Nation to be self-sufficient in urea

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VietStock FI English - 35 month(s) ago 3 readings

Nation to be self-sufficient in urea

Viet Nam could be self-sufficient in urea fertiliser once new plants are built this year, Nguyen Hac Thuy, chairman of the Viet Nam Fertiliser Association, has said.

A worker unloads fertiliser at the Lam Thao Fertilisers and Chemincal Co. Domestic production of urea fertiliser is expected to meet the local demand once new plants are built this year.

Ca Mau and Ninh Binh fertiliser plants, financed respectively by PetroVietnam and the Viet Nam Chemical Group, were expected to produce 1.36 tonnes of urea this year, bringing total production in the country to 2.36 million of tonnes – double last year's figure, Thuy said.

If production reached its target, domestic supply this year would exceed demand, estimated at 1.8 million tonnes, he said.

The association also estimated urea production would rise to 3 million tonnes in 2015, far in excess of national demand and would therefore have to find new export markets.

Cao Hoai Duong, PetroVietnam Fertiliser and Chemical Corp general director, said his company had been focusing on overseas trade promotion in Cambodia, Laos and Myanmar.

In addition to opening a new branch in Cambodia, the company had signed a memorandum of understanding with three international urea traders, he said.

Besides promoting nitrogen, phosphorous and potassium (NPK) fertiliser, which saw production rise by 61 per cent last year to 127,000 tonnes, the Viet Nam Chemical Group said it would continue to make further investments in expanding production by 2015.

Meanwhile, the Southern Fertiliser Company planned to raise fertiliser exports by 30 per cent this year, particularly to Thailand and African countries, said its director Nguyen Tan Dat.

The company was also mulling a plan to export its products to Australia and New Zealand, Dat added.

However, Vietnamese fertiliser exporters were facing stiffer competition from China, Thailand, Middle Eastern countries and Russia, industry experts said.

They said local enterprises needed to invest in technical innovation to improve quality and reduce costs, as well as pay more attention to building and developing their trademarks.

Le Quoc Phong, director of Binh Dien Fertiliser Joint Stock Co, emphasised the importance of closer co-operation among domestic fertiliser producers.

Dat said his company needed about 300,000 tonnes of urea each year to make NPK fertiliser.

He also said the Government should sign payment agreements with African countries to help exporters avoid risks during shipping.

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