CAN THO – Domestic fertilizer prices remain below import levels, prompting producers to divert supply to export markets, according to an industry insider.
Imported granular urea currently costs US$920–960 per ton after taxes, insurance and packaging, equivalent to VND1.2–1.25 million per 50-kg bag. Retail prices in the Mekong Delta are lower, at around VND950,000–1,050,000 per 50-kg bag, depending on the product.
The gap has led manufacturers to prioritize exports, where prices are higher. Hai said that supply is increasingly being directed to overseas buyers, Vu Duy Hai, chairman and CEO of Vinacam Group, told The Saigon Times.
Global prices have surged in recent months. International urea is now quoted at US$850–900 per ton, up from about US$500 per ton in February 2026.
Hai attributed the increase to supply disruptions linked to geopolitical instability in the Middle East and Ukraine, which has affected logistics and production of key inputs such as ammonia and natural gas.
Demand has also strengthened. India has issued large import tenders, with Indian Potash Limited seeking up to 2.5 million tons, pushing offer prices to US$935–959 per ton.
Despite lower domestic prices, demand from farmers remains weak due to low returns and unfavorable rice prices.
Hai warned that supply could tighten during the summer-autumn crop starting in May 2026 in the Mekong Delta, as domestic availability remains limited while demand is expected to rise.
