Vietnam Fertilizer Standard Report Q2.2017
Fertilizer market continued to encounter oversupply in the period 2014-2015, nutrient supply by component is estimated to increase 4.03% while demand went up just 2.04%. The oversupply within the fertilizer industry and other exogenous factors affecting the global supply from 2014 until now are the lack of natural gas supply, the increase in volatility associated to trade measures and the sharp decline in oil prices.
Fertilizer prices decreased over years, mainly caused by the oversupply and the drop in prices of raw materials.
In Vietnam, players in the fertilizer industry are classified by business forms, namely Manufacturing Enterprises (produce mainly Urea, Phosphate, NPK and DAP), Import and Export Enterprises (import 100% of Kali and SA) and Trading Enterprises.
Average supply always exceeds 148% compared with demand. Domestic fertilizer production focused on single fertilizers. NPK and DAP are the only mixed fertilizers produced but the quality standard is still not satisfied yet, especially DAP. NPK accounts for over 40% of total production volume, followed by Urea, Phosphate and other mized fertilizers. Meanwhile, Potash and SA are nearly impossible to produce domestically, therefore 100% of which has to be imported.
Fertilizer consumption tends to drop over years due to the effects of agricultural products’ export price, the decrease in arable land and the negative impact of weather. Fertilizer import fluctuated continuously through years due to the impacts of domestic supply sources as well as the import tax policies of Vietnam and major import markets.
Export has continuously dropped since 2012, caused by the competition with Chinese fertilizers in Korea, Cambodia, etc. and the effect of El Nino on the countries in the region. Although following the global price trend, the increase and decrease rates of domestic price are always lower than those of the world. Presently, the technology in Vietnam is very various, ranging from old-fashioned to modern ones. In which, NPK is the easieast fertilizer to produce, therefore its production technology is the most various.
Fertilizer Industry is in saturation state, products of domestic companies have an intense competition with imported ones. Meanwhile, fertilizer demand tends to drop, leading to a downward pressure on prices in the period 2016 – 2020f.
Fertilizer prices decreased over years, mainly caused by the oversupply and the drop in prices of raw materials.
In Vietnam, players in the fertilizer industry are classified by business forms, namely Manufacturing Enterprises (produce mainly Urea, Phosphate, NPK and DAP), Import and Export Enterprises (import 100% of Kali and SA) and Trading Enterprises.
Average supply always exceeds 148% compared with demand. Domestic fertilizer production focused on single fertilizers. NPK and DAP are the only mixed fertilizers produced but the quality standard is still not satisfied yet, especially DAP. NPK accounts for over 40% of total production volume, followed by Urea, Phosphate and other mized fertilizers. Meanwhile, Potash and SA are nearly impossible to produce domestically, therefore 100% of which has to be imported.
Fertilizer consumption tends to drop over years due to the effects of agricultural products’ export price, the decrease in arable land and the negative impact of weather. Fertilizer import fluctuated continuously through years due to the impacts of domestic supply sources as well as the import tax policies of Vietnam and major import markets.
Export has continuously dropped since 2012, caused by the competition with Chinese fertilizers in Korea, Cambodia, etc. and the effect of El Nino on the countries in the region. Although following the global price trend, the increase and decrease rates of domestic price are always lower than those of the world. Presently, the technology in Vietnam is very various, ranging from old-fashioned to modern ones. In which, NPK is the easieast fertilizer to produce, therefore its production technology is the most various.
Fertilizer Industry is in saturation state, products of domestic companies have an intense competition with imported ones. Meanwhile, fertilizer demand tends to drop, leading to a downward pressure on prices in the period 2016 – 2020f.
