PVFCCo Constantly Improving Competitiveness for Sustainable Development

1:33:01 PM | 10/10/2019

In 16 years of development (2003 - 2019), PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo) has enjoyed robust development. The conversation with Mr. Le Cu Tan, General Director of PVFCCo, will help us learn more about the journey of tirelessly growing and creating the leading company in the chemical fertilizer industry. Anh Dao reports.

Which achievements have you attained in 16 years of unceasing efforts and dedication?

Over the past 16 years, the PVFCCo brand has been constantly growing and has wide coverage. From being just a company operating a single factory with Phu My Fertilizer as the only product, PVFCCo has today become a powerful corporation, one of the 15 largest enterprises of Vietnam. Currently, PVFCCo has three branches, four subsidiaries, operates two modern factories. It has a sustainable and widespread distribution system and providing the whole market with a full set of Phu My Fertilizer products, meeting all needs of farmers. Phu My Fertilizer brand always holds the No. 1 position in the fertilizer industry in terms of market share, competitiveness and brand value, and is among the 50 most valuable brands in Vietnam.

The continuous and safe operation of the plants is also a bright spot in PVFCCo's operations over the years, because the Phu My Fertilizer Plant is a very modern plant of the petroleum industry, adopting the latest Danish and Italian technology. Since taking over the factory, PVFCCo has quickly mastered the technique, technology and equipment, not only operating the factory absolutely safely and effectively with the output regularly exceeding the designed capacity, but also confidently carrying out the work of repairing, services and plant maintenance, and supporting the petrochemical and fertilizer plants of the country.

In the stock market, PVFCCo has continuously ranked among the 50 best listed companies by Forbes Vietnam, and its DPM shares were put into the VN30-Index basket. These achievements are the pride of the PVFCCo staff.

PVFCCo’s current success comes from many factors including the close guidance and attention of the leaders of PetroVietnam; a consistent, sustainable but very flexible production and business strategy to adapt to the market; and above all we consider internal forces to be the core. We appreciate the human factor because we always consider human resources as the key factor for success. The "treasure" and also the pride of PVFCCo lies in the team of engineers, skilled workers with sufficient capacity for management, operation and maintenance of the factory to ensure stable and safe operation; the dynamic, enthusiastic business staff with self-sacrificing spirit and creative thinking ability. They are the most valuable "capital" that we have.

What strategy does PVFCCo adopt to increase its competitiveness?

In the current period, PVFCCo possesses a lot of favorable conditions such as modern management system, advanced production lines, the factory always operating at full capacity by qualified and high skilled employees; Dam Phu My brand is getting more and more popular with farmers.

In order to promote these advantages and constantly increase competitiveness, PVFCCo  ensures regular supply of goods to the market through the distribution system to provide adequate supply for consumption areas, especially the high demand areas. To combat speculation and hoarding of goods, we closely monitor the sale of goods into the consumption system, focusing on the availability of goods on the market; at the same time, there is an active regulation policy in the market, in regions, especially markets in remote areas and places where farmers have little access to regular market information. We promptly change and adjust sales policies towards greater flexibility in payment policies (discount if paying in advance), implement detailed pricing and discount policies for each specific market area, increase sales discount rate, to better suit the current business situation. At the same time, there is a policy of rational goods regulation as well as appropriate transportation, proactively increasing delivery to transshipment warehouses to provide goods in a timely way according to consumption plans, limiting inventory in factories, responding to seasonal needs.

PVFCCo always strives to bring the best nutritional protection solutions for plants, creating many new products that bring higher added value to farmers.

Besides, we also strengthen forecasting, researching and analyzing the situation of the domestic and world fertilizer market in order to run production and business closely following market fluctuations, manage fair pricing to ensure benefits for farmers and establish flexible prices to improve the competitiveness of domestic urea compared to imported products. Because the domestic urea market has witnessed many manufacturers, the amount of imported goods continues to flow, along with the trend of people moving from using single fertilizers to synthetic fertilizers (such as NPK), the competition of nitrogenous fertilizer is now very fierce, profit margins are no longer as high as previous years. In order to improve the profit margin of urea products, Phu My Fertilizer Plant must optimize costs for sales, transportation, media marketing . At the same time, we focus on diversifying products, including single fertilizers but with the right nutrients and complex fertilizer products (DAP, NPK), organic fertilizers to help farmers have more options for crops, adapt to the changing climate, specialized production and commodity production.

Can you share about your corporate social responsibility?

One of the core values in PVFCCo culture is "Responsibility - Sharing". We have a very deep sense of corporate social responsibility and social security is one of the forms of PVFCCo’s corporate social responsibility. For PVFCCo, farmers are not merely consumers of our products. Farmers account for 60% of the population; they ensure food security for the country but also are the most vulnerable group with the most difficulties. Therefore, in our social security activities, PVFCCo pays the greatest attention to farmers, especially in the areas where there are many difficulties.

Specifically, we are always proactive in implementing policies to support farmers in responding to and actively participating in the program of new rural construction by coordinating with authorities and agriculture extension centers to promote their technique, science and technology transfer for farmers.

In addition, PVFCCo actively participates in activities that bring direct, long-term and sustainable benefits to farmers such as: supporting the construction of schools, health stations, rural bridges, great unity houses; providing scholarships for children of farmers; supporting when people encounter natural disasters, droughts, floods; giving Tet gifts to poor families. Up to now, PVFCCo has spent nearly VND1,000 billion on social security work in all regions across the country, contributing to the implementation of the agriculture policy of the Party and the State.

Thank you very much!

Phu My Fertilizer brand always holds the No. 1 position in the fertilizer industry in terms of market share, competitiveness and brand value, and is among the 50 most valuable brands in Vietnam.