return icon Vietnamnet.vn

Sugar industry experiencing tough days

Comprehensive measures are needed to save the sugar industry.

Casuco in early July sent a document to Hau Giang provincial leaders about the suspension of Vi Thanh, one of its two refineries in the province.

 

{keywords}



With the move, Casuco has prolonged the list of sugar refineries which havehalted operation recently.

The reason behind the closure of so many sugar mills is ineffective operation. As farmers have given up cultivating sugar cane and shifted to grow other crops, refineries cannot collect enough materials to run.

The reason behind the closure of so many sugar mills is ineffective operation. As farmers have given up cultivating sugar cane and shifted to grow other crops, refineries cannot collect enough materials to run.

 Prior to that, Hiep Hoa Refinery in Long An province also had to close. The Binh Dinh sugar mill has been suspended for the last many years. Both mills still owe money to farmers and it’s unclear when they can pay debts.

Meanwhile, Thanh Thanh Cong Sugar (TTC) has halted the operation of Nuoc Trong Sugar mill for restructuring. Sources said the mill may shift to produce organic sugar instead of refined sugar in order to improve competitiveness.

According to the Vietnam Sugar Cane and Sugar Association (VSSA), the number of sugar plants in the countries was cut from 46 to 42 in 2017 and to 36 recently. Many plants maintain their operation, but at moderate level, so it is difficult to predict how many plants would still survive the 2019-2020 crop.

Vo Tong Xuan, a respected agriculture expert, said the difficulties of sugar plants are foreseeable. A series of sugar plants have been shut down in other countries and territories in the world.

In Taiwan, 39 plants have closed, while only three plants still existing, refining white sugar from brown sugar imported from Australia and Thailand.

In other countries, the land for sugar plants and sugar cane farming has been used for real estate projects and other crops to create biomass that serve electricity plants.

In Vietnam, the production cost of one ton of sugar cane is high at $50, uncompetitive with Brazil ($16), Australia ($18) and Thailand ($30).

One of the reasons cited by VSSA to explain the difficulties the sugar industry is facing is the smuggling.

Sugar has been brought to Vietnam across border gates which don’t bear tax. The smuggled sugar is sold at the Vietnam-Thailand border gate at VND8,000 per kilogram and retailed at VND10,000. Meanwhile, Vietnam’s sugar retail price is VND18,000-20,000 per kilogram.

The big price gap between Thai smuggled and Vietnam’s sugar leaves unsold domestic products. A report showed that the current inventory level is high, about 600,000 tons.

Experts warned that the situation of the sugar industry may be even worse in the future. From 2020, under the ATIGA, which will take place after two years of postponement, the imports will bear zero tax tariff.

Linh Ha

 

 

Mekong Delta sugarcane farmers switch en masse to other crops

Mekong Delta sugarcane farmers switch en masse to other crops

The area under sugarcane in the Cuu Long (Mekong) Delta has shrunk dramatically during the 2019-20 crop after many farmers switched to other crops following losses in recent years.

Sugar industry: some die, others thrive

Sugar industry: some die, others thrive

The sugar industry is experiencing stormy days as prices have dropped dramatically. However, some companies are thriving and plan to ‘swallow’ their rivals.

MORE NEWS

VIETNAM NEWS HEADLINES OCTOBER 7

Two more national parks nominated ASEAN heritage ones

Coc Coc browser, search engine recognised national digital platform

Vietnamese-developed Coc Coc browser and search engine is now eligible to become a digital platform serving the people in 2022, the Ministry of Information and Communications announced on October 7.

VIETNAM BUSINESS NEWS OCTOBER 7

Vietnamese firms attend M-Tech Osaka 2022 expo

Vietnam Airlines flight makes emergency landing to save German passenger

A Vietnam Airlines flight en route from Germany to Ho Chi Minh City made an emergency landing at Baku Heydar Aliyev Airport of Azerbaijan on late October 6 to save a German passenger with health problem.

SSC warns investors about online securities trading apps

Some businesses have created websites and trading applications, such as Passion Invest, Finhay, Tikop, Infina, Savenow and BUFF, to raise capital under unlicensed business cooperation contracts.

Investors warned of the possibility of corporate bond default

In the financial market, investors need to keep in mind the principle of high risk, high return. Therefore, the higher the bond yield, the greater the probability of default.

PetroVietnam, BSR seek foreign capital for Dung Quat

A delegation of officers from PetroVietnam and Binh Son Oil Refining and Petrochemical JSC has attended a thematic seminar on export funding – TXF Asia 2022 – in Singapore.

Lenders look further afield for recruitment

As digital transformation calls for a different set of skills and knowledge, many financial institutions are turning to the overseas market for recruitment.

Moss-covered houses on Tay Con Linh Mountain

The moss-covered houses of the Dao ethnic people are among the special features of Tay Con Linh Mountain in the northern province of Ha Giang.

PM orders karaoke service licensing be tightened

The prime minister has ordered the Ministry of Culture, Sports and Tourism to study and issue more stringent karaoke service licensing regulations.

Six airports proposed for expansion under PPP format

The Ministry of Transport has written to the prime minister proposing upgrading and expanding six airports under the public-private partnership (PPP) format.

VN companies can now compete fairly with cross-border platforms

Cross-border TV OTT platforms will have to have operating licenses and pay tax, and domestic firms will be subjected to looser censorship, thus creating opportunities for domestic firms to compete with foreign ones.

Vietnam ranks 48th in 2022 Global Innovation Index

Vietnam is placed 48th among 132 economies in the Global Innovation Index 2022.

New UNDP Resident Representative pledges support to Vietnam’s development

Ramla Al Khalidi, newly-appointed UNDP Resident Representative in Vietnam, has pledged to further support Vietnam’s development, covering climate change response and the settlement of bomb and mine consequences.

VN should not become a place where investors exploit only cheap labor

Vietnam wants foreign investors to come to cooperate and not build closed facilities that are separate oases in the economy, former chair of the Vietnam Confederation of Commerce and Industry (VCCI) Vu Tien Loc said.
back_to_top