Vietnam Complex Fertilizer Market Future outlook

1

• Vietnam Complex Fertilizer Market Report- Ken
  research

2

• Asian countries are behind US and European
  countries in terms of achieving agricultural crop
  yield. The focus on improving crop yields has
  driven the demand for complex fertilizers in the
  Asian subcontinent over the past decade. Asia
  complex fertilizer market registered moderate
  growth during 2012-2017, growing at a CAGR of ,
  to register revenues worth USD billion in 2017
  as compared to USD billion in 2012. Moderate
  growth was due to decline in consumption of
  complex fertilizers in certain key territories
  and slump in price of complex fertilizers, driven
  by decline in cost of raw materials in
  international markets. Overall, complex
  fertilizer production in Asia grew at a CAGR of
  during 2012-2017, whereas consumption of
  complex fertilizers grew at a CAGR of during
  the same period.
•  
• Vietnam was the largest consumer and producer of
  complex fertilizers in Asia and accounted for
  about of the market in 2017. Vietnams complex
  fertilizer market is fairly concentrated with top
  5 players together comprising for of the
  market share.

3

• India ranked second and comprised for of the
  market share in 2017. Vietnam, Indonesia and
  Thailand were other major countries utilizing
  complex fertilizers in Asia and accounted for ,
  and market share respectively in 2017. All
  other Asian countries together comprised for
  remaining of the market.
• NPK 16-16-8 was the most widely used complex
  fertilizer in Asia and accounted for market
  share in overall complex fertilizer market in
  2017. NPK 20-20-15 was the next popularly used
  fertilizer grade and comprised for market
  share in 2017. NPK 15-15-15 and NPK 20-20-0 were
  other popularly used complex fertilizers which
  comprised for and market share respectively
  in 2017. All other grades/formulas of complex
  fertilizers together comprised for about of
  the market share in 2017.
•  
• Vietnamese farmers have been familiar with the
  use of organic fertilizers including manure and
  legumes for a very long time. With the
  introduction of superphosphate technology in
  early 1960s, Vietnamese farers began utilizing
  chemical fertilizers in conjunction with organic
  fertilizers to improve crop yields. Until 1970s,
  mainly N fertilizers were widely used and both
  nitrogen and phosphorous fertilizers were widely
  used during 1970s to 1990s. Consumption of
  complex fertilizers began to gain traction since
  late 1990s and is the highest fertilizer category
  utilized at present. Agriculture is a key sector
  in Vietnams economy more than 70 of the
  country populations are farmers.

4

• Vietnam is dependent on imports for manufacturing
  of complex fertilizers as it lacks potash
  reserves. NPK fertilizers comprised for the
  largest share in overall fertilizer sector by
  accounting for around of the overall
  fertilizer demand in 2017. Existence of a number
  of small scale complex fertilizer manufacturers
  has resulted in diverse quality of complex
  fertilizers found in the country. The average
  selling price of NPK is higher than the
  selling price of Urea.
• Complex fertilizer market witnessed growth at a
  CAGR of 2.4 during 2012-2017, inclining from USD
  million in 2012 to USD million in 2017.
  Decline in average selling price of complex
  fertilizers owing to slump in prices of key raw
  materials resulted in marginal incline in demand
  for such fertilizers during 2015-2017.
• Vietnam imported about thousand MT of NPK
  fertilizers during 2015, majorly from South Korea
  and Russia. Imports inclined in 2015 by as much
  as as compared to 2014. Incline in consumption
  of NPK fertilizers in the domestic market coupled
  with decrease in price of NPKs resulted in an
  incline in imports of the same in 2015. Overall,
  imports grew marginally from thousand MT in
  2011 to thousand MT in 2015.

5

• South Korea and Russia were the two biggest
  exporters of NPK fertilizers to Vietnam as of
  2015, contributing about and of the overall
  NPK imports of the country (in terms of volume).
  Jordan and Norway were other important import
  destinations amongst several other countries in
  2015 and resulted in and of the overall NPK
  fertilizer imports.
•  
• Southern region comprising of 19 first tier
  administrative units was the largest consumer of
  complex fertilizers in the country. As of 2017,
  the Southern comprised for about market share
  of the overall complex fertilizer market, in
  terms of consumption volume. On the other hand,
  Northern and Central region of Vietnam accounted
  for and market share in 2017.
• NPK 16-16-8 was the most widely used complex
  fertilizer in Vietnam and accounted for market
  share in overall complex fertilizer market in
  2017. NPK 20-5-5, NPK 7-7-14, NPK 12-5-10 and NPK
  15-15-15 were other popularly used fertilizer
  grade which comprised for , , and
  market share respectively in 2017. All other
  grades/formulas of complex fertilizers together
  comprised for about of the market share in
  2017.
• Vietnam largely produced and utilized blended
  complex fertilizers due to low investment
  required for companies for set up a blended
  manufacturing facility. Consumption of blended
  fertilizers stood at Million MT in 2017,
  comprising for market share of overall complex
  fertilizer consumption in the country.
•  

