11/12/2020 16:05:35 (GMT +7)

VN sugar industry calls for fair competition

Đổi trò chơiThe sugar industry is facing many challenges and unfair competition from imported and smuggled goods, experts told a conference held in Hanoi on December 1.

Local sugar industry calls for fair competition hinh anh 1

Sugarcane farmers have been forced to reduce their farming areas due to difficulties from imported and smuggled sugar.

Also discussed were possible solutions, such as applying trade remedies and building chain links to remove the “bottlenecks” for the local sugar industry.

Đổi trò chơiAfter many years of maintaining a protection policy, Vietnam began to implement its commitments under the ASEAN Trade in Goods Agreement (ATIGA) from the beginning of the year, by not limiting the sugar imported from ASEAN countries and tariffs being cut to zero percent.

Since the removal of tariff quotas, the total amount of sugarcane imported into Vietnam has increased rapidly, reaching approximately 1.3 million tonnes in the first 10 months of 2020. In addition, the price of imported sugar is also very low, causing many difficulties for sugar enterprises as well as farmers.

Faced with cheap imported sugar, Vietnam’s domestic sugar price has fallen to a very low level, leading to low sugarcane prices.

Đổi trò chơiThis, the conference was told, was one of the reasons sugarcane farmers have fallen into debt.

Speaking at the conference, farmer Tran Thi Yen in Phu Yen province said sugarcane no longer generated great economic profits. She said farmers could not earn profits, or even lose capital, having to reduce their sugarcane growing area. Many sugarcane growers had to leave their land to work as hired labourers.

Sharing the ideas, Do Van Thao, another sugarcane farmer from Kon Tum province said although the company had introduced a number of measures to support farmers, the price was too low, putting great pressure on the industry.

The country now has 29 sugar plants in 2019-20 crop season, 11 less than the previous season. In the 2020-21, it is forecast to be a difficult year for the local sugar industry, especially in the complicated situation of the COVID-19 pandemic.

Đổi trò chơiIt is expected that four more sugar factories including Son Duong, Nong Cong, Van Phat and Pho Phong continue to close due to the lack of raw materials and inefficient operations.

Nguyen Van Loc, secretary general of the Vietnam Sugar and Sugarcane Association (VSSA) said they have sufficient databases available to identify imported sugar originating from Thailand as dumped and subsidised for dumping in foreign markets (according to WTO trade rules). In addition, it also has clear evidence that dumped imported sugar causes significant damages to the domestic industry.

“According to our data, the average export price of raw and refined sugar is only 334 USD per tonne,” he added.

“The above exported sugar price is clearly not only much higher than the price of sugar sold in the Thai market, but also lower than the cost of sugarcane to produce sugar. This further highlights the dumping nature of Thai sugar when it enters the Vietnamese market.”


Tran Ngoc Hieu, general director of Soc Trang Sugar Company suggested the Government and ministries drastically implement the fight against smuggling, counterfeiting and anti-trade fraud. The Ministry of Industry and Trade (MoIT) needs to investigate and soon apply anti-dumping measures to sugar products from other countries, especially from Thailand to create a fair competition, thus facilitating business buying sugarcane prices at higher prices.

“Commercial banks should create conditions for sugar cane growing and production companies to mortgage loans but only a part of their assets, without interest for investment loans investing into seeds, raw materials and labour,” he said.

The Government has issued many documents directing the implementation of measures to remove difficulties for the sugar industry. Most recently, on July 14, 2020, the Government issued Directive No 28/CT-TTg on the implementation of solutions to develop Vietnam’s sugar industry.

Le Trieu Dung, MoIT’s Director of the Department of Trade Defence said that domestic sugar industry had provided information and evidence that sugar cane products imported from Thailand were being dumped into Vietnam and the Thai Government had been maintaining a number of subsidy policies for sugarcane growing activities and their sugar industry.

Đổi trò chơiOn the basis of the request documents of enterprises representing the industry, in September 2020, the ministry issued Decision No 2466/QD-BCT on the investigation and application of anti-dumping and countervailing measures for some sugarcane products originating from Thailand.

In June 2020, the ministry also issued Decision No1715/QD-BCT on the investigation and application of anti-dumping measures on some liquid sugar products extracted from corn starch (also known as HFCS) originating from China and the Republic of Korea.

“Currently, both cases are in the process of investigation,” Dung said.

Đổi trò chơi“The department will conduct an investigation in accordance with the Law on Foreign Trade Management and related legal documents in order to establish a fair competition environment in the context of international economic integration, protecting the legitimate rights and interests of the domestic manufacturing industry from unfair competition.”

Đổi trò chơiAccording to Tran Thanh Hai, deputy head of the ministry’s Department of Import-Export when the investigation results proving the violation of imported sugar are available, tools can be applied to protect the legitimate rights and interests of sugar cane farmers.

Đổi trò chơiHe added: “However, the current situation of Vietnam’s sugar industry may partly because the transformation of the sugar industry in the integration process has not been improved.

Đổi trò chơi“In fact, not only the sugar industry, but also the steel, automobile and livestock industries faced difficulties. As for the automobile industry, three years ago, we also had to open the industry to zero import tax rate.

