A worker runs a packaging machine at a KCP Vietnam Industries Limited sugar factory, an Indian-owned company located in Phu Yen province (Photo: VNA) Hanoi (VNS/VNA)- Fifteen firms won bids at the Ministry of Industry and Trade’s second auctionof sugar import quotas in Hanoi on August 23.
Vietnam mustimport 89,500 tonnes of sugar this year, following its commitment to the WorldTrade Organisation (WTO). The commitment consists of 44,000 tonnes of raw sugarand 45,500 tonnes of refined sugar.
The bidding was organised by the ministry and the National Council of PilotSugar Quota Bidding 2017.
According to the council, there were 28 bidding applications from businessesthat have sugar import demand this year. All the applications were valid.
Three out of the five companies won bids for import quotas of raw sugar, namelyBien Hoa Sugar Joint Stock Company, Thanh Thanh Cong Tay Ninh Sugar and BienHoa, Ninh Hoa Sugar Company Limited, securing a total import quota of14,666 tonnes.
The State budget collected 110 billion VND (4.9 million USD) from the biddingof 44,000 tonnes of raw sugar at the price of 2.5 million VND per tonne.
Suntory PepsiCo Vietnam was not eligible to jointhe bidding due to a lack of documents.
There were 12 winners for import quotas of refined sugar with the lowest priceof 1.82 million VND and the highest price of 4.55 million VND per tonne,respectively.
The 12 companies included Interfood Shareholding Company with 1,000 tonnes,Sanofi Synthelabo Vietnam Company 1,000 tonnes, Quang Ngai Sugar Company 4,500tonnes, and Vinh Hao Mineral Water Joint Stock Company1,000 tonnes.
Vina Coffee Bien HoaJoint Stock Company won 7,000 tonnes, Frieslandcampina Vietnam Company Limited3,000 tonnes, Nestle Vietnam Company 9,000 tonnes, and Kirin Vietnam got1,000 tonnes.
Perfetti van mele Vietnam Company won 12,000 tonnes, Puratos Grand-Place VietnamCompany 1,000 tonnes, Red Bull Vietnam Company 2,000 tonnes, and Orion FoodVina won Company 3,000 tonnes.
Speaking at the auction, Deputy Minister of Industry and Trade Tran Quoc Khanh,the council’s chairman, said this was the second time Vietnam hadauctioned the use of duty quota to import sugar following its WTO commitments.
Results of the auction showed that most of the applications were valid,adequate and strictly adhered to guidelines in the preparation of thedocuments.
[Sugarcane sector needs new ideas]
The ministry has distributed the entire sugar import quota this year tobusinesses through the bidding to ensure transparency and fairness, Khanh said.
He asked the winners to cooperate with the ministry in implementing necessarysteps and regulations after the bidding.
In addition, he assigned the Import-Export Department to report the auction’sresults to the Ministry of Agriculture and Rural Development and relevantagencies.
As per a ministry circular on managing import tariff quota for sugar this year,bidders can include traders who supply sugar for food manufacturing and traderssupplying raw sugar for the production of refined sugar.
An auction was held for the first time in September 2016 for duty import quotaof 85,000 tonnes of raw and refined sugar with the average price of 1.53million VND per tonne of raw sugar and 1.69 million VND per tonne of refinedsugar. The auction collected 138 billion VND to the State budget. Elevenbusinesses had then won the tender.
The winning bid prices this year were higher than those of the previous year.However, world sugar prices have been low. Specifically, the price this monthwas 392 USD per tonne, lower than the 397 USD per tonne in the previous months.
The sugar selling price in the domestic market is 15,000-16,000 VND per kilo or666-710 USD per tonne.
Prior to 2015, import quotas were assigned for sugar producers and companiesusing sugar in their production, such as beverages and confectionery.
The Vietnam Sugarcane Association proposed several times to open the tender toall instead of assigning it to specific businesses to create a fair process.-VNA
VNA
