LUẬN VĂN THẠC SĨ

Chiến lược kinh doanh của Công ty Cổ phần phân lân Ninh
BÌNh giai đoạn 2010 - 2020
MBA THESIS

STRATEGIC BUSINESS OF NINH BINH PHOSPHATE
JOINT STOCK COMPANY FROM 2010 TO 2020"

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TABLES OF CONTENTS
Introduction...............................................................................................................9
CHAPTER I: THEORITICAL BASIS OF BUSINESS STRATEGY...............10
1.1. Concept, roles and business strategy models ………....................................10
1.1.1. The concept of strategy and business strategy ...........................................10
1.1.2. The role of business strategy .....................................................................11
1.1.3. Strategy model ...........................................................................................12
1.2. Business strategy formulation process ..........................................................13
1.2.1. Research stages ........................................................................................14
1.2.1.1. Identifying targets of the industry and company….......................14
1.2.1.2. Analysing environment ................................................................14
1.2.2. Developing strategies ..............................................................................15
1.2.3. Selecting strategies...................................................................................16
1.3. The major toolsfor strategy formulation and selection...............................16
1.3.1. SPACE Matrix .............................................................................................16
1.3.2. Matrix SWOT ............................................................................................17

Kết luận chương I.................................................................................................19
CHAPTER II. CURRENT SITUATION ANALYSIS FOR NINH BINH
PHOSPHATE JOINT STOCK COMPANY.......................................................20
2.1. Overview of Ninh Binh Phosphate Joint Stock Company...........................20
2.1.1. History and development of the company ..............................................20
2.1.2. The businesses of the company ...............................................................22
2.2. The advantages and core competencies of the company .............................22
2.2.1. Geographical location of the company ....................................................22
2.2.2. Advantages of melted phosphate production in Vietnam .......................22
2.2.3. Production methods of melted phosphate ...............................................23
2.2.4. Current capacity and main products of the company:.............................23

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2.2.5. Characteristics and the differences of melted phosphate as compared to
other phosphates:.......................................................................................................24
2.2.6. Human resources of Ninh Binh Phosphate Joint Stock Company ..........24
2.2.6.1. Human resources ............................................................. ...........25
2.2.6.2. Organizational structure .............................................................25
2.2.6.3. Management ................................................................................25
2.2.7. Financial analysis and business results of Niferco for three years of 2006;
2007; 2008.................................................................................................................26
2.2.7.1. Balance sheet

...........................................................................26

2.2.7.2. Income statement for 2006, 2007,
2008 .......................................26
2.2.7.3. Capital mobilization and employment..........................................26

2.2.7.4. Analysis of financial ratios ..........................................................28
a. Liquidity ................................................................................................28
b.
Performance...........................................................................................28
c. Profitability ...........................................................................................29
2.2.8. Position of the company in phosphate industry.......................................30
2.3. Analysis of the company’s business environment ........................................32
2.3.1. Analysis of factors affecting fertilizer demand ………………...........32
2.3.1.1. Cultivated area development........................................................32
2.3.1.2. Crop dependency..........................................................................33
2.3.1.3. Farmers’ income dependency.......................................................34
2.3.1.4. . Production practices and cultivation knowledge of each region in
the country….............................................................................................................34
2.3.2. Analysis of production capacity and competition of domestic
enterprises ..............................................................................................................36
2.3.2.1. Fertilizer demand and production cability of domestic
enterprises.................................................................................................................36

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2.3.2.2. Analysis of the competition among rivals in Vietnam fertilizer
industry ....................................................................................................................37
- Companies in the industry ......................................................................37
- Position of the companies in phosphate industry....................................39
2.3.3. Analysis of potential rivals ...................................................................40
2.3.4. Analysis of substitute and imported products ....................................43
2.3.5. Analysis of the negotiation power of the buyers in fertilizer
industry................................................................................................................... 43
2.3.6. Analysis of the negotiation power of the suppliers in fertilizer

