CREATING SOLUTIONS
THRIVING AGRICULTURE
DEVELOPMENT ORIENTATION
DEVELOPMENT ORIENTATION 2024
In 2024, PVCFC will focus on 3 key pillars including: promoting investment; strengthening comprehensively digital transformation in main activities such as production, business, governance, logistics; building sustainable development strategy toward green, clean development and reducing greenhouse gas emissions.
PVCFC has been making certain investments in digital transformation by implementing and applying big projects: ERP system, Big Data, DMS, etc. at different levels to effectively exploit market information and data, distributors, farmers and gaining initial successes.
In 2024 and coming years, PVCFC commits getting involved deeply into Vietnam agriculture sector by collecting, exploiting data on climate, environment, crops, soil in some key regions by using tools, software, sensors, camera, automatic control devices, coordinating with related departments and agencies, enterprises, customers to effectively promote digital transformation for businesses and customers.
Continuing to invest and upgrade the “digital human” project and other new projects to further improve its communications and feedback channels with farmers and distributors based on online platforms for user feedback, enabling users to ask questions, addressing users’ inquiries. Farmers will receive information about products, quality, price and instructions of fertilizer usage on different crops in a quick and timely manner. Then, it also helps improve farming efficiency, reduce risks for farmers in the process of cultivation and production.
Completing procedures for receiving, transferring M&A projects implemented by PVCFC in 2023 to quickly stabilize business and production activities, making use of available advantages, minimize and cut down unnecessary costs toward optimal efficiency of the whole system.
Conducting research, seeking new investment projects closely associated with the value chain, especially projects of warehouse, transport, production, domestic distribution system to serve missions and goals of scale and presence expansion in the domestic market and meet diverse needs of customers.
In order to ensure proactive and flexible supply of input materials for production in the coming time, PVCFC is seeking opportunities from potential projects abroad; evaluating feasibility and efficiency of these projects to consider purchasing projects with high potentiality to create long-term competitive advantages over competitors.
One of the solutions to reduce carbon emissions is to deploy energy saving measures in production activities. Being aware of this, PVCFC, for many years, has invested in initiatives, technical solutions for all production phases of Ca Mau Fertilizer Plant, including many practical and highly effective solutions, cost and energy saving; improving output efficiency for production processes and Ca Mau fertilizer products.
Making use of emissions released by the plant as fuel for fertilizer production helps save significant costs for PVCFC, ensuring environmental protection. PVCFC’s engineers have strengthened research and application of recovery and purification technology of CO2 rich gas sources. The initial success has not only helped save fuel costs and earn dozens of billion VND per year but also minimize the amount of CO2 emitted to the environment. In addition, PVCFC is in the process of doing pre-feasibility research of industrial gas production projects (Nitrogen, Agon, Green Hydrogen), CO2 in food to further apply R&D solutions to improve green, sustainable production efficiency.
Developing environmentally friendly products
PVCFC has completed a comprehensive set of nutritional solutions by Bio-Coating technology, Complex Humate, bio-technology, slow-release fertilizer (SRF), Controlled Release Fertilizers (CRF) and BioMix, etc. to produce high quality fertilizer products and to bring high economic efficiency to farmers, improving crop yield and pest resistance, making positive and effective contributions to greenhouse gas emissions.
Especially, by applying Bio-Coating Technology helps PVCFC create new products that save fertilizer (N.46 Plus), fertilizers improving antibiotic resistance (N46.True), bio-fertilizer (N46.Rich), bio-Urea. These products help save 15-20% of fertilizer which is appropriate with greenhouse gas emissions programs and enhance economic efficiency for farmers.
PVCFC also revises soil nutrient maps for each ecological region integrated with the database, promoting database digitalization and nutritional needs of crops to improve fertilizer use efficiency and reduce greenhouse gas emissions.
DEVELOPMENT ORIENTATION IN 2023-2025
PVCFC is consistent with the Company’s development orientation based on the following views:
In line with the mission to which PVCFC was born, focusing on production, trading and import and export of fertilizers, effectively serving agriculture with a chain of superior quality products, contributing to ensuring food security and raising Vietnam’s trade in the international arena.
Improve business efficiency, increase revenue, reduce costs, increase benefits for shareholders, satisfaction for trusted customers, towards prosperous and sustainable development.
Accelerate digital transformation, intensify the application of information technology systems in production, business, management and communication activities, helping the Company to operate effectively, contribute to preserving the environment, pioneering in greening domestic agriculture.
Actively participate in social welfare activities, cultivate meaningful human values, share difficulties, and stand side by side for a better life.
