As Vietnam's domestic urea market reaches saturation, major fertilizer producers such as Phú Mỹ Fertilizer Company and Cà Mau are intensifying their efforts to expand their market share in the NPK fertilizer sector, resulting in heightened competition in this field.
After acquiring the Korea-Vietnam Fertilizer Plant, Cà Mau Fertilizer Company is emerging as a significant competitor in the compound fertilizer market. The fertilizer plant has a registered capital of over VND 2 trillion and an annual production capacity of 360,000 tons of compound fertilizer. This acquisition has nearly doubled Cà Mau Fertilizer Company's compound fertilizer production to approximately 660,000 tons per year.
The strategic location and large warehouses of the Korea-Vietnam Fertilizer Plant are expected to help Cà Mau Fertilizer Company penetrate the potential markets of the Southeast, Central Highlands, and Central regions. Before acquiring the plant, Cà Mau Fertilizer Company's compound fertilizer factory primarily served the southwestern region, capturing 61% of that market and holding a certain share in the Cambodian market as well.
Phú Mỹ Fertilizer Company's compound fertilizer division, after four consecutive quarters of losses, recovered in the first quarter of 2024, achieving a 5% gross profit margin. Experts point out that Phú Mỹ Fertilizer Company and Cà Mau Fertilizer Company hold significant advantages in the market due to their modern technology, which helps them reduce production costs.
According to Viet Dragon Securities Company, the NPK market in Vietnam is currently fragmented, with small producers occupying 52% of the market share. The two largest NPK producers in the country, Bình Điền Fertilizer Joint Stock Company and Lâm Thao Chemical Joint Stock Company, hold market shares of 15% and 19%, respectively.
Among major fertilizer types, Vietnam has achieved self-sufficiency in the production of urea, compound fertilizers, and phosphate fertilizers. The country only needs to fully import potassium fertilizers, as it lacks potassium mineral resources.
Compound fertilizers account for 35% of Vietnam's annual fertilizer demand, while urea and phosphate fertilizers account for 28% and 17%, respectively.
Attention: The above information is for commercial reference only due to the diversity of information collected, and Kelewell is not responsible for the authenticity of the data.
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