industry ...................................................................................................................44
2.4. Analysis of current strategic issues and corporate governance from the
theory perspective ..................................................................................................45
2.5. Determining current shortcomings of the company and analyzing their
causes .......................................................................................................................4
8
CHAPTERIII. BUSINESS STRATEGY OF THE COMPANY FOR THE
PERIOD 2010 - 2020 AND CONCLUSION ....................................................... 50
3.1. The company's mission .................................................................................. 50
3.2. Business objectives of the company............................................................... 50
3.3. Strategy selection model ................................................................................ 50
3.3.1. Space Matrix for the strategic position of the company ......................... 51
3.3.2. SWOT matrix.......................................................................................... 52
3.4. Business strategy of the company for the period 2010-2020 ...................... 53
3.4.1. Strategic investment in core competency building: Increasing the capacity
melted phosphate production, investing more in the high quaility NPK production
line structure..............................................................................................................53
3.4.2. Products differentiatation strategy........................................................... 54
3.4.2.1. Improving product quality from 15% to over 17% of P2O5 .........54
3.4.2.2. Strategies for improving product visual designs......................... 55

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3.4.2.3. Competition by quality ................................................................
55
3.4.3. Production and selling price cost strategy............................................... 56
3.4.4. Market expansion and investment strategy ............................................ 57
3.4.5. Product promoting and advertising strategy ........................................... 58
3.4.6. Competitive supplier and supplying speed strategy................................ 58

3.4.7. Human resource management strategy.................................................... 59
3.5. Strategy organization of implementation .................................................... 66
3.6. Stratege evaluation and checking.................................................................. 67
3.7. Limits of the research and research orientation in the future ...................67
3.8. Conclusion........................................................................................................
68
References................................................................................................................69
Appendix .................................................................................................................70

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LIST OF ABBREVIATIONS
No
1
2
3

Meaning
Melted phosphate
Multi-nutrient fertilizer
Multi-nutrient fertilizer Diamon

Abbreviation
FMP
NPK
DAP

Phosphate
4

5

General formula : 18 N - 46 P - 0 K
Board of Directors
Ninh Binh Phosphate Joint Stock
Company

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BoD
NIFERCO


LIST OF APPENDIX, TABLES, DIAGRAMS
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

16
17

Code
Diagram 1.1.
Bảng 1.2.
Table 2.1.
Table 2.2.
Table 2.3.
Table 2.4.
Table 2.5.
Table 2.6.
Table 2.7.
Table 2.8.
Table 2.9.
Table 2.10.
Table 2.11.
Table 2.10.
Table 2.11.
Diagram 3.1.
Table 3.2.

Name of appendixes, tables, diagrams
Levels of strategies
Example of SWOT matrix
Position the company in the phosphate industry
Position the company in the melted phosphate industry
Table on liquidity ratio
Table on performance ratio
Table on profitability ratio

Financial statements of the company in 2006, 2007, 2008
Financial analysis of the company in 2006, 2007, 2008
Phosphate output of the companies in 2006, 2007, 2008
Phosphate output of other companies
Crop area by regions in Vietnam
Inorganic fertilizer output from 2000 to 2008
Phosphate output from 2000 to 2008
Melted phosphate output from 2000 to 2008
SPACE matrix for the company’s strategic position
SWOT matrix of the Company

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Introduction
1. Rationale:
With the increasingly fierce competition in the market, each company should
be ready with effective strategies to survive and develop steadily. If an company
has the right and appropriate business strategy, it can rely on its internal resources
to take advantage of opportunities from the outside environment or to avoid the
risks, limit the weaknesses and it will certainly be strong enough to compete and
stand firmly on the market. For Ninh Binh Phosphate Joint Stock Company, which
is a state-owned company just having been transformed into a joint stock company,
it faces with many difficulties and challenges than ever before as state sponsor is no
longer available. Ninh Binh Phosphate Joint Stock Company will have to make lot
of effort to maintain market share and develop further. This is also the reason we
decided to select the project "Strategic Business of Ninh Binh Phosphate Joint
Stock Company from 2010 to 2020" as the capstone subject.
2. The objective and significance of the project
Objective: Appling learnt theories in combination with actual analysis to

make an effective business strategy for Ninh Binh Phosphate Joint Stock Company
from now to 2020.
Significance: This thesis was made based on the management science with
the desire to contribute to a unit that one team member have worked for many years.
3. Object and scope of research
Object of research: Business strategy of Ninh Binh Phosphate Joint Stock
Company from 2010 to 2020.
Scope of research: Research the business environment of the fertilizer
businesses and formulate business strategy for Ninh Binh Phosphate Joint Stock
Company.
4. Research methodology
Many methods such as quantitative and qualitative methods have been used
in combination with analysis, statistics and expert interviews, capstone project is

