SUSTAINABLE GROWTH AND
CONTRIBUTION TO THE ECONOMY
The above activities have brought PVFCCo positive business results and helped the
Corporation continue to contribute to the overall growth of the Vietnamese
economy in
the past year:
Consolidated net revenue
from sales and services:
0billion VND
Consolidated profit after tax:
0billion VND
Total taxes actually paid to the
State Budget:
0billion VND
Actual dividends paid to investors:
0billion VND
Number of jobs created
0workers
Expand the business scale of green
chemical products such as emission
reduction agents like DEF/AdBlue
for diesel engines, H2O2 for industrial
applications and environmental
treatment, etc.
PVFCCo recognizes that sustainable development
cannot be achieved without the parallel growth
of its partners across the industry value chain.
Ensuring continuous operations and a stable supply
of goods and services is essential to meeting the
Corporation’s production and business needs.
Legal violations by suppliers—such as breaches
of environmental regulations, human rights, or
labor laws—not only risk disrupting operations
at the Phu My Fertilizer Plant but also threaten
PVFCCo’s reputation and credibility.
As a listed company on the stock market and
with the goal of reaching international standards,
PVFCCo not only strictly complies with current
Vietnamese laws on corporate governance but
also aims to apply good public governance
standards and practices that are popular
globally to maintain transparency, accountability,
ensure efficiency in business operations and
increase the trust of stakeholders in the market.
Accordingly, corporate governance practices in
accordance with regulations and good practices,
ensuring responsible business are implemented
throughout PVFCCo with the following notable
activities:
The industrial revolution 4.0 is taking place
strongly worldwide and has a great impact
on the production and business activities of
many enterprises. In that flow, the Vietnamese
Government has also issued many related policies
and strategic orientations such as Decision No.
2289/QD-TTg dated December 31, 2020 on
the “National Strategy on the Fourth Industrial
Revolution towards 2030”, Decision No. 749/
QD-TTg on the “National Digital Transformation
Program to 2025, with a vision to 2030”,
etc. and at the same time, integrating digital
transformation requirements into development
strategies for each business sector with the goal
of developing the digital economy. PVFCCo also
identified digital transformation as a mandatory
requirement that needs to be implemented
quickly, not only to comply with the common goals of the Parent Group but also to keep
up
with the trend of the times, improve internal
business efficiency, and be ready to seize new
business opportunities, thereby enhancing
competitiveness in the international arena.
Therefore, the digital transformation roadmap to
2025, with a vision to 2030, has been built and
implemented by PVFCCo in practice through the
following activities:
Sustainable growth and
contribution to the economy
The year 2024 brought challenges to PVFCCo due to the impact of the global
economic recession, prolonged inflation, and increased input material costs
due to scarce resources while consumer demand is declining. From the
beginning of the year, the Party Committee and the Board of Directors of
the Corporation have proactively implemented many drastic and flexible
management solutions to stabilize production and business and maintain
financial efficiency for the enterprise in compliance with the following
principles:
Ensure long-term sustainable economic growth while minimizing impacts
on the climate and natural environment, contributing to national and global
sustainable development goals.
Conduct thorough research, analysis, and evaluation of key investment
projects to ensure economic efficiency, full compliance with current legal
regulations, and alignment with international ESG standards and practices
Strengthen the identification and management of risks that are likely to
affect the long-term sustainable development of the entire industry value
chain, especially emerging risk groups, to develop response plans and
implement appropriate prevention and control measures.
Research and propose projects to produce and trade environmentally
friendly fertilizer and chemical products to expand market share and take
the pioneering role in building a green economy.
Research and develop greenhouse gas emission reduction projects and
energy-saving plans that deliver high economic efficiency by lowering
operating costs, complying with legal requirements, and fulfilling PVFCCo’s
commitment to PVN in contributing to Vietnam’s Net Zero target by 2050.
These efforts also enhance opportunities to participate in the carbon
market and diversify revenue streams.
Implement action programs and initiatives to promote sustainable supply
chains.
