Vietnam’s fertilizer exports have climbed to a record high between January and October and are projected to surpass US$1 billion this year.

Fertiliser exports have set a new record, as the nine-month revenue was already 300 million USD higher than last year’s figure.

The proposal to impose a 5 percent tax on inorganic fertiliser exports may increase costs and reduce the competitiveness of Vietnamese fertilisers.

Millions of farming households in Vietnam will face a crisis when the cost of fertilizers makes up 40-60% of the total input costs in agricultural production.

The Russia-Ukraine conflict has seriously affected fertilizer supply, causing fertilizer prices to increase by 8-12 percent. Vietnam imports more than 5 million tons of fertilizer each year.

The Ministry of Finance (MOF) has proposed adding fertilizer to the list of products subject to VAT with a 5 percent tax rate.

Organic agricultural production has been expanding in Vietnam, but very few made-in-Vietnam organic fertilizer products are marketed.

VietNamNet Bridge - The reported decline in losses shows that fertilizer manufacturers are reviving. However, they still have to struggle to compete with Chinese imports.

The imposition of temporary safeguard duties on DAP and MAP fertiliser imports into Vietnam, which came into effect on August 19, is an effort to help protect the domestic fertiliser industry but might push up production costs for farmers.

VietNamNet Bridge - State agencies are considering reducing by 30 percent the number of currently permitted pesticides from around 4,000 by 2021.

VietNamNet Bridge - Two large coal-run fertilizer plants, Ninh Binh and Ha Bac, and the industry as a whole, have been plagued with bad losses and poor business performance.

Eleven units assigned to test fertiliser quality - and to grant quality certification to production and business facilities nationwide - would face severe punishment for violations, the Ministry of Agriculture and Rural Development (MARD) said.

 VietNamNet Bridge – Joint-stock Company managing director Le Van Tri has developed an organic product to process and turn straw into fertiliser, offering a solution to agricultural pollution caused by burning.

Domestic fertilizer producers and farmers both have shouted for help. However, the solutions expected would be able to save one of the two.