Apply trade defense tax – Support Vietnam’s sugar industry to compete fairly


That information was shared at an online seminar with the topic “Opportunities and challenges of the sugar industry” organized by the People’s Electronics newspaper on the afternoon of March 23, 2021.

According to the Vietnam Sugarcane and Sugar Association, in the 2019-2020 crop, the sugarcane area will continue to decrease by 15-20%. It is forecasted that, in the crop year 2020-2021, there will be a shortage of raw material sugarcane supply for factories.

Online seminar ‘Opportunities and challenges for the sugar industry’. Photo: Thanh Tra

Currently only 29/40 sugar factories are still in operation, the total volume of sugarcane in Vietnam is only about 5.3 million tons of sugarcane, equivalent to 530,000 tons of sugar. Furthermore, Vietnam’s domestic sugar prices remain the lowest in the region.

Facing the difficulties of the sugar industry, on February 9, 2021, the Ministry of Industry and Trade signed Decision No. 477 / QD-BCT on the application of anti-dumping tax and anti-subsidy to imported sugar. from Thailand at 48.88% for refined sugar and 33.88% for raw sugar.

Mr. Nguyen Van Loc, Acting Chairman of Vietnam Sugarcane Association, said that the imposition of anti-dumping and temporary anti-subsidy duties on sugarcane products originating from Thailand was decided by the Ministry of Industry and Trade. The 5-month survey process, starting from September 21, 2020, initially gave results.

Initial investigation showed that the subsidy and dumping act caused serious damage to Vietnam’s sugar industry, causing more than 50% of sugarcane farmers to stop production and one third of sugar mills to close door.

The survey results showed that sugarcane products imported from Thailand, including refined sugar and raw sugar, were subsidized, dumped at 48.88%, while the production characteristics of the sugarcane industry. In all countries, the cost of sugarcane accounts for 70-80% of the production cost. For many consecutive years, the amount of devalued sugar in Vietnam has made Vietnam’s sugarcane products sold at cheaper than the price. material.

“The imposition of trade defense tax is a timely intervention, like a life buoy appearing in time in the deadliest situation of Vietnam’s sugar industry” – Mr. Nguyen Van Loc said.

Mr. Chu Thang Trung, Deputy Director of the Trade Defense Department, said that Decision No. 477 of the Ministry of Industry and Trade has brought an opportunity to compete fairly for Vietnam’s sugar in the domestic market. There have been some positive signs since the Decision took effect: The selling price of domestically produced sugar has increased by an average of 1,500-2,000 VND / kg compared to the end of 2020; Sugarcane growers’ purchasing prices for raw materials also increased compared to last year’s pressing crop, from VND 50,000 to VND 100,000 / ton.

According to experts, for sustainable development, the sugar industry should encourage people to join agricultural cooperatives to expand acreage and build quality sugarcane material areas; through agricultural cooperatives, they will enjoy the State’s support policy to develop sugarcane. On the other hand, there should be a credit support mechanism for cooperatives to access concessional loans; at the same time, to build a close link between enterprises and farmers, invest in science and technology to improve product quality and improve the competitiveness of the sugar industry.

Le Kim Lien

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