The sugarcane industry must quickly restructure and enhance itscompetitiveness so it will not lose out in the regional market,especially when the tax rate is cut to zero by 2018 as part ofcommitments to the ASEAN Economic Community.
Minister ofAgriculture and Rural Development Cao Duc Phat made the call at a May 18conference in Hanoi to discuss measures to raise the competitiveness ofthe country's sugar industry.
It was reported that thecost of sugarcane production in Vietnam is the highest in the world,averaging about 12 million VND (550 USD) per tonne. Higher prices meanVietnamese sugar is unable to compete in the world market.
MinisterPhat said it is essential for the industry to focus on developing newsugarcane varieties with higher quality and yield, and promotecollaboration between farmers, sugar producers and distributors whiledeveloping support products to increase added value.
Healso called on sugar factories to think about building material zonesand applying new technology in cultivation as well as production.
The sugar industry should also take advantage of its own by-products, such as producing fertiliser from sugarcane waste.
Illegallyimported sugar is another problem for the industry, with an estimated400,000-500,000 tonnes of sugar imported each year, so tighter controlwas needed, participants at the meeting said.
Currently Vietnam has 305,000 ha of sugarcane plantations with a capacity of 65 tonnes per hectare.-VNA