Trade defense policy creates momentum for sugar industry development

Vietnam's trade defense is implemented fairly, openly and transparently. Vietnamese enterprises have responded more quickly to trade defense lawsuits.

Reporter of Cong Thuong Newspaper had an interview with Mr. Nguyen Van Loc, Chairman of Vietnam Sugarcane and Sugar Association (VSSA) about this issue.

Chính sách phòng vệ thương mại tạo động lực cho ngành mía đường phát triển

Mr. Nguyen Van Loc, Chairman of Vietnam Sugarcane and Sugar Association (VSSA)

Sir, sugar prices have been continuously increasing recently. How do you assess the sugar price movement from now until the end of the year?

Recently, the trend of increasing sugar prices has been a common trend worldwide and Vietnam cannot be excluded from this trend. According to the assessment of the Vietnam Sugarcane and Sugar Association, currently, sugar prices in Vietnam are at a reasonable level, not too high compared to surrounding countries.

In addition, on November 28, the Ministry of Industry and Trade organized the allocation of import tariff quotas for sugar and 107,000 tons of sugar will be imported into Vietnam from now until the end of the year, which is an important supplement for the food processing industry at the end of the year.

In the 2022-2023 crop year, the sugarcane purchase price has been continuously raised by the Vietnamese sugar industry, currently reaching 1.1-1.3 million VND/ton of sugarcane, which is equivalent to that of sugarcane producing countries in the region. This price also ensures that farmers make a profit, leading to a continuous increase in sugarcane acreage. At the same time, it shows that the Vietnamese sugarcane industry has had a significant recovery under the effect of trade defense measures that the Vietnamese government has applied since 2021.

The association is also recommending that businesses continue to increase sugarcane purchase prices for farmers. Currently, a number of businesses have announced sugarcane purchase prices for farmers in the 2023-2024 crop year and none of them have announced lower purchase prices than last year, but all are equal or higher. With this price, farmers will certainly make a profit.

Sugarcane enterprises benefit from trade defense policies

What do you think about the measures that the Ministry of Industry and Trade has implemented recently to strengthen trade defense measures and protect the domestic sugar industry?

The Ministry of Industry and Trade's trade defense tools are highly appreciated by the Association because they are showing great effectiveness. Without applying trade defense measures, the sugar industry would not be able to achieve its current position. When applying trade defense measures, sugar prices continuously increased, sugarcane prices continuously increased, and sugarcane acreage recovered. Although the recovery cannot return to the previous level, the signal is very positive.

In addition, the use of quotas by authorities is relatively good. However, there are still some shortcomings such as the rampant smuggling of sugar. The positive point is that the price of sugar in Thailand is still high, so smuggling into the country does not have too much impact on Vietnamese sugar. However, in the long term, we still have to continue to "fight" against smuggled sugar.

What recommendations do you have for sugar businesses in the upcoming crop year to take advantage of opportunities from trade defense measures as well as current market advantages?

In ASEAN, Vietnam is one of the four main countries producing sugar from sugarcane. Vietnam's sugarcane productivity is quite good compared to other countries, and sugarcane prices have also increased continuously in recent crop years. However, Vietnam's sugar prices are currently at the lowest level compared to other sugarcane growing countries.

Under these conditions, the Association recommends that businesses strengthen their linkages with farmers so that the sugar industry can continue to recover. At the same time, they should strengthen and adapt production to climate change conditions and apply new technologies in developing sugar production.

Thank you!

According to the synthesis results of the Vietnam Sugarcane and Sugar Association, the total sugarcane growing area in the 2022/23 crop is 141,906 hectares, an increase of 17,151 hectares (13.75%) compared to the 2021/22 crop of 124,753 hectares. The Vietnamese sugar industry completed the 2022/23 sugarcane crushing crop in June 2023. The output at the end of the crop was 9,645,456 tons of sugarcane, producing 935,104 tons of various types of sugar. Compared to the 2021/22 sugarcane crushing crop, the sugarcane crushing output reached 128% and the sugar output reached 125%. Compared to the 2020/21 sugarcane crushing crop, the sugarcane crushing output reached 143% and the sugar output reached 136%.

Source link