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done for Ninh Binh Phosphate Joint Stock Company to get the most comprehensive
and accurate results. Based on that, the report can offer an effective strategy.
5. Report structure:
Apart from the introduction, the structure of the capstone project report
consists of three major chapters:
Chapter I: Theoritical basis of business strategy.
Chapter II: Current situation analysis for Ninh Binh Phosphate Joint Stock
Company
Chapter III: Business strategy for Ninh Binh Phosphate Joint Stock
Company for the period 2010 to 2020 and conclusion.
Because of the time limit and despite of the committed guidance of instructor
and the authors’ efforts, shortcomings can not be avoided in the report. We hope to
receive comments from the teachers, experts and all the course members.


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CHAPTER I
THEORITICAL BASIS OF THE
BUSINESS STRATEGY
1.1 BUSINESS STRATEGY CONCEPT, ROLE AND MODEL.
1.1.1 The concept of strategy and business strategy
Strategy is a term having appeared for a long time. It is originally often
associated with military and it is understood as: Strategy is the means to achieve
long-term goals.
Business strategy is attached to economic sector and it is understood in
different ways, the following are some common understandings:
- According to Fred David, strategy means to achieve long-term goals.
- According to Alfred Chadler, strategy is defined as the basic and longterm goals of a business and it proposes a course of action and distribution of
resources needed to implement that goal.
- According to M. Porter, strategy is the art of building competitive advantages
for defense.
- By G. Arleret, strategy is the determination of paths and other means to reach
the objectives defined through policies.
So, business strategy is a set of goals and policies as well as plans to achieve
key goals. It clearly shows the company is in progress of or will do which kind of
business and the company will be in which sector?
In general, there are differences of business strategy definition but basically
it consists of the following:
* Identify short-term and long-term goals of organization.
* Define and select alternatives to achieve the goals.
* Deploy and allocate resources to implement the goals.
1.1.2 The role of business strategy


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- First: The business strategy helps businesses clearly see its purposes and
directions. It forces managers to consider and determine the direction for the
organization to follow and when they reach a certain position.
- Second:

Business strategy forces managers to analyze and predict

environmental conditions in the near future and far future.
- Third: Thanks to the business strategy, businesses will attach decisions
with the conditions of the business environment.
– Fourth: Business strategy helps managers to use effectively the available
resources of the business and allocate them accordingly.
- Fifth: Business strategy helps managers to coordinate the functions within
the organization in the best way toward achieving the common goals of the
organization.
1.1.3 Strategic model
1.1.3.1 Overall economic strategy
In the 1950s and 1960s, most of the developing countries developed socialeconomic development strategies. Taiwan, Hong Kong, South Korea and Singapore
selected economic growth strategy.
The nature of this strategy is to exploit the maximum comparative advantages
to increase the economic growth. This strategy did not set comprehensive goals like
the social-economic development strategy. It paid attention to specific industries
which had comparative advantages and capacity to make breakthroughs resulting in
high speed economic growth.
The reality basis of the economic growth strategy at early stage of the country
industrialization, the investment capital of the Government and private sector in the

country was not much so focused and key investment should be made to avoid
spread and small investments. On the other hand, focus investment made with
comparative advantage perspective, it will bring high economic efficiency, high
renewable investment possibility.

This is wise strategy of "the poor", "using

resources as they are available".

