Every year, billions of dollars are spent importing chemicals

In recent years, the number of chemicals imported to Vietnam has increased, especially from the Chinese market. This makes many people "startled", especially when the Chemical Group, despite playing a major role in import and export activities as well as operating fertilizer and chemical factories, is losing business. hole.

Every year, billions of dollars are spent importing chemicals

According to the latest data from the General Department of Customs, the import value of chemicals and chemical products from January 1 to January 15, 2017 was over 140 million USD, chemical products more than 168 million USD. These figures warn that the trend of chemical imports will increase, when in the first half of 2017, the number of imports has reached millions of dollars.

According to the report of the General Department of Customs, by the end of 2016, Vietnam has spent more than 6.9 billion USD to import chemicals and chemical products, of which only to import chemical raw materials for the preparation of active ingredients. others accounted for 3.2 billion USD. Notably, Vietnam's chemical import market is mainly from China.

Imported goods are cheaper than domestic goods

Specifically, in 2016, the import turnover of chemicals and chemical products was 1.8 billion USD, only chemicals imported to prepare other compounds reached 1.02 billion USD. This is the first year that Vietnam spent on importing chemical materials with a turnover of more than 1.02 billion USD. Thus, on average, Vietnam has to spend more than 112 billion VND per day to import chemicals from China.

In addition to China, the import of chemical products from countries with a developed chemical industry such as India, the US, Canada, Israel or Japan, Korea ... to Vietnam in the past year is very little.

Specifically, the import of chemicals and chemical products from these markets for the whole year accounts for only from 145 million USD to nearly 300 million USD, less than a quarter of chemical import turnover from China.

Before that, in 2015, Vietnam also spent nearly 1.6 billion USD to import chemical products and chemical products from China; of which spent more than 900 million USD to import chemical raw materials and more than 700 million USD to import finished chemical products. The total value of chemical imports from China in 2016 increased by $200 million after just one year.

Specifically, Vietnam has imported more than 730 million USD of pesticides and pesticide materials, of which the import of this item from China is more than 350 million USD, accounting for over 50% of turnover. In terms of fertilizers, in 2016, Vietnam spent more than 1 billion USD importing 4 million tons of fertilizer, of which imports from the Chinese market accounted for 1.9 million tons, reaching a turnover of nearly 500 million USD. Import volume and turnover of the Chinese market alone accounted for nearly 50% of the total import value. Thus, in 2016 alone, the total value of Vietnam's chemical imports from China increased by more than US$200 million over the same period in 2015.

Explaining this, the General Department of Customs said that the import of chemicals from China increased because the price of chemical products from this country was cheaper than in many other markets, due to the transportation of chemicals via road and rail. Iron from China to Vietnam is more convenient. In particular, the large number of chemical importers to Vietnam is due to the fact that many businesses and traders have business relationships with China.

For example, the import of chemicals from China to Vietnam involves a series of yarn, textile and dyeing factories with investment capital from Taiwan, Hong Kong and mainland China. Male.

These are factories that import a large amount of chemicals used to clean fabrics and fibers for the domestic textile industry. Besides, the import of chemicals for agricultural production such as the production of pesticides and inorganic fertilizers in the country also increases the import of chemicals from China into Vietnam.

According to PGs.Ts. Ngo Tri Long, Economist, the main reason why Vietnam has to import a lot of chemicals from abroad, especially China in the past time, is because Vietnam's demand is great but we do not have the capacity to produce. ; At the same time, the price of importing chemicals from China is also cheaper than that of Vietnam.

Domestic enterprises are constantly calling for help.

Thus, it can be seen that the import of a large amount of chemicals is still a daily occurrence for many years, but it is worth discussing what domestic enterprises (DN) did when the domestic market had demand. that enterprises cannot meet, as well as the price of domestically produced goods is always much higher than that of imported goods.

Even the Vietnam Chemical Industry Group (Vinachem), although holding a major role in import and export activities as well as operating fertilizer and chemical factories, is in a situation of prolonged losses.

At the Conference to summarize the activities of 2016 and deploy the tasks of 2017 of the Vietnam Chemical Industry Group, the Group acknowledged that there are a number of basic chemical industries such as: group of fertilizers and drugs. plant protection, rubber products group is still limited, growth has not reached the set target. Part of the reason is that the management is not flexible, the cost management is still inadequate, and the production of products has not kept up with the needs of the market.

Vietnam Chemical Industry Group has 4 large-scale production and business units, accounting for a high proportion in the group of fertilizer industry, making losses, which has led to a sharp decline in the group's overall production and business results.

Before that, in 2015, the Group also had 4/24 loss-making production and business units, including Ha Bac Nitrogenous Fertilizer and Chemicals Company Limited (now a joint stock company), DAP Joint Stock Company No. – Vinachem, Ninh Binh Fertilizer One Member Limited Liability Company and Ha Bac Soap Joint Stock Company. In which, Ha Bac Nitrogenous Fertilizer and Chemicals Co., Ltd., DAP Joint Stock Company No. 2 - Vinachem are losing money because the new project has been put into operation since the second quarter of 2015.

According to the data of the General Department of Customs, in 2016, fertilizer exports reached 723,000 tons, worth $ 210 million, down 25% compared to the previous year, imports decreased by 22% compared to 2015 but still exceeded $ 1,110 billion, with 4.153 million tons. Urea imports alone in the past year also amounted to 141 million USD.

The Ministry of Industry and Trade estimates that fertilizer import spending in 2017 is equivalent to 2016 at $1.1 billion. This is the most obvious evidence showing the weakness of the fertilizer industry in particular and domestic chemicals in general.

(According to Le Thuy - Business Times)