Dear valued shareholders, business partners and employees,

PVFCCo has reached the end of 2021 with many memorable achievements. As we review PVFCCo’s experiences and accomplishments during a year where the pandemic continued severely impact markets both on a local and international level, we are sure that each of us can feel both relieved and proud of what we have achieved.

On behalf of PVFCCo, I would like to extend our heartfelt congratulations and gratitude to our valued shareholders, the Management, and all PVFCCo employees for their support and efforts during the prolonged pandemic, as well as their solidarity and flexibility in helping to control all risks and enthusiastic embrace of opportunities which has assisted PVFCCo in achieving strong growth and re-establishing a firm position for the next development stage.

We would like to especially acknowledge the leadership and employees of PVFCCo for their willingness to forego personal interests and to endure both pressure and inconvenience during the periods of lockdown and social distancing, which ensured that the system could operate safely and stably while successfully reaching production and business goals. Keeping strong our belief in “out of sight but not out of mind” throughout these difficulties and challenges, we have had incredible connection and mutual support in all areas, which has benefited PVFCCo in maturing and strengthening. I believe that this solidarity and connection have motivated each of us to overcome obstacles and challenges and achieve these remarkable outcomes in 2021.

The Corporation has experienced a memorable year in its nearly two-decade development history, owing to the extraordinary efforts of PVFCCo’s leaders and staff. The spirit of connection and energy that was demonstrated in 2021 enabled us to overcome obstacles proactively, react and adapt to a volatile environment, capitalize on favorable conditions to optimize production and business efficiency, achieve breakthrough growth, exceed market expectations, and deliver significant benefits to shareholders and partners.

Some notable outcomes include the following:

• Completing comprehensive maintenance at the Phu My Fertilizer Plant; Improving the operational efficiency of the Phu My NPK Plant; increased fertilizer and chemical sales ouput;
• Adapting our workflows to the context of pandemic response and the new normal through the use of a digital office and risk management system;
• Being adaptable in terms of sales policies, coordination, and transportation of goods during social distancing, and optimizing output during periods where the selling price sharply recovered.
• Achieving exceptional results in terms of profits from production and sales.

We begin this new year of 2022 with tremendous happiness as a result of what we have accomplished together; we have overcome numerous difficulties, shared burdens, and achieved several wonderful outcomes. However, we are also prepared for the future with a proactive mindset and an awareness of the continuous variations which will demand PVFCCo’s management and personnel to adapt more efficiently in order to maintain our operations.

It is anticipated that the political situation and the Covid-19 pandemic in 2022 will continue to evolve in an extremely complicated manner throughout the world, and the global economy will continue to face numerous risks as pressure for growth, stability, and social balance increases in all countries and territories. As inflationary pressures increase in several developed economies, such as the United States, the United Kingdom and more, many locals must preserve social distance, while others must pilot re-openings to gradually recover normal operations in severely damaged firms. The developing military conflicts in Europe are intricate with numerous consequences. This context forces businesses to continue to face numerous challenges, including further disruption to global production and supply chains; pressure to transform the digital model throughout the chain of production - business - distribution - corporate governance; and changes and shortages of human resources.

PVFCCo’s core business is the production and trading of fertilizer and chemicals. Currently, the key products are prilled Urea, NPK, MOP, SA, DAP fertilizers targeted at the agriculture sector, liquid Ammonia and UFC85/Formaldehyde, CO₂, chemicals used in oil and gas production.

PVFCCo’s main production is at Phu My Fertilizer Plant located in Phu My 1 Industrial Park, Phu My Town, Ba Ria - Vung Tau Province.

The distributors are situated in the agricultural heartland and industrial plants in Vietnam. They form a closely-knitted distribution network of subsidiaries and their regional headquarters are located in the North, Central and Highlands, Southeast and Southwest. In addition to the domestic market, the Corporation also exports fertilizer products to many countries, predominantly in Asia.

The key customers and markets for chemicals are in the South, mainly in the oil and gas industry and industrial production sectors.