SUCCESS REQUIRES
THE POWER OF EFFORTS
OPERATIONAL SITUATION IN 2023
- Situation of production and business activities in 2023
- Situation of project investment and implementation
- Organization and human resources
- Shareholder structure, change in owner’s investment capital
- Report of the Executive Board
- Report and assessment of the Board of Directors
- Report of the Supervisory Board
REPORT OF
THE EXECUTIVE BOARD
SITUATION OF PRODUCTION AND BUSINESS ACTIVITIES
In 2023, geological tensions and wars had impacts on the global economy; FED voted to keep interest rates between 5-5.25%, the highest in the last 22 years. Meanwhile, fertilizer market saw unpredictable fluctuations and changes, fertilizer price reversed rapidly and maintained at lower level (lower than 14% as planned and reduced by 35% as of 2022); agricultural production has grown slower than previous years causing impacts on goods promotion and consumption activities; oil price was hiked by over 18% as planned. Policies such as the Law on VAT were detrimental to domestic production activities in the context of oversupply and an increase of imported products.
Facing multiple changes in the new status, PVCFC, based on its solid foundations of resource, governance system, culture, has proactively managed fluctuations, closely followed market developments to carry out updated adjustments to make appropriate decisions. PVCFC has implemented infrastructure and wharf projects; optimizing production, applying smart platforms in governance to achieve the goal of cost optimization. PVCFC has always set high goals with big pressures to thoroughly implement these projects since early 2023. These measures have helped PVCFC realize its 2023 business and production plans assigned by General Meeting of Shareholders through specific and impressive figures as follows:
Performance of production and business indicators
In 2023, PVCFC completed and surpassed the main indicators of the plan, especially the indicator of outstanding growth in revenue and profit, which recorded the highest level ever.
- A production output of 955.57 thousand tons, equivalent to 101% of the plan and 104% as of 2022.
- Urea consumption reached 866.03 thousand tons, equivalent to 100.5% of the plan and 103% as of 2022. NPK fertilizer consumption reached 138.61 thousand tons marking a successful and impressive market penetration of NPK Ca Mau.
- Total revenue reached 13,172.38 billion VND, equivalent to 98% of the plan and 81% as of the same period of 2022. Revenue decreases in 2023 was caused by a delay in crop arrival compared to the same period and a sharp drop in selling price.
- Profit before tax reached 1,254.81 billion VND, equivalent to 122% of the plan and 27% as of 2022. A decline in profit as of 2023 was due to sharp decline in selling price. Despite efforts in strengthening sales programs and cost optimization as well as operation flexibility but failed to compensate for a deep decline in selling price.
Detailed assessment on key tasks
Despite the shutdown of the gas supply rig by 29 times (206.1hours) in 2023, Ca Mau Fertilizer Plant still maintains continuous and stable operation, total downtime (NH₃ factory) lasted 12.16 days (including 10 days of maintenance). By multiple and practical solutions, optimizing and removing bottlenecks, the plant has improved its capacity to the highest level as of previous year (urea capacity increased by 113.4%, NH₃ capacity increased by 114.2%). Especially, for the second time, PVCFC was awarded a certificate of continuous and stable operation in 350 days by Haldor Topsoe, reaching a milestone of 10 million tons after 11 years of operation.
Optimization emerges as an important strategic spearhead to increase capacity, optimizing material and fuel resources and improving product quality. In 2023, PVCFC continued implementing 20 optimization projects to reduce material and fuel consumption, optimizing equipment and machinery capacity, completing 05 projects (innovating air-compressor liquid separator filter, replacing new cushion for cooling tower, TE system for NPK, bulk cargo export system, PE bag pressing system for Urea/NPK); 6 items under implementation of procurement, installation and operation in the overall maintenance 2024 (CO2 in food processing, NPK supplementary feeding system, installing secondary reforming burner; installing CO2 chiller, installing desulfurization system, installing Sub Cooler). Other items are under technical and economic feasibility studies, issuing bidding documents and delivery progress tracking.
