Cambodia Hunts for Hundreds of Thousands of Tons of This Vietnamese Product: Raking in Nearly $300 Million, Our Country Also Consumes Tens of Millions of Tons Annually

According to preliminary statistics from the General Department of Vietnam Customs, the country exported over 159,000 tons of fertilizer in April, valued at more than $68 million. This marks a 40% decrease in volume and a 24.6% decline in value compared to the previous month.

Cumulative exports for the first four months of the year stood at over 760,000 tons, with a value of more than $293 million. This represents a significant increase of 21.8% in volume and 16.5% in value compared to the same period last year. The average price was $386 per ton, a 4% decrease from the previous year.

In terms of market breakdown, Cambodia was the largest importer of Vietnamese fertilizer, with over 205,000 tons imported, valued at more than $67 million. This reflects a substantial increase of 41% in volume and 15% in value compared to the previous year. The price decreased by 19%, to $331 per ton.

South Korea was the second-largest market, importing over 99,000 tons valued at over $40 million, marking a 19% volume increase and a 17% value increase from 2024. Prices dipped slightly by 2%, to $405 per ton.

Malaysia, the third-largest importer of Vietnamese fertilizer, imported over 65,000 tons valued at more than $26 million. This signifies a substantial surge of 44.8% in volume and 70.8% in value compared to the previous year. The average price rose by 18% to $404 per ton.

Vietnam’s fertilizer exports continue to face challenges due to production costs. The country’s fertilizer production costs remain relatively high compared to other global producers, as some nations benefit from advantageous resource access and lower investment costs.

On November 26, 2024, the National Assembly passed a draft amendment to the Value-Added Tax (VAT) Law. Effective July 1, 2025, fertilizer will be subject to a 5% VAT rate. This adjustment will enable domestic businesses to claim input VAT refunds, reducing production costs and enhancing profitability.

The Vietnamese fertilizer industry is projected to experience robust growth in 2025, fueled by multiple positive factors. Domestic demand remains stable as farmers continue to rely on fertilizer to enhance crop yields, particularly in rice and fruit cultivation. Supportive policies, such as the implementation of the 5% VAT rate, will ease financial burdens on businesses and consumers, fostering the industry’s development.

Additionally, the industry holds significant export potential, with anticipated high demand from international markets like India, the US, and Africa. This presents vast export opportunities for Vietnamese businesses.

These factors collectively lay a solid foundation for the Vietnamese fertilizer market in 2025, positioning the industry for sustained growth. Experts predict a healthier balance between supply and demand in 2025 compared to 2024. Total supply is expected to reach 11.5-12 million tons, while consumption is estimated at 10-10.5 million tons.