Vietnam: Fertilizer Market 2022

Fertilizer Market Size in Vietnam

In 2021, after three years of decline, there was growth in the Vietnamese fertilizer market, when its value increased by 1.6% to $X. Overall, consumption saw a mild decrease. As a result, consumption attained the peak level of $X. From 2014 to 2021, the growth of the market failed to regain momentum.

Fertilizer Production in Vietnam

In value terms, fertilizer production reached $X in 2021 estimated in export price. Over the period under review, production recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 when the production volume increased by 14%. Over the period under review, production hit record highs at $X in 2013; however, from 2014 to 2021, production failed to regain momentum.

Fertilizer Exports

Exports from Vietnam

In 2021, overseas shipments of fertilizers decreased by -14.9% to X tons for the first time since 2018, thus ending a two-year rising trend. In general, total exports indicated a modest expansion from 2012 to 2021: its volume increased at an average annual rate of +1.5% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, exports increased by +69.3% against 2018 indices. The growth pace was the most rapid in 2020 with an increase of 45% against the previous year. As a result, the exports reached the peak of X tons, and then dropped in the following year.

In value terms, fertilizer exports dropped to $X in 2021. Overall, exports recorded a pronounced descent. The most prominent rate of growth was recorded in 2019 when exports increased by 31%. The exports peaked at $X in 2012; however, from 2013 to 2021, the exports remained at a lower figure.

Exports by Country

Cambodia (X tons) was the main destination for fertilizer exports from Vietnam, with a 53% share of total exports. Moreover, fertilizer exports to Cambodia exceeded the volume sent to the second major destination, Malaysia (X tons), sixfold. Indonesia (X tons) ranked third in terms of total exports with a 6.5% share.

From 2012 to 2021, the average annual rate of growth in terms of volume to Cambodia totaled +2.9%. Exports to the other major destinations recorded the following average annual rates of exports growth: Malaysia (+12.5% per year) and Indonesia (+1.9% per year).

In value terms, Cambodia ($X) remains the key foreign market for fertilizer exports from Vietnam, comprising 47% of total exports. The second position in the ranking was taken by Malaysia ($X), with an 11% share of total exports. It was followed by Indonesia, with a 7% share.

From 2012 to 2021, the average annual rate of growth in terms of value to Cambodia stood at -2.5%. Exports to the other major destinations recorded the following average annual rates of exports growth: Malaysia (+15.3% per year) and Indonesia (-3.3% per year).

Export Prices by Country

In 2021, the average fertilizer export price amounted to $X per ton, rising by 5.3% against the previous year. In general, the export price, however, continues to indicate a noticeable slump. The most prominent rate of growth was recorded in 2018 an increase of 18%. The export price peaked at $X per ton in 2012; however, from 2013 to 2021, the export prices stood at a somewhat lower figure.

Average prices varied somewhat for the major overseas markets. In 2021, the highest price was recorded for prices to Zambia ($X per ton) and Malaysia ($X per ton), while the average price for exports to Ghana ($X per ton) and India ($X per ton) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to South Korea (+6.7%), while the prices for the other major destinations experienced mixed trend patterns.

Fertilizer Imports

Imports into Vietnam

In 2021, approx. X tons of fertilizers were imported into Vietnam; falling by -8.2% compared with 2020 figures. In general, imports recorded a mild contraction. The pace of growth was the most pronounced in 2013 with an increase of 25%. As a result, imports reached the peak of X tons. From 2014 to 2021, the growth of imports failed to regain momentum.

In value terms, fertilizer imports contracted to $X in 2021. Over the period under review, imports continue to indicate a deep contraction. The pace of growth was the most pronounced in 2013 when imports increased by 17%. As a result, imports attained the peak of $X. From 2014 to 2021, the growth of imports failed to regain momentum.

Imports by Country

In 2021, China (X tons) constituted the largest supplier of fertilizer to Vietnam, with a 42% share of total imports. Moreover, fertilizer imports from China exceeded the figures recorded by the second-largest supplier, Russia (X tons), fivefold. The third position in this ranking was held by Indonesia (X tons), with a 6.3% share.

From 2012 to 2021, the average annual growth rate of volume from China amounted to -4.5%. The remaining supplying countries recorded the following average annual rates of imports growth: Russia (+3.4% per year) and Indonesia (+60.1% per year).

In value terms, China ($X) constituted the largest supplier of fertilizer to Vietnam, comprising 36% of total imports. The second position in the ranking was held by Russia ($X), with a 9.7% share of total imports. It was followed by Indonesia, with a 7.3% share.

From 2012 to 2021, the average annual rate of growth in terms of value from China totaled -10.4%. The remaining supplying countries recorded the following average annual rates of imports growth: Russia (-2.7% per year) and Indonesia (+68.5% per year).

Import Prices by Country

The average fertilizer import price stood at $X per ton in 2021, remaining relatively unchanged against the previous year. In general, the import price, however, saw a perceptible setback. Over the period under review, average import prices reached the maximum at $X per ton in 2012; however, from 2013 to 2021, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2021, the country with the highest price was the Philippines ($X per ton), while the price for Japan ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Indonesia (+5.3%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Market Intelligence Platform

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