Notable factors on production and business in 2021

Throughout 2021, the fertilizer market has seen the price of most products increase sharply, particularly the price of the Corporation’s leading product, Urea, which increased to its highest level ever;

Phu My brand has significantly increased in prestige with customers. The distribution system has been considerably deepened and widened in the regions where consumption occurs;

Production levels at the Phu My Fertilizer Plant are ensured at high capacity with a sufficient input supply of gas;

The sources of capital are guaranteed sufficiently and timely for production and business activities.

Although the input supply of gas is still guaranteed, the share of low-cost associated gas sources (Bach Ho - Rong Doi Moi field, Cuu Long Basin) was ultimately less than was projected and are dropping fast. The share of gas supplied from other sources (Nam Con Son and other Cuu Long) therefore increased at a higher than was projected, and the transportation costs were high, leading to a rising cost of gas;

The price of oil increased globally, raising the cost of input gas and freight overheads;

The Covid-19 pandemic situation is complicated; the supply chain has experienced significant interruptions, resulting in economic degradation; complying with pandemic prevention and control requirements in the company’s operations has increased PVFCCo’s associated costs;

Input costs for agriculture, particularly high fertilizer prices, have had a direct effect on farmers’ profitability, which has resulted in a tendency to limit crop fertilizer investments, which consequently impacts the Corporation’s overall production and business activities;

After 18 years of operation, the Phu My Fertilizer Plant’s machinery and equipment pose possible dangers, which has necessitated increased maintenance and repair expenses;

VAT policy has not been adjusted appropriately.

Outstanding results in production and business

The Phu My Fertilizer Plant has finished its production plan 12 days ahead of schedule, resulting in an annual output of 797 thousand tons of Phu My Urea, 4% higher than the yearly target. The production of NH3 for consumption reached 69 thousand tons – 9% more than planned. Phu My NPK output surpassed 162 thousand tons, exceeding the plan by 1% and achieving a 41% increase from 2020.

Effectively trading about 1.1 million tons of fertilizer (749,000 tons of Phu My Urea; 152,000 tons of Phu My NPK - the greatest volume of NPK ever traded; 244,000 tons of other fertilizer) and 124,000 tons of chemicals.

Revenue reached VND 13,117 billion, which was 109% of the plan, and an increase of 63% compared to 2020.

Profit before tax reached VND 3,799 billion, achieving 169% of the plan for the year and 348% higher YoY. Apart from the increased sales prices for our primary products, the high profit margin can also be attributed to the following:

  • The Corporation has a suitable solution for operating the production and business, managing costs, optimizing the manufacturing process, improving product quality, and reducing raw material and energy consumption, thereby keeping product costs under control.
  • Following the State Audit Office of Vietnam’s Announcement on audit results, the Corporation recorded a decrease in certain expenses and an increase in other income into its business results for the first six months of 2021, resulting in a profit increase of VND 269 billion.