Dam Ca Mau Fertilizer Plant has step by step get involved in Net zero greenhouse gas emissions program by 2050 by making use of and maximizing recovery of excess CO2 or CO2 emitted from gas emissions to enhance capacity of urea and CO2 in food processing; using Biomass to produce high pressure stream to significantly save material gas; making use of excess heat to generate electricity as well as doing research on green energy consumption “Application of green hydrogen at fertilizer plant” or conducting feasibility studies on hydrogen production from Offgas.
In the context of oversupply, longer growing season than previous year, deep decline in fertilizer price causing concerns of inventory, PVCFC applies flexible sales policies for each product, distribution agencies at all levels to achieve planned consumption targets with positive support and accompaniment of customers. Total consumption capacity reached 1.27 million tons, a 16% growth rate as of 2022. Export value reached 350 thousand tons, equivalent to 28% of total consumption output, exporting to Cambodia, Chile, Korea, Sri Lanka, Philippines, etc. PVCFC also closely monitors market trends to flexibly import and distribute some high-quality fertilizer products such as Potassium, DAP, SA with stable selling price, contributing to diversification of products, increasing revenue and profit.
- Successfully penetrating and developing the NPK market with a consumption output of NPK Ca Mau fertilizer of 138.61 thousand tons, up 166% as of 2022.
- Korea-Viet NPK fertilizer brand - one of high quality NPK products targeting high-end crops - has a firm position in the market. Therefore, PVCFC has purchased all shares of Korea-Vietnam Fertilizer Co., Ltd (KVF). By doing this, Ca Mau Fertilizer will officially distribute two NPK products including NPK Ca Mau and NPK Korea-Vietnam.
- Strengthening sales promotion and support programs to achieve a consumption record. Some typical events include “Golden season - Win big” attracting participation of nearly 53,000 farmers; flash sales; free fertilizer trials; giving gifts; point of sale identity; early-season seminars and conferences; 10 factory tours for 1,750 farmers/level-2 agents. Conducting market research and survey to improve packaging and product design to meet the taste of customers; evaluating brand health and aiming for Top 1.
- PVCFC has built a diverse digital ecosystem in business activities such as ERP system, Digital Management System (DMS), Customer Relationship Management (CRM), App 2Nong and the latest “Anh Hai Ca Mau” digital human project, etc. Digital transformation will change the business model of Ca Mau Fertilizer. PVCFC, in the coming time, will continue exploiting these systems and adding e-commerce platforms and advertising rental services to App 2Nong.
Apart from expanding market share, international business, technology application, shift of business platform in line with new development trend, PVCFC pursues sustainable development and investment trends. We have invested in constructing infrastructures for production, building wholesale port and terminal system; investing in a new office in HCMC in line with development scale in the future; acquiring Korea-Vietnam Fertilizer Co., Ltd (KVF) to produce NPK Korea-Viet fertilizer. Other items include procurement of equipment for management, cyber security is implemented in accordance with the plan, ensuring continuous, safe operation; innovating and digitizing management related activities, improving labor productivity.
Prime Minister Pham Minh Chinh visited PVCFC
In 2023, PVCFC continued completing the corporate governance system according to good governance practices. At first, the company standardizes its risk management model in accordance with COSO’s take on the three lines of defense; completing the risk management model toward an approach to streamlining document workflow (frameworks/procedures), completing governance model according to good governance practices. In addition, PVCFC conducts evaluation, construction of roadmap as well as reinforces corporate governance activities in line with good international practices based on ACGS (ASEAN Corporate Governance Scorecard, version 2021 and 2023). Organizing training course on “overview of ESG and related issues to PVN and chemical fertilizers”, integrating ESG into operation and management toward sustainable development, contributing to the process of green transition and sustainable growth of the economy. On November 22, 2023, PVCFC’s BOD has been honored with “Board of Directors committed to best governance practices" by VIOD.
