Vietnam: Urea Market 2024

Urea Market Size in Vietnam

The Vietnamese urea market shrank to $X in 2022, waning by -8.1% against the previous year. The market value increased at an average annual rate of +3.0% from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being observed throughout the analyzed period. Over the period under review, the market hit record highs at $X in 2021, and then contracted in the following year.

Urea Production in Vietnam

In value terms, urea production shrank to $X in 2022 estimated in export price. Over the period under review, the total production indicated a strong expansion from 2012 to 2022: its value increased at an average annual rate of +5.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +51.5% against 2016 indices. The pace of growth was the most pronounced in 2021 when the production volume increased by 39%. As a result, production attained the peak level of $X, and then contracted in the following year.

Urea Exports

Exports from Vietnam

In 2022, shipments abroad of urea decreased by -7.9% to X tons, falling for the second consecutive year after four years of growth. Overall, exports, however, enjoyed a strong expansion. The most prominent rate of growth was recorded in 2020 when exports increased by 81%. As a result, the exports attained the peak of X tons. From 2021 to 2022, the growth of the exports remained at a lower figure.

In value terms, urea exports fell to $X in 2022. In general, exports, however, enjoyed prominent growth. The most prominent rate of growth was recorded in 2017 with an increase of 73% against the previous year. The exports peaked at $X in 2021, and then shrank in the following year.

Exports by Country

India (X tons), Cambodia (X tons) and South Korea (X tons) were the main destinations of urea exports from Vietnam, with a combined 77% share of total exports. Bangladesh, Malaysia, Taiwan (Chinese) and Tanzania lagged somewhat behind, together accounting for a further 15%.

From 2012 to 2022, the biggest increases were recorded for Malaysia (with a CAGR of +38.9%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, India ($X), Cambodia ($X) and South Korea ($X) constituted the largest markets for urea exported from Vietnam worldwide, with a combined 79% share of total exports. Malaysia, Bangladesh, Tanzania and Taiwan (Chinese) lagged somewhat behind, together comprising a further 12%.

Malaysia, with a CAGR of +50.0%, recorded the highest growth rate of the value of exports, in terms of the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the average urea export price amounted to $X per ton, shrinking by -3.2% against the previous year. Over the last decade, it increased at an average annual rate of +2.0%. The most prominent rate of growth was recorded in 2021 an increase of 41%. As a result, the export price reached the peak level of $X per ton, and then contracted in the following year.

There were significant differences in the average prices for the major foreign markets. In 2022, amid the top suppliers, the country with the highest price was South Korea ($X per ton), while the average price for exports to Bangladesh ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Malaysia (+8.0%), while the prices for the other major destinations experienced more modest paces of growth.

Urea Imports

Imports into Vietnam

In 2022, supplies from abroad of urea was finally on the rise to reach X tons after three years of decline. Overall, imports, however, showed a pronounced curtailment. The pace of growth appeared the most rapid in 2013 with an increase of 58%. As a result, imports attained the peak of X tons. From 2014 to 2022, the growth of imports remained at a lower figure.

In value terms, urea imports totaled $X in 2022. Over the period under review, imports, however, recorded a drastic downturn. The most prominent rate of growth was recorded in 2013 with an increase of 26%. As a result, imports attained the peak of $X. From 2014 to 2022, the growth of imports failed to regain momentum.

Imports by Country

In 2022, Indonesia (X tons) constituted the largest urea supplier to Vietnam, accounting for a 47% share of total imports. Moreover, urea imports from Indonesia exceeded the figures recorded by the second-largest supplier, Malaysia (X tons), twofold. Qatar (X tons) ranked third in terms of total imports with a 12% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Indonesia totaled +14.9%. The remaining supplying countries recorded the following average annual rates of imports growth: Malaysia (+30.7% per year) and Qatar (+10.3% per year).

In value terms, Indonesia ($X) constituted the largest supplier of urea to Vietnam, comprising 53% of total imports. The second position in the ranking was taken by Malaysia ($X), with a 20% share of total imports. It was followed by Brunei Darussalam, with a 7.3% share.

From 2012 to 2022, the average annual rate of growth in terms of value from Indonesia totaled +13.3%. The remaining supplying countries recorded the following average annual rates of imports growth: Malaysia (+26.7% per year) and Brunei Darussalam (0.0% per year).

Import Prices by Country

In 2022, the average urea import price amounted to $X per ton, which is down by -6.6% against the previous year. Overall, the import price recorded a noticeable decline. The growth pace was the most rapid in 2021 when the average import price increased by 14%. Over the period under review, average import prices attained the maximum at $X per ton in 2012; however, from 2013 to 2022, import prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Brunei Darussalam ($X per ton), while the price for Qatar ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Iran (+4.4%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform

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