Vietnam organic fertilizers market is projected to witness a CAGR of 5.14% during the forecast period 2024–2031, growing from USD 0.10 billion in 2023 to USD 0.16 billion in 2031. Vietnam organic fertilizers market is witnessing a surge in the entrance of the start-ups with the introduction of technologically advanced formulations of fertilizers. It is driving the growth of organic fertilizers and reducing the usage of synthetic fertilizers in the market.
In May 2024, Husk Ventures SL, an organic fertilizer start-up in Vietnam, received a USD 5 million investment from Mekong Capital Fund IV to promote low-carbon agriculture. This investment would help the company to expand its business in Vietnam, helping the farmers to reduce the usage of synthetic fertilizers and increase the use of organic carbon-based fertilizers.
Organic fertilizers which are commonly used in Vietnam are compost and animal manure. Moreover, biofertilizers such as Rhizobium, Azobacter, and mycorrhizal fungi are gaining popularity gradually among the farmers as they promote the overall plant health.
The Vietnamese government has been lifting the use of organic fertilizers, such as biofertilizers, by supporting a policy that includes subsidies and education programs directed towards farmers in switching to sustainable farming. These programs are in line with the country’s general direction of reducing agricultural pollution and an increase in biopharming, fostering the growth of organic fertilizers in the country. Through the popularization of organic fertilizers, the Vietnamese government is combating climate change. Organic fertilizers enhance carbon sequestration in the soil, reduce greenhouse gas emissions related to chemical fertilizers, and strengthen the resilience of the soil to impact climate change.
Government to Support Market Growth of Organic Fertilizers
The Vietnamese government is offering subsidies and grants to all farmers who are transforming to organic farming, including organic fertilizers. The government gives incentives for the development and production of organic fertilizers by providing various incentives such as tax breaks, low-interest loans, and grants for research and development to businesses involved in the manufacturing of these products.
The Vietnamese government has initiated extensive education and training programs that raise farmer awareness regarding the use of organic fertilizers and the respective techniques used. The government collaborates with non-governmental organizations and international bodies to promote organic farming practices and the use of organic fertilizers.
The government is investing in research and development to enhance quality and efficiency in organic fertilizers. The government promotes the use of organic fertilizers produced at domestic level and products from agricultural wastes, re-invigorating local economies. This helps to recycle organic materials, hence environmental sustainability.
In November 2022, The Ministry of Agriculture and Rural Development (MARD) of Vietnam, set a target of raising the proportion of organic fertilizer products which are authorized for circulation to 25% in year 2025. They planned to raise the amount of the qualified production by 1.25 times, equivalent to 5 million tons per year.
Click Here: https://www.marketsandata.com/industry-reports/vietnam-organic-fertilizers-market
Biofertilizers to Drive Market Growth
Biofertilizers enhance soil structures and fertility by improving the organic matter content and stimulating activity from beneficial microbial flora. Therefore, it becomes a preferred option in Vietnam, since maintaining soil fertility is a major challenge for maintaining long-term profitability in agriculture. Excessive applications of chemical fertilizers result in soil depletion, pollution of water, loss of biodiversity, etc., in farms of Vietnam. Biofertilizers contain living microorganisms that help plants to obtain nutrients and are regarded as a sustainable alternative to restore soil health, reduce environmental pollution, and maintain ecological balance.
Biofertilizers are cost-effective as compared to chemical fertilizers, especially for smallholder farmers who make up a large proportion of agriculture in Vietnam. Their preparation from agricultural waste and other organic material helps further to reduce the production cost in the country.
Biofertilizers would easily adapt to the diversified crops cultivated in Vietnam, ranging from rice to fruits and vegetables. Being quite effective in the different agro-climatic zones, the biofertilizers optimize the resources used by plants for their better resilience to pests and diseases.
In December 2023, Husk Ventures SL introduced Onix P9, biochar fertilizer which allows aeration stimulating the growth of beneficial microorganisms which help in the prevention of soil diseases, improves moisture management, and holds nutrients in the plants. Onix, being a compound biofertilizer contains macro and micro-nutrients, plant-growth regulators, and natural bio stimulants.
Organic Fertilizers for Urban Agriculture to Gain Momentum
Rise in urban agriculture is promoting the usage of organic fertilizers in Vietnam. With urbanization at an increasing rate, there is a corresponding increase in demand for locally grown healthy food, which has contributed to growth of urban agriculture, thus driving demand of organic fertilizers. In the small-scale setting of urban farms and rooftop gardens, organic fertilizers are ideal as they are sourced from natural materials, such as compost and animal manure, eliminating the purchase of commercialized synthetic fertilizers. Increasing fertility in the soil without different negative impacts associated with the addition of chemicals to the soil is adding to the organic fertilizers market size in Vietnam.
Organic fertilizers are preferred by urban farmers in Vietnam as they improve soil fertility, raise crop yields, and produce safer foods without chemicals. Besides, organic fertilizers contribute to waste reduction by recycling most organic wastes into important nutrients, hence aligning with the goals of sustainability for urban agriculture. Government initiatives to increase organic farming and awareness among people about organic products are other factors expected to boost the implementation of organic fertilizers, thereby creating an increasing trend for urban agriculture in Vietnamese cities.
On November 18, 2022, PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo) commenced to launch Phu My fertilizer products specialized for urban agriculture in market. The introduction of latest products include organic fertilizer products for different crops. Users in urban spaces such as rooftops, gardens, households, and balconies can conveniently use this fertilizer.
Future Market Scenario (2024–2031F)
1. With ongoing government support and rising consumer demand for organic products, the use of organic fertilizers in Vietnam is expected to grow. This will contribute to the expansion of organic farming and the sustainability of Vietnam’s agricultural sector.
2. The future of organic fertilizers in Vietnam may see increased integration with modern agricultural technologies, such as precision farming and soil health monitoring, to optimize the use of organic inputs and maximize agricultural productivity offering the customized organic fertilizers as per the requirements of the plant and soil.
Report Scope
“Vietnam Organic Fertilizers Market Assessment, Opportunities and Forecast, 2017–2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Vietnam organic fertilizers market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
Contact
Mr. Vivek Gupta
5741 Cleveland street,
Suite 120, VA beach, VA, USA 23462
Tel: +1 (757) 343–3258
Email: info@marketsandata.com
Website: https://www.marketsandata.com