THE Department of Agriculture (DA) said it is studying a potential fertilizer supply deal with a company from Vietnam.
In a statement on Monday, the DA said that it was looking to tap Binh Dien Fertilizer Joint Stock Co. for NPK (nitrogen, phosphorus and potassium) fertilizer.
“We see great potential in partnering with Binh Dien. Our country stands to benefit significantly from their advanced technology and expertise in agriculture,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. was quoted as saying.
He added that the agreement, which is being structured as a distribution arrangement, could also lead to a potential investment in a manufacturing facility in the Philippines.
“They aim to contribute their specialized knowledge to enhance agricultural practices in the Philippines while fostering their own growth outside Vietnam,” the DA said.
The company was quoted as saying that the Philippines could be a “strategic opportunity” for its international expansion.
Binh Dien is one of Vietnam’s largest producers of NPK and has a combined capacity of 1 million metric tons (MMT). It supplies around 30% of Vietnam’s fertilizer requirements.
“Their management and technical team’s expertise is impressive and much needed in the Philippines,” he added.
In January, the Philippine and Vietnamese governments signed an agreement giving the Philippines a quota of 1.5 MMT to 2 MMT of rice annually for five years.
Imports from Vietnam amounted to 1.71 MMT as of June 27, according to the Bureau of Plant Industry. This accounted for 74% of the 2.31 MMT imported during the first half. — Adrian H. Halili