The report is an analysis report by FPT Securities published in June, 2015. It is very useful for investors, businessman and entrepreneurs who need general information and clear insight of fertilizer industry in Vietnam. The report initially focuses on Vietnam’s fertilizer value chain in respect to the global value chain in the context of globalization. In addition, it utilizes import and export figures to demonstrate Vietnam’s position in a big picture.  

Besides, there is government policies on regulating the market stability, supporting producers, assisting farmers with stable supply of fertilizer. In the end, the report forecasts supply and demand in short term and long term based on world economy growth potential, trend and global agricultural industry.

World Fertilizer Industry

• According to International Fertilizer Industry Association (IFA), the world fertilizer demand in the period 2013 - 2014 goes up 3.1% compared to the same period of last year and estimated amount of 184 million tons.
• The proportion of nitrogen, phosphate and potassium fertilizer in world total demand do not fluctuated significantly.  The ratio remains at 60% (nitrogen), 23% (phosphate) and 16% (potash) respectively
• In term of national scale, sales volume in China, India and USA account for the world's largest share of respectively 28%, 14% and 11%
• According to estimates by IFA, fertilizer output reaches 243 million tons, increases by 2.6% in respect to 2013, equivalent to 85% of total supply (capacity) of factories worldwide.
• In the next 5 years, about 200 new investment and expansion projects are put into operation.
• In the period 2014 - 2015, fertilizer demand is estimated to rise by 2 to 2.1%, reaches 187.9 million tons and supply will increase by 4.9%, reach 212.7 million tons.

Vietnam Fertilizer Industry

• In the period 2009 - 2013, production output has risen more than 1 million tons, with an annual average growth rate of 8.6% compared to 2009.
• According to Statistical Yearbook (2013), a natural area is ​​33.1 million ha, in which agricultural area comprises of 10.2 million ha
• Rice, corn, rubber have the greatest demand with 65%, 9%, 8% of national demand respectively
• According to FAO (2012), fertilizer density of Vietnam is at a high level 297 kg / ha compared to the 156 kg / ha of the neighboring countries, which makes Vietnam’s yield higher than neighboring countries. However, the abuse of fertilizers has lead environmental pollution, l fertilizer use is decreasing in recent years.
• In 2014 Vietnam consumes about 10.8 million tons of fertilizer, growing by 4%,
• According to Customs Financial Statistics, Vietnam fertilizer import in 2014 reached 3.79 million tons, worth 1,237 billion USD while fertilizer exports reached approximately 1,078 million tons,
• Management of smuggled unidentified fertilizer in the market is still a concern for fertilizer manufacturing industry in Vietnam.