The market impact of Vietnam DAP import duty situation
The Vietnamese government in late July 2017 put in place punitive interim anti-dumping duties on DAP fertilizer imported from any source that had a greater than 3pc import market penetration, as defined under government import statistics for 2015.
This has effectively banned the import of DAP from China, which accounts for the vast majority of supplies
The policy designed to run through to 6 March 2018 has been introduced to bolster the ailing state-owned domestic DAP fertilizer plants of Vinachem, which have run at below operational capacity for several years.
An industry and trade ministry document from 12 May 2017 said that there was a causal relationship between increased DAP imports and serious losses at Vinachem, which has argued that higher imports led to lower sales of domestic DAP, revenues and market share.
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