit families and orphaned children because of COVID-19. Most prominently, the "For loving, sharing Tet" program launched by PVFCCo in 50 provinces and cities across the country gave a total of about 20,000 gifts to many families to enjoy a happy time in the context of the pandemic contagion.

PVFCCo's achievements in the past years have affirmed its role and position in Vietnam National Oil and Gas Group and in the national economy, praised by the Party and the Government and trusted by farmers. PVFCCo is deserved to be the leader of Vietnam's petrochemical industry.

With strong vitality and bravery, on the next step of development, based on the planned development strategy and clear specific solutions, plus ongoing effort, relentless commitment and high determination of the leadership and the staff, PVFCCo is confident to continue harvesting greater achievements and making positive contributions to Vietnam's economic and social development and agriculture as well.

By Vietnam Business Forum