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    Home > Food News > Food Articles > Vietnam imposes anti-dumping duties on sugar from Thailand to boost domestic sugar companies to resume development

    Vietnam imposes anti-dumping duties on sugar from Thailand to boost domestic sugar companies to resume development

    • Last Update: 2021-08-01
    • Source: Internet
    • Author: User
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    Vietnam's "Vietnam+" reported on July 18 that anti-dumping and countervailing duties have been officially levied on sugar imported from Thailand and at low prices entering the Vietnamese market for a period of time .
    This move is regarded as a good driving force for domestic sugar companies and sugarcane farmers to resume production and promote production development .
    But this is only a temporary "protection" layer, and the enterprise's efforts are still the most important factor .
     
    After the ASEAN Trade in Goods Agreement (ATIGA) came into effect, the import tax on sugar products exported to Vietnam was reduced from 85% to 5%
    .
    After the tax barriers were eliminated, goods from Thailand flooded into Vietnam through regular trade channels
    .
    As a result, many sugar factories were closed, and thousands of sugarcane farmers were affected
    .
    The number of sugar factories in operation has dropped to 20 from the previous 40 sugar factories
    .
     
    Nguyen Van Luk, Acting Secretary-General of the Vietnam Sugar Cane Association (VSSA), said that after the Ministry of Industry and Trade issued a preliminary decision to impose a tax on sugar from Thailand, companies have increased the purchase price of sugar cane
    .
    After the Ministry of Industry and Trade made a formal decision, the purchase price of sugarcane continued to rise, and both enterprises and farmers were excited
    .

     
    Various companies believe that the move by the Ministry of Industry and Trade has reduced the unfair competition between Thai sugar and domestic sugar, and will help increase domestic sugar prices.
    The purchase price of sugarcane has also increased
    .
    In many places, many production units and sugarcane farmers have expanded the sugarcane planting area in 2021-2022, creating convenient conditions for the gradual restoration of the sugarcane raw material area of ​​various sugarcane sugar factories
    .
     
    However, Nguyen Van Luk believes that this is only an initial good signal, and the road ahead for the sugar cane industry is still bumpy
    .
    Because domestic sugar is still facing pressure from tax evasion and sugar smuggling
    .
    After the Ministry of Industry and Trade decided to impose anti-dumping duties on sugar from Thailand, the amount of sugar from Thailand has declined, but the low-priced sugar is essentially still sugar from Thailand still entering Vietnam through other channels
    .
     
    Nguyen Van Luk revealed that in the first May of this year, the amount of sugar imported from some ASEAN countries increased abnormally.
    The amount of sugar imported from Cambodia, Laos, Malaysia, Myanmar and Indonesia to Vietnam increased explosively compared with 2020, an increase of nearly 15%.
    It will increase from 20,000 tons in the first May of 2020 to 320,000 tons in the first half of this year
    .
     
    Nguyen Van Luk believes that this is clearly an act of evading temporary anti-dumping duties and countervailing duties against cane sugar produced in Thailand
    .
    The association will continue to provide relevant agencies, especially the Ministry of Industry and Trade, with more evidence on tax evasion
    .

     
    In addition to the cane sugar industry continuing to fight against commercial fraud and strengthening trade defense measures, sugar cane sugar companies themselves need to work hard to adapt to the new situation
    .
    Import price sugar
     
    After the ASEAN Trade in Goods Agreement (ATIGA) came into effect, the import tax on sugar products exported to Vietnam was reduced from 85% to 5%
    .
    After the tax barriers were eliminated, goods from Thailand flooded into Vietnam through regular trade channels
    .
    As a result, many sugar factories were closed, and thousands of sugarcane farmers were affected
    .
    The number of sugar factories in operation has dropped to 20 from the previous 40 sugar factories
    .
     
      Nguyen Van Luk, Acting Secretary-General of the Vietnam Sugar Cane Association (VSSA), said that after the Ministry of Industry and Trade issued a preliminary decision to impose a tax on sugar from Thailand, companies have increased the purchase price of sugar cane
    .
    After the Ministry of Industry and Trade made a formal decision, the purchase price of sugarcane continued to rise, and both enterprises and farmers were excited
    .

     
      Various companies believe that the move by the Ministry of Industry and Trade has reduced the unfair competition between Thai sugar and domestic sugar, and will help increase domestic sugar prices.
    The purchase price of sugarcane has also increased
    .
    In many places, many production units and sugarcane farmers have expanded the sugarcane planting area in 2021-2022, creating convenient conditions for the gradual restoration of the sugarcane raw material area of ​​various sugarcane sugar factories
    .

     
      However, Nguyen Van Luk believes that this is only an initial good signal, and the road ahead for the sugar cane industry is still bumpy
    .
    Because domestic sugar is still facing pressure from tax evasion and sugar smuggling
    .
    After the Ministry of Industry and Trade decided to impose anti-dumping duties on sugar from Thailand, the amount of sugar from Thailand has declined, but the low-priced sugar is essentially still sugar from Thailand still entering Vietnam through other channels
    .
     
      Nguyen Van Luk revealed that in the first May of this year, the amount of sugar imported from some ASEAN countries increased abnormally.
    The amount of sugar imported from Cambodia, Laos, Malaysia, Myanmar and Indonesia to Vietnam increased explosively compared with 2020, an increase of nearly 15%.
    It will increase from 20,000 tons in the first May of 2020 to 320,000 tons in the first half of this year
    .
     
      Nguyen Van Luk believes that this is clearly an act of evading temporary anti-dumping duties and countervailing duties against cane sugar produced in Thailand
    .
    The association will continue to provide relevant agencies, especially the Ministry of Industry and Trade, with more evidence on tax evasion
    .

     
      In addition to the cane sugar industry continuing to fight against commercial fraud and strengthening trade defense measures, sugar cane sugar companies themselves need to work hard to adapt to the new situation
    .
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