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This strategy is the biggest and broadest lesson that developing countries can
and should learn when studying new industrial developed countries.
1.1.3.2 Corporate strategy
It is the example decisions in a company, it is clearly defines and outlines the
company goals and objectives, identifies the businesses that the company pursues,
creates policies and basic plans to achieve the objectives of the company.
The corporate strategy is set out to determine the businesses in which the
company will compete and allocate resources among those business activities.
1.1.3.3 Business strategy
Business strategy is planned to determine the selection of specific products
or the specific market types for the business activities within the company and it
determines how the company will compete given the known positions of the
company itself and its competitors.
1.1.3.4 Functional strategy
Functional strategy is planned to focus on supporting the company strategy
and it focuses on the functional areas and business areas.
Whatever the level is, strategies all complies with the following basic
process:


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Company level
- Analyze environment
- Define tasks and objectives
- Phân tích lựa chọn chiến
lược- Analysis to select
strategy
- Thực hiện- Implement
- Kiểm soát- Control

Information

Business level
- Analyze environment
- Define tasks and objectives
- Analysis to select strategy
- Implement
- Control

Information

Functional level
- Analyze environment
- Define tasks and objectives
- Analysis to select strategy
- Implement
- Control


Diagram 1.1: Levels of strategies
1.2 Business strategy formulation process.
Business strategy formulation process includes the following stages:
* Strategy formation stage
* Strategy implementation stage
* Strategy assessment stage
At each stage, the work is different but they have close relations and
complement each other.
Within this research scope, the report only focuses on strategy formulation
stage. It is conducted through the following steps:

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1.2.1 Research stages
1.2.1.1 Identify objectives of the industry and company
Objective is a concept used to refer to specific business result that companies
want to achieve.
There are two types of objective: long-term and short term.
The objective is either long-term or short term depending on the period. The
short term objective tends to be completed within a year while the one taking longer
is the long-term goal.
Long-term objective:
It is the target that shows the desired results in a long period of time. Longterm objectives are usually set up for the issues of: profitability, productivity,
competitive position, staff development, staff relation, technical leadership, social
responsibility.
Short-term objectives:
It is specific objective and puts the targeted results in details. It is the specific
result that the company intends to develop within the next decision cycle.

1.2.1.2 Environmental analysis
- Environment of an organization means the factors, forces, the institutions ...
within and outside the company, affecting performance and operations results of the
company.
– Environment of an organization includes the internal and external
environment.
a. External environment analysis
The external environment of an organization can be divided into two levels:
- Macro environment (also called the general environment) it affects all
industries but not necessarily in the same way.
Analyzing the macro environment helps company to find who they are facing
with. Management of companies often chooses the following main factors of macro
environment to study:

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Economic factors, governmental and political factors, social factors, natural
factors, technology and technical factors and population factor.
- Micro environment (also known as the specific environment) it is
determined for a particular industry with all businesses in the industry being
affected by the micro environment in that industry.
Micro environment includes industry internal factors which are external
factors of the company, deciding the nature and extent of competition in that
industry. It consists of five basic elements: competitor factor, customer factors,
supplier factors, new potential competitors and substitute products.
b. Internal environment analysis.
Internal environmental analysis is the analysis of all factors and systems
within the company to determine the advantages and disadvantages of the
organization.


On this basis, measures limiting disadvantages and promoting

strengths can be offered to achieve maximum advantages. The internal factors
mainly include functional areas such as: human resources, research and
development, production, finance and accounting, marketing and the organization
culture.
1.2.2 Strategy formulation
The strategic process formulation includes three stages:
+ The stage 1 of this formation process includes EFE matrix, competitive
profile matrix, and IFE matrix. This is called the data entering stage. Stage 1
summarizes basic information which has been entered and necessary for the
formation of strategy.
+ Stage 2 which is known as compiling stage focuses on making necessary
strategies from selection can be made by arranging and combining of important
internal and external factors.

Techniques used in stage 2 are Strengths –

Weaknesses – Opportunities – Threats matrix (SWOT).
+ Stage 3, which is called the decision stage, only includes only one
technique of quantitatively strategic planning matrix (QSPM). QSPM matrix using

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information input in stage 1 to assess objectively the feasible strategies to be
selected in phase 2. QSPM Matrix expresses the relative attractiveness of these
possible strategies and then provides an objective basis for choosing a particular
strategy.