PVCFC also completes other governance systems and tools including:
- Building a concentrated data platform for data exploitation, analysis, and decision making. PVCFC is now implementing Data Like and BI projects. In 2023, the company completed MS Azure landing zone architecture, organizing workshops with divisions; implementing sales, warehouse production designing and management modules; building financial and accounting modules, shopping and maintenance modules. PVCFC also completed the Executive Board Dashboard Report to drive sales, warehouse dashboard in 2023. These systems have been put into use.
- Aligning with implementation of Data platform and data digitization, PVCFC also integrates systems, automating key activities and system including: PI system, RFID, DMS, ERP, etc. upgrading infrastructure, deploying Cloud backup system, building risk management software ready for system integration in the future and ensuring system backup and security.
Together with construction and implementation of development strategy, PVCFC has defined corporate culture and an important platform - an operating system that can help build brand and corporate strength. In 2023, PVCFC has integrated 4 core values into commendation policy, process and criteria, recruitment policy, employee performance evaluation process, personnel policy, salary and bonus policy; training program on Corporate Culture Handbook on E-learning system; promoting efficiency of corporate culture in governance activities; the 7 habits training course for middle managers; leading at the speed of trust, etc. toward employees, every individual is a culture ambassador of the company; maximizing internal strength of each individual in a multi-cultural, multi-regional group led by 4 core values: “Pioneering - Accountable - Considerate - Harmonious”. With its unique cultural achievements and efforts in promoting gender equality, PVCFC has been awarded GEARS Certificate at VBCWE form on June 14 2023.
Corporate restructuring is considered very important to adapt to the changing business environment, grasping new opportunities and enhancing efficiency and overall competitiveness. At PVCFC, we have built a better “physical condition” based on our platforms, vision, missions and strategic development orientations. Therefore, apart from reinforcing structure, selecting, planning and training human resource, PVCFC also implements restructuring process, completing business and production management platform in such a rapidly changing environment, specifically:
- Completing all information of PVCFC for disclosure, attracting foreign investors by digital platform; meeting potential investors; applying Malik management system to build development strategy till 2035 and a vision to 2045 with development goals suitable with economic changes, energy transition, digital transformation, etc.
- Completed phase 1 of the Product Operation System Management Project - EPMS on Osisoft's PI system platform. Completing Enterprise Resource Planning (ERP) system, E-office, Digital Management System (DMS), Customer Relationship Management (CRM), Human Resource Management System (HRM), App 2Nong and the latest “Anh Hai Ca Mau” digital human project, etc. upgrading infrastructure, deploying Cloud backup system, building risk management software ready for system integration in the future and ensuring information security and backup system.
PVCFC implements synchronously and flexibly the optimal solutions to save energy and improve the efficiency of the plant, well implements cost management and product cost through the assignment of detailed cost plans. to each department to serve as a basis for controlling, evaluating the implementation, and using reasonable costs.
Building supplier data to make optimal purchasing and service rental decisions; maintaining optimal inventory level; effectively managing cash flow to maximize financial revenue. In 2023, total of cost savings/reduction reached 152.59 billion VND.
PVCFC pays special attention to nurture and development of human resources by training activities for key positions to be able to undertake many different job positions and job rotation. The Company has approved additional business fields and expert planning till 2025 in accordance with Decision No.1235/QĐ-PVCFC approved by the General Director dated May 22 2023. A number of officially recognized experts are 06, 02 others with results held in reserve. Every year, the Company reviews, adjusts and supplements the planned team of experts. Total staff planning experts include 64 people under 25 fields.
Apart from ensuring safe and stable operation, PVCFC sends employees on maintenance and repairing activities at the plants under chain of links. In 2023, over 30 employees attended maintenance activities at Nghi Son Oil Refinery, BSR, Thai Binh Thermal Power Plant, Vung Ang Thermal Power Plant. Besides, PVCFC periodically organized exchanges, experience sharing on operation, maintenance with many units; organizing skill competitions to improve professional qualification and ability to deal with high pressure situations at work.