reached 109% of the plan, and an increase of 63% compared to 2020

Profit before tax




reached 169% of the plan, and an increase of 348% compared to 2020

Summary on business performance 2021
No. Item Unit Actual 2020 Plan 2021 (adjusted) Actual 2021 Ratio compared with 2020 (%) Plan completion rate (%)
A B C 1 2 3 4=3/1 5=3/2
1 Production
1.1 Phu My Urea Thousand tons 866 766 797 92% 104%
1.2 UFC 85 Thousand tons 13.5 12.5 12.0 89% 96%
1.3 NPK Thousand tons 115 160 162 141% 101%
1.4 NH3 (for trading) Thousand tons 74 63 69 93% 109%
2 Sales volume
2.1 Phu My Urea Thousand tons 827 750 749 91% 100%
2.2 NPK Thousand tons 94 140 152 160% 108%
2.3 Other fertilizers Thousand tons 179 280 244 136% 87%
2.4 UFC 85 Thousand tons 9.6 8.5 9.4 98% 111%
2.5 NH3 (for trading) Thousand tons 68 63 70 104% 112%
2.6 CO2 Thousand tons 54 50 44 80% 87%
2.7 Chemicals Thousand tons 0.7 0.6 0.8 112% 116%
3 Consolidated financial indicators
3.1 Total revenue VND billion 8,038 12,000 13,117 163% 109%
3.2 Profit before tax VND billion 848 2,251 3,799 448% 169%
3.3 Profit after tax VND billion 702 1,890 3,172 452% 168%
3.4 Budget payable (paid) VND billion 439 445 466 106% 105%
4 Parent company’s financial indicators
4.1 Owner’s equity VND billion 8,127 7,584 10,503 129% 138%
4.2 In which: Charter capital VND billion 3,914 3,914 3,914 100% 100%
4.3 Total revenue VND billion 7,411 10,738 11,951 161% 111%
4.4 Profit before tax VND billion 815 2,086 3,612 443% 173%
4.5 Profit after tax VND billion 682 1,772 3,030 445% 171%
4.6 Ratio of Profit after tax/Charter capital % 17% 45% 77% 445% 171%
4.7 Budget payable % 419 417 423 101% 101%
4.8 Investment
4.8.1 Investment disbursement VND billion 75 263 110 147% 42%
Capex VND billion 56 223 89 158% 40%
Equipment procurement VND billion 19 40 22 115% 54%
Capital investment VND billion - - - - -
4.8.2 Capital investment source VND billion 75 263 110 147% 42%
Owner’s equity VND billion 75 215 62 82% 29%
Loans and others VND billion - 49 49 - 100%

Revenue structure in 2021

Profit structure in 2021

Production and outcome of key products
Production and sales of Phu My Urea

Unit: Thousand tons

Product 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Urea Production 807 802 856 822 850 817 818 799 816 708 866 797
Urea Consumption 806 752 908 835 843 835 823 794 812 691 827 749
NPK Production 58 85 118 162
NPK Consumption 38 77 95 152

Production and sales of Phu My Urea in 2019 - 2021

Unit: Thousand tons

Consolidated financial indicators

Unit: VND billion

Financial indicators 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenue 6,999 9,763 13,906 10,807 9,972 10,047 8,170 8,178 9,439 7,831 8,038 13,117
Budget payable 405 537 694 602 308 420 474 515 297 128 287 466
Profit before tax 1,922 3,510 3,542 2,468 1,285 1,880 1,393 853 871 467 848 3,799
Profit after tax 1,706 3,140 3,016 2,142 1,096 1,488 1,165 708 712 389 702 3,172

Consolidated financial indicators in 2019 - 2021

Unit: VND billion

The Corporation’s financial performance
Assets and capital

Unit: VND billion

Item 31/12/2020 31/12/2021 % Increase (Decrease)
TOTAL ASSETS 11,300 13,918 23%
Current assets 6,314 9,520 51%
Non-current asset 4,986 4,398 -12%
TOTAL RESOURCES 11,300 13,918 23%
LIABILITIES 3,052 3,205 5%
OWNER’S EQUITY 8,247 10,713 30%
Charter capital 3,914 3,914
TOTAL REVENUE 8,038 13,117 63%
TOTAL COST 7,192 9,320 30%
INTEREST 88.4 69.2 -22%
EBIT 934 3,866 314%
PROFIT BEFORE TAX 848 3,799 348%
PROFIT AFTER TAX 702 3,172 352%
Profit after tax of minority shareholders 10 54 440%
Profit after tax of parent company 692 3,117 350%
Financial indicators
Item 2020 2021
Liquidity ratios
Current ratio 3.12 4.42
Quick ratio 2.39 3.13
Solvency ratios
Total debt/total assets 27% 23%
Total debt/total equity 37% 30%
Operational capacity ratios
Inventory turnover 4.28 3.77
Net revenue/total assets 0.68 1.01
Profitability ratios
Net profit after tax/Net revenue 9.04% 24.80%
ROE 8.55% 33.45%
ROA 6.17% 25.15%
EPS 1,413 7,749