6

• Vietnams complex fertilizer market is very
  competitive with more than major NPK producers
  and over small scale companies. The countrys
  domestic production has been sufficient to meet
  the consumption demand in the last few years.
  However, most NPK manufacturers operated at about
  of their installed capacity and production is
  not advanced in terms of technology as majority
  of companies were involved in producing lower
  quality blended complex fertilizers. These
  factories are majorly located in the Southern
  Vietnam, followed by Northern region and very
  limited presence in Central region. Vietnam also
  imports high-quality NPK fertilizers. The market
  for NPK may face an even fiercer competition from
  foreign players in particular from China as
  import duty rate has fallen from 6 to 0 since
  2015, due to a set of FTA ASEAN - China
  agreements.
• Binh Dien Fertilizer emerged as the market
  leader, in terms of revenue, by accounting for
  market share in 2017. Lam Thao Fertilizers and
  Chemicals was the second largest player in this
  space and comprised for market share. Some
  other leading players including The Southern
  Fertilizer Company, Japan Vietnam Fertilizer
  Company and Baconco Group comprised for ,
  and market share, respectively.

7

• Despite a balanced demand and supply equilibrium,
  domestic manufacturers keep investing in NPK
  projects. Several new and existing players are
  expected to setup new manufacturing plants or
  enhance the production capacity of existing
  sites.
• For instance, Taekwnag Co. announced its plan to
  build a NPK plant with production capacity of
  MT per year by the end of 2018. Petrovietnam
  Fertilizers is building MT per annum NPK plant,
  expected to be completed by late 2017 and
  commence operation in early 2018. Korea Vietnam
  Fertilizer co. is building a manufacturing plant
  with capacity of MT per year, which is expected
  to be operational by end of 2017.
• If all the projects are implemented, total supply
  of NPK has the potential to exceed of demand.
  The total capacity after 2018 has been estimated
  to increase to almost million MT per year.
• Ken Research estimates the consumption of complex
  fertilizer to grow at a CAGR of in the next
  five years, rising from million MT in 2018 to
  million MT in 2022. Furthermore, production of
  complex fertilizers is expected to grow at
  healthy CAGR of during 2017-2022, inclining
  from million MT in 2018 to million MT by
  2022.
• NPK 16-16-8 was the most widely used complex
  fertilizer in Vietnam, recording fastest growth
  during the last 5 years. Going forward,
  utilization of NPK 16-16-8 and NPK 20-5-5 are
  most likely to remain strong owing to balanced
  nutrient composition and comparatively cheaper
  prices.

8
Key topics Covered in the report- 

• Vietnam Blended NPK Consumption
• Vietnam NPK Fertilizer Demand
• Vietnam NPK Fertilizer Consumption
• Vietnam NPK Fertilizer Production
• Vietnam NPK Fertilizer Market
• Lam Thao Fertilizers and Chemicals Sales
• Binh Dien Fertilizer Best Selling Complex
  Fertilizer
• Southern Fertilizer JSC Production Complex
  Fertilizer
• Japan Vietnam Fertilizer Company Installed
  Capacity
• Complex Fertilizer Installed Capacity Vietnam
• Future Complex Fertilizer Vietnam
• Baconco Group Market Share Complex Fertilzer
• Selling Price Complex Fertilizer Vietnam
• Blended NPK Sales Vietnam
• Slow Release NPKs Revenue Vietnam
• Water Soluble NPKs Sales Trends

9

• For more information on the research report,
  refer to below link
• https//www.kenresearch.com/agriculture-and-animal
  -care/crop-protection/vietnam-npk-sales-research-r
  eport/143971-104.html
• Related Reports by Ken Research
• Asia Complex (NPK) Fertilizer Market Outlook to
  2022 - by Grade (NPK 16-16-8, NPK 20-20-15, NPK
  15-15-15, NPK 20-20-0 and Others), by Region
  (China, India, Vietnam, Indonesia, Thailand and
  Others)
• China Complex (NPK) Fertilizer Market Outlook to
  2022 - Expected Replacement from Straight
  Chemical Fertilizers To Complex Fertilizers
• India Complex (NPK) Fertilizer Market Outlook to
  2022 - Expected Manufacturing Capacity Expansion
  by Domestic Manufacturers in Next 5 Years
• Contact Us Ken ResearchAnkur Gupta, Head
  Marketing CommunicationsSales_at_kenresearch.com
  91-124 423 0204
•  
•  

10
(No Transcript)