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Vietnam Agriculture Sector: Buffeted by headwinds

    Vu Tran
    Vu Tran

    Oil & Gas, Fertilizers

    Rong Viet
    11 September 2019
    Published by

    Vietnam's agriculture sector was hit by numerous headwinds in the first half of 2019. In this 18-page report we look ahead at the prospects for the sector and provide detailed analysis of Petrovietnam Fertilizer and Chemicals, Loc Troi Group, and Binh Dien Fertilizer.

    Unfavourable weather: Low rainfall in 1Q2019 but slight improvement in May.

    Low fertilizer demand in 1H2019: Driven by fierce competition and poor weather. Coffee, pepper and cashew nuts dropped in price, meaning that demand for fertilizer went down as farmers cut costs.

    Rice exports are down: China reduced rice imports, and productivity fell in the Mekong Delta area.

    Profit margins under pressure: Raw material prices are still high, while intense competition means producers are unable to increase selling prices.