Sugar imports reach a record of more than 1.7 million tonnes

According to the General Department of Customs, in the whole year of 2021, Vietnam spent a record amount of US$ 853,699 million to import sugar with a record volume of 1,729,866 tonnes, much higher than 2020 of both sugar import value (US$ 642,930 million) and imported sugar (1,584,406 tonnes).

The highlight of sugar imports in 2021 is that sugar imports from Thailand are significantly reduced compared to 2020. Still, sugar imports from 5 ASEAN countries (Cambodia, Indonesia, Laos, Malaysia, Myanmar) have increased explosively four times compared to 2020. This data shows that the imposition of anti-dumping and anti-subsidy tax on sugar originating from Thailand has not been effective temporarily.

The Vietnam Sugar Association said that the supply was abundant. Also, the decrease in sugar demand for direct consumption and production due to the Covid-19 epidemic had decreased, leading to a reduction in sugar prices in December 2021.

At the end of December 2021, the strong appearance of smuggled sugar (actually from Thailand) has continued to push the price of sugar below the production cost.

Sugar mills that have raised the purchase price of sugarcane to the highest level in the last five years and starting the sugarcane pressing 2021-2022 season are facing great difficulties because they cannot consume sugar.

Sugar produced from domestic sugarcane is almost impossible to consume in competition from imported sugars. In the first eight months of 2021, sugar imports have reached nearly 1.2 million tons, more significant than the domestic sugar production in the 2020-2021 crop, making it more difficult for domestic sugar factories.

Mr. Vo Thanh Dang, General Director of Quang Ngai Sugar Joint Stock Company, said that imported sugar was flooded with too much quantity, making it impossible for sugar factories to develop. Mr. Dang suggested that there should be solutions to prevent smuggled sugar and Thai sugar borrowed from other countries in the region to sell to Vietnam. Domestic sugar factories will stabilize production and cooperate with farmers to develop sugarcane growing areas.