1 AIT Asian Institute of Technology

Inventory management in trading operations: a study of PVFCCo

AuthorHo Tuan Hung
NoteA project study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration (Executive) in International Business – Management of Technology (VN), School of Management
PublisherAsian Institute of Technology
AbstractThe PetroVietnam Fertilizer and Chemicals Company (PVFCCo), a Subsidiary of the Vietnam National Oil and Gas Corporation (known as PETROVIETNAM) was founded on March 28, 2003 following the Decision No. 02/2003/QĐ-VPCP. The Company started to operate on Jan 12, 2004. The Phu My Fertilizer Plant project was ground broken on March 12, 2001. After more than three years of construction, on Sept. 21, 2004 the Technip – Samsung Contractors transferred the Phu My Fertilizer Plant to The PetroVietnam Fertilizer and Chemicals Company to manage and operate, introduce Phu My Ferilizer brand-name products to the market now known as Dam Phu My (DPM Urea ™). PVFCCo have enjoyed an unprecedented profit from producing and trading fertilizers from the year its factory comes into operation to the middle of the year 2008 by using natural gas from the Cuu Long and Nam Con Son basins, also subsidiary companies of Petrovietnam. The special remark is that, PVFCCo enjoy the ready-for-use gas resource therefore they do not concern about the input for the production chain. PVFCCo is a trading and producing company, in which the capacity produced by the its own factory just supply approximately 40% of Vietnam Fertilizer market, the remaining of the market is being supplied by the other fertilizers supplier such as Nam Sao, Viet Nhat, Lam thao …. and shall be studied in details in the Competitors secition of this research. All of the Vietnam fertilizer suppliers using imported fertilizer trading and selfmanufacture strategy to meet the market demand and supply, this Case research shall focus more about imported strategy of PVFCCo in order to compete against the other fertilizer suppliers companies in Vietnam. The half end of the year 2008, the global economy became worsen, with the price of daily crucial commodities such as oil, gas, electricity, rice …. drops, the price of Imported stock in PVFCCo went down, the fertilizer stock was hold in the warehouse to preserve the initial capital investment result in the in revenue in the half end of 2008. This research is going to analyze and find out the way in order for PVFCCo to overcome the problem of managing the stock and preventing the same issue happening in the future. PVFCCo currently is supplying DPM Urea ™, Ammonia and Electricity, but for the purpose of this research, only DPM Urea ™ will be studied.
Year2010
TypeProject
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Chairperson(s)Venkatesh, Sundar
Examination Committee(s)Muller, Logan;Dimmitt, Nicholas J.
Scholarship Donor(s)Petro Vietnam Fertilizer and Chemicals JSC


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