State-run Vietnam National Chemical Group recorded a consolidated profit of VND4,098 billion ($175 million) in the first six months of the year, 31 times higher than the same period last year.
The giant reported consolidated revenue of VND32,830 billion ($1.4 billion) in the period, a 26% rise year-on-year.
In the revenue structure, fertilizers and pesticides accounted for VND19,769 billion ($846.7 million), up 33%, followed by rubber, apatite, electrochemistry, basic chemicals, and industrial mechanics.
Vietnam's post-pandemic recovery has helped drive up consumer demand, according to the chemicals group. Vinachem also benefited from the agro-forestry's positive results, with a sharp increase in farm produce export.
However, it was also affected by global uncertainties, inflation pressure, and the Russia-Ukraine conflict.
VnDirect, a leading securities broker, forecasts global fertilizer prices would decrease because prices in North America have dropped sharply since March. Besides, China has approved an increase in yellow phosphorus capacity by 356,000 tons per year for the period 2023-2024, from the current level of 1.4 million tons. Therefore, the price of this item would cool down in 2023, the broker said.
Such market developments may be challenges for Vinachem in the coming time as fertilizers, pesticides, basic chemicals, and industrial gases account for about two-thirds of its total revenue.