Strengthening human resources for post-harvest activities, promoting research and development of new products for urban agriculture. Apart from ensuring salary and bonus policies for employees, PVCFC also implements employee competency framework to create a clear basis for exactly evaluating employee performance toward the 3P salary system.
PVCFC continues producing and testing products that can increase plant resistance, keep the plants upright under drought and saline soil conditions (N46.True and N46 C+), carrying out demonstration models in the Mekong Delta region. PVCFC is now collecting results, following and evaluating efficiency on each crop.
Aligning with testing domestic organic fertilizer products, PVCFC proactively seeks micro-biological products from Europe with characteristics and ingredients suitable for domestic use. In addition, with an orientation of development of urban agriculture, PVCFC has conducted research on preservation technology, post-harvest processing technology as a premise to open new business opportunities and participate in the agricultural value chain.
Researching opportunities to produce petrochemical products such as Argon gas and Sorbitol production.
Assessment report on social and environmental responsibilities
Assessment of environmental indicators
Environmental safety, security and fire prevention are closely monitored to ensure safe and stable operation, preserving environmental sanitary inside the plant and causing no impact on the surrounding area.
PVCFC now maintains and innovates ISO 14001:2015 environmental management system; ISO 45001:2018 Occupational health and safety management system; conducting monitor and control in accordance with newly issued environmental license according to Decision No.405/GPMT-BTNMT dated December 30 2022. In 2023, all environmental targets align with current standards.
The Company has installed 05 automatic environmental monitoring systems (3 gas stations and 2 water stations) information and data of gas emissions and waste water will be directly transmitted to Ca Mau Department of Natural Resources and Environment, periodical environmental monitoring is implemented 4 times/year in accordance with commitment to environmental impact assessment, taking samples for analysis periodically in every working shift to ensure compliance with environmental protection regulations. Discharge diameters are always in accordance with current regulations. Regarding solid waste (domestic waste, normal industrial solid waste, hazardous waste is collected, classified and treated in accordance with regulations.
Employee evaluation
PVCFC implements salary, bonus, welfare policies in compliance with regulations of the Law and of the company for employees. PVCFC always pays special attention to the livelihood of employees from physical to mental strength, spiritual and material lives. And on top of that, PVCFC fully complies by labor safety regulations.
In 2023, PVCFC organized in-depth training courses on management and leadership skills, regular training courses on working skills, foreign language and other internal training courses under forms of in-person and online training to create the most favorable conditions for employees to attend, upholding training efficiency and better maintaining business and production activities.
Evaluation on corporate responsibility toward local community
In the history of 12 years, Ca Mau Fertilizer is considered as a leading enterprise in implementation of community social responsibilities, in which education and health are the two top priorities: maintaining “For Golden Harvests” scholarship fund, providing essential goods during the pandemic; building house of gratitude and rural road networks in during flood and storm seasons; giving rice to hospitals, taking care of Vietnamese heroic mothers and people who contributed to the revolution; joining hands in building training ecosystem, organizing blood donations, etc. implementing the project of planting 300,000 green trees in 2022-2024, etc.
Initiatives and technology solutions achieved in 2023
Since early 2023, troubles of gas supply rigs have seriously impacted the downstream plant and production capacity of Ca Mau Fertilizer Plant. In parallel, average selling price decreased by 13% (1,487 VND/kg) as planned while gas price/gas cost over product unit increased by 11% as planned. However, with the spirit of continuous efforts, persistent determination, whole-hearted dedication of the Leadership Board and employees, PVCFC has renovated and optimized its production, minimizing costs, improving capacity; mobilizing all resources to increase production capacity, and building maintenance plans in the shortest time. Therefore, Ca Mau Fertilizer Plant always maintains safe, stable operation at high capacity toward material efficiency. Since early 2023, average capacity of NH₃ factory has reached over 113%, higher than that of the same period due to application of optimization solutions, removing bottlenecks to maintain operation stability with high capacity.
