Vietnam was the largest consumer and producer of complex
fertilizers in Asia and accounted for about ~% of the market in 2017. Vietnam’s
complex fertilizer market is fairly concentrated with top 5 players
together comprising for ~% of the market share.
Asian countries are behind US and European countries in terms of
achieving agricultural crop yield. The focus on improving crop yields has
driven the demand for complex fertilizers in the Asian subcontinent over the
past decade. Asia complex fertilizer market registered moderate growth during
2012-2017, growing at a CAGR of ~%, to register revenues worth USD ~ billion in
2017 as compared to USD ~ billion in 2012. Moderate growth was due to decline
in consumption of complex fertilizers in certain key territories and slump in
price of complex fertilizers, driven by decline in cost of raw materials in
international markets. Overall, complex fertilizer production in Asia grew at a
CAGR of ~% during 2012-2017, whereas consumption of complex fertilizers grew at
a CAGR of ~% during the same period.
India ranked second and comprised for ~% of the
market share in 2017. Vietnam, Indonesia and Thailand were other major
countries utilizing complex fertilizers in Asia and accounted for ~%, ~% and ~%
market share respectively in 2017. All other Asian countries together comprised
for remaining ~% of the market.
NPK 16-16-8 was the most widely used complex fertilizer in Asia
and accounted for ~% market share in overall complex fertilizer market in 2017.
NPK 20-20-15 was the next popularly used fertilizer grade and comprised for ~%
market share in 2017. NPK 15-15-15 and NPK 20-20-0 were other popularly used
complex fertilizers which comprised for ~% and ~% market share respectively in
2017. All other grades/formulas of complex fertilizers together comprised for
about ~% of the market share in 2017.
Vietnamese farmers have been familiar with the use of organic
fertilizers including manure and legumes for a very long time. With the
introduction of superphosphate technology in early 1960s, Vietnamese farers
began utilizing chemical fertilizers in conjunction with organic fertilizers to
improve crop yields. Until 1970s, mainly N fertilizers were widely used and
both nitrogen and phosphorous fertilizers were widely used during 1970s to
1990s. Consumption of complex fertilizers began to gain traction since late
1990s and is the highest fertilizer category utilized at present. Agriculture
is a key sector in Vietnam’s economy; more than 70% of the country populations
are farmers.
Vietnam is dependent on imports for manufacturing of complex
fertilizers as it lacks potash reserves. NPK fertilizers comprised for the
largest share in overall fertilizer sector by accounting for around ~% of the
overall fertilizer demand in 2017. Existence of a number of small scale complex
fertilizer manufacturers has resulted in diverse quality of complex fertilizers
found in the country. The average selling price of NPK is ~% higher than the
selling price of Urea.
Complex fertilizer market witnessed growth at a CAGR of 2.4% during
2012-2017, inclining from USD ~ million in 2012 to USD ~ million in 2017. Decline
in average selling price of complex fertilizers owing to slump in prices of key
raw materials resulted in marginal incline in demand for such fertilizers
during 2015-2017.
Vietnam imported about ~ thousand MT of NPK fertilizers during
2015, majorly from South Korea and Russia. Imports inclined in 2015 by as much
as ~% as compared to 2014. Incline in consumption of NPK fertilizers in the
domestic market coupled with decrease in price of NPKs resulted in an incline
in imports of the same in 2015. Overall, imports grew marginally from ~
thousand MT in 2011 to ~ thousand MT in 2015.
South Korea and Russia were the two biggest exporters of NPK
fertilizers to Vietnam as of 2015, contributing about ~% and ~% of the overall
NPK imports of the country (in terms of volume). Jordan and Norway were other
important import destinations amongst several other countries in 2015 and
resulted in ~% and ~% of the overall NPK fertilizer imports.
Southern region comprising of 19 first tier administrative units
was the largest consumer of complex fertilizers in the country. As of 2017, the
Southern comprised for about ~% market share of the overall complex fertilizer
market, in terms of consumption volume. On the other hand, Northern and Central
region of Vietnam accounted for ~% and ~% market share in 2017.
