Market Size and Potential Growth
The size of Vietnam fertilizers sector as of 2011 was about US$3.89bn, of which domestic consumption value was US$2.09bn and total imported value was US$1.8bn while the size of pesticides sector is much smaller at US$500mn.
Fertilisers sector is being dominated by member companies of Vinachem and Petro Vietnam. There are only 3 local private companies and 1 company owned by foreign investors participating in this sector.
Domestic Key Players
•Fertilisers: key players are Phu My Fertilisers JSC (DPM) and Ca Mau Fertilisers Ltd (DCM)
•Pesticides: An Giang Plant Protection JSC
•Fertilisers: dominated by SOEs as input materials are supplied by State Economy Group (natural gas from PVN, electricity from EVN and coal from Vinacomin). Prices of gas, coal and electricity are set by Government Bodies (e.g. MoF). Thus profit/loss of companies in this sector depends very much on the international price of fertilizers.
•Pesticides: An Giang Plant Protection JSC, the largest player but its operation is told to be highly influenced by local and central governments although State (via SCIC) only has 26% ownership.