VIETNAM: Sugar industry asks to delay end of sugar import quotas to 2022
Published: 12/06/2017, 11:19:01 AM
The Vietnam Sugarcane and Sugar Association has proposed the government delay the removal of sugar import quotas till 2022, instead of early 2018 as pledged in the ASEAN Trade in Goods Agreement, according to China's Xinhua news agency.
According to the agreement, Vietnam will remove sugar import quotas and slash import taxes on sugar to zero% early next year, while the domestic sugar industry is still weak with high production costs and selling prices, the association said on Wednesday.
Now, sugar imported into Vietnam according to quotas and non-quota is subject to a tax rate of 5% and 40%, respectively.
If Vietnam removes of import quotas and import taxes in early 2018 as committed, selling prices of sugar in Vietnam will drop by some VND2,500 (US$0.11) per kilogram. The prices currently stand at VND22,000-VND27,000 per kilogram.
According to international commitments, Vietnam has quotas for importing 89,500 tons of sugar in 2017.
Vietnam currently has 40 sugar plants, and the domestic sugar industry creates over 7 million jobs, said the ministry.