The National Brand
The title of High Quality Vietnamese Goods
Ranked among the Top 500 largest enterprises in Vietnam and
Top 500 most profitable companies in Vietnam
(Annual rankings by Vietnam Report)
Ranked among Top 50 competitively capable companies
(voted annually by VCCI)
2021 Ho Chi Minh City Golden Brand Award
(annual award by Ho Chi Minh City People’s Committees)


Based on the actual situation, production and business conditions of 2021 as assessed, identified, and shown above, and on the duties and planned targets approved by the General Meeting of Shareholders, PVFCCo’s Board of Management has implemented timely, comprehensive, and flexible solutions to help the Corporation achieve production and business results of 2021, as detailed in the above report.

The Board of Management assesses the year’s progress as follows
With the experience accumulated in periodic maintenance, PVFCCo continued to actively and promptly resolve issues that arose, as well as efficiently carrying out preventative maintenance for production equipment in 2021, which was a crucial factor in minimizing machine shutdowns. The review, adjustment, and application of the requirements were clearly effective, as total energy consumption of production workshops in 2021 was lower than targets, and overall fuel, energy savings in the production sector reached VND 143 billion. In particular, there were numerous measures to increase the quality and output of NPK.
In the face of fierce competition, the Phu My Urea brand maintained its solid position and market share in the domestic market, while taking advantage of rising prices in the international market, through its progress towards the goal of developing foreign markets. In 2021, the Corporation exported over 60 thousand tons of Phu My Urea. The output of NPK products, in particular, achieved an all-time high and, for the first time since the projects entered commercial production, was completed ahead of schedule. Furthermore, it has established a market presence with the quality of Phu My NPK, MOP, and DAP, and continues to expand chemical production and business activities. The Corporation was flexible in implementing changes and improvements in transportation, distribution, sales, and inventory policies, among others, to improve the business effect and expand the customer segment, as well as policies on input material inventory to respond to fluctuations in the raw materials market and disruptions in the supply chain.
  • Total disbursement for investment and procurement projects is over VND 110 billion.
  • Major investment project “NH3 Revamp - Phu My NPK Complex”: increasing the capacity of the NH3 production workshop at the Phu My Fertilizer Plant by 90,000 tons/year (around 20% increase compared to original capacity) and constructing a plant that uses NH3 originating from chemical technology to produce 250,000 tons of NPK per year have been effectively put into operation. In 2021, the Complex project continued to generate nearly VND 2,400 billion in revenue, accounting for roughly 18% of total revenue and VND 461 billion in profit, accounting for approximately 12% of the total profit of the Corporation.

The Remuneration Policy Improvement project and KPI project have provided motivation for employees to promote creativity and improvement in their work and assisted the Corporation in retaining highly skilled personnel.

Facing strict requirements of authorities on the prevention and control of Covid-19 pandemic, the Corporation has successfully and effectively implemented a series of countermeasures to ensure continuous and uninterrupted production and business operations: Planning for production, isolation, and accommodation in place, working from home at the Phu My Fertilizer Plant and Corporation headquarters; Organizing full and early vaccination for employees; Enhancing and transforming management and working systems through digital office and internet.

Financial analysis
Total assets as of 31/12/2021




an increase of 23% compared to the beginning of the year

Cash and cash equivalents




an increase of 24% compared to the beginning of the year

NH3 Revamp - Phu My NPK Complex generated in revenue




18% of total revenue

NH3 Revamp - Phu My NPK Complex generated in profit




12% of the total profit

Assets and Capital

Total assets as of 31/12/2021 was VND 13,918 billion, an increase of 23% compared to the beginning of the year (VND 13,918/11,300 billion). Cash and cash equivalents increased by 24% compared to the beginning of the year (VND 2,524/2,029 billion).


