Vietnam's PVFCCo Upholds Investment, Development through Expansion

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Researched by Industrial Info Resources (Sugar Land, Texas)--PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo) (DPM:HOSE) (Ho Chi Minh, Vietnam), a leading Vietnamese producer of fertlizer, agrochemicals and petrochemicals, extended its chemical development strategy to 2015 and its overall vision to 2025, with the goal of putting chemical production on par with fertilizer production. The strategy clearly defines potential chemical projects.

Currently, PVFCCo is accelerating chemical project implementation, such as the ammonia production plant and the hydrogen peroxide plant, which are being integrated into the Phu My fertilizer plant. Investment and development continues to be a priority, aimed at creating sustainability, while preparatory investment work is aimed at product diversification. Investments include approximately $900 million in plants, with an annual capacity of 450,000 tonnes of ammonia and 200,000 tonnes of ammonium nitrate.

As PVFCCo's ammonia reforming unit is now producing a surplus amount of hydrogen, the company will invest in a hydrogen peroxide unit of an 8,250-metric-ton equivalent H2O2 100% concentration per year. For that project, PVFCCo is seeking a technology provider, or a foreign contractor, to handle process engineering during the EPC phase. PVFCCo will hold a domestic open bid to find a local, capable main contractor for the EPC package.

The main contractor and a foreign subcontractor will work out a bidding document and submit it to project owner. The scope matrix is dependent on the parties involved. The detailed scope of each contractor involved will be discussed and agreed to during contract negotiations among the project owner (PVFCCo), a local/main contractor (in charge mainly of Installation, structural erection, and civil works) and those subcontractors.

Slow implementation of construction projects remains a challenge for PVFCCo, as it has fallen behind its planned schedules and divestments have proven difficult to execute. To accomplish the growth, PVFCCo bolsters important projects in the fields of fertilizer and chemical production, and projects along the value chain that supports the business area of PVFCCo development.

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