Key words of the passage: fertilizer; market; growth; import; export; company

Agriculture plays an important role in Vietnam's economy, with the agricultural population accounting for over 50% of the total population, and arable and forest land accounting for 60% of the country's total land area.

According to the analyst's analysis, Vietnam features a low concentration in the fertilizer market, with local companies accounting for about 70% of the market share. Based on the overall revenue of Vietnam's fertilizer market in 2020, the top five companies accounted for about 28% of the market. Major fertilizer producers in the Vietnam market are adopting various strategies such as expansion and partnerships to increase their market share.

The main varieties of fertilizers exported from Vietnam are ammonium sulfate, phosphate diamine, NPK, etc. The Philippines, Malaysia, Thailand, Laos, South Korea, etc. are the main export markets of Vietnam's fertilizers.

At the same time, every year Vietnam imports more than 1 million tons of fertilizers, among which, ammonium sulfate is the most imported. Currently, China is the largest supplier of fertilizers to Vietnam, accounting for nearly 50% of the country's imports.

According to the analyst's analysis, despite the impact of COVID-19 on Vietnam's economy, Vietnam's fertilizer industry still showed growth in 2020. Despite supply chain and logistics disruptions, Vietnam's fertilizer exports and imports are still on the rise. In particular, fertilizer imports reached 3.64 million tons, up 7.2% YOY. Vietnam's fertilizer exports also rose 38% in 2020 compared to 2019. In 2021, Vietnam exported 1.35 million tons fertilizer and imported 3.07 million tons fertilizer.

Although the demand for fertilizers in Vietnam in 2020 was adversely affected by extreme weather conditions, in general, the business situation was good, with the leading companies showing significant growth in business performance. The most popular distribution channels in the country include distributor system, regional company system and authoritative purchasing.

Fertilizer's price in Vietnam's market showed a fluctuating trend in 2020, increasing in the second half of the year. Fertilizer prices continued to rise in 2021 as demand increased and supply declined.

According to the analysis, the positive outlook for agriculture is the factor driving the growth of fertilizer consumption in the country in 2022. The good weather and high prices of agricultural products in Vietnam in 2022 will provide good conditions for farmers to increase planting for higher productivity, which will increase the demand for fertilizer.

Key Players in Vietnam-----

◆Binh Dien Fertilizer JSC (BFC)
◆Southern Fertilizer JSC
◆PetroVietnam Fertilizer and Chemical Corp.
◆Ninh Binh Phosphate Fertilizer JSC
◆Habac Nitrogenous Fertilizer & Chemicals Company Limited
◆Lam Thao Fertilizers and Chemicals JSC
◆Que Lam Group
◆Agricultural Products and Materials JSC (APROMACO)
◆Song Gianh Corporation
◆Thien Sinh JSC
◆DAP Dinh Vu Fertilizers
◆DUC Giang Chemicals

Source: ResearchAndMarkets.com