Agricultural growth drives demand for fertilisers

As a large agricultural producer, Vietnam has much demand for fertilisers and plant protection chemicals, offering much opportunity for companies in the field.
As a large agricultural producer, Vietnam has much demand forfertilisers and plant protection chemicals, offering much opportunityfor companies in the field.

Tran Xuan Dinh, Deputy Head of theCrop Production Department, said Vietnam needs around 11 million tonnesof fertilisers a year, including 2.2 million tonnes of urea, 1.8 milliontonnes of NPK, 900,000 tonnes each of DAP and SA.

Localproduction meets 80 percent of demand, though the country has tocompletely import potassium and SA since they are not produced here yet,he said.

Last year four million tonnes worth 1.3 billion USD were imported, mainly SA, DAP, potassium, urea, and NPK, he said.

LeVan Thiet of the central Crop Protection Department's HCM City officesaid besides shifting to other crops, intensive farming, increasing thenumber of crops year, and plant diseases have also increased in recentyears, leading to high demand for pesticides.

The country needs 100,000 tonnes of insecticides, fungicides, herbicides and others a year and 99 percent is imported.

Thereare 1,643 active ingredients with 3,902 product names permitted for usein Vietnam, 13 active ingredients with 22 product names that arerestricted, and 29 active ingredients that are banned, he said.

Everyyear the Ministry of Agriculture and Rural Development promulgates thelist of pesticides that are allowed, restricted and prohibited.

NguyenVan Thieu, Vice Chairman of the Vietnam Pesticides Association, saidVietnam has 98 companies that import ingredients and produce them forinternational manufacturers and pack them in containers. They have totalinstalled capacity of 240,000 tonnes a year, but most run at halfcapacity, he said.

Besides supplying the domestic market, theyalso export 20,000 tonnes of pesticides to Myanmar, Taiwan and Indonesiaeach year, he said.

To expand exports, they must take part ininternational seminars, exhibitions and trade fairs to introduce theirproducts to potential buyers, he said.

Vietnam's firstinternational exhibition on fertilisers and agricultural chemicals willbe held in HCM City's Tan Binh Exhibition and Convention Centre on July16 and 17. Agro Chemicals Vietnam would offer a forum for local andinternational companies to exchange information and seek businesspartners, Thieu said.

Nguyen Ba Vinh, Director of Minh ViExhibition and Advertisement Services Co Ltd, the event's organiser,said more than 60 local and foreign companies have registered toparticipate in the show.

Conferences to discuss the agro-chemicalmarket and government regulations on the production and trading ofagro-chemicals in Vietnam, Thailand, Cambodia, and India will also beheld at the event.

More than 70 percent of Vietnam's populationlives on agriculture and agricultural lands account for nearly 80percent of the country's area.

Vietnam is one of the world'slargest producers and exporters of many agricultural items such as rice,coffee, pepper, and cashew nut.-VNA

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