In 2011, fertilizer prices experienced many fluctuations, witnessing a constant increase, affecting production and business activities in the sector. However, from previously a urea importer, in 2013 Vietnam managed to supply enough urea for the domestic market and will be able to export it in the near future.
Increased supply
Fertilizer supply in the domestic market is now quite abundant as some factories went into operation in 2011-2013, namely Ca Mau Fertilizer Plant with the annual capacity of 800,000 tonnes, Ninh Binh Fertilizer Plant with the capacity of 560,000 tonnes, Ha Bac Fertilizer Plant and Phu My Fertilizer Plant, etc.
To boost production, enterprises in fertilizer sector are in active races to reach customers in the way of providing information and promotional offers, etc. Production of urea production in the country is constantly increasing, meeting the needs of domestic agricultural production. It is forecast to be in oversupply in the near future.
According to the Ministry of Industry and Trade, in 2013, urea production is estimated at 2,084 million tonnes, up 19.4 percent compared with 2012. NPK fertilizer is estimated at 2,471 million tonnes, down 4.1 percent. Phosphate fertilizer is estimated at 1,547 million tonnes, up 1.1 percent. DAP fertilizer is estimated at 224,800 tonnes, down 21.1 percent.
Unlike previous years, at this time, the price of fertilizers gets more stable; enterprises have fully prepared for the biggest crop of the winter-spring in 2014.
New solution to stabilise the market
However, fertilizer factories in Vietnam are riddled with the problem of imported fertilizer, particularly urea originating from China which has lower price than that of the domestically produced. Besides, the problem of poor-quality fertilizer remains complicated, making fertilizer market competition unfair and difficult to control.
On 27th November, 2013 , the Government issued Decree 202/2013/ND-CP on fertilizer management which prohibited fertilizer production without fertilizer production license; production, sales, export and import of fake fertilizer and banned fertilizer; production, sales, export, import, exchange and marketing of fertilizer which does not guarantee national technical regulations or of expired fertilizer, etc. The Decree, coming into force on 1st February, 2014, will help stabilise the current messy fertilizer production situation and avoid unnecessary damage to genuine enterprises and farmers.
PV
Đăng ký: VietNam News