Becoming the leading brand in the region in the field of fertilizer production and trading, fulfilling the mission of a pioneer in providing comprehensive nutritional solutions for plants.
Promote creative spirit, potential internal resources, ready to change to develop, constantly strive to conquer new heights, marked with useful inventions and solutions to optimize operations. production and product quality of PVCFC.
Continuing to build and complete its corporate culture imbued with its unique identity, building a solid foundation as a fulcrum and leverage to promote the Company’s development, building a cohesive environment where employees can show their dedication to work and live with core value of “Pioneering - Accountable - Considerate - Harmonious”.
Continuing to improve and optimize production and energy efficiency, striving to save at least 5% of energy compared to 2022's norm.
Focusing on building sustainable development frameworks and strategies, implementing ESG standards, creating long-term values, contributing to a green, sustainable future for people and the planet.
REGARDING THE TARGET MARKET
PVCFC’s strategic target markets in the coming time focus on the Mekong Delta, Southeast and Central Highlands, Cambodia. In addition to these markets, the Company actively expands, explores, and penetrates potential international markets in South Asia, Latin America, Oceania, and Europe.
REGARDING THE GROWTH TARGET
PVCFC strives to increase sales of fertilizer product lines from 6 - 10% per year, depending on the specific product structure and proportion of each product to ensure the completion of revenue and profit targets.
In terms of revenue, improving the growth rate from 5 - 10%/year and striving by 2025, PVCFC is one of the five leading businesses in Vietnam in terms of revenue.
REGARDING THE TARGET MARKET SHARE
PVCFC aims to maintain a domestic fertilizer market share of at least 10%/year on a national scale.
Regarding Urea, maintain the domestic market share from 30 - 35%/year
Regarding NPK, strive to meet 10 - 20% of domestic market share and focus on dominating the domestic target at least 30%/market.
Regarding other fertilizer product lines, strive to meet 15 - 20% depending on specific product segments.
Regarding product structure
PVCFC continues to focus on manufacturing, trading and distributing Urea core products in the domestic market. Depending on the period, PVCFC proactively exploits export channels in a reasonable manner, ensuring domestic supply and demand balance to reduce risks of Urea supply surplus.
Regarding NPK, PVCFC strives to increase consumption in the domestic market, especially the target markets of the Mekong Delta, the Southeast and the Central Highlands, and the strategic market in Cambodia.
Besides the inorganic product line, PVCFC gradually expanded its portfolio and exploited the organic fertilizer segment with the product OM CAMAU to adapt to the changing business environment in the new situation.
In addition, in order to be proactive in trading other fertilizer products, PVCFC researched and exploited more import and export segments to organize the import of DAP, Potassium, NPK, SA fertilizer sources to serve the demand for raw materials of NPK Plant and other domestic distributors.
REGARDING DISTRIBUTION CHANNEL DEVELOPMENT
The Company continues to consolidate, develop and expand the distribution system at all levels, with orientation in the period of 2021 - 2025, the growth of the first-level distribution system is 2 times higher than the current one; the growth of the second-tier distribution system at 6-10%/year and the goal of at least 15,000 tier-2 agents.
The development of the distribution system is absolutely necessary to promote the consumption of NPK and other products as PVCFC enters a new stage of development with many new challenging goals.
Regarding the target market, PVCFC’s focus is still on developing and consolidating the distribution system at all levels in the Mekong Delta, Southeast and Central Highlands, Cambodia, in parallel with developing a distribution model on the basis of effective application of IT in sales and distribution system management in order to rise to master the market and compete successfully against domestic and foreign competitors.
REGARDING RESEARCH AND DEVELOPMENT (R&D)
PVCFC promotes research and development on the basis of devoting more resources from material resources, developing personnel, supplementing equipment, and modern and advanced laboratories to maximize R&D.
The priority goal of R&D is to introduce new fertilizer product lines with higher value than current products, competitive prices, and meet the needs of farmers and distribution systems, ensuring economic efficiency and business scale in each market.
In term of solutions, apart from internal resources, PVCFC also coordinates with international and domestic Institutes, Organizations, Schools through prestigious experts, scientists to create high quality products/nutrient solutions, meeting stringent requirements of the market and customers in the future.
REGARDING MERGERS AND ACQUISITIONS (M&A)
With financial strength, PVCFC continues to conduct research and implement M&A projects with high feasibility to diversify its supply chain, prioritize exploiting the domestic market. The goals of M & A approach are not only to meet financial and business targets, but also ensure long-term competitiveness, brand development, closely control of the distribution system and maintain long-term competitiveness of PVCFC in the market.
