Fertilizer businesses restructuring production, boosting exports

10:38 | 01/06/2018 Trade

(VEN) - Fertilizer imports in the first quarter of 2018 dropped 25.7 percent in value compared to the same period in 2017, and Vietnamese businesses are considering production restructuring and export promotion.

fertilizer businesses restructuring production boosting exports
The Binh Dien Fertilizer Joint Stock Company is seeking to increase exports

At a meeting of the Vietnam National Chemical Group (Vinachem) to review first quarter activities and plan for the second quarter, the group’s deputy general director Bui The Chuyen said first quarter fertilizer sales increased over the same period of 2017. Urea fertilizer sales reached 135,000 tonnes, up 26.1 percent, and diammonium phosphate (DAP) fertilizer sales reached 126,000 tonnes, up 38.4 percent, he reported.

Duong Thanh Hieu, Deputy General Director of the DAP2-Vinachem Joint Stock Company (DAP2), said after the application of trade defense measures, production, product quality and sales by the DAP Dinh Vu Hai Phong and DAP Lao Cai companies experienced improvements. The resulting locally manufactured fertilizers were on a par with imported ones, he added. Trade defense measures by the Ministry of Industry and Trade will help the domestic DAP fertilizer industry continue to develop, serving the long-term and sustainable benefits of farmers, Hieu said.

Fertilizer enterprises have prepared plans to maintain production stability, boost sales, improve product competitiveness, maintain market share and minimize negative impacts from fierce competition in the domestic market.

Vinachem General Director Nguyen Gia Tuong said the group’s local sales reached VND385 billion in the first quarter of this year, up 63 percent from the same period in 2017. Market development and increasing sales and revenues are the top priorities in the second quarter and 2018 as a whole, he said.

Vinachem will develop a 2018 trade promotion program based on each enterprise’s needs to develop markets and promote exports. The Binh Dien Fertilizer Joint Stock Company, for example, has exported NPK fertilizer to Cambodia. A company representative said the company’s Dau Trau fertilizer product sells well in Cambodia, with annual sales having grown from 2,000 tonnes in 2002 to more than 100,000 tonnes.

The PetroVietnam Fertilizer and Chemicals Corporation has set a target of increasing urea fertilizer exports to Malaysia, Myanmar and Thailand, while the Phu My Fertilizer Plant has conquered such discerning markets as New Zealand and Jordan. Nguyen Van Thanh, Director of the Ministry of Industry and Trade’s Vietnam Chemicals Agency, said businesses should seek to manufacture products that they have been unable to produce until now, such as SA and potassium fertilizers, to minimize imports. Here in Vietnam, urea fertilizer supply has exceeded demand, and NPK fertilizer producers have met the domestic market demand and are promoting export of these products.

The Vietnam Fertilizer Association says export development is a solution for businesses to increase sales, avoid inventories, maintain stable markets, and minimize the negative impact from fierce competition in the domestic market.

Lan Anh