return icon Vietnamnet.vn

Smuggled sugar imports are seriously damaging domestic sugar industry

The Vietnam Sugarcane and Sugar Association (VSSA) has asked for help as smuggling is killing the domestic sugar industry and causing Vietnamese sugar companies to go bankrupt.

According to the association, in previous years, smuggled sugar in large quantities with low prices from Thailand seriously affected the domestic industry.

Before the implementation of ATIGA (ASEAN Trade in Goods Agreement), Vietnam had 41 sugar mills which created jobs for 350,000 sugarcane growing households. In 2020, there was a ‘super-storm’ of Thai imports, 1.3 million tons, an increase of 420 percent.

In the 2020-2021 crop, Vietnam’s total sugarcane imports were just 700,000 tons, the lowest level in the last 19 years. In this year’s production season, only 25 sugar mills are still operational, while the other 16 mills have shut down. Of the 25 operational mills, 17 have reported losses.

As a result, 3,300 workers in the industry have lost their jobs and more than 100,000 sugarcane growing households have had to shift to other crops. The sugarcane growing area has been narrowed considerably as income is not high enough to ensure the livelihood of farmers.

Because of Covid-19 in 2020-2021 and the tight control in border areas, smuggling reduced and sugarcane prices were stable. However, as soon as the pandemic was controlled and control in border areas loosened, smuggling increased again. 

“The sugar industry is, once again, at risk of being eliminated if sugar smuggling and trade fraud cannot be settled,” VSSA said.

Since December 2021, smuggling activities have picked up in the Southwest border area.

In the market, smuggled sugar distribution networks have been running in open air. The sugar is packed in 12-kilogram and 1-kilogram bags.

Smuggled sugar is cheap as it doesn’t bear a trade remedy tax of 47.64 percent like full-tax imports. Currently, smuggled white refined sugar is VND16,400-16,800 per kilogram, far lower than domestic brown sugar.

VSSA said that smuggling is seriously threatening the sustainability of the sugarcane chain because sugar mills have to operate at a moderate level or stop operation.

The latest sugarcane crop has been completed but many sugar mills cannot sell their products, and they have not paid farmers.

Though agencies have taken action to prevent smuggling, trade fraud still continues.

VSSA has asked the Party Committee’s Chief, National Assembly’s Chair and Prime Minister to take urgent action to solve the problem, and instruct appropriate forces in areas bordering Laos and Cambodia to strengthen control to fight the smuggling.

Tam An

MORE NEWS

Authority maintains tough stance on safety violations on Hanoi’s “railway café street”

The Vietnam Railway Authority has insisted that it will take a hard line on railway traffic safety violations along Hanoi’s popular "railway café street" sketching across the inner districts in its recent report to the Ministry of Transport.

Foreign hi-tech firms expand investment in Vietnamese market

Molex, the world’s leading supplier of connectors and interconnect components, has unveiled its ambitions to expand its existing manufacturing plant in the Vietnamese market by developing its plant in Hanoi.

VIETNAM BUSINESS NEWS OCTOBER 4

Hai Phong lures more than 1.24 billion USD in first nine months

Vietnam rakes in US$16.05 billion from tourism in nine months

Vietnam earned some 394.2 trillion VND (16.05 billion USD) from tourism in the first nine months of this year, equivalent to 78% of the figure recorded in 2019 before the COVID-19 pandemic broke out.

VIETNAM NEWS HEADLINES OCTOBER 4

Vietnam invests in 10 energy technologies

Vietnamese poetry collection published in Canada

A poetry collection from five female translators based in Hanoi, entitled Ngũ Sắc Ánh Sáng (5 Sights of Light), has been introduced to Canadian readers by Ukiyoto Publishing.

Multi-billion thermal power project needs more capital

The Ministry of Industry and Trade (MOIT) has asked for ministries' opinions on solutions to problems related to the balance sheet of the Vung Ang 1 thermal-power plant.

The best September photos on VietNamNet

Hot air balloons with the Vietnamese national flag of 1,800m2 on the banks of the Saigon River, Typhoon Noru making landfall in Quang Nam Province, the roofs of many houses being blown away...

BSR to expand Dung Quat Oil Refinery

The Ministry of Industry and Trade (MOIT) has asked Binh Son Refining and Petrochemical JSC (BSR) to clarify some issues related to its project on expanding Dung Quat Oil Refinery.

Dutch conductor to lead concert at Opera House

Conductor Leon Bosch from the Netherlands will lead a concert featuring masterpieces by European composers at the HCM City Opera House on Saturday, October 8.

‘578’ to represent Vietnam at Oscars

An action film starring Miss Universe Vietnam 2018, H'hen Niê, 578: Phát Đạn Của Kẻ Điên (578: Magnum), has been selected as Vietnamese representative at the 95th Oscars, 2023.

USD surges to VND24,000, US$1.7 billion withdrawn from circulation

The State Bank of Vietnam (SBV) withdrew nearly VND41 trillion ($1.7 billion) through open market operations as the US dollar rose to over VND24,000 on September 26-30, 2022.

HCM City to build a series of new traffic projects

HCM City is speeding up procedures to start the construction of key traffic works at gateways by the end of the year, according to HCM City's Department of Transport.

Burning garbage in Hanoi threatens residents' health, property

There have been consecutive fires caused by people's poor awareness, who were burning garbage and straw in residential areas, causing fires recently in Hanoi.

New cargo airline still waiting for license

After the Prime Minister agrees on the establishment of IPP Air Cargo, the Ministry of Transport (MOT) will implement procedures to grant a license to the air carrier, according to MOT Deputy Minister Le Dinh Tho.
back_to_top