From the time the first Phu My fertilizer grains were born until becoming a national brand, PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo, stock code DPM) has gone through a journey of more than two decades of continuous development, perseverance and steadfastness with the mission of accompanying Vietnamese agriculture. Now, with a far-reaching vision and new aspirations, PVFCCo is gradually realizing the strategy of "going beyond the continent", aiming to become the leading green energy - chemical group in Southeast Asia.
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| Phu My Fertilizer Plant. Photo: petrotimes.vn |
Born in the context of the country rushing to rebuild agriculture and industrialization, PVFCCo was officially established in 2003, a member unit of the Vietnam National Oil and Gas Group. However, PVFCCo's journey actually began in 2001, when the Phu My Fertilizer Plant construction project was launched - a milestone opening a new era for the domestic fertilizer industry. After only three years, in 2004, the plant went into operation, officially supplying the market with the first urea product under the Phu My brand - a symbol of quality, sustainability and trust of farmers. Since then, PVFCCo has continuously expanded its scale, improved its production and business capacity. In 2007, the company equitized and listed DPM shares on the HOSE, marking a strategic step in mobilizing social resources for long-term development. By 2008, the enterprise officially became a Corporation, expanding its scope of operations to the fields of chemicals and technical services. Increasing the capacity of Phu My Fertilizer Plant to 800,000 tons of urea/year in 2010, reaching 5 million tons of products in 2011, demonstrated the effectiveness of the methodical investment orientation and long-term vision of the enterprise.
PVFCCo is also one of the few Vietnamese enterprises recognized as a National Brand since 2014. This is not only an affirmation of the prestige of Phu My products in the market, but also a source of pride for the domestic chemical and fertilizer industry. With a pioneering spirit, 2015 marked a new turning point when PVFCCo invested in a complex project to expand NH3 and build a modern chemical technology NPK plant. By 2018, this complex came into operation, increasing the capacity of the NH3 plant by 90,000 tons/year and producing 250,000 tons of high-quality NPK/year - contributing to product diversification, meeting the strict needs of the market.
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| PVFCCo's products were voted by consumers as "High Quality Vietnamese Goods" for the 22nd consecutive time. Photo: dpm.vn. |
In particular, 2022 is an explosive year with many records set: production output of nearly 920,000 tons, export of nearly 200,000 tons of urea, revenue of nearly VND 20,000 billion, profit of more than VND 6,600 billion - the highest in history. That is not only the result of a flexible strategy, but also a testament to PVFCCo's intrinsic strength in the context of a volatile market.
Entering 2024, PVFCCo introduced a new brand identity called Phu My - a step showing rejuvenation, modernization and stronger international integration. With a clear orientation to become a pioneering chemical and green energy manufacturer, PVFCCo is actively investing in the fields of basic chemicals, petrochemicals and clean energy products such as "green" NH3, contributing to realizing the commitment to sustainable development, friendly to the environment.
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| After more than 20 years of formation and development, PVFCCo has renewed its name and brand expression - Phu My. Photo: PVFCCo. |
Along with the product development strategy, PVFCCo also focuses on financial and management strategies. Recently, the State Capital Management Committee at Enterprises (CMSC) approved the policy of increasing charter capital from VND 3,914 billion to VND 6,800 billion from the Development Investment Fund. This is a strategic decision to remove capital bottlenecks, improve competitiveness, increase investment opportunities and expand business scale. With equity reaching nearly VND 11,236 billion by the end of 2024, total assets of nearly VND 16,531 billion, PVFCCo owns a solid financial foundation to make a breakthrough in the coming period.
Regarding business results, in 2024, PVFCCo recorded revenue of VND 13,496 billion and profit after tax of VND 610.4 billion - an increase of 12% over the previous year. Gross profit margin improved significantly from 12.1% to 14.1%, thanks to urea output reaching 898,000 tons, up 2%. The company plans for 2025 with consolidated revenue of VND 12,876 billion and pre-tax profit of VND 410 billion. Although the profit target decreased by 41% compared to the previous year, it was the result of a cautious strategy in the context of the factory undergoing general maintenance.
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| PVFCCo 2024 General Meeting of Shareholders - Mr. Nguyen Xuan Hoa was elected Chairman of the Board of Directors. |
Notably, PVFCCo plans to pay dividends in cash. In 2024, it is expected to be 15% (VND 1,500/share); in 2025, it is expected to be 12% based on charter capital. Notably, the Board of Directors will submit a plan to issue 288.6 million bonus shares to existing shareholders, equivalent to 73.7% of outstanding shares. This means that for every 1,000 existing shares, shareholders will receive 737 new shares.
The first quarter of 2025 has recorded positive signals: Phu My Fertilizer output is estimated at 224,085 tons, equal to 102% of the quarterly plan and 29% of the annual plan; Phu My NPK reached 38,445 tons, up 28% over the same period; Commercial NH3 reached 16,328 tons - a good start for the strategic year.
In the export market, PVFCCo is contributing to the total fertilizer turnover of the country reaching nearly 710 million USD with an average price of 411.1 USD/ton, an increase of 11.7% in volume, in 2024, an increase of 9.4% in turnover but a slight decrease of 2% in price compared to the same period in 2023. Cambodia is the largest export market, accounting for more than 34% of volume; followed by South Korea and the Philippines. Forecasts from IFA show that global urea demand will increase by 6% in the period 2024–2028, fertilizer prices will increase slightly by about 3–5% in 2025 – opening up many great opportunities for PVFCCo to increase its export market share.
In the long-term picture, PVFCCo sets ambitious strategic development milestones: playing a leading and creative role in the fertilizer sector in the domestic market, in line with the Government's 2021-2025 rural agricultural development strategy. Initially expanding business and chemical production, focusing on researching opportunities to develop the petrochemical sector, clean energy such as "green" NH3; 2026-2030 period: investing in expanding production scale in both fertilizer and chemical sectors on the principle of optimal use of PVFCCo's infrastructure and resources, integrating with the existing Phu My Fertilizer Plant and PVN's petrochemical refining projects; 2031-2035 period aims to become a leading enterprise in fertilizer and chemicals in Vietnam, with a global brand, realizing the aspiration of "going beyond the continent".
The journey of more than 20 years from a simple urea factory to a national brand named Phu My is a vivid demonstration of PVFCCo's remarkable growth - not only in production and business but also in strategic thinking, in sustainable commitment and social responsibility. The first nitrogen seeds have now sprouted into a green - clean - smart product ecosystem, contributing to raising the level of Vietnamese agriculture, promoting national industrialization and creating a green development future for future generations.
With a solid foundation, great aspirations and the trust of the community, shareholders and employees, PVFCCo is confidently entering a new chapter with a mission not only for today's nitrogen seeds, but also for a green future, for the national position in the international arena - where the Phu My brand will be a bright representative of Vietnamese intelligence, courage and aspiration.
