10/31/2012
1
PETROVIETNAM FERTILIZER & CHEMICALS CORPORATION
www.dpm.vn 1
THE OUTLOOK FOR FERTILIZER
SUPPLY IN VIETNAM
Cao Hoai Duong – President & CEO
IFA Crossroads Asia-Pacific 2012
Manila, Philippines 29-31/10/2012
CONTENT
1. PVFCCO AT A GLANCE
2. VIETNAM AGRICULTURE AND ECONOMY OVERVIEW
3. FERTILIZER MARKET SITUATION
4. OUTLOOK FOR UREA SUPPLY
PETROVIETNAM FERTILIZER & CHEMICALS CORPORATION
www.dpm.vn 2
10/31/2012
2
CONTENT
1. PVFCCO AT A GLANCE
2. VIETNAM AGRICULTURE AND ECONOMY OVERVIEW
3. FERTILIZER MARKET SITUATION
4. OUTLOOK FOR UREA SUPPLY
PETROVIETNAM FERTILIZER & CHEMICALS CORPORATION
www.dpm.vn 3
OVERVIEW
The biggest producer and trader of fertilizer in
Vietnam
Member of Petrovietnam Oil and Gas Group
(PetroVietnam)
A Blue chip stock listed on Hochiminh Stock
Exchange (HoSE). Stock code: DPM
Charter capital (2007): 3,800 billion VND (~238
million USD)
Total shares: 380,000,000
Market value: 705 mil USD Headquarter: Ho Chi Minh city
www.dpm.vn 4
10/31/2012
3
PVFCCO’S UREA MARKET
www.dpm.vn 5
- Capacity of production: 800,000 MT
prilled urea per year.
- Import - Export quantity (MT):
Year Export Import
2011 30,000 130,000
2012 180,000 100,000
PVFCCO’S UREA LOCAL MARKET SHARE
10%
51% 39%
2011
9%
12%
55% 20%
4%
2012
Ha Bac Import PVFCCo
Ninh Binh Ca Mau
www.dpm.vn 6
Source: PVFCCo
10/31/2012
4
REVENUE & NET PROFIT (2009-2012)
Unit: million USD
www.dpm.vn
Year
Amount
0
100
200
300
400
500
600
2009 2010 2011 9m/2012
350 358
465
504
69 87
148 112
Revenue Net Profit
7
DISTRIBUTION NETWORK
www.dpm.vn 8
30 warehouses/storage (250,000MT)
PVFCCo North
2 owned branch, 45
wholesalers
545 retailers
PVFCCo Central
2 owned branch, 16
Wholesalers
813 retailers
PVFCCo South East
6 owned branch, 25
wholesalers
760 retailers
PVFCCo South West
2 owned branch, 24
wholesalers
804 retailers
Cambodia Branch
Myanmar Rep.
End Users
10/31/2012
5
DISTRIBUTION NETWORK
30 warehouses/storage
with capacity: 250,000MT
- 12 Branches
- 110 Wholesalers
~3,000 Retailers located
throughout the country
Export ports:
Ba Ria – Vung Tau
Ho Chi Minh City
Method of shipping:
Bags/Container.
Bulk.
www.dpm.vn
CONTENT
1. PVFCCO AT A GLANCE
2. VIETNAM AGRICULTURE AND ECONOMY OVERVIEW
3. FERTILIZER MARKET SITUATION
4. OUTLOOK FOR UREA SUPPLY
PETROVIETNAM FERTILIZER & CHEMICALS CORPORATION
www.dpm.vn 10
10/31/2012
6
KEY ECONOMIC FIGURES
www.dpm.vn
Items 2009 2010 2011 2012 (E)
Population (mil. persons) 86.03 86.93 87.84 88.60
GDP Growth rate (%) 5.3 6.8 5.9 5.7
GDP per capita ($) 1,130 1,224 1,411 1,468
Share of agriculture (%) 20.9 20.6 20.5 20.5
Source: World Bank/Vietnam Economic Forum
11
VIETNAM’S CLIMATE
www.dpm.vn 12
Source: www.chinhphu.vn
Vietnam can be divided into two major climate regions:
Northern part: a tropical monsoon climate, with four distinct
seasons (Spring-Summer-Autumn-Winter), and high humidity;
10°C to 32°C.
Southern part: moderate tropical climate, hot all year round and is
divided into two seasons (Dry and Rainy season); 23°C to 32°C.
The average rainfall each year:
Hanoi: 1,763 mm.
Hue: 2,867 mm.
Ho Chi Minh City: 1,910 mm.
The average air humidity is over 80%, even 90% in rainy season and
in drizzly weather.
