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Vietnam to allow license-free export of fertilizer
Vietnam’s fertilizer exporters will no longer need to seek government approval every time they want to ship their products abroad as the country plans to develop a market-based trading system for the sector.
The Ministry of Industry and Trade is expected to abolish its licensing system no later than October, giving freedom to local fertilizer producers and exporters in terms of their shipments, Vietnam News Agency reported Sunday, citing Vietnam Fertilizer Association Secretary General Nguyen Hac Thuy.
Thuy said as the domestic fertilizer market has been completely driven by supply and demand, the government only regulates the market mechanism via tax policies.
He said local producers have increased their output and are now able to meet domestic needs for some kinds of fertilizer like FMP and NPK. Although the 2009-2010 winter-spring rice crop has not begun yet, enough fertilizer for the crop has been stocked by producers and importers.
Vietnam may stop importing fertilizer from 2020 when domestic output is expected to meet the country’s demands, the Vietnam Economic Times reported last month, citing information from the agricultural ministry.
The country requires about 7.5 million to 8 million metric tons of fertilizer a year while current local production is just half of this quantity.
Last December, the Ministry of Finance abolished export duties on fertilizer, a month after local producers requested assistance in clearing their stockpiles
Thanh Nien, vietnamplus
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