Increase in Vietnam‘s Fertilizer Imports: China Stays Key Supplier, DAP Imports to Surpass 0.5M Tons in Q1

According to preliminary statistics from the General Department of Customs of Vietnam, fertilizer imports in March saw a significant increase, with China being the largest supplier. In the first three months of 2024, Vietnam imported over 1.12 million tons of fertilizer, valued at nearly $352 million, with an average price exceeding $314 per ton.

In March alone, Vietnam imported approximately 429,000 tons of fertilizer worth about $1.23 million, representing a month-on-month increase of 52.3% in quantity and 35% in price. The average import price was $287 per ton, down 11.6% from February.

China remains the main supplier of fertilizer to Vietnam, with a total of nearly 175,000 tons. Compared to the previous month, this represents an increase of nearly 44% in quantity, over 55% in value, and almost 8% in price. China continues to be the primary import market, accounting for about 42% of the total import volume and over 29% of the total import value.

Vietnam also imports fertilizer from other markets, including Russia, Southeast Asia, members of the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Dr. Phung Ha, Vice Chairman and Secretary-General of the Vietnam Fertilizer Association (FAV), stated that China, as a major producer and exporter of fertilizers globally, has always been the largest source of imported fertilizers for Vietnam.

Currently, Vietnam faces shortages or insufficient domestic production of certain types of fertilizers. For example, domestic production capacity for diammonium phosphate (DAP) is only 400,000 to 500,000 tons, while demand exceeds 1 million tons, necessitating imports.

Regarding NPK fertilizers, Vietnam imports those with high nutrient content while exporting those with lower nutrient content to neighboring countries, Dr. Phung Ha noted.

Dr. Phung Ha also mentioned that the country's fertilizer supply does not solely depend on foreign markets. Some fertilizers, such as urea and calcium superphosphate, can be used domestically or exported.

Due to restrictions on fertilizer exports from certain countries, the proportion of Vietnam's fertilizer exports has been increasing, reaching $1.7 billion in 2022.