Vietnam to import 81,000 tonnes of sugar this year

13-Jan-2015 Intellasia | TBKTSG | 6:00 AM Print This Post

The ministries of industry-trade and agriculture-rural development have agreed on a sugar import quota of 81,000 tonnes this year and will select competent enterprises to carry out this quota.

In his a recent document sent to the trade ministry, the agriculture ministry insists a transparent mechanism for importing the allowable volume of sugar to ensure fair competition among local enterprises.

Previously, the Vietnam Sugar and Sugarcane Association (VSSA) proposed the ministries select importers via public and transparent auctions when the country imports at least 70,000 tonnes of sugar a year as committed to the global trade club WTO.

Nguyen Thanh Long, chair of VSSA, said around 77,200 tonnes of sugar was shipped to the country last year, and 40,000 tonnes of which was assigned by the trade ministry to local sugar processing firms, such as Bien Hoa Sugar JSC with 15,000 tonnes, Thanh Thanh Cong Tay Ninh Co. with 10,000 tonnes and Lam Son Sugar JSC with 5,000 tonnes.

Long said the ‘ask-give’ mechanism caused unfair competition among local sugar enterprises as the firms with large quotas would earn much profit thanks to the big gap between domestic and global prices.

However, the association has yet to receive an official announcement of the ministries on a new sugar import mechanism as requested by deputy prime minister Hoang Trung Hai, said Ha Huu Phai, chief representative of VSSA in Hanoi.

Data of VSSA showed sugar inventories at factories nationwide had surged to 250,000 tonnes as of mid-December while local purchasing power still remained low.

In addition to sugar, the ministries have approved imports of around 102,000 tonnes of salt, 46,300 dozens of poultry eggs this year.


Category: Business, Vietnam

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