risk of Russia dumping fertilizer products in Vietnam, risk of Russia dumping fertilizer products , Russia dumping fertilizer products in Vietnam, anti-dumping fertilizer products in Vietnam ,

Risk of Russia dumping fertilizer products in Vietnam

In March 2023, Russia sharply increased the amount of fertilizer exported to the Vietnamese market, up to 1600% compared to February 2023, ie 16 times and more than 8 times higher than in January of the same year. The sudden increase in the amount of fertilizer products is likely to cause dumping of the above products in Vietnam, affecting domestic producers.

Considered as Russia’s strategic weapon in trade, fertilizer products are products that make even Western powers in the world, in the tense situation between Russia and Ukraine, also be wary and afraid to apply trade sanctions.

According to data from the General Department of Customs, in March 2023, the amount of fertilizer imports from Russia to Vietnam suddenly skyrocketed compared to 2 months of the same quarter.

Fertilizer imports in March from Russia to Vietnam reached 17,651 tons, up more than 16 times compared to 1,088 tons in February and more than 8 times higher than January.

Specifically, in March 2023, the amount of fertilizer imported from Russia into Vietnam was priced at 13,612 USD/ton, an increase of about 20 times compared to the price of 642 USD/ton in January and 696 USD/ton in February 2023.

On average, according to statistics from the General Department of Customs, in 2022 Russia exported 281,645 tons of fertilizer to Vietnam at a cost of more than 1.6 million USD.

Fertilizer products are one of Vietnam’s key imports considering the fact that the country is still an agricultural country. Agriculture plays an important role in Vietnam’s economy. Although in recent years, the share of agriculture in the economy has decreased because other sectors of the economy have increased, such as real estate, but agriculture still plays an important role.

However, Vietnam cannot produce enough high-quality fertilizer on its own to meet its agricultural development needs. Therefore, Vietnam’s fertilizer import volume from other countries is always high, showing a worrying prospect when a part of raw materials is too dependent on the export of other countries.

Risk of Russia dumping fertilizer products in Vietnam

In 2022, Vietnam imported 3.44 million tons of fertilizers of all kinds to the country to serve the needs of production and agricultural development. Imported fertilizers are mainly inorganic fertilizers with the import volume of nearly 3 million tons, and the import of organic fertilizers is 0.46 million tons. Fertilizer imports are mainly from China with the proportion accounting for 45%, Russia 11.9%. Compared to the same period in 2021, the value of fertilizer imports from China in 2022 increased by 19.5%, Russia increased by 36.9%.

Russia has always been a prominent country in the export of fertilizer products. Despite the tension with Ukraine and the Western powers, the fertilizer product has not been sanctioned due to its importance and the volume of its exports each year, potentially affecting food security in the world.

However, it is also because of this tension that has led to a sharp increase in the prices of many products, such as the price of gasoline that Vietnamese people felt in 2022 and now the price of fertilizer. In addition to the cause of the war, Russia also gave an explanation that the price of fertilizer increased sharply because the main source of fertilizer is natural gas, which also increased sharply in early 2023.

It is forecasted that in 2023, the price of fertilizers exported from Russia and other countries to Vietnam will continue to be high.

To solve this situation, the competent authorities can consider limiting fertilizer dependence on major powers, boosting domestic production to ensure the stable development of Vietnam, avoiding too much dependence on external factors.

ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.

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