PVFCCo - Phu My and Its Business Transformation

(PetroTimes) – Over more than two decades of development, the business model of PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo - Phu My) has been adjusted multiple times to meet the realities of each stage. However, perhaps no change has been as fundamental and resolute as the one currently taking place.

In recent years, the fertilizer market has undergone significant shifts. Supply chain disruptions, intensified competition, and increasing pressure to optimize cost efficiency have necessitated a new, leaner, and more flexible business model for PVFCCo - Phu My. The previous model—despite having helped Phu My assert its industry-leading position—has begun to reveal critical bottlenecks: an inefficient distribution system, inconsistent pricing and discount policies, and decentralized operations that hinder market control and impact competitiveness and brand strength.

PVFCCo - Phu My and Its Business Transformation
PVFCCo - Phu My has taken bold steps to transform its business with two core goals: promoting growth aligned with new competitive trends and optimizing distribution cost efficiency.

Amid these changes, Phu My has decisively transformed. Starting in early 2025, the corporation officially launched a new business model focused on two core objectives: driving growth in line with emerging competitive dynamics and maximizing cost efficiency in the distribution channel. Under this model, the corporation directly manages pricing policies with Tier-1 distributors, while member companies shift from being decision-makers to intermediaries focusing on distribution, customer service, and market development according to unified directions from the corporation.

What stands out is that this transformation goes beyond organizational technicalities. It reflects a leadership mindset shift—from decentralization to centralization, from reactive to proactive management, from fragmented delegation to flexible control.

At the same time, a key highlight of this transition is the aggressive implementation of digital transformation (DX) across the entire governance, operations, and business process. At PVFCCo - Phu My, DX is carried out systematically and comprehensively, from internal management to market operations. The adoption of advanced technologies such as ERP, DMS, TMS, RFID/QR codes, etc., has not only optimized workflows and reduced costs but also enhanced the customer experience throughout the value chain.

These digital systems have improved sales management, ensured transparent and real-time coordination with branches and distributors, and facilitated logistics oversight. Notably, the integration of DMS (Sales Management), TMS (Transportation Management), and ERP systems has created an intelligent digital governance ecosystem, empowering the company to make informed, accurate decisions based on solid data.

PVFCCo - Phu My and Its Business Transformation
Thanks to the new business model, PVFCCo reported strong performance in the first half of 2025, with Phu My fertilizer sales volume far exceeding projections.

Shortly after implementation, PVFCCo recorded highly positive initial results from the new model. Specifically, in the first six months of 2025, the total sales volume of Phu My fertilizers is estimated to reach approximately 744,000 tons, 117% of the semi-annual plan and 61% of the full-year 2025 target approved by the General Meeting of Shareholders. This figure also significantly surpasses the management plan assigned by the Vietnam National Oil and Gas Group (Petrovietnam).

Sales volume from member companies also posted strong growth, estimated at 623,000 tons—34% higher than the semi-annual plan and fulfilling 55% of the 2025 annual target. Most notably, the Phu My NPK product line reached 98,500 tons in the first half, exceeding the six-month plan by 118% and achieving 56% of the full-year goal. Inventory levels for this product have dropped to an all-time low—once a particularly challenging product for Phu My.

More importantly, behind these impressive numbers lies the synchronized movement of the entire system: timely and transparent sales policies, a unified distribution system with tighter control over inventory, discounts, and costs. The corporation’s market management and executive functions have also been significantly enhanced, allowing for a more realistic approach to market dynamics and quicker responses to supply-demand shifts and consumption trends. With the new business model, PVFCCo - Phu My’s market engagement has become more realistic and responsive to supply-demand fluctuations and consumer trends.

However, this transformation also brings new challenges. The workload of PVFCCo’s professional departments has increased significantly, requiring continuous process improvements, technological advancements, and individual capability development. Some distribution chain members have yet to fully adapt to their new roles and will need additional support and training. Additionally, the need for market data collection and analysis, internal communication, and distribution system management has become more urgent than ever.

Overall, PVFCCo’s new business model represents a strategic and correct long-term step. It not only resolves current bottlenecks but also lays the groundwork for modernized governance, enhanced competitiveness, and reinforced leadership in the fertilizer and chemical industry. For sustainable results, the corporation plans to continue refining its operations toward flexibility and modernization, accelerating digitalization, strengthening system-wide coordination, and leveraging the Party organization’s role in building personnel and fostering innovation.

With a solid internal foundation and strong leadership commitment from executives to employees, PVFCCo - Phu My’s new business model is poised to serve as a launchpad for its next phase of proactive and sustainable growth.