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Blended NPK Sales Vietnam

Vietnam was the largest consumer and producer of complex fertilizers in Asia and accounted for about ~% of the market in 2017. Vietnam’s complex fertilizer market is fairly concentrated with top 5 players together comprising for ~% of the market share

AnkurGupta
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Blended NPK Sales Vietnam

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  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. Vietnam’s 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 Vietnam’s 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. Vietnam’s complex fertilizer market is very competitive with more than ~ major NPK producers and over ~ small scale companies. The country’s 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. • BinhDien 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 • BinhDien 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-report/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@kenresearch.com+91-124 423 0204

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