Vietnam Complex (NPK) Fertilizer Market Outlook to 2027

Market Overview:

A rapidly evolving market with immense growth potential Vietnam Complex (NPK) Fertilizer market is being driven by factors such as population expansion, economic development and increased agricultural demand. The market has a Moderately Fragmented market with presence of 20+ major players and 780+ small and medium scale players producing NPK fertilizers among other products in the industry.

The total addressable market for the Vietnam Complex (NPK) Fertilizer has been on a rise. Binh Dien Fertilizer is the market leader with around 20% of market share in the Vietnam Complex Fertilizer Market. Their advanced facilities and extensive distribution reach across Vietnam and neighboring nations have fueled rapid growth. They are also prominent in exporting quality Vietnamese fertilizers to regional countries. The current market in Vietnam is experiencing stable growth and is expected to witness the same trend in the medium to long term. The Vietnam Complex (NPK) Fertilizer Market is with major players in this market are Binh Dien Fertilizer, Lam Thao Fertilizer, Japan Vietnam Fertilizer, KVF etc.

Vietnam Complex (NPK) Fertilizer market is characterized by consolidation, featuring and major players such as Binh Dien Fertilizer, Lam Thao Fertilizers, Japan Vietnam Fertilizer Company operating in Vietnam for more than 20 years. There is a presence of 20+ major players  and 780+ small and medium scale players producing NPK fertilizers among other products in the industry.

Vietnam Lubricant Market Analysis

• The top 3 fertilizer companies in Vietnam include Binh Dien Fertilizer, Lam Thao Fertilizer and Japan Vietnam Fertilizer.
• 70% of the Vietnamese population resides in rural areas and relies on agriculture for their livelihoods making Vietnam one of the largest fertilizer consumers in Southeast Asia.
• In terms of fertilizer quality, Vietnam has introduced three key measures: licensing, mandatory quality labeling, and random inspections to ensure and maintain quality control.
• Major end- user in NPK fertilizer market comprise of entities such as crop companies, indoor farming companies and commercial greenhouses along with individual farmers.
• In Vietnam, the regulatory body responsible for overseeing fertilizers is the Plant Protection Department (PPD). It operates under the Ministry of Agriculture and Rural Development (MARD).

Key Trends by Market Segment:

By Form of Fertilizer: In 2023, Vietnam fertilizer market is predominantly influenced by the widespread adoption of blended complex fertilizers, which have asserted their dominance by capturing a substantial 65% share in 2023. This prevalence can be attributed to the cost advantage offered by blended complex fertilizers, as they necessitate lower production capital compared to alternatives such as granulated or fused fertilizers. The manufacturing process for granular fertilizers involves additional processing, contributing to higher production costs. Consequently, the economic efficiency of blended complex fertilizers has positioned them as the preferred choice among farmers and agricultural stakeholders, underscoring their pivotal role in shaping the fertilizer landscape in Vietnam.

By Type of Fertilizer: Three-nutrient complex fertilizers have become popular in agriculture because they offer a balanced mix of essential nutrients, including nitrogen, phosphorus, and potassium. These nutrients support various aspects of plant growth, such as leaf development, root growth, flowering, and overall plant vigor. The combination of nitrogen, phosphorus, and potassium in these fertilizers ensures a well-rounded approach to plant nutrition, promoting optimal growth and health throughout the crop's life cycle. The balanced nutrient composition prevents deficiencies or imbalances, facilitates improved nutrient uptake by plants, and enhances overall productivity. Farmers and agricultural practitioners prefer these fertilizers for their effectiveness in providing a comprehensive and customized nutritional solution, leading to better crop yields and sustainable agricultural practices.

By Region: The combination of favorable geography and climate has made the southern region well-suited for the cultivation of wide range of crops generating revenue of more than half of the total revenue in 2023. The climate in the southern region and Mekong Delta allows for a long growing season, enabling farmers to cultivate multiple crops of rice in a year. This contributes to increased rice production and productivity.

Competitive Landscape:

Major Players in Vietnam Complex Fertilizer Market

• Binh Dien Fertilizer is the market leader with 22.9% of market share in the Vietnam Complex Fertilizer Market. Their advanced facilities and extensive distribution reach across Vietnam and neighboring nations have fueled rapid growth. They are also prominent in exporting quality Vietnamese fertilizers to regional countries.
• Lam Thao Fertilizers and Chemicals JSC was founded in 1962. which was formerly known as Lam Thao Super Phosphate Factory. It offers more than 50 product lines of fertilizers and chemicals.
• Binh Dien Fertilizer Joint Stock Company was founded in 1973 and originally called Thanh Tai Fertilizer Company. BFC is engaged in the manufacturing and trading of fertilizer, cattle-feed, and aqua-products.
• Japan Vietnam Fertilizer Company (JVF) is a Vietnamese company that was established in 1995. Established with an invested capital of $39,750,000 from two Japanese investors: Sojitz and Central Glass.
• Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo) is a Vietnamese company that was established in 2003. It manufactures and trades agricultural chemicals including NPK fertilizers.
• Ca Mau Petroleum Fertilizer Joint Stock Company was established in 2011. It is involved in the production and distribution of petroleum and fertilizer products.

Recent Developments:

• Vietnam plans to boost NPK fertilizer exports to neighboring countries. Since July 2023, the government lowered export tax to 0% for NPK, aiming to fulfill domestic needs and become a primary supplier to neighboring nations.
• In 2023, Vietnam's weak domestic fertilizer demand is tied to lower rice prices, affecting farmers' incomes. As demand may rise later, the impact of reduced prices is likely to surpass any increase in volume.
• The Russia-Ukraine war has global market repercussions, offering export opportunities for farmers and boosting NPK fertilizer demand.

Future Outlook:

• The market will grow at a CAGR of 10.2% during 2023-2027 due to new export tax policy.
• Vietnam plans to boost NPK fertilizer exports to neighboring countries.
• Since July 2023, the government lowered export tax to 0% for NPK, aiming to fulfill domestic needs and become a primary supplier to neighboring nations.
• The rise in horticultural crop exports means farmers will rely on fertilizers to meet international market standards for quality and quantity.
• Vietnam Complex Fertilizer market will generate VND 70,140 Bn by 2027 due to boost in NPK fertilizer sales, majorly due to new export tax policy.