Petrovietnam arm sees profitability from newly-acquired fertilizer plant, lowers 2024 profit target
The Korea-Vietnam NPK fertilizer factory has become profitable one month after being acquired by Petrovietnam Ca Mau Fertilizer JSC (PVCFC), a subsidiary of state-owned Petrovietnam.
The South Korean-invested factory was established by Korea-Vietnam Fertilizer Co., Ltd. (KVF) in 2015, with a total investment of $60 million and an annual designed capacity of 360,000 tons.
Becoming operational in 2018, the facility received a total of $83 million in investments from its previous investors. However, the plant has posted yearly losses since then, barring one year.
PVCFC, listed on the Ho Chi Minh Stock Exchange as DCM, acquired the plant for $23.6 million in May, and it has become lucrative within one month, DCM’s general director Van Tien Thanh said at the firm’s 2024 AGM held on Tuesday.

Petrovietnam Ca Mau Fertilizer JSC holds its 2024 AGM in HCMC on June 11, 2024. Photo courtesy of the firm.
The acquisition of KVF is expected to significantly enhance DCM’s capacity and boost its growth in the southeastern, Central Highlands, and central regions, thanks to the plant’s proximity to Hiep Phuoc port in the southern metropolis of Ho Chi Minh City.
In addition to the KVF acquisition, DCM has completed the purchase of a land lot in HCMC to overhaul its representative office, Thanh stated.
This year, the company will invest VND1.58 trillion ($62.18 million) in various projects, including a warehouse with a storage capacity of 12,000 tons, a fertilizer plant in the central province of Binh Dinh, a warehouse in Nhon Trach district, the southern province of Dong Nai, energy transition, and industrial gas production, among others, the executive added.
Thanh forecast that the fertilizer market is expected to continue to face challenges from high interest rates, geopolitical instability, fuel price surges, unpredictable weather conditions, serious saline intrusion, and the high demand for gas for electricity production.
Fertilizer prices are set to remain flat amid intense competition between countries, Thanh noted, anticipating a continued decrease in demand for fertilizer due to shrinking farmland, unstable farm produce prices, and climate change.
As a result, the firm is targeting VND11.87 trillion ($466.86 million) in consolidated revenue and VND795 billion ($31.25 million) in consolidated net profit in 2024, down 10% and 28% from 2023, respectively. It also plans to pay a cash dividend of 10%, or VND1,000 a share, half of that for 2023.
In 2023, the firm earned VND13.17 trillion ($517.72 million) in revenue and VND1.11 trillion ($43.63 million) in net profit, down 19% and 74% year-on-year, respectively. Due to weakening demand, its urea fertilizer price slumped 34.8% to $352.7 per ton though its urea sales inched up 4% to 956,000 tons, and those of NPK fertilizer rose by 31%.
At present, DCM holds 61% of the market share in the southwest, 30% in the Central Highlands, 28% in the southeast, 18% in the central region, and 8% in the north.
Regarding exports, the company has shipped its products to more than 20 countries, with exports making up 27% of total volume and 25% of total revenue, at 344,000 tons and $136 million, respectively. Cambodia is the company’s largest export market, representing over 60% of volume and value. DCM holds a market share of 48% of in Cambodia.
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