Currently, there are over 200 enterprises manufacturing pesticides with nearly 100 processing factories along with about 30,000 pesticide agents.
Vietnam is among the top countries with the most diverse list of pesticides allowed to be used on crops, with 1,700 active ingredients and 4,080 commercial products. The market shares of pesticides and insecticides account for the largest proportion in the retail market.
At present, in most countries, the development of agricultural production in a sustainable way requires both attention to the increase in productivity and output of agricultural products to meet the needs of food security and at the same time minimize the effects of adverse factors on human health and the environment. To solve this problem, the use of biological pesticides is considered the most suitable option.
According to market research by Fortune Business Insights Pvt.Ltd (India), in the period from 2014 to 2017, the average annual growth rate of biological pesticides was 24%. In 2017, value of biological pesticides was worth 3.36 billion USD, forecasted to reach 6.42 billion USD in 2023 and 10.19 billion USD in 2025.
The Markets and Markets organization, specializing in research on the world agricultural materials market, also forecasts that in the period of 2020 - 2025, the global market share of preparations belonging to the group of microbial pesticides will grow by 15.8% with value reaching 2.2 billion USD (in 2020) and 4.6 billion USD (in 2025).
In Vietnam, according to the summary report of 10 ASEAN countries in 2016, Vietnam is the leading country in ASEAN in terms of quantity and types of biological pesticides registered and used.
According to the Department of Plant Protection, Vietnam's biological pesticide market in 2019 reached a value of 30.7 million USD and is expected to reach 65.7 million USD in 2024, with a growth rate of over 16.4% per year. .
Regarding imports, the annual amount of biological pesticides imported into Vietnam is over 15,000 tons, accounting for 15% of the total amount of imported pesticides.
In 2019, Vietnam imported more than 16,100 tons of biological pesticides (about 50.8 million USD), accounting for 17% of the import turnover of pesticides. However, biopesticides with effective ingredients of microorganisms are mostly produced domestically, mainly by research institutes, universities and some companies specializing in the trading, production and distribution of biological pesticides.
As for exports, according to the Department of Plant Protection, every year, Vietnamese enterprises export biological pesticides to 9 countries. The export volume in 2019 was 930 tons (accounting for 8% of exported pesticides). Major import markets are Taiwan (155 tons), Cambodia (360 tons), Japan (70 tons), Singapore (36 tons), Laos (63 tons), Myanmar (50 tons), China and other countries.
Currently, management agencies have issued many regulations, decrees and guiding circulars on the encouragement and support of research, production and use of biological pesticides.
In addition, bio-pesticides are encouraged to be registered on all crops, reducing the number of bio-efficacy tests and isolation time-determining trials. Records, technical documents, registration costs and implementation time are much reduced compared to chemical pesticides.
In addition, according to the regulations on transportation of dangerous goods, biological pesticides have been exempted from procedures for granting transport permits.
As of June 2020, in the list of pesticides permitted for use in Vietnam, issued together with the Circular No. 10/2019/TT-BNNPTNT dated September 20, 2019 of the Ministry of Agriculture and Rural Development, there had been more than 1,000 active ingredients with more than 4,000 trade names. In particular, biological pesticides have 231 active ingredients with 721 trade names, accounting for 18% of the total pesticides in the list.
More than 250 organizations and individuals have registered biological pesticides with one or more trade names on major crops such as rice, vegetables and fruit trees.
Source: Institute for brand and Competitiveness strategy, Vibiz, Vietnnam Farmer’s Union
Compiled by VietnamCredit