Vietnamplus

Domestic sugar producers have been facing mounting pressure in competition with imported sugar in recent years.

Tariffs cut to zero under the ASEAN Trade in Goods Agreement (ATIGA) from January 1 this year and the COVID-19 pandemic have made for a tough year for the sugar industry, heard an online seminar held by Nhan Dan (People) e-newspaper on September 16.

The sugarcane sector is facing record-low prices despite an increase of 500,000 tonnes of output over last year, leading to high inventory levels, according to the Vietnam Sugar and Sugarcane Association.

The sugar industry needs to restructure to compete with rivals in other countries such as Thailand, according to the Vietnam Sugar and Sugarcane Association.

The Vietnam Sugar and Sugarcane Association proposed to the PM not to allow an extension for temporary sugar imports for re-export as the sweet industry was struggling with high stockpiles and slumping prices due to illegally imported sugar.

The tax on imported sugar, as stipulated by the ASEAN Trade in Goods Agreement (ATIGA), will be maintained at 5 percent from the beginning of this year, instead of zero percent as previously rumoured.