Enterprise

Injecting Urea into Cars: The Race Begins

Driving along National Highway 1, motorists and travelers alike will encounter rest stops and gas stations equipped with peculiar pumps labeled "AdBlue" in both Vietnamese and English. It's easy to mistake these pumps for a liquid fertilizer dispenser for farmers, but they actually serve a different purpose - these pumps are meant for vehicles.

Administrator

23 August, 2025

AdBlue, also known as Diesel Exhaust Fluid (DEF) in some places, is a liquid that contains urea and is essential for newer trucks to meet Euro 4-5 emissions standards. While consumption in Vietnam is increasing, profits are mainly going to foreign companies, while domestic urea manufacturers are left out.

Newer trucks need urea…

Since the implementation of the Euro 4 emissions standard for trucks and buses in 2018, a new product has quietly emerged in Vietnam: AdBlue, or diesel exhaust fluid (DEF).

Image: Fuel station with an AdBlue dispenser on the left

This solution consists of 32.5% industrial urea mixed with de-ionized water and is injected into the Selective Catalytic Reduction (SCR) system to neutralize NOx emissions, helping vehicles meet environmental standards. AdBlue is like a “second fuel” for modern road transport, as without it, Euro 4-5 vehicles cannot operate optimally and may even display error messages and limit their speed.

Interestingly, Vietnam has several renowned urea manufacturers, such as Phu My, Ca Mau, and Ha Bac, and is a leading urea exporter in the region, with a capacity of over 2.5 million tons per year, exceeding agricultural needs. However, the domestic AdBlue market is not yet well-defined, with foreign companies dominating the industry.

A small but rapidly growing market

According to estimates by transport associations, on average, 1.5-2 liters of AdBlue is consumed for every 100 liters of diesel. With the increasing number of imported and assembled trucks and buses since 2018, the demand for urea injection in Vietnam is currently around 60,000-70,000 tons per year, equivalent to 1-1.2% of total urea production, and is expected to grow further.

While this figure is insignificant compared to the nearly 2 million tons of urea used in agriculture annually, the growth rate is notable. The mandatory implementation of the Euro 5 standard from 2022 and the likely adoption of Euro 6 by 2030 will likely double AdBlue consumption in the next 5-7 years.

The market for “urea injection for vehicles” is currently dominated by foreign companies. Major oil and chemical corporations have already introduced their international brands to Vietnam, distributing AdBlue at gas stations, garages, and even auto parts supermarkets. Retail prices typically range from 12,000 to 15,000 VND per liter, equivalent to $1,000 to $1,200 per ton, three times the price of raw urea ($300 to $350 per ton).

Why are Vietnamese businesses left out?

In theory, producing AdBlue seems straightforward: obtain urea pellets from domestic factories (Phu My, Ca Mau, Ninh Binh, Ha Bac), mix them with de-ionized water according to ISO 22241 standards, and package them into cans. However, the reality is more complex.

Many gas stations now offer “urea injection” services. The photo shows urea storage tanks and dispensers on the left.

Image: Gas stations now offering “urea injection” services with storage tanks and dispensers on the left

Firstly, the product is subject to strict quality constraints. If the AdBlue does not meet the required standards, it can damage the SCR system, which costs hundreds of millions of dong. Therefore, manufacturers must invest in filtration and de-ionization processes to ensure purity, which is not a simple task for small businesses.

Secondly, the market is fragmented and lacks transparency. Many “hand-mixed” DEF products are sold cheaply, and some even use fertilizer-grade urea containing impurities, causing confusion and damaging the reputation of domestic products.

Thirdly, distribution is inconvenient. Truck drivers typically purchase 10-20-liter cans, making it challenging to access standardized products. In contrast, international oil and gas corporations already have established retail networks, making it easy to integrate AdBlue dispensers. This advantage is yet to be matched by Vietnamese businesses. There are approximately 3,000 “urea injection” points across the country, mostly located at gas stations.

A pie yet to be divided

Ironically, Vietnam exports urea at $300-350 per ton, but when it is transformed into AdBlue, its value triples. Profits primarily go to foreign companies, even though the raw material comes from domestic factories.

If fertilizer companies, which have excess urea, were to produce AdBlue to the required standards, they could diversify their output and capture this growing niche market. While some chemical companies have installed small production lines, none have established strong brands or large-scale distribution networks.

There are also export opportunities. ASEAN countries like Thailand, Indonesia, and Malaysia have adopted Euro 4-5 standards, increasing the demand for urea injection. If Vietnam masters AdBlue production, exporting it to these countries is not a far-fetched idea.

Standardization and market trust

According to experts, businesses need to overcome three barriers to transform AdBlue into a proper industry:

Firstly, product standardization. There is currently no national standard (TCVN) for DEF in Vietnam. Without a legal framework, counterfeit and substandard products will continue to circulate.

Secondly, distribution. To reassure drivers, AdBlue dispensers should be available at gas stations, rather than selling it in separate cans. This requires coordination between manufacturers and fuel retailers.

Thirdly, building trust. It is challenging for consumers to trust “made-in-Vietnam” products when stories of AdBlue being mixed with fertilizer-grade urea persist. Only when large, reputable companies produce AdBlue to international standards will the market truly flourish.

The AdBlue scenario is a classic example of Vietnam’s chemical industry conundrum: an abundance of raw materials but a lack of refinement, distribution, and trust. As a result, value-added profits go to foreign companies. With the Euro 5 standard on the horizon, the question is not whether the market exists but whether domestic businesses can seize the opportunity and retain profits from urea or continue to let foreign brands dominate this growing niche.

Understanding “Urea Injection”

AdBlue is not pure urea but a solution containing 32.5% high-purity industrial urea and 67.5% de-ionized water. Ordinary urea used in fertilizers contains impurities that can cause clogging and damage to the SCR system in engines.

On Brands and International Standards

“AdBlue” is a registered trademark of the German Automotive Industry Association (VDA). The term is widely used in Europe and has become a generic name for ISO 22241-compliant DEF (Diesel Exhaust Fluid). In the US, AdBlue is less commonly used, with DEF being the preferred term.

SCR stands for Selective Catalytic Reduction, the core technology in emission reduction for modern diesel engines.

Basic Operation: Diesel exhaust contains high levels of NOx (nitrogen oxides), which are harmful to the lungs and contribute to acid rain. Before passing through the exhaust pipe, AdBlue (a mixture of urea and de-ionized water) is injected into the exhaust stream.

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