Vietnam fertilizer major PVFCCo expands trade, diversifies supply

Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo or Phu My, HoSE: DPM), a subsidiary of state-owned Petrovietnam, said it is currently handling the shipment of 45,000 tons of granular urea to India - one of the world’s largest and most promising fertilizer markets.

The order represents PVFCCo’s highest-value export so far this year, marking a key step in its strategy to boost exports while expanding imports, diversify supply sources, and optimize business efficiency, the company said on Wednesday.

The vessel has docked and officially begun cargo operations. Unloading is planned to proceed continuously and is expected to be completed by August 20.

The transaction underscores Phu My’s superior production capacity, efficient supply chain operations, and the brand’s top-quality products in the international market.

PVFCCo emphasized that export activities are always conducted on the principle of fully meeting domestic demand first and exporting only when international prices and trade conditions offer better returns than domestic sales. This enables the company to secure domestic fertilizer supply while maximizing value from international markets.

In recent years, the company has maintained steady growth in export volumes, reinforcing its reputation and position on the global fertilizer map. Phu My urea exports have so far this year reached 120,000 tons, reflecting sustained demand from international markets and laying a solid foundation for large-scale contracts.

After securing a strong foothold in key markets, PVFCCo will prioritize exports when pricing and profitability are optimal, focusing on industrial customers in Japan, South Korea, Australia, and Taiwan - markets that demand strict quality standards, high value-added products, and long-term stable contracts.

Alongside exports, it has stepped up imports of fertilizers, chemicals, and key raw materials for production. Potash - a product not produced domestically - serves as a core import, alongside SA, DAP, NPK, organic fertilizers, H₃PO₄, and H₂SO₄.

Since the start of 2025, PVFCCo has imported around 240,000 tons of fertilizers and chemicals, ensuring stable raw material supply, diversifying sources, and boosting production capacity and revenue.

In H1, PVFCCo produced over 450,000 tons of urea and more than 111,000 tons of NPK, fulfilling 136% of its plan. Revenue reached VND9.42 trillion ($358.64 million), with net profit at VND890 billion ($33.88 million), up 29.8% and 2.2% year-on-year, respectively. Notably, PVFCCo was recently named among Vietnam’s to 50 listed companies by Forbes in 2025.

A PVFCCo representative said the company’s success stems from safe and stable production operations, expanded product lines and markets, and effective execution of export-import opportunities.

In H2, the company plans to continue controlling costs, optimizing production, conducting comprehensive plant maintenance, developing new products (organic fertilizers, bio-fertilizers, and chemicals), and boosting export-import activities to surpass its full-year targets.

On the Ho Chi Minh Stock Exchange (HoSE), DPM shares closed Tuesday at VND28,800 ($1.1) each.