The Russia-Ukraine tension creates opportunities for Vietnamese fertilizer enterprises to increase exports and benefit when prices reach a 50-year peak. In the first six months of the year, a series of businesses reported huge profits and reached the target of the year plan.

In the first months of the year, the tension between Russia and Ukraine disrupted the supply of fertilizer to the world, the price of this commodity peaked in the past 50 years.

Mr. Phung Ha, Vice President and General Secretary of the Vietnam Fertilizer Association (FAV) said: "The world will have a severe shortage of fertilizer supply until the Russia-Ukraine tensions cool down. Urea supply from Russia is opening up opportunities for Vietnamese businesses such as Ca Mau Fertilizer, Phu My Fertilizer..."

FAV representative assessed this as an opportunity for Vietnamese enterprises because according to the designed capacity, 4 urea factories in Vietnam are about 2.6 million tons. While domestic demand is only about 1.8 million tons/year. Therefore, businesses can prioritize meeting domestic demand and boost exports.

In fact, Vietnamese enterprises have grasped the trend, which is reflected in the export results in the first six months of the year.

According to statistics of the General Department of Customs, in the first six months of the year, Vietnam's fertilizer exports reached nearly 1 million tons, equivalent to USD 647 million, an increase of 43% in volume and an increase of 2.8 times in turnover compared to the same period in 2021.

Thus, after only the first 6 months of the year, fertilizer export turnover has surpassed the export result of the whole year of 2021 with USD 559 million.

In the first 6 months of this year, the export price of fertilizer increased 1.8 times over the same period in 2021, to an average of USD 646/ton. Particularly in June, the export price of fertilizer increased by 2.5% compared to May, to USD 679/ton.

Kylie Nguyen