Fertiliser exports to soon hit record high of $1 billion

Fertiliser exports to soon hit record high of $1 billion

At the growth rate, the fertiliser industry is likely to surpass the $1 billion mark for the first time and set a new record for export value.

According to industry insiders, the strong growth in fertiliser exports this year have stemmed from fluctuations in the international market. — VNA/VNS Photo

Fertiliser exports earned US$933 million in just the first six months of this year, surpassing the entire value of last year and only about $160 million short of the historical record set in 2022.

According to the Vietnam Customs, the country exported about 1.7 million tonnes of fertiliser in the period. Compared to the same period last year, production increased by 52 per cent, while export value increased by 107 per cent.

At the current growth rate, the fertiliser industry is likely to surpass the $1 billion mark for the first time and set a new record for export value.

Cambodia continued to be the largest market for Vietnamese fertilisers. In addition, markets such as South Korea, the Philippines and Malaysia also recorded strong import increases, contributing to the overall industry's export value.

According to industry insiders, the strong growth in fertiliser exports this year have stemmed from fluctuations in the international market.

Geopolitical conflicts in the Middle East have impacted the global energy and fertiliser supply chains. Shipping through the Strait of Hormuz has been hampered, while some factories in the Gulf region have had to adjust their production capacity.

Furthermore, Russia and China continue to impose export controls on certain types of fertilisers, further tightening global supply.

In this context, Vietnamese businesses have quickly seized the opportunity to expand exports. In particular, the period of low domestic demand has created favourable conditions for manufacturers to boost sales to international markets.

Many large companies, such as Ca Mau and Phu My, recorded positive increases in sales volume and revenue in the first half of the year thanks to their export market expansion strategies.

However, the sharp increase in exports has also raised certain concerns for the domestic market.

According to the Ministry of Agriculture and Environment, fertiliser prices in the country’s southern region continued to rise in June for many types such as urea, DAP and NPK. Meanwhile, global fertiliser prices remained significantly higher than the same period last year.

Meanwhile, the volume of fertiliser imported into Việt Nam in the first six months decreased by nearly 35 per cent, while the average import price increased by about 1.5 per cent compared to the same period.

Total imports in the period reached approximately 2.1 million tonnes, equivalent to $694.3 million. 

Bizhub