VINACHEM

From 2020 to 2025, the Vietnam National Chemical Group (Vinachem) focused on drastically restructuring four struggling projects from the list of 12 loss-making industrial and trade projects. To date, all four of Vinachem's struggling units have shown positive improvements. A prime example is DAP - Vinachem Joint Stock Company (DAP Dinh Vu Plant, Hai Phong), which has achieved stable production and continuous profits since 2017, was removed from the list of struggling projects in 2021, and cleared all accumulated losses by January 2022.

Successful Restructuring of Loss-Making Projects

Notably, three large, long-standing loss-making fertilizer projects (Ninh Binh Urea Plant, Ha Bac Urea Plant, and DAP No. 2 Lao Cai Plant) have maintained stable production and business operations, increased operating capacity, and are gradually emerging from losses. In 2022, these three projects achieved a total profit of over 2,600 billion VND (an increase of 2,800 billion VND compared to 2021); in 2023, they continued to make a profit of over 1,000 billion VND.

As a result, they have contributed back to Vinachem in terms of profits, budget, and ensured employment for thousands of workers. By the end of 2024, the Group had fully repaid the 340 million USD loan from Eximbank China for the Ninh Binh Urea project, as well as settled its debt with the Vietnam Development Bank (VDB) for this project. These are clear demonstrations of the efforts to restructure and "revive" businesses on the brink of collapse.

Digital Transformation and Green Transition for Sustainable Development

Vinachem has identified green and digital transformation as strategic pillars for rapid and sustainable development. The entire Group has thoroughly grasped the Government's directive: investment and development must be linked with energy transition, digital transformation, green transition, and sustainable development. Vinachem focuses on modernizing production technology, strictly controlling emissions and pollution, using green, energy-efficient, and effective energy, and building smart factories. Many environmentally friendly production lines and materials have been put into use, contributing to Vietnam's commitment at COP26 to achieve "net zero" emissions by 2050.

Digital transformation is considered a crucial pillar for Vinachem to make breakthroughs in science and technology and enhance national competitiveness in the new era. Vinachem has independently developed and officially operated VINACHEMMART, the first specialized digital platform for Vietnam's chemical industry.

Additionally, Vinachem has pioneered product diversification towards green and safe options. In 2025, the Group launched the VINACHEM consumer product line, including household chemicals, batteries, and tires, all produced on modern production lines, meeting international standards, and being environmentally friendly.

Revenue and Profits Continuously Set Historical Records

The results of the restructuring and innovation process are breakthrough growth in revenue and profits, continuously setting new records in the Group's 55-year history. Particularly, 2022 marked a new "peak": Industrial Production Value reached 61,057 billion VND (125% of the annual plan), and the Group's Total Revenue was estimated at 62,262 billion VND – the highest ever (119% of the plan, an increase of 17% compared to 2021). Profit in 2022 also surged to over 6,200 billion VND, a record high, with former struggling plants alone contributing over 2,000 billion VND in profit.

In 2023, Vinachem continued to achieve impressive results: Consolidated Revenue reached 55,286 billion VND (the second highest in history, only after 2022), and Profit reached 3,277 billion VND. By 2024, despite many difficult fluctuations in the global and domestic economies, the Group still exceeded its targets: Total Group Revenue reached 59,500 billion VND; Consolidated Profit was approximately 3,168 billion VND. This is a testament to the tireless efforts of nearly 20,000 cadres, workers, and employees throughout the Group.

Along with this, Vinachem consistently exceeds its budget obligations: in 2024 alone, the Group contributed 2,116 billion VND to the state budget, exceeding the annual plan by 24%. The income and living standards of employees have been increasingly secured and improved, with the Average Salary across the Group in 2024 reaching nearly 14.9 million VND/person/month (an increase of 10% compared to the previous year). This affirms Vinachem's position as one of the leading state-owned enterprises, making significant contributions to the country's economy.

Early Achievement of 5-Year Plan, Elimination of Accumulated Losses

According to the summary report, in the 2021-2025 period, the Group is estimated to achieve: Industrial Production Value at actual prices reached 277,256 billion VND, with an Average Growth reached 9.7%/year; Consolidated Revenue reached 272,591 billion VND, with an Average Growth of 7.9%/year; Consolidated Profit of 21,219 billion VND, by 93.2% of the 5-year plan; and Average Employee Income reached 14.04 million VND/person/month.

Significantly, Vinachem's parent company has consistently operated profitably, enabling the entire Group to eliminate all accumulated losses over many years and begin accumulating surplus profits. Thus, the goal of "Vinachem will eliminate all accumulated losses by the end of 2025" was achieved half a year ahead of schedule.

This is an important milestone, marking the transition from a difficult period to a new chapter in Vinachem's development. From a company once on the brink of losses, Vinachem has now firmly regained its position as a key player in the chemical industry, contributing to national food security and serving important economic sectors.

Spreading Emulation Movements, Creative Innovation Initiatives

Vinachem considers science and technology and innovation as drivers for sustainable development and has established numerous mechanisms and policies to encourage these activities.

The Group holds 5 patented inventions (including 1 international patent), 20 utility solution patents, and has registered 2 patents in the US; many of Vinachem's research projects have won prestigious national and international awards.

In 2023, Vinachem was honored to receive the Emulation Flag from the Government. These prestigious awards and titles are vivid proof of the solidarity, creative labor, and selfless dedication of Vinachem's employees throughout the past journey.

Affirming Confidence and Aspiration for Development

Entering a new phase, Vinachem has been preparing strategic directions until 2030, with a vision to 2040, aiming to develop the Group into a leading chemical enterprise in the region, with modern technology and management levels, and strong product brands in the international market. The 55-year journey of construction and growth has forged the tradition of "overcoming headwinds, helping kites fly high" – this internal strength will continue to propel Vinachem further and higher, making a worthy contribution to the country's industrialization and modernization.

In the new phase, Vinachem sets a target of minimum average growth of 8% in 2025 and will gradually strive for double-digit growth in the 2026-2030 period. This is a commitment to a sustainable development journey, built on the foundation of successful restructuring, strong digital transformation, and comprehensive technological innovation. With high political determination and the unanimous support of its leadership and employees, Vinachem is ready to make breakthroughs and realize its aspiration to reach regional and international heights in the chemical sector.