With the end of two sets of urea plants in Vietnam at the end of the year, Vietnam will not only reduce its domestic urea imports, but also hope to achieve more than self-sufficiency, exporting surplus production capacity to Japan, Thailand, the Philippines and Cambodia.
According to Vietnam’s largest urea production company, Vietnam Petrochemical Fertilizers and Chemicals (PVFC), the company’s urea project in Ca Mau province is scheduled to be put into operation by the end of the year. The plant’s annual production capacity of urea is 800,000 tons, and will be put into operation in Vietnam. Petrochemical urea capacity reached 1.6 million tons. It is understood that the urea plant that the company has been operating is located in the Fumei area of ​​southern Vung Tau Province, and is mainly small granular urea.
Vinchem Chemical Corporation (Vinchem) also stated that the group's 560,000 tons of coalhead urea project in Ninh Binh Province will also be put into operation at the end of the year. The urea plant is located 90 kilometers north of Hanoi. It is also known that Beijing Chemical's wholly-owned subsidiary, Beihe Nitrogen Fertilizers and Chemicals, currently has a 180,000-ton urea plant in operation, mainly producing small-particle urea. The wholly-owned subsidiary signed an expansion contract for the expansion of urea projects in October last year, and plans to increase the existing urea production capacity by another 320,000 tons in 2014.
It is reported that the urea production facilities of Jinou and Ningping are located in the main grain production areas in Vietnam, among which the Jinou urea project is located near the Mekong River Delta, the world’s largest rice cultivation area, and the Ning Ping Project is located in the rice cultivation area of ​​the Red River Delta.
At present, Vietnam still relies on imports to meet the domestic urea gap. Last year, urea imports were close to 1 million tons, of which approximately 55% came from China, and the rest came from Indonesia, Malaysia, and Russia. According to a urea consulting agency, the average annual demand for urea in Vietnam has been 2.1 million tons in the past five years, compared with 740,000 tons of urea in 2007-2009. If all the new urea projects are put into production, Vietnam will not only realize self-supply of urea, but also hope to become a new urea exporter. The annual export of urea is about 200,000 tons. Vietnam Petrochemical Fertilizer has been approved by the Ministry of Industry and Trade, and a small amount of urea export attempts were made last year. If surpluses and imports are parallel, then in addition to exporting domestically produced urea, Vietnam may also transfer imported urea to countries such as Thailand and the Philippines. Last year, Thailand and the Philippines respectively imported 843,000 tons of urea and 2.34 million tons of urea, while Japan imported 227,000 tons of urea, Myanmar imported 226,000 tons and Cambodia 176,000 tons (2009 data). It has been inferred that Ning Ping’s urea plant is most likely to be exported to Japan and the Philippines, while Jinou’s urea is most likely exported to Cambodia, Thailand, and the Philippines.
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