Organize awareness-raising training programs and explore feasible
options to increase access to green financial instruments (e.g., green
loans, green bonds, climate bonds) and sustainability-linked instruments
(e.g., sustainability-linked loans and bonds) with preferential interest rates.
These efforts aim to establish an optimal capital structure and improve the
financial efficiency of investment projects that meet ESG-related standards,
which often require substantial financial resources.
The above activities have brought PVFCCo positive business results and helped the
Corporation continue to contribute to the overall growth of the Vietnamese economy in
the past year:
Consolidated net revenue
from sales and services:
0billion VND
Consolidated profit after tax:
0billion VND
Total taxes actually paid to the
State Budget:
0billion VND
Actual dividends paid to investors:
0billion VND
Number of jobs created:
0workers
Expand the business scale of green
chemical products such as emission
reduction agents like DEF/AdBlue
for diesel engines, H2O2 for industrial
applications and environmental
treatment, etc.
Sustainable procurement
and supply chains
PVFCCo recognizes that sustainable development
cannot be achieved without the parallel growth
of its partners across the industry value chain.
Ensuring continuous operations and a stable supply
of goods and services is essential to meeting the
Corporation’s production and business needs.
Legal violations by suppliers—such as breaches
of environmental regulations, human rights, or
labor laws—not only risk disrupting operations
at the Phu My Fertilizer Plant but also threaten
PVFCCo’s reputation and credibility. To mitigate
these risks, PVFCCo applies unified procurement
policies and procedures across the organization,
based on the following principles:
Only suppliers who fully comply with
environmental laws, properly dispose of waste
and demonstrate a clear commitment to ethical
values and social responsibility, and do not use
child or forced labor, are accepted through the
preliminary stages of the contractor evaluation
and selection process
Bidding documents are developed to include
detailed environmental and social requirements
that are clearly defined, allowing suppliers to
understand and agree upon these terms during
contract negotiations.
Legal documents, environmental monitoring
results, and procedures for waste classification, storage, and transportation are
periodically
reviewed. These reviews are combined with
environmental risk assessments throughout the
contract period to promptly detect violations
and request immediate corrective actions when
necessary.
Suppliers with a history of violations are
removed from the list of eligible partners for
long-term cooperation.
PVFCCo continues to research and propose a
set of environmental and social criteria to be
integrated into future contractor evaluation and
selection processes, aligning with international
ESG standards and best practices.
Summary of PVFCCo’s transaction situation with
suppliers in 2024 is as follows:
Transactions with 77 suppliers
100% of suppliers fully comply with safety,
health and environmental requirements.
No violations related to the environment and
society have been recorded.
Digital transformation
PVFCCo also identified digital
transformation as a mandatory
requirement that needs to be
implemented quickly, not only to
comply with the common goals of the
Parent Group but also to keep up with
the trend of the times, improve internal
business efficiency, and be ready to
seize new business opportunities,
thereby enhancing competitiveness
in the international arena.
Establishment of the Digital Transformation and
Information Technology Division - a specialized
focal unit responsible for comprehensively
implementing the digital transformation
program and operating the information
technology system throughout the Corporation,
ensuring that the digital transformation process
is implemented in a systematic, synchronous
and sustainable manner.
Strengthen the digital transformation
implementation plan towards 2030, Data
Governance Framework (DBI) and internal
communications to guide action programs
throughout the enterprise.
Research and plan the application of digital
initiatives in line with practical goals and
resources, especially focusing on solutions to
support optimal procurement, management,
use, and storage of raw materials, to ensure
continuous and safe production for fertilizer and
chemical factories, while improving production
and business efficiency.
Review and update regulations and processes
on information technology and digital
transformation to better suit new requirements
and contexts, focusing on enhancing
information security, clearly establishing
access authorization mechanisms according to
functions/tasks and ensuring security for the
entire data system and digital infrastructure.
Develop a flexible annual training plan suitable
for each transformation stage and each target
group. Participants are not only limited to the
IT specialist team but also extended to all staff
with rich content such as information security,
digital transformation knowledge, technology
skills and specialized professional topics.