Đổi trò chơi“Through difficult times, Vietnamese brands have been formed. Therefore, the association, innovation, and determination of businesses themselves will be an important solution to help the sugar industry overcome this integration wave.”/.VNS

Unstableness of domestic sugar industry

Unstableness of domestic sugar industry

Đổi trò chơiFarmers in the Mekong Delta have started to harvest raw material sugarcane from the beginning of October. However, up to now, the remaining three factories in the region have not operated yet.


Other News

VND4 trillion tower: no buyer after 10 years
BUSINESSicon  02/12/2020 

Many buildings up for sale cannot find buyers.

ASEAN customs transit system launched
BUSINESSicon  02/12/2020 

The online ASEAN Customs Transit System (ACTS) was officially launched on November 30 to accelerate trade in goods by road within Southeast Asia.

Tax hike worries ride-hailing drivers, but their companies actually pay the tax
BUSINESSicon  02/12/2020 

Under a new regulation, from December 5, ride-hailing services will be taxed 10 percent instead of the current 3 percent.

China-ASEAN Expo opens, featuring digital economy, RCEP
BUSINESSicon  03/12/2020 

The 17th China-ASEAN Expo and China-ASEAN Business and Investment Summit kicked off on Friday, highlighting booming digital economy cooperation and the implementation of a recently signed major trade pact.

Covid-19 crisis leads to lower incomes, living conditions for tens of thousands of families
FEATUREicon  02/12/2020 

Surveys all show that the living conditions of many Vietnamese have become worse because of Covid-19. However, economists are not recommending a second support package.

BUSINESSicon  01/12/2020 

UNDP helps Da Nang build circular economy hub

FDI forecast to flow into supporting industries as investors set up new supply chains
BUSINESSicon  01/12/2020 

Foreign direct investment in supporting industries is expected to spike in the coming months as more and more foreign companies establish production facilities in Vietnam and seek to develop supply chains here, experts said.

Night-time economy waits for its bright days
BUSINESSicon  01/12/2020 

Đổi trò chơiFor HCMC, the delicious cake slice of evening economy in store for years will come to light as the Government is going to give it the greenlight soon. 

SOE managers receive VND151 million a month, just half of market level
BUSINESSicon  01/12/2020 

Đổi trò chơiThe monthly pay to chairs of state-owned economic groups is up to VND86.4 million a month, but the salary of managers of joint stock companies where the state holds a controlling stake is up to VND151.2 million a month.

Digital transformation accelerates online sales target of US$35 billion
BUSINESSicon  01/12/2020 

Vietnam is set to see 55% of the local population regularly participate in online shopping activities by 2025, with the value of goods purchased through the internet and online services reaching an annual average of US$600 per person.

More reforms needed in construction procedures
BUSINESSicon  01/12/2020 

More drastic reforms of construction-related administrative procedures must be carried to improve transparency and reduce costs for enterprises,

Hotel owners sell out to stave off bankruptcy
BUSINESSicon  01/12/2020 

Đổi trò chơiFusion Suites Saigon on Suong Nguyet Anh Street in District 1, HCMC, is being listed for sale at VND1,165 billion (US$50 million).

Many real estate firms owe tax as projects die
BUSINESSicon  01/12/2020 

A high number of businesses in the real estate sector are developers of 'clinically dead' projects, or projects that have disputes with clients.

Private airlines seek financial incentives to overcome tourism slump during pandemic
BUSINESSicon  01/12/2020 

Đổi trò chơiPrivate air carriers, including Vietjet Air and Bamboo Airways, have asked for preferential loans to overcome the serious crisis caused by Covid-19.

Vietnam amends intellectual law following big trade pacts
BUSINESSicon  30/11/2020 

The signing of big trade pacts has prompted the comprehensive amendment of the law that enacted in 2005.

Pandemic drags down FDI attraction
BUSINESSicon  30/11/2020 

Vietnam had attracted a total of $26.43 billion in FDI this year as of November 20, equal to 83.1 percent of the figure in the same period last year, according to a recent report from the Ministry of Planning and Investment.

BUSINESSicon  30/11/2020 

Đổi trò chơiVietnam’s economy keeps growing thanks to important drivers

Demand stimulus: where to begin?
BUSINESSicon  30/11/2020 

Private sector consumption is a major growth driver of the Vietnamese economy. It is all the more important as the Covid-19 pandemic has sent global demand plummeting and countries worldwide imposing travel restrictions.

Strategic solutions for business growth post-COVID-19
BUSINESSicon  30/11/2020 

COVID-19 has significantly affected the consumer behaviour of people of all socioeconomic groups in Vietnam. Now businesses looking for future growth and investment opportunities are urged to upskill or reskill in line with new trends and demands.

Vietnam welcomes fresh FDI inflows from overseas Vietnamese
BUSINESSicon  30/11/2020 

Foreign direct investment (FDI) inflows in Vietnam are set to record strong growth as the world moves past the novel coronavirus (COVID-19) epidemic, with plenty of investment coming from overseas Vietnamese, according to insiders.

Leave your comment on an article