1.2.3 Strategy selection
Based on its functions, tasks, goals, the company selects of appropriate
strategy. Strategy is also chosen based on the economic efficiency brought by each
strategy such as the ratios of finance, profit, social welfare.
The process of selecting the general strategy requires conducting the
following steps:
- Identify current business strategy.
- Control investment portfolio limit
- Review company strategy.
1.3. Major tools for strategy formulation and selection
1.3.1. Matrix Space
Matrix on the company’s strategic position.
FS

II
Defense
CA

I
Attack

IS

Competitive
advantages

Industry power

III
Defense


IV
Competition
Envinronment
stability

ES

1.3.2. SWOT matrix
Strengths - Weaknesses - Opportunities – Threats Matrix (SWOT) is a
important combined tools which can help executives develop the following 04

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strategies: strengths - opportunities strategy (SO), strengths - weaknesses strategy
(SW), strengths – threats strategy (ST), and weaknesses – threats strategy (WT).
Combining of the important internal and external factors is the most difficult task in
developing a SWOT matrix. It requires a good judgment otherwise there will not be
the best match.
* SO strategy uses the strengths within the company to take advantage of the
opportunities outside. All executives wish their organizations in a position that the
inner strengths can be used to take advantage of such trends and events of the
external environment.

Typically, organizations will pursue WO, ST or WT

strategies to bring the organizations to a position where they can apply SO strategy.
When a company has bigger weaknesses then it will try to overcome them and turn
them into strengths. When an organization confronting important threats, it will find

ways to avoid them in order to focus on opportunities.
* WO strategy aims at improving internal weaknesses by taking advantage of
opportunities outside. Sometimes there are great opportunities existing outside, but
the company has weaknesses within and this prevents it from exploiting these
opportunities.
* ST strategy uses the strengths of a company to avoid or to reduce the
impact of external threats. This does not mean that a strong organization always
meet strong threats from the outside environment.
* WT strategy is defensive strategy to reduce internal weaknesses and avoid
threats from the outside environment.
To create a SWOT matrix, the following eight steps should be taken:
1 - List the main strengths within the company
2 - List the factors within the company
3 - List the major opportunities outside the company
4 - List the important threats outside the company
5 - Combine the internal strengths with the external opportunities and record
the results of the SO strategy in the appropriate box

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6 - Combine internal weaknesses with the external opportunities and record
the results of the WO strategy
7 - Combine the internal strengths with the external threats and record the
results of the ST strategy
8 - Combine the internal weaknesses with external threats and record the
results of the WT strategy.
Table 1.2: Example of SWOT matrix
O: Opportunities


T: Threats

1.

1.

2.

2.

3. List opportunities

3. Lists threats

4.

4.

S: Strengths

SO strategy

ST strategy

1.

1.

1.


2.

2.

2.

3. List strengths

3. Use strengths to take

3. Overcome these

4.

advantage of opportunities uncertainties by taking
4.

advantage of strengths
4.

W: Weaknesses

WO Strategy

WT Strategy

1.

1.


1.

2.

2.

2.

3. List weaknesses

3. Limit weaknesses to

3. Minimize weaknesses

4.

advantage of

and avoid threats.

opportunities

4.

4.
CHAPTER I CONCLUSION
Business strategic management has great significance to the existence and

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development of enterprises. Therefore, effective use of tools for the analysis,
construction and selection of stragety and good strategy implementation are
important steps for an enterprise to have the right business strategy. It shows a
logical, systematic and objective approach to determine the future of an enterprise
and bring it to success.
Therefore, this is a very important job which is on the top priorities of all
organizations.
CHAPTER II
CURRENT STATE ANALYSIS FOR NINH BINH
PHOSPHATE JOINT STOCK COMPANY
2.1 Overview of Ninh Binh Phosphate Joint Stock Company
- The international transaction name (company brand name) is NIFERRCO
- The company has registered exclusive logo which is certified by the
Intellectual Property Department of the Science and Technology Ministry in paper.
2.1.1 History and development of the company
The Ninh Binh Phosphate Joint Stock Company today was previously the
Ninh Binh phosphate factory which was established on 01/8/1977. The company is
one of four current largest phosphate manufacturers in Vietnam under the Vietnam
Chemical Corporation (VINACHEM). Since 01/01/2005 the company has been
officially transformed and operated as a joint stock company, in which the State
holds dominant shares of 51%.

