Vietnam Chemical Group: Journey of Breakthrough Efforts and Innovation

The result of the restructuring and innovation process is the breakthrough growth in revenue and profit, continuously setting new records in the Group's 56-year history. From 2021 to present, Vinachem has continuously made a profit; especially in 2022, the Group's total revenue is estimated at VND 62,262 billion - the highest level ever (119% of the annual plan), profit increased to over VND 6,200 billion, setting a historical record. In 2023, Vinachem continued to achieve impressive results with a profit of over VND 3,200 billion after only 2022. In the period 2020-2025, the average income of employees reached VND 13.39 million/person/month, an increase of 45% compared to the average level in the period 2015-2020. These telling figures clearly demonstrate Vinachem's efforts to overcome difficulties and rise strongly compared to the previous period. The Vietnam Chemical Group (Vinachem) has affirmed its position as the core force of the Vietnamese chemical industry.

The journey of continuous efforts

On August 19, 1969, the General Department of Chemicals was established. In 2010, the Vietnam Chemical Group converted to a single-member limited liability company owned by the State - a milestone that created a new position and strength to develop the Vietnamese chemical industry in the new era.

In the period of 2016-2020, Vinachem faced unprecedented challenges when many large-scale projects fell into losses and were ineffective; production and business targets decreased, market share narrowed, and debt pressure increased. Overcoming difficulties, the Group still maintained revenue growth and ensured jobs and stable income for nearly all workers. In particular, from 2021 to now, thanks to the efforts of the business community and the drastic solutions of the Government and ministries, Vinachem has basically removed the remaining bottlenecks, transforming dramatically from the risk of downsizing to profitable business with revenue and profit reaching the highest level in history consecutively in the years 2022 - 2024.

By the end of the second quarter of 2025, the Group had eliminated all accumulated losses, completing the goal of "no more accumulated losses by the end of 2025" 6 months ahead of schedule. This marked Vinachem's escape from a period of prolonged difficulties, opening a new page full of prospects in the Group's operations. A notable success associated with the recovery process is the "revival" of weak projects that were once on the list of trillion-dollar losses. Among the four loss-making fertilizer projects of Vinachem, DAP-Vinachem Company (Dinh Vu DAP Plant, Hai Phong) became the first unit to be removed from the list of weak companies in 2021 thanks to its continuous stable profits from 2018 to present.

Other projects such as Ha Bac Fertilizer, Ninh Binh Fertilizer and Lao Cai DAP have also been gradually restructured and restored to stable operations. In 2022, these three units achieved a total profit of more than VND 2,600 billion (an increase of VND 2,800 billion compared to 2021); in 2023, they continued to have a profit of over VND 1,000 billion - helping Vinachem exceed the annual profit plan by 108%, contributing to the budget and ensuring jobs for thousands of workers. Thanks to persistent efforts, all four previously loss-making projects have now come into effective operation. Currently, these factories have operated at over 80% of their designed capacity, and all products have been sold, helping units ensure financial balance and expand production and business activities.

Innovation and dual transformation for sustainable development

On the path of breakthrough, Vinachem pays special attention to promoting science and technology and innovation to enhance competitiveness, towards sustainable development. The Group has built a Science and Technology and Digital Transformation Program for the period 2025–2030 (vision 2040); actively researching high-tech chemical products to participate in the semiconductor industry value chain, while encouraging and widely applying innovative initiatives in production and business. At the same time, Vinachem launched a green transformation program to 2050 with a focus on energy saving, increasing automation and applying robots in production, aiming for long-term green growth.

Leading the trend of the Industrial Revolution 4.0, Vinachem pioneered the implementation of "dual transformation" - both digital transformation and green development in the entire chemical industry. The Group has organized many seminars, signed cooperation agreements with research institutes, universities and technology enterprises to promote innovation in all areas of operation. The breakthrough was marked by Vinachem's successful construction and operation of the VinachemMart e-commerce platform - the first digital platform dedicated to the Vietnamese chemical industry. This trading platform helps digitize the supply chain, directly connect manufacturers with consumers, make the market transparent, optimize logistics costs, shorten market access time and expand export opportunities. VinachemMart is also integrated with data analysis tools and automatic customer care, gradually applying artificial intelligence (AI), thereby creating an advanced e-commerce ecosystem for the chemical industry.

Not only digital transformation, Vinachem also focuses on building smart factories and implementing the "4.0" production model at many member units. Many facilities have initially applied automated production lines, digital energy management systems and advanced production management software; thereby improving productivity, saving costs and minimizing environmental risks. The transition from traditional production models to digital production not only enhances competitiveness but also contributes to creating cleaner, more sustainable production in the long term. Along with production, in the environmental field, Vinachem has implemented a project to recycle gypsum waste (by-products from fertilizer production), and at the same time built a roadmap to reduce emissions towards the goal of Net Zero by 2050 - affirming the pioneering role of state-owned enterprises in sustainable development.

As the leading fertilizer producer in the country, Vinachem plays a key role in stabilizing the supply of agricultural materials, thereby ensuring national food security. In its development strategy, the Group focuses on producing high-quality fertilizers, providing nutrients suitable for the needs of crops, aiming for green agriculture and the country's long-term food security goals. Thanks to that, nitrogen fertilizers, phosphate fertilizers, DAP... supplied by Vinachem have contributed significantly to bumper crops, making Vietnam a leading agricultural exporter.

Steady steps into the future, reaching the regional level

After 56 years of construction and growth, Vinachem has the right to be proud of its great contributions to the country's construction and innovation. Not stopping at the achievements it has achieved, the Group is continuing to strengthen its internal strength, proactively taking the lead in modern technology trends and deeply integrating into the international economy. Vinachem aims to become one of the leading chemical groups in the region in the near future, while constantly enhancing its reputation and expanding the influence of Vietnamese chemicals in the regional and world markets.

Looking to the future, Vinachem has set a target of 10% growth in 2025, creating a solid foundation to achieve double-digit growth in the 2026–2030 period. High determination with specific goals will be the premise for Vinachem to continue to grow rapidly, strongly and sustainably in the new period. With the approved strategic orientations, Vinachem is determined to pursue a green and sustainable growth model, taking technological innovation and digital transformation as the driving force for development. Promoting the motto "from vision to action", the Group is determined to turn goals into specific, strong and effective actions, continuing to make worthy contributions to the cause of industrialization and modernization of the country in the new period.

By Thao Hien, Vietnam Business Forum