Vietnam can switch from importing to exporting fertilizers
The domestic fertilizer market situation shows that there will be surplus supply for export.
At the recent conference “Market situation and orientation of state management of fertilizers in the coming time” (Can Tho City) organized by the Ministry of Industry and Trade, Mr. Vo Van Quyen, Director of the Domestic Market Department under the Ministry of Industry and Trade, said that currently, domestic fertilizer production capacity has met over 80% of the demand for inorganic fertilizers, with the complete initiative in the supply of urea. The situation of the domestic fertilizer market shows that there will be surplus supply for export.
According to the Ministry of Agriculture and Rural Development, the total demand for fertilizer in 2013 is more than 10.2 million tons, the domestic production supply is more than 8 million tons. Thus, it will be necessary to import about 2.2 million tons more. The demand for imported fertilizers mainly focuses on 3 types of fertilizers: SA, potassium and DAP.
“The estimated demand for urea in 2013 is 2 million tons, while domestic production is estimated at 2.2 million tons. By 2015, domestic fertilizer production will basically meet agricultural production needs with 100% of urea, phosphate and NPK; 70-80% of DAP and 30% of SA. Currently, 100% of SA, a low-nitrogen fertilizer, can be replaced by urea,” Mr. Quyen expects.
According to Mr. Quyen, with the inauguration of DAP factory No. 2 (capacity of 330,000 tons/year) in Lao Cai in 2014, combined with DAP factory No. 1 currently operating in Hai Phong (capacity of 330,000 tons/year), the Vietnamese fertilizer industry will gradually be able to proactively supply this product.
Ms. Nguyen Thi Kim Thoa, Deputy Minister of Industry and Trade, said that being proactive in fertilizer supply is important in stabilizing domestic market prices as well as avoiding risks from export policies in other countries. Especially China, which supplies about 80% of Vietnam's imported fertilizer.
Although the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development are jointly managing this product, a specialized inspection system has not been established; responsibilities for fertilizer management have not been clearly defined, so the production and trading of fake and poor quality fertilizers is alarming but not thoroughly handled.
Deputy Director of the Department of Chemicals under the Ministry of Industry and Trade, Ms. Nguyen Kim Lien, added: There are over 300 fertilizer production and trading establishments nationwide, but many fertilizer products have very low nutrient content. Meanwhile, the handling of the problem is inadequate because fertilizers have not been regulated as a conditional production and trading item with a certificate or license, so small-scale establishments do not have the necessary conditions, and poor quality products are still put on the market./.
According to VOV - HV