Vietnam will meet local urea fertilizer demand in 2011 by doubling its annual output to 1.7 million or 1.8 million tons, said Do Duy Phi, chairman of the Vietnam Fertilizer Association.
At a workshop on fertilizer production and import by 2010 held in Hanoi March 27, Phi said Vietnam needs around 1.9 million tons of urea fertilizer, but local companies are now able to produce only 900,000 tons yearly.
Currently, fertilizers prices in general and urea prices in Vietnam in particular, are affected by the fluctuation of global prices because of the country’s dependence on imported fertilizers, which mainly come from China and Middle East countries, .
Phi said Vietnamese companies have carried out construction of a number of fertilizer factories.
The Vietnam Chemical Corporation (Vinachem) is building Ninh Binh Fertilizer Factory with capacity of 560,000 tons, and is going to increase Ha Bac Fertilizer Factory to 500,000 tons per annum. Vinachem expected to put the two factories into operation late 2011.
Meanwhile, the Phu My Fertilizer Factory, the biggest of its kind in Vietnam, is able to produce 740,000 or 800,000 tons per year.
According to the Ministry of Agriculture and Rural Development, Vietnam will need around 7.83 million tons of fertilizers this year, but local supply will be only five million tons. The country will have to import 2.83 million tons, including one million tons of urea; 700,000 tons of DAP; 500,000 tons of SA and 700,000 tons of Kali.
The country spent US$375 million on importing 999,000 tons of fertilizers in the first quarter of this year, up 6.1 per cent on year in value and 18.2 per cent in volume. (Vietnam & World Economy, Vietnamnet)
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