In recent years, the global fertilizer industry has faced significant challenges and opportunities due to the impact of major international events, notably the COP26 conference held in 2021, where Vietnam committed to achieving net-zero emissions by 2050.

In 2023, the global economy faces numerous difficulties and challenges. The ongoing Russia-Ukraine conflict, along with newly erupted tensions in the Middle East and the Red Sea in the latter months of the year, have disrupted supply chains (resulting in extended shipping times and the bankruptcy of many suppliers due to rising input costs), leading to increased oil prices and shipping costs.

The COP events serve as crucial forums where nations discuss and reach agreements on climate action, promoting global commitments to reduce emissions and enhance efforts to adapt to climate change. Notably, COP 26 in 2021 was a significant event for Vietnam, where the government made several important commitments, including: (1) a pledge to achieve net-zero emissions by 2050; (2) an increase in the use of renewable energy; (3) enhanced investment in green finance and clean technology; and (4) a commitment to reduce methane emissions by 30% by 2030. At COP 27, countries continued their commitments to reduce carbon emissions and update their national climate plans. At COP 28, which will take place in November 2023, nations are expected to reaffirm their commitments to emission reductions, update their national climate strategies, and nationally determined contributions (NDCs) to support the implementation of these pledged goals.

The global fertilizer industry in general and particularly in Vietnam, is currently facing significant challenges and opportunities. In the aftermath of the Covid-19 pandemic, the agricultural sector has demonstrated its value and position as a foundation for the economy, ensuring supply and food security. The increasing population and demand for food, along with the growth of the agricultural sector, will drive the demand for fertilizers. Research into and application of new fertilizer production technologies, as well as smart solutions for crop nutrition management, can enhance fertilizer efficiency and reshape market demand. Additionally, the trend toward green consumption and consumers’ growing interest in organic and sustainable agricultural products will also impact the fertilizer industry.

In addition, the European Union implemented the Carbon Border Adjustment Mechanism (CBAM) in 2023, establishing carbon taxes on goods exported to this market based on greenhouse gas emissions intensity during production. This regulation requires the fertilizer industry to enhance transparency and reduce CO2 emissions. Furthermore, guidelines from industry associations such as the International Fertilizer Association (IFA) continuously encourage fertilizer companies worldwide to focus on adopting new fertilizer production technologies aimed at optimizing performance and sustainability.

Lastly, it is important to highlight the trend among fertilizer companies worldwide toward the production and application of green hydrogen, utilizing clean raw materials and energy. There is a growing focus on efficient and sustainable fertilizer use, organic fertilizers, and smart fertilization solutions to optimize nutrient supply for crops while minimizing environmental impacts.

Domestically, we are also affected by regulations on reducing greenhouse gas emissions, greenhouse gas inventories, as well as the disclosure of information related to the environment and society. This requires us to continuously improve our production and management processes to effectively meet emission reduction requirements and to disclose this information transparently. In the Mekong Delta region, the government issued Decision 1490/QĐ-TTg on November 27, 2023, approving the project “Sustainable Development of One Million Hectares of High-Quality, Low-Emission Rice Cultivation Linked to Green Growth in the Mekong Delta by 2030”. This initiative aims to promote green development and emission reductions, facilitating businesses’ participation in sustainable development projects. Additionally, the government has enacted Decree 06/2022/NĐ-CP, which regulates greenhouse gas emission reduction and ozone layer protection in accordance with commitments made at COP26.