The process of company formation and

development can be divided into four periods:
- 1977 - 1984 period: This is the period of constructing the factory. Because
in this period was affected by the war against the United States, the factory building
faced with many difficulties from repeated destructions so the factory construction
progress was slow and extended to 8 years until the completion.


The factory

received one investment in the production line in which are two phosphate melting
production high reactors with the capacity of 100,000 tons / year.

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- 1985 - 1990 period: in this period the factory officially entered production.
During this period, the production was mainly done under the subsidy mechanism
according to the centrally planned targets assigned by the State and the production
was for the subsidy mechanism. The factory only focuses on the production and the
product distribution will be appointed by the State. It was due to producing under
the subsidy mechanism, few products were distributed and the production was only
20-30% of the capacity.
- 1991-2000 period: In this stage, because the mechanism has changed, the
production was associated with the market. The company must be autonomous in
the production, self-responsible for selling products by the market mechanism. In
other words, the company was at the growth and development stage. The company
made great efforts in finding marketing, doing marketing activities, expanding
distribution channels throughout the country so it has increased the production
output and sales. In 2000, the company has produced all the design capacity of
100,000 tons/year.
- 2001 to present: The company has developed the most in this period. From
2001 to 2008, the company has 8 years of continuous growth with an average
growth rate of 15-20% per year. At this stage, the company has had the right
marketing strategy to reach consumers, expanded the distribution channels to 45
provinces across the country and exported fertilizers to the countries in the region
and Asia such as Laos, Cambodia, South Korea, Japan

In 2001, the company has decided to invest in an additional phosphate melting
production reactor while making technical improvement for two phosphate melting
production reactors, raising the company's capacity to 300,000 tons of melted
phosphate and 100,000 tons of NPK per year which was equal to 300% of the
original design capacity. In 2008, the company has achieved the highest business
performance so far by having produced 246,000 tons of melted phosphate and
75,000 tons of NPK resulting in VND 566 billion revenue, VND 92 billion before

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taxes profit, the production as compared to 2007 has increased by 17%, revenue
increased by 78%, profit by 411%.
During this period, besides the good results in the production and business, the
company also achieved many noble rewards that the Party and State awarded such
as: Third Labor Medal awarded by the President for the excellent achievements in
manufacturing and trading in the 2003-2007 period, contributing to the national
defense; Competition Flag by the Prime Minister in 2008; the merits by the Prime
Minister in 2005 and 2008; Competition Flag by the Industry and Trade Ministry,
Ministry of Labor and Social Affairs, and Vietnam Chemical Corporation, Ninh
Binh Province People's Committee for two consecutive years in 2006 and 2007; two
times winning the Vietnam Gold Star Award in 2005 in 2008; strong Vietnam brand
award in 2008 and many other noble prizes ...
2.1.2 The company businesses
The Ninh Binh Phosphate Joint Stock Company has the following major
businesses:
- Producing and trading melted phosphate and other fertilizers
- Producing and trading cement and construction materials
- Producing and manufacturing phosphate melting manufacturing
equipments

- Other legal relevant businesses.
2.2. The advantages and core competencies of the company
2.2.1. Geographical location of the Company
The company locates 6km south from Ninh Binh town, on the 1A National
Highway, which is very convenient for road, rail and sea transportation.
- The company is near 1A National Highway, cargo transporation to other
provinces by road is very convenient.
- The company has a specialized river harbor, so importing raw material
and transporting products to destination provinces by waterway is very quickly
and 24/24h shipment is possible.