Many information technology platforms have been developed and integrated into the production and
business operation process, which is the clearest evidence of PVFCCo’s comprehensive and
synchronous
digital transformation efforts and the capacity for innovation, creativity, and high
adaptability to new
requirements in the digital age of human resources:
Activity Group
Target
IT Platform
Manufacture
Improve
operating
efficiency,
ensure safety
and optimize
capacity
Oracle - Comprehensive enterprise resource planning (ERP)
software system supports synchronous management of areas
such as finance, human resources, materials, production and
related business processes.
DCS (Distributed Control System)
allows centralized monitoring
and control of complex production processes in the factory in
real time.
MMS (Maintenance Management System)
supports planning,
monitoring and organizing equipment maintenance,
contributing to improving the reliability and longevity of assets.
ESD (Emergency Shutdown System) allows automatic activation
of necessary safety measures to protect people, equipment and
the environment in the event of a serious incident.
PLC (Programmable Logic Controller) plays a role in controlling
automation devices in the factory operation process.
CMMS (Computerized Maintenance Management System) enables more
efficient equipment maintenance management
through repair history storage, material management,
performance tracking and maintenance process automation.
PMIS (Plant Monitoring Information System) is developed
internally by the plant engineering team, helping to remotely
monitor operating indicators in real time, receive information
about incidents directly via phone or computer connected to
the Internet, and support leaders to make quick and accurate
handling decisions.
Business and
office
Increase
the rate of
digitized
business
operations
and internal
administration,
reduce manual
operations to
increase work
efficiency
DMS (Distribution Management System) helps effectively
control the process of distributing goods to agents and
branches.
ERP (Enterprise Resource Planning) integrates core processes
such as finance, accounting, materials, production, human
resources etc. into a unified system.
RFID (Radio Frequency Identification) helps automate the
tracking and management of goods, assets in warehouses, and
transportation.
Zoom, Microsoft Teams support online meetings, discussions
and work exchanges.
eOffice - Electronic office supports document management
and paperless work operations.
The e-Learning system supports flexible internal training
with diverse content from expertise, digital transformation to
information security, suitable for each employee.
Engage with
stakeholders
Promote a
comprehensive
digital
ecosystem
and increase
effective
engagement
with
stakeholders
Customers: LOGETY system serves to manage and take care
of customers and agents to improve experience and service
quality.
Supplier: online bidding and procurement portal connected
to the National Bidding Portal to enhance transparency and
efficiency in the bidding, evaluation and selection process of
contractors.
Farmers: applying artificial intelligence (AI) to provide
technical
support and answer questions in agricultural production.
Employees: My PVFCCo application enhances interaction
between the Corporation and employees.
In addition to the practical benefits brought by implementing digital transformation activities
and integrating
technology into the operation chain, PVFCCo also faces increasing risks from information
technology (IT)
risks. Security vulnerabilities in the IT system can cause sensitive data such as customer
information, partner
contracts, operational data and production formulas to be stolen or leaked when attacked by
cyberattacks,
infected with malware or hardware and software failures. Therefore, PVFCCo has always focused on
operating and upgrading the following security and network security infrastructures in recent
years:
Deploy firewalls and
XDR solutions - tools
for monitoring and
responding to threats.
Maintain 24/7 operation of
the SOC (Security Operations
Center) system to ensure
comprehensive information
security monitoring and
response capabilities and
gradually standardize
according to updated
security requirements.
Control access, assign user
permissions and protect
customer personal data,
especially on user-facing
platforms such as Loyalty
Apps and ERP systems.
With the above methodical steps and clear orientation, PVFCCo is getting closer to the goal of
becoming
the leading unit in digital transformation in PVN, while affirming its pioneering position in
the fertilizer
and chemical industry in Vietnam in applying digital technology to business operations and
management.
Transparent governance
and responsible business
Develop and periodically update internal
regulations and documents related to
corporate governance such as the Board of
Directors’ Operating Regulations and Internal
Regulations on Corporate Governance, etc. in
accordance with current legal regulations and
with reference to international good practices,
ensuring that governance activities are always
transparent, clear and the rights of minority
shareholders are not violated.
