Responding to the risk of disruption to the fertilizer supply chain.

Fertilizer manufacturers in Vietnam have proactively implemented many synchronized and flexible solutions to maintain stable production and meet the fertilizer needs of agricultural production.

Faced with the risk of supply chain disruptions due to the Middle East conflict, fertilizer manufacturers in Vietnam have proactively implemented many synchronized and flexible solutions to maintain stable production and meet the demand for fertilizers in agriculture .

As a key state-owned enterprise supplying up to 45% of the market's demand for various types of fertilizers, the Vietnam Chemical Corporation (Vinachem) has proactively and flexibly diversified its sources of raw materials for fertilizer production.

Last April, Vinachem signed a Memorandum of Understanding for strategic cooperation with Misr Phosphate - Egypt's largest state-owned enterprise in the field of phosphate ore mining and export, with a mining capacity of approximately 5 million tons per year.

Vinachem also signed a cooperation agreement with Kayan International Trade – an Egyptian company that owns and directly participates in the exploitation of many large-scale apatite mines in the Red Sea region. With abundant reserves and systematic mining capabilities, it directly controls upstream resources, thereby ensuring large-scale and long-term supply for Vinachem.

In the fertilizer industry structure, apatite ore plays a fundamental role in the production of phosphate fertilizers such as DAP, MAP, superphosphate, fused phosphate, etc.

Establishing partnerships with these Egyptian businesses connects you to the region's "resource hub," laying the foundation for a long-term, stable, and controlled supply.

"Besides domestic apatite supply, proactively expanding supply from abroad is a necessary step to meet the fertilizer market's demand, ensure agricultural security, national food security, and meet Vinachem's double-digit growth targets," affirmed Vinachem General Director Nguyen Huu Tu.

As a member unit of Vinachem, Mr. Do Van Tuan, General Director of Southern Fertilizer Joint Stock Company, stated that the Middle East conflict that occurred on February 28, 2026, disrupted the supply of raw materials for fertilizer production for many domestic businesses, including Southern Fertilizer.

However, in the fertilizer production plan for 2026 assigned to the Company by Vinachem, Southern Fertilizer Company had already planned to stockpile raw materials for fertilizer production until June 30, 2026.

After this period, based on the fertilizer import situation and the development of the conflict, Southern Fertilizer will make appropriate adjustments to ensure both proactive production and efficient business operations.

According to Mr. Do Van Tuan, with the high increase in input material prices, Southern Fertilizer has balanced and averaged the prices of raw materials purchased early and current prices to arrive at the most reasonable fertilizer selling price for farmers.

Amidst a 35% increase in key input material prices, current NPK fertilizer prices are about 20-25% higher than before the Middle East conflict, while phosphate fertilizer prices have increased by 11%. Southern Fertilizer Company is also optimizing domestic raw material sources to proactively manage production, balancing imported fertilizers with domestic production.

Meeting domestic and export fertilizer needs. (Photo: PV/Vietnam+)

Thanks to this, Southern Fertilizer has met the fertilizer needs for industrial crops in the Central Highlands and for fruit trees in the Mekong Delta.

In addition, as of early May 2026, Southern Fertilizer Company had exported approximately 32,000 tons of various fertilizers, mainly NPK compound fertilizers, to the Philippines market during periods of low fertilizer demand domestically.

As a key member unit of the Vietnam National Energy and Industry Group ( Petrovietnam ) in the production of urea and NPK fertilizers, the Petrochemical and Fertilizer Corporation (PVFCCo - Phu My) has proactively managed inventory, controlled accounts receivable, controlled cash flow, and operated its business according to supply and demand dynamics… thereby maintaining stable production, meeting the market's fertilizer needs, and maintaining stable selling prices despite fluctuations in gas prices, exchange rates, and logistics costs.

According to Mr. Nguyen Xuan Hoa, Chairman of PVFCCo - Phu My, in the coming months, the Corporation will continue to operate the Phu My fertilizer plant safely and stably, while controlling production costs and improving the quality of market forecasts and supply and demand trends to proactively and flexibly manage production.

Furthermore, PVFCCo-Phu My will continue to aggressively implement measures to accelerate investment progress; promote chemical, logistics, and new product projects; and improve lean management, risk management, and digital transformation systems to cope with unfavorable business conditions caused by the Middle East conflict.

Similarly, Ca Mau Petroleum Fertilizer Corporation (PVCFC), a member unit of Petrovietnam, has improved its market forecasting capabilities, flexible delivery, and optimized logistics and financial costs.

The company also diversifies its fertilizer products such as Potassium, DAP, SA, SOP… to meet domestic demand; at the same time, it increases cooperation with NPK manufacturers and major partners, choosing favorable times to purchase goods, combined with strengthening warehousing capacity to be more proactive in regulating supply and demand and optimizing business efficiency.

In addition, PVCFC is also exploring the possibility of establishing representative offices in international trade and financial centers such as Singapore, Dubai, or key markets like China to take advantage of tariff preferences and improve access to information, enabling a quick response to global market fluctuations.

It is evident that proactive and astute risk management has helped fertilizer businesses turn "danger" into "opportunity," maintaining stable production despite the risk of supply chain disruptions.

However, to build a truly resilient domestic production ecosystem capable of coping with rising global raw material input prices and the risk of supply chain disruptions, "the State should prioritize domestic apatite ore (Lao Cai), coal, and gas resources for fertilizer production," proposed the General Director of Southern Fertilizer Joint Stock Company.

(VNA/Vietnam+)

Source: https://www.vietnamplus.vn/ung-pho-nguy-co-gian-doan-chuoi-cung-ung-phan-bon-post1114068.vnp