Executive summary
1. BUSINESS ENVIRONMENT
1.1. Macroeconomic situation
Figure 1. GDP growth, 2011 – 2016e
Figure 2. CPI fluctuations by month, 1/2014 - 3/2017
Figure 3. VND/CNY exchange rate, 1/2016 – 3/2017
Figure 4. VND/USD exchange rate, 3/2015 - 3/2017
Figure 5. Export and import turnover by quarter, 2015 - Q1/2017
1.2. Legal Barriers – Regulations on manufacturing, trading and use of fertilizer
1.2. Legal Barriers – Regulations on Import and Export tax
2. INDUSTRY PERFORMANCE
2.1. Global Fertilizer Market
2.2. Vietnam Fertilizer Market
2.2.1. Industry Background
2.2.2. Definition and Classification
Figure 6. Structure of major fertilizers, 2014
2.2.3. Scale and Feature
Figure 7. Revenue growth rate by year, 2010 – 2015
Figure 8. Market share by revenue, 2015
2.2.4. Major Activities
2.2.5. Supply-Demand
Figure 9. Supply - Demand, 2012 – Q1/2017e
Figure 10. Production and consumption of domestic enterprises,
2012 – Q1/2017E
Figure 11. Domestic Production, 2012 – Q1/2017e
Table 1. Production capacity of large domestic enterprises, 9/2016
Figure 12. Fertilizers demand and consumption, 2010 –2016e
2.2.6. Import-Export
Figure 13. Fertilizer Import, 2012 – Q1/2017e
Figure 14. Fertilizer import by type, 2012 – Q1/2017e
Figure 15. Fertilizers import, 2012 - Q1/2017e
Figure 16. Fertilizers import structure by type, Q1/2017
Figure 17. Structure of import volume by countries, Q1/2016 – Q1/2017
Figure 18. Fertilizer export, 2012 - Q1/2017e
Figure 19. Fertilizers export by country, Q1/2017e
Figure 20. Fertilizers export by country, Q1/2016 - Q1/2017
2.2.7. Price Movement
Figure 21. Fertilizer Price movement, 2014 - Q1/2017
2.3. Planning
Figure 22. Supply – Demand Forecast, 2016f - 2020f
3. ENTERPRISE ANALYSIS
3.1. Top 10 Enterprises
Table 2. Top 10 enterprises with largest revenues in 2015 (Group of listed enterprises)
3.2. Business Performance Indicator Group
Figure 23. Net revenues, 2015 – 2016
Figure 24. Gross profit margin, 2015 - 2016
Figure 25. Self-financing rate, 2015 - 2016
Figure 26. Selling expenses, 2015 - 2016
Figure 27. G&A expenses, 2015 - 2016
3.3. Financial Indicator Group
Figure 28. Fixed asset ratio, 2015 - 2016
Figure 29. Inventory turnover, 2015 - 2016
Figure 30. Average collection period, 2015 - 2016
Figure 31. Profit Ratio, 2015 - 2016
3.4. Payment Indicator Group
Figure 32. Payment Indicators, 2015 - 2016
1. BUSINESS ENVIRONMENT
1.1. Macroeconomic situation
Figure 1. GDP growth, 2011 – 2016e
Figure 2. CPI fluctuations by month, 1/2014 - 3/2017
Figure 3. VND/CNY exchange rate, 1/2016 – 3/2017
Figure 4. VND/USD exchange rate, 3/2015 - 3/2017
Figure 5. Export and import turnover by quarter, 2015 - Q1/2017
1.2. Legal Barriers – Regulations on manufacturing, trading and use of fertilizer
1.2. Legal Barriers – Regulations on Import and Export tax
2. INDUSTRY PERFORMANCE
2.1. Global Fertilizer Market
2.2. Vietnam Fertilizer Market
2.2.1. Industry Background
2.2.2. Definition and Classification
Figure 6. Structure of major fertilizers, 2014
2.2.3. Scale and Feature
Figure 7. Revenue growth rate by year, 2010 – 2015
Figure 8. Market share by revenue, 2015
2.2.4. Major Activities
2.2.5. Supply-Demand
Figure 9. Supply - Demand, 2012 – Q1/2017e
Figure 10. Production and consumption of domestic enterprises,
2012 – Q1/2017E
Figure 11. Domestic Production, 2012 – Q1/2017e
Table 1. Production capacity of large domestic enterprises, 9/2016
Figure 12. Fertilizers demand and consumption, 2010 –2016e
2.2.6. Import-Export
Figure 13. Fertilizer Import, 2012 – Q1/2017e
Figure 14. Fertilizer import by type, 2012 – Q1/2017e
Figure 15. Fertilizers import, 2012 - Q1/2017e
Figure 16. Fertilizers import structure by type, Q1/2017
Figure 17. Structure of import volume by countries, Q1/2016 – Q1/2017
Figure 18. Fertilizer export, 2012 - Q1/2017e
Figure 19. Fertilizers export by country, Q1/2017e
Figure 20. Fertilizers export by country, Q1/2016 - Q1/2017
2.2.7. Price Movement
Figure 21. Fertilizer Price movement, 2014 - Q1/2017
2.3. Planning
Figure 22. Supply – Demand Forecast, 2016f - 2020f
3. ENTERPRISE ANALYSIS
3.1. Top 10 Enterprises
Table 2. Top 10 enterprises with largest revenues in 2015 (Group of listed enterprises)
3.2. Business Performance Indicator Group
Figure 23. Net revenues, 2015 – 2016
Figure 24. Gross profit margin, 2015 - 2016
Figure 25. Self-financing rate, 2015 - 2016
Figure 26. Selling expenses, 2015 - 2016
Figure 27. G&A expenses, 2015 - 2016
3.3. Financial Indicator Group
Figure 28. Fixed asset ratio, 2015 - 2016
Figure 29. Inventory turnover, 2015 - 2016
Figure 30. Average collection period, 2015 - 2016
Figure 31. Profit Ratio, 2015 - 2016
3.4. Payment Indicator Group
Figure 32. Payment Indicators, 2015 - 2016
