| Abstract | The PetroVietnam Fertilizer and Chemicals Company (PVFCCo), a Subsidiary of the
Vietnam National Oil and Gas Corporation (known as PETROVIETNAM) was founded on
March 28, 2003 following the Decision No. 02/2003/QĐ-VPCP. The Company started to
operate on Jan 12, 2004.
The Phu My Fertilizer Plant project was ground broken on March 12, 2001. After more
than three years of construction, on Sept. 21, 2004 the Technip – Samsung Contractors
transferred the Phu My Fertilizer Plant to The PetroVietnam Fertilizer and Chemicals
Company to manage and operate, introduce Phu My Ferilizer brand-name products to the
market now known as Dam Phu My (DPM Urea ™).
PVFCCo have enjoyed an unprecedented profit from producing and trading fertilizers from
the year its factory comes into operation to the middle of the year 2008 by using natural
gas from the Cuu Long and Nam Con Son basins, also subsidiary companies of
Petrovietnam. The special remark is that, PVFCCo enjoy the ready-for-use gas resource
therefore they do not concern about the input for the production chain.
PVFCCo is a trading and producing company, in which the capacity produced by the its
own factory just supply approximately 40% of Vietnam Fertilizer market, the remaining of
the market is being supplied by the other fertilizers supplier such as Nam Sao, Viet Nhat,
Lam thao …. and shall be studied in details in the Competitors secition of this research.
All of the Vietnam fertilizer suppliers using imported fertilizer trading and selfmanufacture
strategy to meet the market demand and supply, this Case research shall focus
more about imported strategy of PVFCCo in order to compete against the other fertilizer
suppliers companies in Vietnam.
The half end of the year 2008, the global economy became worsen, with the price of daily
crucial commodities such as oil, gas, electricity, rice …. drops, the price of Imported stock
in PVFCCo went down, the fertilizer stock was hold in the warehouse to preserve the
initial capital investment result in the in revenue in the half end of 2008. This research is
going to analyze and find out the way in order for PVFCCo to overcome the problem of
managing the stock and preventing the same issue happening in the future.
PVFCCo currently is supplying DPM Urea ™, Ammonia and Electricity, but for the
purpose of this research, only DPM Urea ™ will be studied. |