Vietnam Fertilizer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Vietnam Fertilizers Market is segmented By Product Type (Synthetic and Organic fertilizers) and by Application (Grains and Cereals, Pulses and Oilseeds, Fruits and Vegetables, and Other Crop Types).

Market Snapshot

Market Snapshot
Study Period:

2016 - 2026

Base Year:

2020

CAGR:

4.9 %

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Market Overview

The Vietnam Fertilizers Market was valued at USD 1,781.2 million in 2020, witnessing a CAGR of 4.9% over the forecast period (2021-2026). Amidst the COVID-19 pandemic, the Vietnamese Government imposed various measures such as social distancing, mobility restrictions and shutdown of non-essential service facilities to contain the outbreak. The movement restrictions along with the poor farm economics moderately impacted the fertilizers market in Vietnam, as the country took early steps and supportive policies. Therefore, other than the supply chain disruptions not much turbulence was felt on the fertilizers market in Vietnam.

Over the medium term, increasing area for crop production, the need for increased land productivity, rising adoption of new farming practices, increasing area under organic farming are expected to drive the market growth. The use of organic fertilizers is on the rise as farmers see improvements in the soil, crops and environment as compared to the chemical fertilizers. Hence, many companies are steadily increasing the production of organic fertilizers with the growing demand in the country. The Ministry of Agriculture and Rural Development's Plant Protection Department has also collaborated with major companies such as Lộc Trời Group JSC, Con Cò Vàng Hi-Tech, Quế Lâm, Phúc Thịnh, GNC, Hiệp Thành, and Green Powers to develop organic fertilisers. Moreover, the arable land area is also gradually rising in the country over the past few years. The increase in arable land area, coupled with the government’s initiative for increasing agricultural exports, is expected to drive the Vietnamese fertilizer market’s growth. However, the climate change, strict regulations on chemical residues are likely to act as restraints to the growth of the industry.

Scope of the Report

A fertilizer is a natural or synthetic, generally chemical-based substance that is added to plants either directly or indirectly to enhance fertility and growth along with water retention and soil effectiveness. For the purpose of this report, the fertilizers used in agriculture have been considered. The Vietnam Fertilizers Market is segmented By Product Type (Synthetic and Organic fertilizers) and by Application (Grains and Cereals, Pulses and Oilseeds, Fruits and Vegetables, and Other Crop Types).

Product Type
Synthetic Fertilizers
Nitrogenous Fertilizers
Phosphatic Fertilizers
Potash Fertilizers
Other Synthetic Fertilizers
Organic Fertilizers
Organic Residues
Biofertilizers
Application
Grains & Cereals
Pulses & Oilseeds
Fruits & Vegetables
Other Crop Types

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Key Market Trends

Rising Demand for Organic Fertilizers

The use of organic fertilizers is emerging in the country as more and more farmers refrain from using chemicals to increase the agriculture output per hectare of land. This is attributed to the rising awareness among farmers, as they witness the improvements in the soil, crops, and environment by the use of organic fertilizer. The Ministry of Agriculture and Rural Development's Plant Protection Department has collaborated with major companies such as Lộc Trời Group JSC, Con Cò Vàng Hi-Tech, Quế Lâm, Phúc Thịnh, GNC, Hiệp Thành, and Green Powers to develop organic fertilizers. In 2019, Lộc Trời and the department signed a deal to enhance the production and usage of organic fertilizers. Lộc Trời is a major player which entered the organic fertilizer market in 2009, and at present supplies to the market two million liters and 10,000 metric ton of organic fertilizers annually.

With the steady rise in demand for organic fertilizers, many fertilizer companies are steadily increasing the production of organic fertilizers. According to the Ministry of Agriculture and Rural Development, the organic fertilizer products in the country increased from 713 in 2017 to 2,312 in 2019. The share of organic fertilizer has also increased from 5 % to 11.1% during that period.

Vietnam Fertilizer Market1

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Rising Adoption of New Farming Practices

The System of Rice Intensification (SRI) is a package of good agricultural practices for hand-planted rice, which increases the yield and reduces the dependency on seeds, water, and fertilizers. It has been widely adopted by the Vietnamese farmers to increase the productivity in paddy fields. In 2021, the SRI was named as a 2020 climate policy "breakthrough" for government initiatives to increase agricultural production in Vietnam while reducing methane emissions from rice paddies.

