Vietnam Fertilizer Profits Surge 70% in Q2 2026, Led by DCM, DPM, DHB

Overview

Vietnam’s listed fertilizer companies reported a combined Q2 2026 net profit of VND 2,940 billion, up 70% year-on-year, according to financial statements from 14 listed firms. The surge was driven by major urea producers Đạm Cà Mau (DCM), Đạm Phú Mỹ (DPM), and Đạm Hà Bắc (DHB), while revenue remained nearly flat at VND 26,000 billion (+3.4%).

Key Facts

• Combined Q2 2026 net profit of 14 listed fertilizer firms reached VND 2,940 billion, up ~70% YoY, the highest since Q2 2022.
• Total net revenue was nearly VND 26,000 billion, up only 3.4% YoY.
• DCM, DPM, and DHB together added VND 1,366 billion in profit, accounting for 89% of the group’s total.
• DPM’s Q2 net profit hit VND 916 billion, 2.2x YoY, with gross profit up 86% to VND 1,665 billion.
• DCM posted the largest profit at VND 1,067 billion (+35.5%), with export urea revenue of VND 4,549 billion in H1, more than double YoY.
• DHB earned VND 626 billion in Q2, nearly 15x YoY, with a gross margin of 41.4%, the highest in the sector.
• BFC’s Q2 net profit fell 65% to VND 51.4 billion, with revenue at a low since Q1 2023; inventory rose to VND 2,811 billion.

What Happened

According to Q2 2026 financial reports from 14 listed fertilizer companies (10 producers and 4 distributors), total after-tax profit reached VND 2,940 billion, up about 70% from the same period last year. This marks the strongest quarterly profit for the group since Q2 2022, when global fertilizer prices peaked. However, total net revenue was nearly flat at VND 26,000 billion, up just 3.4% YoY and slightly above Q1 2026.

The profit increase of over VND 1,200 billion was almost entirely concentrated in three urea producers: Đạm Cà Mau (DCM), Đạm Phú Mỹ (DPM), and Đạm Hà Bắc (DHB). These three companies added approximately VND 1,366 billion in profit compared to Q2 2025, while the remaining 11 firms saw a combined decline of VND 164 billion. DPM reported net revenue of nearly VND 7,000 billion (+32%) but cost of goods sold rose only 21%, boosting gross profit by 86% to VND 1,665 billion. DCM earned VND 1,067 billion, up 35.5%, with export urea revenue more than doubling to VND 4,549 billion in H1. DHB, which had been loss-making for years, posted VND 626 billion in Q2 profit, nearly 15 times the VND 42 billion a year earlier, with a gross margin of 41.4%.

In contrast, NPK and phosphate producers struggled. Phân bón Bình Điền (BFC), the largest NPK maker, saw Q2 revenue fall to VND 1,698 billion, the lowest since Q1 2023, and net profit drop 65% to VND 51.4 billion. Supe Phốt phát và Hóa chất Lâm Thao (LAS) reported Q2 revenue down more than half to VND 531 billion. DAP - Vinachem (DDV) saw profit decline 20% to VND 121.8 billion. The four distribution companies also saw revenue fall 5.4% and profit decline 7.1%.

Market Context

DCM, the largest fertilizer producer by market value, trades on HOSE at VND 30,700 as of August 18, 2026. DPM is also on HOSE at VND 21,700, while DHB trades on HNX at VND 11,000. BFC, on HOSE, closed at VND 47,700. The strong profit growth in urea producers contrasts with the broader market, where fertilizer stocks have been mixed. The sector’s performance is closely tied to global urea prices, which spiked in Q2 2026 before retreating in the Mekong Delta region. The divergence between urea and NPK/phosphate producers highlights the importance of product mix and export exposure.

Strategic Significance

The Q2 results underscore a structural shift in Vietnam’s fertilizer industry: urea producers with export capacity and cost advantages are capturing outsized profits, while domestic-focused NPK and phosphate makers face demand weakness and inventory build-up. DCM’s export revenue surge (more than doubling) indicates that global market access is a key differentiator. DHB’s turnaround, with a gross margin of 41.4%, suggests operational improvements may be sustainable. For long-term investors, the key is whether these profit levels can be maintained as global urea prices normalize. The flat revenue growth across the sector implies that margin expansion, not volume growth, drove earnings—a trend that may reverse if input costs rise or prices fall.

What to Watch

• Q3 2026 earnings reports from DCM, DPM, and DHB to see if profit growth persists.
• Global urea price trends, especially in the Mekong Delta, as domestic prices have already fallen from Q2 peaks.
• BFC’s inventory levels and sales recovery in H2 2026, given the sharp drop in Q2 demand.
• Any changes in export policies or tariffs affecting urea exports from Vietnam.
• DHB’s ability to maintain its high gross margin and reduce accumulated losses further.