10/31/2012
7
AGRICULTURE ARABLE LAND 2011
www.dpm.vn
Unit: Thousand Hectare Source: General Statistics Office
Cashew; 360 Rubber; 834
Coffee; 571
Tea; 126
Pepper; 55
Fruits; 833
Rice; 7651
Corn; 1117
Sugarcane; 281
Cotton; 9
Peanut; 224
Soybeans; 182
13
AGRICULTURE PRODUCTIVITY
www.dpm.vn 14
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
2009 2010 2011 Unit: Mectric ton per Hectare Source: General Statistics Office
10/31/2012
8
www.dpm.vn
Unit: Thousand Metric Ton Source: General Statistics Office
15
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2009
2010
2011
AGRICULTURE PRODUCTION
FERTILIZER SUPPLY AND DEMAND 2011
www.dpm.vn
0
500
1000
1500
2000
2500
3000
3500
Demand
Production
Balance
16
Unit: Thousand MT Source:Agroviet
Q’ty
10/31/2012
9
CONTENT
1. PVFCCO AT A GLANCE
2. VIETNAM AGRICULTURE AND ECONOMY OVERVIEW
3. FERTILIZER MARKET SITUATION
4. OUTLOOK FOR UREA SUPPLY
PETROVIETNAM FERTILIZER & CHEMICALS CORPORATION
www.dpm.vn 17
FERTILIZER DEMAND BY CROPS
www.dpm.vn
Winter-spring; 4580
Summer-Autumn ; 2760
Autumn-winter; 1760
Unit: Thousand MT Source: MARD
18
10/31/2012
10
FERTILIZER DEMAND BY AREA
www.dpm.vn
North; 2960
Central; 1570
South; 4570
19
Unit: Thousand MT Source: MARD
FERTILIZER IMPORT IN 2011
www.dpm.vn
Source: PVFCCo
20
Value
Urea, 1,126
SA, 890
MOP, 886
DAP, 618
Others; 814
Urea, 440
SA , 201 MOP,
423
DAP, 380
Other, 266
Quantity
Total: 4,334 Total: 1,710
Unit: million USD Unit: thousand MT
10/31/2012
11
FERTILIZER USE HABITS IN VIETNAM
www.dpm.vn
Source: PVFCCo
21
Urea: Use only prilled urea for farming.
Most farmers are now overusing urea.
NPK is mainly “blended” one.
DAP is used in the South of Vietnam only.
The urea use efficiency only reached 30-45%,
phosphate 40-45% and potash 40-50%.
CONTENT
1. PVFCCO AT A GLANCE
2. VIETNAM AGRICULTURE AND ECONOMY OVERVIEW
3. FERTILIZER MARKET SITUATION
4. OUTLOOK FOR UREA SUPPLY
PETROVIETNAM FERTILIZER & CHEMICALS CORPORATION
www.dpm.vn 22
10/31/2012
12
PETROVIETNAM GROUP
VINACHEM GROUP
Phu My Fertilizer – 800kTpa
Ca Mau Fertilizer (2012) – 800kTpa
Supply – 1,600kTpa
Ha Bac Fertilizer – 180k Tpa
Expansion of Ha Bac Fertilizer (2014) – 320k Tpa
Ninh Binh Fertilizer (2012) – 560k Tpa
Supply – 1,060k Tpa
Demand in southern area – 1,000k Tpa
Demand in northern area – 600k Tpa
Demand in central area – 400k Tpa
CAPACITY AND PRODUCTION
23 www.dpm.vn
Source: VCSC, PVFCCo
VIETNAM SUPPLY OUTLOOK TO 2015
24 www.dpm.vn
Unit: Thousand MT
Source: VCSC, PVFCCo
0
500
1000
1500
2000
2500
3000
2010 2011 2012 2013 2014 2015
147 194 190 190 414 500
807 801 800 800 800 800
560 800
800 800 392
560 560 560
Ha Bac Phu My Ca mau Ninh Binh
Q’ty
Year
10/31/2012
13
Urea supply will increase nearly 100% from 2012 onwards
VIETNAM SUPPLY AND DEMAND 2010-2015
25 www.dpm.vn
0
500
1000
1500
2000
2500
3000
2010 2011 2012 2013 2014 2015
Ninh Binh
Ca Mau
Phu My
Ha Bac
Urea for Farming
Demand for Urea (includingNPK Production)
26 www.dpm.vn
VIETNAM SUPPLY AND DEMAND 2010-2015
From 2012, Vietnam becomes one of the fertilizers
exporter.
PVFCCo is the biggest exporter in Vietnam with the
estimate export quantity from 200,000 – 400,000
MT/year.
All potash and SA fertilizer for local demand has been
imported 100% from overseas.
Phosphate is supplied 100% from local factories.