  • PVFCCo’s liabilities as of 31/12/2021 were VND 3,205 billion, up 5% compared to the beginning of the year (VND 3,205/3,052 billion).
  • Total liability to total assets ratio and total liability to equity ratio decreased compared to those of 2020, but the current ratio and quick ratio in 2021 remained higher than 1. This demonstrates a good capacity to pay debts, and the Corporation is not under any pressure on due debt, ensuring good production and business activities.
  • Given the closing balance of Cash and Cash equivalents of VND 2,524 billion, there is sufficient funding for manufacturing, trading and investment projects as planned.

Profitability ratios of PVFCCo such as ROE, ROA increased sharply compared to those of 2020 (291% and 308%, respectively).


In accordance with the Enterprise Law 2020, PVFCCo applied a corporate governance model that includes a General Meeting of Shareholders, a Board of Supervisors, and a Board of Management. Corporate governance complied with and met the requirements of Decree No. 155/2021/NĐ-CP, dated 31/12/2020, issued by the Government. All internal operations, supervision, and auditing were covered by the corporate governance practices. The financial statements were prepared in accordance with the law, reflecting accurately and honestly the production and business activities of the Corporation, and they were audited by renowned external auditors approved by the Ministry of Finance. Members of the BOD, BOS, and BOM are capable and qualified, and their services are free of conflicts of interest. They have performed their roles and duties effectively, contributing to help the Corporation to fulfill its annual production and business plan. The Corporation is constantly working to improve its governance management, heading towards successfully applying upstanding practices such as: improving the BOD’s governance efficiency, improving the supervision of the BOS, implementing supportive solutions in management and administration of production and business: ERP, ISO, KPI management and performance evaluation systems, etc.

Urea’s export


thousand tons

NPK production


thousand tons

a sales volume of 152 thousand tons

Profit before tax




significantly exceeding the profit target set

The discussions from the two Annual General Meetings of Shareholders are summarized as Advantages and Limitations. The Corporation successfully achieved and exceeded its annual planned targets in production, and operations and financial performance.

Along with guaranteeing the optimal production and sales efficiency of the Corporation’s flagship product, Phu My Urea, the Corporation concentrated on cost and asset management in 2021, as well as boosting the operations of self-employed fertilizer distributors. The Corporation aggressively promoted the sale of its specialty Phu My fertilizer products (Phu My NPK, Phu My MOP), which contributed to the overall success outcomes while maximizing the distribution system’s efficiency. The distribution subsidiaries took the initiative to steadily increase their business’s competitiveness in fertilizers and oil and gas chemicals. The Corporation exported about 60,000 tons of Urea.

The Phu My Fertilizer Plant exceeded both the Urea and NPK production plan. In 2021, the NPK Plant produced 162 thousand tons of NPK with a sales volume of 152 thousand tons.

The Corporation has adopted an honesty and transparency policy. As an award-winning organization, the management adhered to these principles as a foundation and standard for best practices. In 2021, the Corporation maintained an effective integrated management system in accordance with ISO 9001 - 2008, OHSAS 18001 - 2007, and ISO 14001 - 2004; systems such as ERP, STOP, 5S, Six Sigma, CBM, RCA, FMEA, RBI, and RCM, and so on. The Corporation also developed a set of measures to determine the effectiveness of its key performance indicators and salary innovation projects (3P). The intention of this initiative is to foster a professional, fair, and efficient work environment. Internal auditing was deployed with a fresh strategy to complete and upgrade risk management in PVFCCo’s manufacturing and commercial operations.

With the aforementioned performance, the Corporation achieved a profit before tax of VND 3,799 billion, significantly exceeding the profit target set by the General Meeting of Shareholders.