NPK
16-16-8 was the most widely used complex fertilizer in Vietnam and accounted
for ~% market share in overall complex fertilizer market in 2017. NPK 20-5-5,
NPK 7-7-14, NPK 12-5-10 and NPK 15-15-15 were other popularly used fertilizer
grade which comprised for ~%, ~%, ~% and ~% market share respectively in 2017.
All other grades/formulas of complex fertilizers together comprised for about ~%
of the market share in 2017.
Vietnam largely produced and utilized blended complex fertilizers
due to low investment required for companies for set up a blended manufacturing
facility. Consumption of blended fertilizers stood at ~ Million MT in 2017,
comprising for ~% market share of overall complex fertilizer consumption in the
country.
Vietnam’s complex fertilizer market is very competitive with more
than ~ major NPK producers and over ~ small scale companies. The country’s
domestic production has been sufficient to meet the consumption demand in the
last few years. However, most NPK manufacturers operated at about ~% of their
installed capacity and production is not advanced in terms of technology as
majority of companies were involved in producing lower quality blended complex
fertilizers. These factories are majorly located in the Southern Vietnam,
followed by Northern region and very limited presence in Central region.
Vietnam also imports high-quality NPK fertilizers. The market for NPK may face
an even fiercer competition from foreign players; in particular from China as
import duty rate has fallen from 6% to 0% since 2015, due to a set of FTA ASEAN
- China agreements.
Binh Dien Fertilizer emerged as the market leader, in terms of
revenue, by accounting for ~% market share in 2017. Lam Thao Fertilizers and
Chemicals was the second largest player in this space and comprised for ~%
market share. Some other leading players including The Southern Fertilizer
Company, Japan Vietnam Fertilizer Company and Baconco Group comprised for ~%, ~%
and ~% market share, respectively.
Despite a balanced demand and supply equilibrium, domestic
manufacturers keep investing in NPK projects. Several new and existing players
are expected to setup new manufacturing plants or enhance the production
capacity of existing sites.
For instance, Taekwnag Co. announced its plan to build a NPK plant
with production capacity of ~ MT per year by the end of 2018. Petrovietnam
Fertilizers is building ~MT per annum NPK plant, expected to be completed by
late 2017 and commence operation in early 2018. Korea Vietnam Fertilizer co. is
building a manufacturing plant with capacity of ~ MT per year, which is
expected to be operational by end of 2017.
If all the projects are implemented, total supply of NPK has the
potential to exceed ~% of demand. The total capacity after 2018 has been
estimated to increase to almost ~ million MT per year.
Ken Research estimates the consumption of complex fertilizer to
grow at a CAGR of ~% in the next five years, rising from ~ million MT in 2018
to ~ million MT in 2022. Furthermore, production of complex fertilizers is
expected to grow at healthy CAGR of ~% during 2017-2022, inclining from ~
million MT in 2018 to ~ million MT by 2022.
NPK 16-16-8 was the most widely used complex fertilizer in Vietnam,
recording fastest growth during the last 5 years. Going forward, utilization of
NPK 16-16-8 and NPK 20-5-5 are most likely to remain strong owing to balanced
nutrient composition and comparatively cheaper prices.
Key
topics Covered in the report:-
Vietnam Blended NPK Consumption
Vietnam NPK Fertilizer Demand
Vietnam NPK Fertilizer Consumption
Vietnam NPK Fertilizer Production
Vietnam NPK Fertilizer Market
Lam Thao Fertilizers and Chemicals Sales
Binh Dien Fertilizer Best Selling Complex Fertilizer
Southern Fertilizer JSC Production Complex Fertilizer
Japan Vietnam Fertilizer Company Installed Capacity
Complex Fertilizer Installed Capacity Vietnam
Future Complex Fertilizer Vietnam
Baconco Group Market Share Complex Fertilzer
Selling Price Complex Fertilizer Vietnam
Blended NPK Sales Vietnam
Slow Release NPKs Revenue Vietnam
Water Soluble NPKs Sales Trends
For more information on the research report,
refer to below link:
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