Fertiliser competition to take root

February 22, 2013 | 16:14
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The domestic urea fertiliser market is set to witness stiff competition in 2013 as supply will far outstripped demand.

PetroVietnam Fertiliser and Chemicals Corporation (PVFCCo) deputy director Nguyen Hong Vinh sheds some light on the company’s efforts to confront the New Year’s fresh challenges.

Domestic market urea fertiliser competition has been heated up. What is PVFCCo’s advantage to maintain stable market?

Human resources are the company’s core advantage. Over 1,900 well-trained, professional and devoted staff has delivered our current strength and successes. Our Phu My fertiliser plant is always operating stably and safely with ensured product quality.

In the past nearly a decade, our trademark with slogan ‘For bumper crops’ has become familiar to farmers throughout Vietnam.

PVFCCo’s distribution and logistics system has been constantly improved with increasing numbers of transit ports and associated stores in key markets. The system keeps oversight of fertiliser transport to ensure real products reach customer hands, avoiding causing losses to farmers.

The domestic market is forecast to face a glut of around 200,000 tonnes of urea fertiliser in 2013. What is PVFCCo’s export plan?

In 2012, our company shipped 18,000 tonnes of urea fertiliser to Cambodia and made a foray to Myanmar through trial export of 1,500 tonnes of Phu My nitrogenous fertiliser and opening a representative office there.

The company also set footholds in other markets like Thailand, the Philippines and Malaysia. Our total export volume of urea fertiliser in 2012 was around 100,000 tonnes.

In 2013, PVFCCo will promote product distribution in regional markets through our Cambodian branch office and representative office in Myanmar, and pledge long-term cooperation with foreign fertiliser distributors to ensure effective consumption of fertiliser products made by FVFCCo.

Has mammoth Ca Mau Fertiliser Plant commissioning 10 months ago affected PVFCCo’s performance and what is the company’s plan to put claw on the new plant through stake purchase?

Ca Mau Fertiliser Plant commissioning has significantly alleviated dependence on import sources. Our Phu My fertiliser trademark has carved a niche in the market in the past decade and was trusted by farmers around the country. Hence, we set to sustain urea fertiliser domestic market share, further expand output market internationally and increasingly diversify product ranges to better meet client needs.

The plan to purchase stake of Ca Mau fertiliser plant approved at the company’s general shareholders meeting in April, 2012 was just an orientation. Further steps will depend on state management agencies and our management authority. When the Ca Mau plant embraces equitising in the future, we will take on the opportunity if it is proven worthy.

By Hoang Nam

vir.com.vn

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