Fertilizer production and trade in Vietnam will now be overseen more tightly under a new decree by which there will be a more orderly classified. The decree’s strict regulations are necessary as a great number of fake and low-quality fertilizers are on the market, causing losses for farmers. Inspections of the authorities showed last year that over half of the fertilizers on the market were substandard or fake. Most recently, inspectors discovered the Viet Phap Science, Technology and Investment Corporation in Ha Noi’s Thanh Tri District producing over 60 tonnes of NPK fertilizer fraudulently under the trademark of the Lam Thao Fertilisers and Chemicals Joint Stock Co.
Vietnam national demand for NPK fertilizer is 3.5 million tonnes, but the existing plants can only supply a combined 3.42 million tonnes. According to the figures of the General Department of Customs, as of June 15, 2012, the country had imported 104,000 tonnes of NPK fertilizer worth nearly US$ 51.2 million, up 2% year-on-year.
New NPK fertilizer plants to start operation in the next 1-2 years. Binh Dien Fertilizer Co. plans to develop two NPK fertilizer plants in Ninh Binh and Dong Nai provinces with respective output capacity of 150,000 and 200,000 tonnes per year. The PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo) is currently implementing a NPK project in Nam Dinh, with an annual capacity of 100,000 tonnes.
Last June, the Ministry of Agriculture and Rural Development (MARD) of Vietnam reported that the export value of Vietnam’s agricultural, forestry and seafood sector is forecast to reach US$13.67 billion in the first half of 2012, a year-on-year increase of 14.5%.