Two new fertilizer plants, the Ca Mau Fertilizer plant in U Minh District of the southernmost Mekong Province of Ca Mau and the Ninh Binh Fertilizer Plant in the northern province of Ninh Binh will be fully operational by yearend.
Along with the Phu My Fertilizer Plant in the southern province of Ba Ria-Vung Tau and the Ha Bac Fertilizer Plant in the northern province of Bac Giang, the two new plants will help the country achieve its target of 2 million tons of urea per year.
Before the Phu My Fertilizer Plant was operational, most of the urea was imported, as the national capacity was insufficient. Since 2004, national output increased by nearly 1 million tons per year.
The Phu My Fertilizer Plant produces 800,000 tons and the Ha Bac Fertilizer Plant 190,000 tons.
With the added capacity of the two new Fertilizer Plants, urea capacity will increase to around 560,000 tons per annum.
The urea market still depends on imports, resulting in price instability. At times there is a surplus in the market and at other times a shortage, causing great price fluctuation in the market.
The Vietnam National Oil and Gas Group have already instructed its member, Petro Vietnam Fertilizer and Chemicals Corporation to build transit warehouses in harbors to facilitate handling and transportation of urea.
The Fertilizer Association of Vietnam has also asked domestic companies not to lower urea prices as compared to import prices and to bid for larger quantities. This action will assure banks as well as fertilizer importers that urea prices are stable in the market.
Another method of slashing prices would be to remove middle men as much as possible by dealing directly with companies.
Phu My Fertilizer Plant has reached an output of 5 million tons of urea.
The Vietnam National Oil and Gas Group along with Petro Vietnam Fertilizer and Chemicals Corporation celebrated the event on August 14 at the Reunification Palace in Ho Chi Minh City.
Minister of Industry and Trade, Nguyen Huy Hoang congratulated all present and commented that during 7 years of operation, the Plant has proved effective and contributed a great deal to stabilizing the national supply of urea.