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Fertiliser industry eyes growth potential
Domestic urea fertiliser market capacity could increase by 350 per cent by 2015, experts said. Currently only two urea fertiliser plants, the Ha Bac and the Phu My, are operating with a total capacity of about 980,000 tonnes per year.
However, in the coming time, a slew of new plants will be put into operation, with many old plants set for upgrading.
The Ninh Binh Fertiliser Plant with an annual capacity of 560,000 tonnes per year would begin operations at the end of this year, said project head Chu Van Tuan.
The Ca Mau Fertiliser Plant which can produce 800,000 tonnes of fertiliser per annum will also finish construction by the end of this year. Construction will also begin on the Cong Thanh Plant in the central province of Thanh Hoa with an output of 560,000 tonnes per year.
Meanwhile, the upgrade of the Ha Bac Fertiliser Plant will be complete in 2014.
With these developments, the domestic fertiliser market will rapidly expand. By 2015, total capacity may exceed 3 million tonnes.
With impending increased capacity, experts forecast that by 2015 the domestic market will be transformed, with total national demand only standing at 2.2 million tonnes per year.
Despite increased domestic production, tougher foreign competition will arise and companies will have to drive to expand export markets.
A representative from the PetroVietnam Fertiliser and Chemicals JSC said his company had started researching new export markets for urea fertiliser. The company was also diversifying sales to sectors beyond agriculture.
To resolve a potential fertiliser glut, companies are being prompted to invest in other fertilisers such as potassium and the diammonium phosphate (DAP).
Viet Nam currently faces a shortage of potassium and DAP fertiliser. The country annually imports 700,000 tonnes of each, yet domestic producers are capable of producing these products.
Along with finding new export markets, fertiliser manufacturers should find different ways of developing their products, suggested head of Chemical Department under the Ministry of Industry and Trade Phung Ha.
vietnamnews
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