In the first 11 months of the year, fertilizer export turnover officially reached more than $1 billion, nearly 2.2 times higher in turnover compared to the same period in 2021. This is also the highest export achievement of the fertilizer industry so far.
According to the General Department of Vietnam Customs, in November, fertilizer exports reached 94,104 tons, equivalent to $56 million, down 41% in volume and 36.5% in value compared to October.
In the first 11 months of the year, fertilizer exports reached nearly 1.6 million tons with a turnover of more than $1 billion, up 34% in volume and nearly 2.2 times in turnover compared to the same period in 2021.
Thus, after the first 11 months of the year, fertilizer export turnover exceeded 84% of the export result for the whole year of 2021 with $559 million. The figure of more than $1 billion is also the highest export achievement of the fertilizer industry so far.
Fertilizer export in the first 11 months of 2022
Source: General Department of Vietnam Customs
In November, the export price of fertilizer increased by 44 USD/ton compared to October and decreased by 22% compared to the peak in January, to 592 USD/ton. Thus, export fertilizer prices have regained their upward momentum after 4 consecutive months of decline.
On average, in the first 11 months of this year, the export price of fertilizer has increased by 59% over the same period in 2021, to an average of 624 USD/ton.
At the dialogue "Managing the USD-VND exchange rate: Macroeconomic stability", Mr. Nguyen Tri Ngoc, Vice Chairman of the Vietnam Fertilizer Association said that fertilizer exports in 2022 could record a record output of 1.7 million tons, with a turnover of over $1.5 billion.
The representative of the Association said that the designed capacity of domestic fertilizer plants is about 30 million tons, while domestic demand is only about 11 million tons. Facing overcapacity, this association is proposing to increase fertilizer exports to promote the capabilities of businesses.
In fact, in the first half of 2022, fertilizer exports are quite favorable because the Russia-Ukraine conflict has pushed prices up, and countries are also rushing to buy goods and prepare for the crop.
Entering the second half of the year, fertilizer exports have slowed down, manufacturing enterprises have to face more pressure from exchange rates and high-interest rates due to having to import input materials.
Mr. Nguyen Tri Ngoc said that the increase in the exchange rate caused an increase in the input materials of many enterprises, and the demand for loans from enterprises became more. Meanwhile, lending interest rates are too high while profits go down, making it more difficult for businesses, especially small and medium enterprises, to access capital. There are even businesses that have to borrow hot to handle production and salary problems.
The representative of the Vietnam Fertilizer Association proposed the Government and the SBV consider and adjust interest rates, so businesses that can access new capital can develop, and the economy can only achieve the targets in 2023.
Source: Vietnambiz
FERTILIZER INDUSTRY REPORT - 11/2022