In recent years, Ca Mau Fertilizer Plant has made continuous efforts in maintaining and synchronously promoting “innovation, creativity”, conducting scientific research projects to optimize technology, improve capacity, and reduce material cost. In 2023, Ca Mau Fertilizer Plant was awarded a certificate of safety and stable operation in over 350 days. The leadership board has built detailed strategies to develop “high quality” human resources as a “key” factor for a long-term and sustainable development. Investing intelligence based on the principle of “Humans are the most important resource for development”. By 2025, PVCFC will have 30 experts, 22 business fields, not only ensuring PVCFC’s requirements but also carrying external services. Thus, PVCFC, in its development strategy, will create favorable conditions for employees to enhance their intellectual intelligence, will and trust.
With its endogenous strength, Ca Mau Fertilizer Plant has strengthened research and diversification of material, fuel resources for urea and NPK production, increasing feasibility, initiative and production sustainability. Expert teams of the plant continue promoting research, creativity and implementing projects of recovering excess CO2 and CO2 emitted from gas emissions to enhance capacity of urea and CO2 in food processing; using Biomass to produce high-pressure stream to significantly save gas; making use of excess heat to generate electricity as well as doing research to converse to use of green energy “Application of green Hydrogen at fertilizer plant” or conducting feasibility study on producing hydrogen from Offgas processing.
In 2023, related units have completed installation and putting into operation of conversion items with technical efficiency as follows:
These conversion items have been completed and put into operation timely. It helps optimize Amo factory’s capacity to 114.2% (the most optimal and highest capacity), except for item 9 and 10 to be implemented in 2024.
By completing these conversion items, Ca Mau Fertilizer Plant has feasibly optimized different operating modes depending on price fluctuations and market demand.
Business and production plan in 2024
Global economy is forecast to face multiple difficulties and challenges, global growth drivers have reached the limit; inflation may fall but geopolitical risks can affect energy and food industries. The picture of Vietnam's economy is forecast to be positive with a stronger recovery as of 2023. 2024 is a key year for PVCFC to accelerate and make breakthroughs to achieve its goals and 5-year targets in 2021-2025 period, and its development orientation with 3 strategic goals including investment, sustainable development and digital transformation.
Succeeding results achieved in the past years, PVCFC has defined 2024 as the year of “Value drives Prosperity” to maintain and further cultivate its core values. Accompanying the Government’s goals, PetroVietnam and PVCFC continues works out groups of key tasks, goals, solutions and challenging targets to be submitted to General Meeting of Shareholders as follows:
KEY TASK IN 2024
TARGETS AND PLANS IN 2024
Production indicators
| No. | Indicators | Unit | Plan 2024 |
|---|---|---|---|
| 1 | Production output | ||
| 1.1 | Urea converted | Thousand tons | 892,0 |
| Of which: Functional fertilizer | Thousand tons | 110,0 | |
| 1.2 | NPK | Thousand tons | 180,0 |
| 2 | Business output | ||
| 2.1 | Urea | Thousand tons | 748.5 |
| 2.2 | Functional fertilizer | Thousand tons | 110.0 |
| 2.3 | NPK | Thousand tons | 180.0 |
| 2.4 | Self-trading fertilizer | Thousand tons | 248.0 |
Financial plan
| No. | Indicators | Unit | Plan 2024 |
|---|---|---|---|
| I | Financial indicators (Consolidated company) | ||
| 1 | Total revenue | VND billion | 11,878.2 |
| 2 | Profit before tax | VND billion | 841.4 |
| 3 | Profit after tax | VND billion | 794.8 |
| 4 | Tax and rising taxes payable to the State Budget | VND billion | 227.7 |
| II | Financial indicators (The Parent company) | ||
| 1 | Equity | VND billion | 9,850.2 |
| 2 | Total revenue | VND billion | 11,080.8 |
| 3 | Profit before tax | VND billion | 839.3 |
| 4 | Profit after tax | VND billion | 793.6 |