Conducted regular evaluations and
improvements the structure of the Board of
Directors - the highest management body at
PVFCCo representing the rights and interests
of shareholders - including members who
fully meet the legal standards and conditions
and professional qualifications and practical experience in line with the strategic
orientation
of the Corporation, of which 1 member
(accounting for 20%) is an independent
member of the Board of Directors.
Maintained transparency and democracy in the
process of nominating and selecting members
of the Board of Directors for each term through
specific implementation requirements:
Information relating to candidates is disclosed
at least 10 days prior to the date of the General
Meeting of Shareholders to ensure full and
timely access to information for all shareholders.
The election process for the highest level of
management is carried out according to the
cumulative voting method prescribed in Clause
3, Article 148 of the Enterprise Law 2020 to
enhance the decision-making power and
presence of minority shareholders, ensuring
the regulation of power and the level of
corporate control among shareholder groups.
The collection and counting of votes are
carried out by the Ballot Counting Committee
in a separate area within the venue of the
Shareholders’ Meeting to ensure objectivity
and can be monitored by several shareholders
representing the meeting upon request. The
election results are announced immediately
during the meeting to be officially recorded in
the Resolution of the Shareholders’ Meeting.
Establish specialized committees under the Board of Directors with clear
functions and tasks stated in the operating regulations in compliance with
current legal regulations to support the Board of Directors in reviewing
professional content before regular or extraordinary meetings, and at the
same time monitor, supervise and coordinate with the Executive Board
in implementing Resolutions and Decisions approved by the Board of
Directors. The specific areas of the 03 specialized committees operating in
2024 include:
Planning and Business
Committee
Advised the Board of Directors in developing, monitoring
and evaluating PVFCCo’s strategy and operational plans;
closely monitored periodic business performance to ensure
consistency with the Corporation’s long-term business
development strategy and flexibly adapted to unusual market
fluctuations.
Risk Management & Employee
Policy Committee
Advised on issues related to risk management, auditing
and internal control; proposed policies on organization and
senior personnel; monitored remuneration and proposed
improvements to governance mechanisms to enhance the
effectiveness of the Board of Directors’ operations.
Investment, Development
and Science and Technology
Committee
Advised on investment strategies, research and application of
science and technology, digital transformation, and
monitored
sustainable development programs, as well as managed
shareholder relations and monitored transactions with
potential
risks of conflicts of interest.
Focus on raising awareness and quickly grasping emerging governance
trends by sending members of the Board of Directors, Board of Supervisors,
Board of Management and key managers to participate in intensive training
courses on ESG and corporate governance organized by the State Securities
Commission, Ho Chi Minh City Stock Exchange, Vietnam Chamber of
Commerce and Industry (VCCI) and international organizations.
Ensure that all important information is disclosed fully, promptly and on
time as required by current legal regulations and perform accountability
when receiving requests from relevant parties.
Build a remuneration structure for members of the Board of Directors,
Board of Supervisors and Board of Management closely linked to the
annual production and business performance of PVFCCo, the remuneration
level for each individual is approved by the Annual General Meeting before
payment in accordance with current legal regulations and is disclosed in
detail in the annual Financial Report.
PVFCCo requires all departments, divisions, affiliated units, and subsidiaries to strictly and
fully comply
with current legal regulations governing all aspects of operations in the fertilizer and
chemical sectors.
The following commitments are consistently implemented throughout the entire organization:
Ensure fair competition, uphold integrity
in production and business activities, and
promote sustainable business thinking - where
economic development goes hand in hand
with environmental protection and shared
responsibility with the broader community.
Comply with current legal regulations and
international conventions related to human
rights and labor rights throughout all production
and business operations.
Implement anti-corruption programs according
to the direction of the Corporation’s Party
Committee and the guidance of the Parent
Group, regularly direct, inspect, examine, and
closely monitor the implementation process
through a multi-level network and strictly handle
violations if detected.
