Ken Research - Vietnam Complex Fertilizer Demand | Page 2

 Vietnam’s food grain production is expected to grow at a CAGR of 1.3% during 2017- 2022 from 621.1 million MT in 2017 to 663.2 million MT by 2022. In 2015, Ministry of Agriculture issued Action Plan for “Achieving Zero Growth of Fertilizer Use by 2020”. The Chinese government intends to achieve zero growth in volume of use of fertilizers and maximize the utilization of the same. By 2020, it hopes to reduce fertilize usage on its fruits, vegetables and tea crops by 50%. Vietnam plans to replace chemical fertilizers with organic nutrients that are usually sourced from the decomposition of organic materials like animal manure, compost, and crop residue. The government is encouraging use of organic fertilizers by providing subsidies and tax incentives. However, the success of organic fertilizers replacing chemical fertilizers on a large scale has not been seen yet. Amidst efforts to achieve zero growth in overall fertilizer usage, nitrogen fertilizers in Vietnam are increasingly being replaced by complex fertilizers. However, despite the growing adoption by farmers, much of the domestic NPK production is of low quality. Growing emphasis on improving fertilizer quality, curbing soil pollution, better land management practices and urgent need to improve agricultural productivity is expected to augment the demand for complex fertilizers in Vietnam, according to Analyst at Ken Research. Ken Research in its latest study, Vietnam Complex (NPK) Fertilizer Market Outlook to 2022 – NPK 16-16-8 will Continue to be Widely Used Complex Fertilizer suggested that NPK 16-16-8 was the most widely used complex fertilizer in Vietnam, recording fastest growth during the last 5 years. Going forward, utilization of NPK 16-16-8 and NPK 20-5-5 are most likely to remain strong owing to balanced nutrient composition and comparatively cheaper prices. Average selling prices of NPKs are most likely to improve 2018 onwards owing to recovery in agricultural commodities’ prices. Complex fertilizers market is anticipated to grow at a CAGR of 3.4% in next 5 years Keywords: Vietnam Complex Fertilizer Demand Vietnam Complex Fertilizer Consumption Vietnam Complex Fertilizer Production Vietnam Complex Fertilizer Market Vietnam Granulated NPK Consumption Vietnam Blended NPK Consumption Vietnam NPK Fertilizer Demand Vietnam NPK Fertilizer Consumption Vietnam NPK Fertilizer Production Vietnam NPK Fertilizer Market Lam Thao Fertilizers and Chemicals Sales Binh Dien Fertilizer Best Selling Complex Fertilizer Southern Fertilizer JSC Production Complex Fertilizer Japan Vietnam Fertilizer Company Installed Capacity