Market and product

Vietnam’s fertilizer exports have been accelerating rapidly in the first months of this year, driven by soaring world fertilizer prices resulting from conflict in the Middle East and disruptions to global supply chains.

According to recently released data from the General Department of Customs, by April 15, Vietnam exported approximately 991,534 tons of fertilizer, with an export value of USD 461.4 million—up nearly 49% in volume and 84% in value compared to the same period last year. This surge reflects not only higher export volumes but also a significant increase in average export prices in line with international market trends.

Notably, in just the first half of April, exports reached 182,684 tons, equivalent to USD 101.9 million—almost triple the volume and about four times the value compared to the same period in 2025. This highlights how domestic companies are capitalizing on high global fertilizer prices to boost exports as the international market enters a strong upcycle.

Recently, military conflict in the Middle East—a region accounting for 35–40% of global urea exports—has intensified. Escalating tensions, especially related to Iran, have disrupted production and transport through the Strait of Hormuz, tightening global supply. As a result, international urea prices have risen by around 50% on average, pushing up fertilizer prices in many markets.

Regarding export markets, in addition to traditional partners such as Cambodia, Laos, and the Philippines, which maintain steady demand due to heavy reliance on external supply, several ASEAN markets like Indonesia, Malaysia, and Thailand have also increased imports of Vietnamese fertilizer. Significantly, large-scale markets such as India, Bangladesh, and Brazil are emerging as potential destinations, as high agricultural demand and the search for alternative supply sources intensify amid global market volatility.

PetroVietnam Fertilizer and Chemicals Corporation (Phu My Fertilizer) noted that soaring world fertilizer prices are having a dual impact on domestic enterprises. On the positive side, higher international prices create opportunities to improve profit margins and boost exports.

After completing maintenance early in the year, the company has operated its plant at maximum capacity, with Q1 urea production exceeding the plan by nearly 25%. This has enabled the company not only to ensure domestic supply but also to participate in export markets when international prices are favorable.

However, on the downside, the company reports that input costs—especially gas and energy prices—have also risen significantly, putting pressure on production costs.

Similarly, Ca Mau Fertilizer Joint Stock Company (Ca Mau Fertilizer), leveraging its stable gas supply and extensive distribution network, continues to expand into Asian markets while maintaining traditional markets like Cambodia and the Philippines.

Mr. Phùng Hà, Chairman of the Vietnam Fertilizer Association, said that some products, such as urea and superphosphate, currently have a domestic supply surplus, while fertilizer consumption is highly seasonal, typically concentrated in the first and fourth quarters of each year. Thus, ramping up exports during off-peak periods is considered a rational solution to maintain stable production, reduce inventory pressure, and improve business efficiency.

Vietnam Fertilizer Association leaders also cautioned that, amid volatile global fertilizer prices, enterprises must closely monitor market developments to seize export opportunities while ensuring a balance in domestic supply, avoiding local shortages or price volatility that could affect agricultural production.