Moreover, an exciting new irrigation system has been proposed for Vietnam agriculture and will open doors to new markets. The Asian Development Bank recently approved USD100 million finance to modernize irrigation systems in five drought-affected areas in Vietnam. The upgraded irrigation system will bring water on demand with pressurized pipe systems. This will help improve agricultural productivity and give access to grow high-end crops such as dragon fruit, grapes and mango. Hence, the new farming methods and upgradation of old systems are expected to boost the market growth in the coming years.

Fertilizer Market: Fertilizer Consumption

Competitive Landscape

The fertilizer industry in Vietnam is fragmented with local players dominating 72% of the market. The top five players constitute around 28% of the market, based on the overall Vietnam fertilizers market revenue in 2020. The major players are adopting various strategies such as expansion, partnerships to increase their foothold in the market.

The fertilizer industry in the country operates with government involvement to protect domestic producers and farmers. Dealer system, regional company system, and definitive purchase are the most popular distribution channels in the country.

Recent Developments

In 2016, Petrovietnam Ca Mau Fertilizer Joint Stock Co. (PVCFC) signed a Memorandum of Understanding (MoU) with Solvay Novecare to launch innovative and eco-friendly enhanced efficiency fertilizers, which will increase yields for farmers while decreasing nitrogen losses in the air, soil and water and in turn reducing environmental and climate impact.

In 2018, the Binh Dien II Fertilizer Joint Stock Company (BFC) opened a new fertilizer factory in Can Giuoc district, Long An's southern province, with an investment of VND 320 billion (roughly USD 14 million). The farm, which covers more than 3 hectares, is planned to produce 100,000 metric ton of fertilizer annually.

In 2019, Que Lam Group opened its new bio-organic fertilizer plant, built at a cost of 500 billion VND (21.54 million USD), in the northern province of Vinh Phuc. The plant provides 250,000 metric ton of organic fertilizer annually.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions & Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Synthetic Fertilizers

        1. 5.1.1.1 Nitrogenous Fertilizers

        2. 5.1.1.2 Phosphatic Fertilizers

        3. 5.1.1.3 Potash Fertilizers

        4. 5.1.1.4 Other Synthetic Fertilizers

      2. 5.1.2 Organic Fertilizers

        1. 5.1.2.1 Organic Residues

        2. 5.1.2.2 Biofertilizers

    2. 5.2 Application

      1. 5.2.1 Grains & Cereals

      2. 5.2.2 Pulses & Oilseeds

      3. 5.2.3 Fruits & Vegetables

      4. 5.2.4 Other Crop Types

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Ninh Binh Phosphate Fertilizer JSC

      2. 6.3.2 Southern Fertilizer JSC

      3. 6.3.3 Petrovietnam Fertilizer and Chemicals Corporation

      4. 6.3.4 Lam Thao Fertilizers and Chemicals JSC

      5. 6.3.5 PetroVietnam Ca Mau Fertilizer JSC

      6. 6.3.6 Binh Dien Fertilizer JSC (BFC)

      7. 6.3.7 Ha Bac Nitrogen Fertilizers and Chemical Company

      8. 6.3.8 Que Lam Group

      9. 6.3.9 Agricultural Products and Materials JSC (APROMACO)

      10. 6.3.10 Song Gianh Corporation

      11. 6.3.11 Thien Sinh JSC

      12. 6.3.12 DAP Dinh Vu Fertilizers

      13. 6.3.13 DUC Giang Chemicals

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Vietnam Fertilizer Market market is studied from 2016 - 2026.

The Vietnam Fertilizer Market is growing at a CAGR of 4.9% over the next 5 years.

  • Binh Dien Fertilizer JSC (BFC)
  • Southern Fertilizer JSC
  • PetroVietnam Fertilizer and Chemical Corp.
  • Ninh Binh Phosphate Fertilizer JSC
  • Habac Nitrogenous Fertilizer & Chemicals Company Limited

Are the major companies operating in Vietnam Fertilizer Market.

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