Yellow phosphorus has a significant domination in the Japan and Korea

Tang Loong Industrial Park (Bao Thang district, Lao Cai province) has many top yellow phosphorus factories in Vietnam and is the place that has suppliers of large amounts of yellow phosphorus to the global market. This product increasingly plays an essential role in producing electronic chips and semiconductors and is widely used in fertilizer and pesticide production.

Duc Giang Lao Cai Chemical Company Limited, located in Tang Loong Industrial Park, is the first company to successfully build a yellow phosphorus production project with a capacity of tens of thousands of tons per year.

Mr. Dang Tien Duc, Deputy Director of Duc Giang Lao Cai Chemical Company Limited, said that in early 2024, the supply of yellow phosphorus and phosphoric acid for electronic, food, and agriculture production will be high compared to 2023.

Currently, these product prices have increased compared to the same period last year. Yellow phosphorus and phosphoric acid products of Duc Giang Lao Cai Chemical Company Limited are being exported to markets such as Japan, Korea, India, and some European countries...

While the supply of apatite raw materials for production is increasingly scarce, this source ensures stable output for the company's factories in Lao Cai province.

"The company's production area in Lao Cai province is close to the mines providing input materials. The company applies initiatives to use poor ores (type 3 apatite ore) to produce yellow phosphorus and improve product value. Six years ago, the company used this technology with an investment of VND 150 billion. Accordingly, the company applied ore powder pressing technology. Apatite is caked into pellets before being put into the oven," said Mr. Dang Tien Duc.

Duc Giang Lao Cai Chemical Company Limited currently prioritizes resources, focusing on exporting high-quality products and reasonable prices to foreign partners and increasing revenue. To organize production to meet orders, Duc Giang Lao Cai Chemical Company Limited produces three shifts continuously for 24/24 hours and simultaneously recruits more workers for the production line. In addition, Duc Giang Lao Cai Chemical Company Limited plans to source ore in Lao Cai province to import for production.

Duc Giang Lao Cai Chemical Company Limited has 2,070 employees, mainly local workers and ethnic minorities. Since the beginning of the year, the company's leadership has thoroughly focused on workshops and factories to maximize production capacity and ensure the set schedule. In particular, products are exported to major partners, ensuring production safety is prioritized.

Employees at the company receive labor safety training about one month before entering the production line.

"Employees always comply with the factory's safety regulations, such as labor protection and factory regulations. At the beginning of each production shift, all workers must spend 30 minutes learning labor safety regulations before starting work. Complying with labor safety regulations in the factory has helped the production plant maintain 60 employees, produce three consecutive shifts, and meet the requirements of orders", Mr. Nguyen Tuan Lich, Manager of the acid production plant, shared.

Duc Giang Lao Cai Chemical Company Limited is expected to produce about 65,000 tons of yellow phosphorus in 2024, with a total revenue of VND 10,000 billion and a profit of over VND 3,000 billion.

While the economy faces many difficulties, many businesses must cut labor and even stop operations. Still, Duc Giang Lao Cai Chemical Company Limited ensures adequate work arrangements for workers at reasonable rates. The average income in 2023 was up to 22 million/labor/month.

In addition, the Company's leadership and union regularly pay attention to and care for workers' lives; 100% settlement of insurance policies for employees, visit employees when sick, give wedding gifts and organize annual travel programs...  In particular, the Company also supports money to build houses for long-term workers with up to VND 100 million/person.

In 2022, the yellow phosphorus production volume reached approximately 180.9 thousand metric tons in Vietnam, indicating an increase from the previous year. The volume of yellow phosphorus produced in Vietnam had been demonstrating yearly growth in the observed timeline.