Vietnam to Discourage Investments in Nitrogenous Fertilizer Production

Vietnamese authorities should urge enterprises not to pour investments into nitrogenous fertilizer production nationwide to help avoid possible domestic oversupply in the next ten years, according to analysts.

The domestic supply of nitrogenous fertilizers will surpass demand by 2020 when three new plants officially operate, the analysts said at a recent conference.

Vietnam’s total nitrogenous fertilizer output is currently estimated at 920,000 tons yearly, including 740,000 tons by Phu My Fertilizer Plant while the rest is by Ha Bac Fertilizer Plant.

The total output is forecast to soar to 3.1 million tons by 2020, once the Ca Mau Fertilizer Plant with a capacity of 740,000 tons; Ninh Binh Plant with 560,000 tons; Thanh Hoa Plant with 560,000 tons, come into operation.

Meanwhile, the country is estimated to need around two million tons of nitrogenous fertilizer annually.

Vietnam is expected to produce an estimated 5.6 million tons of fertilizers in 2010, including 945.500 tons of urea, 1.7 million tons phosphate-based products, 2.7 million tons of NPKs, and 260 thousand tons of DAP.

The country is forecast to have to import 3.3 million tons of fertilizers this year to meet domestic demand.

In the Jan-Jul period, Vietnam spent $505 million on importing 1.6 million tons of fertilizers, down 38% and 35% on-year, respectively. – Dau tu

Tags: Nitrogenous Fertilizer Production, Vietnam fertilizer industry