Fully and promptly comply with tax obligations
with the process of declaration, submission of
reports and contributions to the state budget
periodically implemented synchronously,
regularly monitor and update changes in tax
policies that affect PVFCCo’s production and
business activities to propose amendments to
corresponding internal documents and processes.
Encourage employees to proactively identify
their training needs, update professional
knowledge, and participate in relevant courses
to enhance their competencies, including
training on new policies and regulations, etc.
Maintain the 5S culture (Sort - Set in order - Shine
- Standardize - Sustain) at Phu My Fertilizer
Plant and the Corporation Office to increase
efficiency, improve production productivity
while ensuring labor safety, limiting potential
risks and accidents.
Respect and protect privacy as well as information
and personal data of customers according to
current laws, ensure that the transaction process
and information collected from customers are
processed for the right purpose, stored on the
management and operation system application
with a high level of security and limit the subjects
with access rights.
Ensure that any use of customer images for
communication purposes is governed by a
complete, lawful, and reasonable agreement,
with remuneration paid in accordance with
regulations.
The principles of business conduct and behavioral standards for PVFCCo
employees are defined in the Corporate Culture Handbook.
1
Correctly implement the Party’s policies and guidelines
and strictly comply with the laws of the State.
2
Serve a role model by continuously learning,
cultivating,
and practicing improving personal capacity, political
integrity, professional ethics, and civil behavior to
successfully fulfill assigned responsibilities.
3
Exercise the rights and obligations of officers,
employees, and workers in accordance with the law
and PVFCCo’s internal regulations.
4
Maintain an open, friendly, and modest attitude in
all relationships; uphold the reputation and honor
of leaders and colleagues; and protect the prestige,
rights, and legitimate interests of PVFCCo.
5
Demonstrate a high sense of responsibility and
professionalism at work; foster care, respect, trust, and
cooperation; and promote democracy and collaboration
toward PVFCCo’s sustainable development.
6
Do not use shared assets for personal gain, and do
not participate in activities that harm the interests of
PVFCCo.
Regarding the practices related to receiving, handling and managing complaints and reports of
violations,
PVFCCo has issued and implemented the Regulations on inspection and settlement of complaints and
denunciations with the aim of ensuring timely, competent and transparent handling of feedback,
thereby
maintaining stability and strengthening the trust of stakeholders in the Corporation and its
member units.
The implementation process in practice takes place in the following 4 steps:
Step 1
Receiving
and
recording
information
All petitions and feedback are received, recorded in the logbook
and/or updated in PVFCCo’s electronic document management
system to ensure archiving and continuous tracking.
Step 2
Initial
Classification
Classify petitions according to criteria such as content of reflection,
processing conditions (qualified or not), settlement authority
(Corporation level or affiliated unit), and number of complainants
(individuals, groups, etc.) to forward to appropriate focal unit.
Step 3
Processing
and
resolution
The focal unit is responsible for presiding over the reception and
handling of complaints at the Corporation. The relevant departments
and offices coordinate to provide information, participate in the
assessment and propose appropriate directions. The handling
results are summarized and reported to the Corporation’s leaders
for consideration and decision.
Step 4
Testing,
monitoring
and reporting
Heads of affiliated units and representatives of capital at subsidiaries
are responsible for monitoring, supervising and periodically (every
6 months and annually), or suddenly upon request, sending reports
on the status of handling petitions to the Human Resources
Management Division.
PVFCCo President & CEO periodically directs the inspection of the
handling of petitions; the Human Resources Management Division
is responsible for synthesizing and reporting to the Chairman of the
Board of Directors and at the same time reporting to competent
state agencies when necessary, according to legal regulations.
Through the process of strictly implementing the above contents, PVFCCo has not committed any
violations of the law on competition, anti-monopoly or hindering the market, environmental and
social
impact management in the process of operating regular production and business activities and
fulfilling
obligations to the state budget. PVFCCo has also always maintained good, long-term cooperative
relationships with partners and has not recorded any cases related to conflicts of interest,
corruption
or negative behavior affecting the prestige and reputation of the Corporation and has not
incurred any
complaints related to violations of customer information security.
