Livestock industry offers advice on removing counterpart tax

According to a document sent to Prime Minister Pham Minh Chinh, one of the solutions to the issue of counterpart taxes from the perspective of the Dong Nai Livestock Association is that the US Department of Agriculture (USDA) is currently implementing the GSM-102 program - a program that provides credit guarantees to encourage the export of US agricultural goods with a deferred interest rate of only 1%/year.

Vietnam can take advantage of the reciprocal tax opportunity to increase imports of animal feed and breeding animals to improve the industry's capacity in the coming time.

On the Vietnamese side, there are 6 banks participating in the GSM-102 program, but the interest rates offered by these banks are not reasonable, leading to ineffective implementation.

Dong Nai Province Livestock Association proposed that the Prime Minister and the Governor of the State Bank pay attention and consider creating conditions for banks to guarantee the GSM-102 program with an interest rate of 1 - 1.5% to reduce the burden on import enterprises.

"The Association finds that the US is an excellent source of input materials for Vietnamese agriculture such as soybeans and soybean meal, corn, DDGS (dried distillers grains) .... These are all items that Vietnam has previously mainly imported with a value of billions of USD to serve the livestock industry. In addition, the US is also a supplier of high-quality pig breeds. On average, a Vietnamese pig breeding farm imports 250 grandparent pigs (GGP) each year, worth about 0.5 million USD," the document said.

According to the schedule, in June 2025, Dong Nai Livestock Association and a number of livestock farms will go to the US to sign a contract to buy great-grandfather pigs from AG-World company... and sign a joint venture in livestock breeding with Waldo Company, specializing in livestock breeding.

In addition, the Association has been promoting with the American International Nutrition Company (IN) to import nutritional raw materials for livestock to improve the quality of pork, beef and the livestock environment.

Recently, Decree 73/2025 amending MFN tax rates for a number of goods, effective from the signing date of March 31, has reduced taxes on many goods that the US has an advantage in, including corn kernels and soybean meal from 1-2% to 0%.

The reduction of import tax on agricultural products from the US, if accompanied by support policies under the GSM-102 program, will create conditions for businesses to increase imports of agricultural products from the US. This will not only contribute to the balance of Vietnam-US trade but also help reduce costs for the Vietnamese livestock industry, improve the quality of livestock and enhance the industry's competitiveness in integration.

Mr. Nguyen Tri Cong, Chairman of Dong Nai Livestock Association, said: "We believe that the above recommendations are very feasible to increase the import value of agricultural products from the US, not only contributing to the balance of Vietnam - US trade but also helping to improve the competitiveness of Vietnamese livestock. We hope that the Prime Minister and the Governor of the State Bank will pay attention to the GSM-102 program and give opinions to banks in the GSM-102 program to actively implement it to import enterprises by offering appropriate guarantee levels (1-1.5%), accompanying the government and the business community to remove difficulties for exporting to the US"./.

According to Thanh Nien Newspaper

Source: https://thanhnien.vn/nganh-chan-nuoi-hien-ke-go-thue-doi-ung-185250406130528461.htm

Source: https://baolongan.vn/nganh-chan-nuoi-hien-ke-go-thue-doi-ung-a193001.html