| 5 | Profit before tax/equity ratio | % | 8.5% |
| 6 | Payments to the state budget | VND billion | 221.3 |
| 7 | INVESTMENT IN BASIC CONSTRUCTION & EQUIPMENT PURCHASE | ||
| 7.1 | Total investment capital requirement | VND billion | 1,582.5 |
| - | Basic construction investment and equipment purchase | VND billion | 1,582.5 |
| - | Contributed capital to member units | VND billion | |
| 7.2 | Source of Capital Investment | VND billion | 1,582.5 |
| - | Equity | VND billion | 910.7 |
| - | Other loans | VND billion | 671.7 |
LONG-TERM INVESTMENT AND DEVELOPMENT PLAN
With investment results achieved in 2023, PVCFC continues implementing 7 transition projects (M&A of NPK fertilizer plant) and 7 new projects; seeking investment opportunities for 11 projects including:
Transition project (projects approved feasibility study)
| No. | Project | Group | Investment purpose | Total investment |
|---|---|---|---|---|
| 1 | Headquarters of work communication station in Ho Chi Minh City | B | Total Investment capital: 500 billion VND (Owner’s equity: 100%) | |
| 2 | Research, Application and Technology Transfer Center for Thanh Hoa-PVCFC hi-tech agricultural development | B | Total investment capital: 298 billion VND (Capital from Scientific Research Fund 100%) | |
| 3 | Expansion of rain cover for Line A&D system of Ca Mau Fertilizer Plant | B | Total investment capital: 137.17 billion VND (Owner’s equity: 30%; loan 70%) | |
| 4 | Project of additional warehouse 12,000 tons | B | Total investment capital: 247.11 billion VND (Owner’s equity: 30%; loan 70%) | |
| 5 | Housing project for officers and employees of PetroVietnam Ca Mau Fertilizer JSC | B | Total investment capital: 170.30 billion VND (Owner’s equity: 30%; loan 70%) | |
| 6 | Project of CO2 in food processing at Ca Mau Fertilizer Plant | C | Total investment capital: 86.95 billion VND (Owner’s equity: 100%) | |
| 7 | M & A of an enterprise owning NPK fertilizer plant | Total investment capital: 656.89 billion VND (Owner’s equity: 70%; loan 30%) |
New projects
| No. | Project | Group | Investment purpose | Total investment |
|---|---|---|---|---|
| 1 | Project of industrial gas production at Ca Mau Fertilizer Plant | B | According to strategic target of diversifying production materials, PVCFC has done research of recovery of Nitrogen, Argon from off-gas source and refinery in accordance with industrial gas standards, meeting the need of improving production capacity of urea and ammonia in the future, meeting domestic market demand of industrial gas, improving efficiency of material source toward energy transition of the Group. The project is under investment preparation and in the process of making a feasibility study report. | Total investment capital expected: 300 billion VND (Owner’s equity: 30%; loan 70%) |
| 2 | Bulk cargo export system | B | Optimizing cost and time of exporting goods and quickly meeting partners’ requirements. PVCFC is planning to invest in bulk cargo export system. | Total investment capital expected: 188.44 billion VND (Owner’s equity: 30%; loan 70%) |
| 3 | Self-produced and self-consumed rooftop solar power project - Ca Mau Fertilizer Plant 5MWp | C | With an increasingly expanding production scale, demand for electricity consumption keeps increasing. In order to take advantage of sunny weather in Ca Mau province, PVCFC is seeking feasibility study consultants for solar power production project toward self-production, self-consumption to reduce power price, contributing to proactive use of electricity supplies, improving operational efficiency. | Total investment capital expected: 66.09 billion VND (Owner’s equity: 100%) |
| 4 | Online hall and meeting room | C | Current hall and meeting room of PVCFC fail to meet requirements of meetings for the entire Gas-Power-Fertilizer groups, big events. PVCFC must regularly rent a bigger hall outside. Therefore, it is very necessary to build a new hall, ensuring initiative at work, improving quality of facilities and meeting the scale and stature of PVCFC in the coming time. | Total investment capital expected: 58.29 billion VND (Owner’s equity: 100%) |