The Corporation is committed to upholding the highest standards of environmental and social responsibility in all of its manufacturing, commercial, and investment activities. The Corporation’s primary activities are in the sector of fertilizer and chemical production, both of which are environmentally responsible and have a high potential for negative impact on the environment. Compliance with applicable safety and environmental laws is therefore a major emphasis during production. In product distribution, the Corporation is constantly developing programs and initiatives to educate farmers about the effective and economical use of fertilizers while reducing environmental impact.

The Corporation remains focused on its duties and obligations to society. It has consistently and actively contributed to social security work and cared for its employees throughout the years.

The results of the implementation of environmental and social responsibilities in 2021 are presented in detail in the Sustainable Development Report.

  • The members of the Board of Management are all qualified, capable, and qualified, professionally trained, knowledgeable in their assigned fields, and have extensive experience managing and administering significant projects/enterprises.
  • The President and CEO has delegated specific roles to the Vice Presidents and conducted weekly briefings to assess weekly work results and assign the work plan for the following term.
  • The Board of Management conducted the unit’s business activities in accordance with the General Meeting of Shareholders’ resolutions, under the direction of the Board of Directors, and in strict compliance with the enterprise’s charter and legal provisions.
  • The Board of Management maintained a comprehensive awareness of the Corporation’s advantages and disadvantages, which enabled it to adapt operating production and business activities while also issuing internal documents in accordance with its authority to effectively control the Corporation’s production and business activities; effectively performing the role of risk control beginning with the Board of Management and middle managers.
The Board of Directors’ plans and orientations for 2022

With the fertilizer market projection, gas prices will continue to be challenging in 2022, as they were in 2021. However, with the help of the fertilizer market, the Corporation has achieved remarkable profit results in 2021. The Board of Directors has established a business plan for 2022, with the cooperation of State shareholders specifically as follows:

Production targets

No. Item Unit Plan 2022
I Production output
1 Phu My Urea Thousand tons 828.0
2 Phu My NPK Thousand tons 165.0
3 Phu My Urea + KeBo Thousand tons 10.0
4 UFC 85/Fomaldehyde Thousand tons 12.8
5 NH3 (for trading) Thousand tons 70.0
II Sales volume
1 Phu My Urea Thousand tons 800.0
2 Phu My NPK Thousand tons 165.0
3 Phu My Urea + KeBo Thousand tons 10.0
4 UFC 85/Fomaldehyde Thousand tons 8.5
5 NH3 Thousand tons 70.0
6 Other fertilizers Thousand tons 234.0
7 CO2 Thousand tons 50.0
8 Other chemicals Thousand tons 0.668

The Corporation’s financial plan (consolidated)

No. Item Unit Plan 2022
1 Total revenue VND billion 11,059
2 Profit before tax VND billion 1,130
3 Profit after tax VND billion 945
4 Budget payable VND billion 286
5 Average labor productivity (by revenue) VND million/person/month 587

Parent company’s plan

Financial plan

No. Item Unit Plan 2022
1 Owner’s equity VND billion 7,895
2 Of which: Charter capital/average charter capital VND billion 3,914
3 Total revenue VND billion 10,767
4 Profit before tax VND billion 1,101
5 Profit after tax VND billion 927
6 Ratio of Profit after Tax/Average Owner’s equity % 11.7
7 Ratio of Dividend/Charter capital (*) % 15.0
8 Total debt/ Total owner’s equity Times 0.37
9 Budget payable VND billion 267

(*) The dividend ratio is provisional based on assumed gas price for Phu My Urea production. Gas price/Gas transportation charges for Phu My Urea production in 2022, which will be regulated accurately after approval/acceptance by competent authorities.

Capital investment plan

No. Item Unit Plan 2022
I Total capital investment VND billion 252.6
1 Capex VND billion 105.3
2 Procurement projects VND billion 147.3
3 Capital contribution to member companies VND billion -
II Capital investment source VND billion 252.6
1 Owner’s equity VND billion 252.6
2 Loans and others VND billion -
III Capital expenditure VND billion 252.6
1 Owner’s equity VND billion 252.6
2 Loans and others VND billion -

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