Market Snapshot
| Study Period: | 2017-2027 |
| Base Year: | 2021 |
| CAGR: | 4.9 % |
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Market Overview
The Vietnamese fertilizers market is anticipated to record a CAGR of 4.9% over the forecast period (2022-2027).
Amid 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 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 in the fertilizers market in Vietnam.
The increasing area for crop production, need for increased land productivity, rising adoption of new farming practices, and increasing area under organic farming are expected to drive the market during the forecast period.
The use of organic fertilizers is on the rise, as farmers see improvements in the soil, crops, and environment as compared to 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 also collaborated with major companies such as Loc Troi Group JSC, Con Co Vang Hi-Tech, Que Lam, Phuc Thịnh, GNC, Hiep Thành, and Green Powers to develop organic fertilizers. Moreover, the arable land area has been 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 growth in the Vietnamese fertilizer market.
Under crop types, grains and cereals is the largest segment consuming fertilizers in Vietnam. The top fertilizer-consuming cereals in Vietnam are rice, paddy, and maize. Rice and paddy accounted for more than 80% share of the grains and cereals market, followed by maize, with an approximate 10% share. The domestic market for rice is expected to thrive in the future due to rising demand for rice from several importers, such as the Philippines, the Republic of Korea, Nigeria, and Egypt, which, in turn, will drive the fertilizer market in Vietnam.
Scope of the Report
For the purpose of this report, the fertilizers used in agriculture have been considered. 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. The Vietnamese fertilizers market is segmented by product type (synthetic fertilizers and organic fertilizers) and crop type (grains and cereals, pulses and oilseeds, fruits and vegetables, and other crop types). The report offers market size and forecast in terms of value in USD million for all the above-mentioned segments.
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Key Market Trends
Rising Demand for Organic Fertilizers
The use of organic fertilizers is emerging in the country as 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 through the use of organic fertilizer. The Ministry of Agriculture and Rural Development's Plant Protection Department 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 that entered the organic fertilizer market in 2009. At present, it supplies two million liters and 10,000 metric ton of organic fertilizers annually to the market.
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 share of organic fertilizer also increased from 5 % to 11.1% during that period.
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Grains and Cereals Segment Occupies the Largest Share
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 Vietnamese farmers to increase 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 fields.
At more than 297 kilograms per hectare, Vietnam has the highest fertilizer use density among countries in the Southeast Asian region. Other countries apply an average of 156 kilograms per hectare of rice area.
Moreover, an exciting new irrigation system has been proposed for Vietnamese agriculture and will open doors to new markets. The Asian Development Bank recently approved USD 100 million in 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.
Competitive Landscape
The fertilizer industry in Vietnam is fragmented, with local players occupying the majority of the market share. The major players are adopting various strategies, such as expansion and 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 2019, Que Lam Group opened its new bioorganic fertilizer plant, built at the cost of VND 500 billion (USD 21.54 million), in the northern province of Vinh Phuc. The plant provides 250,000 metric ton of organic fertilizer annually.
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.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Synthetic Fertilizers
5.1.1.1 Nitrogenous Fertilizers
5.1.1.2 Phosphatic Fertilizers
5.1.1.3 Potash Fertilizers
5.1.1.4 Other Synthetic Fertilizers
5.1.2 Organic Fertilizers
5.1.2.1 Organic Residues
5.1.2.2 Biofertilizers
5.2 Crop Types
5.2.1 Grains and Cereals
5.2.2 Pulses and Oilseeds
5.2.3 Fruits and Vegetables
5.2.4 Other Crop Types
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Ninh Binh Phosphate Fertilizer JSC
6.3.2 Southern Fertilizer JSC
6.3.3 Petrovietnam Fertilizer and Chemicals Corporation
6.3.4 Lam Thao Fertilizers and Chemicals JSC
6.3.5 PetroVietnam Ca Mau Fertilizer JSC
6.3.6 Binh Dien Fertilizer JSC (BFC)
6.3.7 Ha Bac Nitrogen Fertilizers and Chemical Company
6.3.8 Que Lam Group
6.3.9 Agricultural Products and Materials JSC (APROMACO)
6.3.10 Song Gianh Corporation
6.3.11 Thien Sinh JSC
6.3.12 DAP Dinh Vu Fertilizers
6.3.13 DUC Giang Chemicals
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Vietnam Fertilizer Market market is studied from 2017 - 2027.
What is the growth rate of Vietnam Fertilizer Market?
The Vietnam Fertilizer Market is growing at a CAGR of 4.9% over the next 5 years.
Who are the key players in Vietnam Fertilizer Market?
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.
