- Vietnam’s Vinachem has signed an MoU with Egypt’s Kayan to secure a stable supply of apatite ore, a critical input for phosphate fertilisers.
- The agreement is designed to mitigate risks from geopolitical tensions, trade restrictions, energy costs, and supply chain disruptions by strengthening upstream supply security.
- Beyond raw material supply, the agreement opens opportunities for Vinachem to introduce its products into Egypt and neighbouring markets, with Kayan acting as distributor or facilitator.
Vietnam National Chemical Group, or Vinachem, signed a memorandum of understanding (MoU) with Kayan to secure supplies of apatite ore, a key raw material for phosphate fertilisers.
This was announced by Vietnam’s Ministry of Agriculture and Environment (MAE) after the signing in New Cairo on April 14.
According to the press statement, the partnership was built on complementary advantages, including competitive pricing and more efficient logistics.
“The MoU signing between Vinachem and Kayan is not merely a commercial story of importing ore; it also reflects a mindset of cooperating from the root of the supply chain, aligning with Vinachem’s orientation toward high-tech development, green economy and international market expansion in the new phase.”
Kayan is one of the largest apatite mining and exporting enterprises in Egypt with 40 per cent national market share.
The move reflects Vietnam’s growing focus on upstream supply security as global fertiliser markets remain volatile due to geopolitical tensions, trade restrictions, energy costs, and logistics disruptions.
Specific provisions on quality, pricing, delivery schedules and payment terms will be laid out in separate commercial contracts to be finalised by both parties in the near future.
Imports will be executed by Vinachem via a commercial unit in Vietnam.
Potential expansion to Middle East, North Africa
Beyond apatite supply, the agreement opens the door to broader commercial cooperation.
Both parties have agreed to explore market development opportunities for Vinachem products in Egypt and neighbouring countries.
This included fertilisers, detergents, tires, batteries, and other industrial and consumer chemical goods.
Under the agreement, Kayan will act as a distributor or facilitate access to local distribution network as well as neighbouring ones.
This could potentially give Vinachem a foothold in the Middle East and North Africa, a region with rising demand for agricultural inputs and industrial chemicals.
Both companies affirmed their commitment to build a sustainable strategic partnership, jointly exploiting their strengths in resources, production capacity and distribution systems to increase value for both parties.
A Joint Cooperation Steering Committee (JCSC) will also be established where senior representatives can review progress, address any issues, and approve specific cooperation agendas.
This news follows Vietnam’s Prime Minister Le Minh Hung’s call to improve the domestic agriculture sector.
He stressed the need for agriculture to shift away from volume-driven growth toward higher productivity, better-quality outputs, and stronger market orientation.
