This has been posing mounting challenges for Vietnamese farmers and raising production costs across the sector.
Market surveys indicate that prices for Ca Mau and Phu My urea currently range from VND630,000 to VND690,000 per 50kg bag. This puts the retail cost for farmers at approximately VND12,600 to VND13,800 per kilogram. DAP fertilizer ranges from VND1.1 million to VND1.3 million per bag, while potassium is priced at around VND500,000–600,000 per bag. Common NPK grades such as 16-16-8 are priced between VND700,000 and VND820,000 per bag, while NPK 20-20-15 is approaching VND1 million per bag.
These prices represent an increase of around 10 percent, with some products rising by more than 15 percent compared to mid-March, significantly raising input costs for domestic farming households.
A representative of PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – Phu My) stated that the Middle East currently accounts for approximately 35 percent–40 percent of global urea exports, with Iran being one of the region’s major exporters. The reduction or suspension of operations at several oil, gas, and nitrogen fertilizer plants in the region has significantly tightened global supply.
Against this backdrop, global energy and fertilizer prices have surged. In March 2026 alone, international urea prices increased by an average of 60 percent, driving up fertilizer prices across multiple markets, including Vietnam.
At a recent working session between the Ministry of Industry and Trade and the Southern Business Association, Mr. Vu Dinh Tuan, Head of Sales at Ca Mau Fertilizer Joint Stock Company, noted that production costs have also risen in line with oil prices. Gas prices, the main input for nitrogen fertilizer production, are linked to oil prices, resulting in significant cost fluctuations.
Chairman Phung Ha of the Vietnam Fertilizer Association observed that Vietnam has largely achieved self-sufficiency in urea supply. However, the country may still face indirect impacts from rising global fertilizer prices, particularly in input materials such as sulfur.
Therefore, fertilizer manufacturers are encouraged to maintain and increase production where possible, prioritize domestic supply, enhance energy efficiency, and develop high-efficiency fertilizer products. Trading companies should also diversify supply sources and seek partners beyond the Middle East to reduce dependence on a single region.
