15:30 | 10/04/2017 Trade
(VEN) - After experiencing a decline in both volume and value in January, fertilizer exports, especially those to ASEAN (Association of Southeast Asian Nations) markets, have increased since February.
Dau Trau fertilizer, a major export to Cambodia by the Binh Dien Fertilizer Joint Stock Company
In February, Vietnam exported 82,400 tonnes of fertilizers worth US$23 million, up 59.5 percent in volume and 62.6 percent in value from the same period in 2016. This takes the total in the first two months of this year to 134,000 tonnes worth US$37.2 million, up 90.91 percent in volume and 76.52 percent in value from the same period last year.
In the first two months, Asian countries continued to be major importers of Vietnamese fertilizers, with sales to Cambodia amounting to 39,800 tonnes (accounting for 29.7 percent of the total and up 167.21 percent), worth US$12.9 million (up 164.72 percent).
Meanwhile, sales to Laos increased 153.51 percent in volume and 140.68 percent in value to reach 6,400 tonnes worth US$1.7 million, while sales to Malaysia reached 24,400 tonnes worth US$4.4 million (up 127.48 percent). Sales to Japan amounted to only 517 tonnes (up 237.91 percent) worth US$97,200 (up 114.71 percent).
Le Quoc Phong, general director of the Binh Dien Fertilizer Joint Stock Company, which has 15 years of experience in fertilizer export to Cambodia, said fertilizer exports have increased again because many products, such as domestically made urea and NPK fertilizers, are overproduced. The company’s Dau Trau fertilizer exports to Cambodia increased from 2,000 tonnes in 2002 to more than 100,000 tonnes per year. Dau Trau fertilizer is now found in all of the 26 provinces of Cambodia, bringing in export revenues of more than US$50 million.
Vu Thinh Cuong, Trade Counselor at the Vietnamese Embassy in Cambodia, said as a leading fertilizer producer with the right production and business strategy, Binh Dien has benefited farmers and contributed to promoting trade between Vietnam and Cambodia.
The Phu My Fertilizer Plant has set a target to increase its fertilizer exports to Malaysia, Myanmar and Thailand. The company has conquered discerning markets such as New Zealand and Jordan.
Nguyen Van Thanh, director of the Vietnam Chemicals Agency under the Ministry of Industry and Trade, said enterprises should invest to develop new products that are rare in Vietnam, such as SA and potassium fertilizers to minimize imports. While urea fertilizer has been overproduced domestically, and NPK fertilizer has satisfied the domestic market’s demand, export of these products should be strengthened.
According to the Vietnam Fertilizer Association, apart from increasing domestic sales, enterprises should promote exports to ensure stable outlets and avoid inventories and competition pressure in the domestic market.