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- Railway station is near the company, the company has specialized railway
to the yard and, warehouses so getting raw materials, and transporting products to
destination provinces by railways is in control.
- 5km away from the company is Ninh Binh river sea harbor so the shipment
by vessel to the southern provinces with large volume is very convenient.
2.2.2 The advantages of melted phosphate production in Vietnam
Vietnam has special advantages in producing phosphate, especially melted
phosphate as follows:
- Vietnam has Lao Cai Apatite Mine with a reserve of approximately 7.8
billion tons and it is expected to last in 250 years (Industry and Trade Ministry data
source). This is the main raw material source for phosphate production. It is a
natural mineral source that can not be renewable so the State limits exporting raw
and science, technology and knowledge should be used to add more value by
producing fertilizers for domestic agricultural sector and having surlus for export.
- Vietnam has Vang Danh - Uong Bi lump coal source to get good material
source for melted phosphate production. This source is very good and the quality is

equivalent to cup coal, which is an extremely rare and valuable mineral resource in
the coal industry. For example, in China and Japan it’s only possible to produce
melted phosphate by phosphate melting production reactors when using cup coals
while cup coals are only available when they are produced (i.e. there should be
factory to make cup coal from fat coal). So the production cost for using cup coal is
very high and cost compettitive. In Vietnam, Uong Bi lump coal source can replace
cup coals it’s an advantage for producing melted phosphate, which is a key factor to
help melted phosphate industry to export its products abroad.
2.2.3. The advantages and core competencies of the company
Melted phosphate production technology (the international name of melted
phosphate product is FMP) is to produce by thermal methods: Using the heat
Antracit coal to melt the ore containing phosphate into liquid (P2O5) with some
additional elements in the furnace at a temperature of 1400-1450 C, and then cool

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it down suddenly by a high pressure water, dry and classify it to form melted
phosphate grain which can be grilled into melted phosphate powder.
The company has in its control the exclusive useful solution of
production melted phosphate furnace with a large output of 100,000
ton/year/1furnace.
With the current technology, the company is capable of competing with cost
strategyy.
2.2.4. Current capacity and main products of the company
Melted phosphate (FMP): 300,000 tons / year
Assorted multi-nutrient NPK: 150,000 tons / year
The products are manufactured according to the National standards in
conformity with the international standards and regulations.
Current capacity is only sufficient to meet the current demand. In the future

in order to expand market, increase market share, it requires for the company to
prepare to invest more in expanding new production line, upgrading existing
equipments.
2.2.5. Characteristics and the differences of melted phosphate as
compared to other phosphates
+ Similarity: providing nutrients to plants with a similar concentration of
equivalent P2O5 from 15-17%.
+ Difference: The difference of melted phosphate product as compared with
other phosphate is the prominence of the product.
– Melted phosphate is alkali so it can reduce acid in soil very well. In
Vietnam, 80% of the population are farmers who live on agriculture, 80% of
agricultural land is salty and acid coastal land, acid alum land in the Mekong Delta,
acid low lying land so the use of melted phosphate is very proper.
– Melted phosphate has the characteristic of melting slowly and it melts as
the plant development requires it it is not washed and lost when it rains. So it is very
suitable to high and low mountainous land and industrial crop areas such as coffee,
rubber, pepper. Currently with the annual economy development, the demand of

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natural rubber grows higher and higher. Vietnam Rubber Corporation has invested
in about 100,000 ha in Laos and about 100,000 ha Cambodia to grow rubber trees
while rubber trees need 100% of melted phosphate. Therefore, the demand for
melted phosphate will increase in the coming years.
– Melted phosphate produced by heat method gets a large concentration of
nutrient silicon oxide composition supplemented (SiO2). This is the neutral element
which is essential for plant crops to help them against falling, limits pest better than
other fertilizers, reduce plant protection chemical uses so the quality of agricultural
products does not affect the ecological environment and groundwater.

2.2.6. Human resources of Ninh Binh Phosphate Joint Stock Company
2 .2.6.1 Human resources: After more than 30 years of development, growth
and the transition into a joint-stock company to present, the company has screened
and had the human resources basically meeting the business, production and trading
of the company at the moment
- Total staff as per January 11, 2009: 465 people
in which:
341 are permanent staff (270 men accounting for 80; 71 females, 20%). 124
are seasonal contract staff (68 men accounting for 54%; 56 females, 46%)
- Master degree: 02 persons
- Engineering university degree: 31, accounting for 9%
- College degree: 10, accounting for 3%
-Vocational training degree and technical workers: 298, accounting for 88%
- Average age: 38 years old
2.2.6.2 Organization structure
- Board of Directors: it is the highest management of the company, including
five members, Chairman and other members
- Board of Executives: One director and one vice director

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