Vietnam’s fertilizer imports predicted to slow in 3Q25
Published by Oliver Kleinschmidt,
Deputy Editor
World Fertilizer,
Vietnam's imports of various fertilizers are expected to slow in the 3Q25, as strong arrivals in the 1H25 and slower domestic sales could weigh on import demand, according to Argus Media.
Vietnam implemented a VAT of 5% on all fertilizers from 1 July, 2025. The VAT is aimed at levelling the playing field between local and imported fertilizer products, and lowering input costs for domestic producers. This has pushed importers to speed up purchases in the 2Q25, asking for cargoes to arrive before 1 July so that they will not incur VAT costs.
Importers have also increased their purchases of DAP and urea in small bags of under 10 kg from China, which were more competitively priced and more readily available than that of Chinese bulk cargoes.
Meanwhile, local retailers and farmers find small bags of fertilizers more appealing due to their lower prices and ease in transporting from warehouse to field. This has contributed to higher demand for small bags of DAP and urea.
Vietnam's DAP imports from January to the first half of July rose to 291 800 t, from 283 300 t during the same period in 2024, the latest customs data show. Its urea imports in the same period also firmed to 220 400 t, from 193 700 t a year earlier. Vietnam's MOP imports climbed to 765 500 t, from 659 100 t a year earlier. Amsul imports also rose to 765 500 t, from 659 100 t a year earlier.
Importers are seeing a slowdown in domestic demand as the main application season winds down in early August. Farmers are expected to return to the market only in October. The current high inventories in DAP, urea, and MOP, slower domestic offtake and the halt in China's exports of small bags of fertilizers will drive importers to slow down their purchases in the 3Q25.
Read the article online at: https://www.worldfertilizer.com/potash/11082025/vietnams-fertilizer-imports-predicted-to-slow-in-3q25/