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.

Weak demand for domestic sugar and the penetration of smuggled sugar have been dragging down sugar prices in Vietnam, driving many producers into unprofitability.

After the Vietnamese imposition of anti-dumping and anti-subsidy duties, the volume of Thai sugar imported to Viet Nam hit a four-year low in Q1 of 2022, speeding up the recovery of domestic sugar.

The Ministry of Industry and Trade has decided to extend the investigation into the evasion of trade remedies for sugar products originating from Thailand by two months. 

The sugar industry will have greater development opportunities if it can re-organise itself more effectively, Prime Minister Nguyen Xuan Phuc said at a meeting on Tuesday.

Domestic sugar companies are worried about losses in the local market as the ASEAN Trade in Goods Agreement (ATIGA) will lower the tax rates for sugar imports from ASEAN markets to only 0%-5% on January 1 next year.

Comprehensive measures are needed to save the sugar industry.

The ATIGA (ASEAN Trade in Goods Agreement) implementation will be delayed by two years, which means Vietnam will not remove the sugar quota scheme and tariffs until 2020. 

VietNamNet Bridge - The delay of the implementation of ATIGA (ASEAN Trade in Goods Agreement) for two years will bring more opportunities to Vietnam’s sugar industry, giving Vietnamese enterprises time to improve competitiveness. 

Thanh Thanh Cong Tay Ninh Joint Stock Company (TTCS) will fully acquire Bien Hoa Sugar Joint Stock Company (JSC), becoming in the process the biggest sugar producer in Viet Nam.

VietNamNet Bridge - Thanh Thanh Cong Tay Ninh (SBT) and Bien Hoa (BHS) have decided to merge to protect Vietnam’s sugar position in the home market.

VietNamnet Bridge -  Though the sugar industry enjoys benefits from protectionism, manufacturers are still complaining that business is tough because of smuggling.

HAGL has finally confirmed that it is negotiating with Thanh Thanh Cong (TTC) on the transfer of its sugar mill in Laos to TTC. 

Sugar consumption in Vietnam has for decades far outpaced domestic production with the nation relying on imports to bridge the deficit between supply and demand, said the Vietnam Sugar Association as a recent business forum.

VietNamNet Bridge - The Ministry of Finance (MOF) will make put into force commitments in the ASEAN Trade in Goods Agreement (ATIGA) signed by 10 ASEAN countries to protect two ‘particularly sensitive’ products – sugar and rice.

 VietNamNet Bridge – Tenders might be invited for determining the sugar import quota this year, instead of it being allocated as in the previous years, to ensure transparency.

Scientists have clashed over claims that sugar may be worse for blood pressure and heart health than salt.

 The target to reduce sugar consumption should be much more ambitious, health experts say.

Ignoring suggestions by relevant ministries and domestic sugar manufacturers, the Ministry of Industry and Trade sticks to its opinion that it is necessary to maintain the activities of temporary import for re-export.