| 5 | Project of investment and construction of swimming pool at employee housing area. | C | Completing facilities, creating the best living and working environment for employees, ensuring social security and human resource development. | Total investment capital expected: 31.54 billion VND (Owner’s equity: 100%) |
| 6 | E8 street Roof Project | C | Apart from investing in bulk cargo export system, roof system for goods export road is very necessary to ensure the goal of handling cargoes in all weather conditions. | Total investment capital expected: 26.65 billion VND (owner’s equity 100%) |
| 7 | Ca Mau Fertilizer Production Plant - Binh Dinh Province. | C | Ca Mau Fertilizer Production Plant - Binh Dinh Province will meet requirements of production capacity and fertilizer and production material storage to boost business and production activities. | Total investment capital expected: 119.97 billion VND (Owner’s equity: 100%) |
Investment preparation project
| No. | Project | Group | Investment purpose | Total investment |
|---|---|---|---|---|
| 1 | Project of producing soluble and foliar fertilizers | B | Based on its strategy of fertilizer product diversification, increasing competitive advantages, expanding value chain, minimizing market risks and ensuring targets of revenue growth in accordance with the company’s long-term business strategy. | Recorded for research and implementation |
| 2 | Wholesale warehouse project (HCMC and neighboring area) | B | Supplementing and completing warehousing systems, taking initiative in implementing business and production plans, creating favorable conditions for storing -supplying goods, acting as a focal point for delivery services and serving target markets. | Recorded for research and implementation |
| 3 | Warehouse project in An Giang/Dong Thap | B | Recorded for research and implementation | |
| 4 | Warehouse project in Can Tho | B | Recorded for research and implementation | |
| 5 | Warehouse project in the Central Highlands | B | Recorded for research and implementation | |
| 6 | Green Hydrogen production project | B | Optimizing efficiency of use of input material sources of Ca Mau Fertilizer Plant in accordance with energy transition orientation of the Group, applying green technology in current production lines of the plant. | Recorded for research and implementation |
| 7 | Industrial gas production factory | B | Based on its strategy of diversification of production materials, PVCFC has done research of recovery of Nitrogen, Argon from off-gas source and refinery in accordance with industrial gas standards, meeting the need of improving production capacity of urea and ammonia in the future, meeting domestic market demand of industrial gas, improving efficiency of material source toward energy transition of the Group. | Recorded for research and implementation |
| 8 | Project of sourcing alternative raw materials | B | Continue sourcing new raw materials replacing existing gas sources to reduce dependency on a single material source which is under gradual depletion. | Recorded for research and implementation |
| 9 | Potassium Sulfate Production Project (SOP) | B | Making use of the company’s strengths to expand its portfolio of high-grade Potash Sulfate fertilizer to stay ahead of market trends in accordance with strategic development orientation and product diversification of PVCFC, increasing revenue and profit. | Recorded for research and implementation |
| 10 | Agricultural product processing & exporting factory | B | Engaging in agricultural product processing and exporting market in accordance with strategic orientation of PVCFC by taking advantage of available strengths, supporting and creating added values for agricultural products, increasing revenue and profit. | Recorded for research and implementation |
| 11 | Microbiological organic fertilizer production factory (M&A, capital contribution, cooperation) | PVCFC is running a trial business of microbiological organic products to evaluate the market absorption rate and to seek opportunities for developing organic products, M&A or capital contribution to expand scale and portfolio of products. | Recorded for research and implementation |
