Vietnamese cane sugar ‘comes back to life’ after applying tax on Thai sugar

After 5 months of investigation, on February 9th, 2020, the Ministry of Industry and Trade has issued Decision No. 477 / QD-BCT about the application of anti-dumping tax and anti-dumping tax on some cane sugar products originated from the Kingdom of Thailand. Correspondingly, imported sugar of Thai origin will be subjected to a temporary tax of 48.88% for refined sugar and 33.88% for raw sugar, including anti-dumping tax and anti-subsidy tax.

According to the Vietnam Sugar and Sugarcane Association (VSSA), for Vietnam’s sugar industry, the Decision No. 477 / QD-BCT of the Ministry of Industry and Trade is like a lifebuoy appearing on time while hanging by a thread.

Right after the Tet holiday, factories immediately adjusted and increased the selling price of sugar, and in the meantime increased the buying price of sugarcane for farmers in order to show their sharing and to apply incentives in hope of farmers returning to sugarcanes.

Up until the end of March 2021, many sugar factories in the country have adjusted the buying price of sugarcane to over VND 0.9 to 1.15 million/ton. In general, the buying price of raw sugarcane in the 2020/21 crop is 15-20% higher compared to the previous crop, and factories continuously adjust prices in an uptrend to encourage farmers to plant, restore and widen the acreage of raw sugarcane.

The buying price of sugar in the country has also increased significantly. At the beginning of February, the wholesale price of granulated sugar remained at VND 15,500-16,000/kg, refined sugar VND 16,000-16,400/kg. At the end of February, the wholesale price of granulated sugar rose to VND 16,400-17,000/kg, refined sugar VND 17,800-18,000/kg.

In the first half of March, the wholesale prices of granulated sugar and refined sugar remained at the same level as at the end of February. On that basis, VSSA believes that the end of February 2021 has established a new price level in the country.

As stated by VSSA, the application of anti-dumping tax and temporary anti-subsidy tax to some cane sugar products originated from the Kingdom of Thailand has helped establish fair competition conditions in sugar production activities between Vietnam and major sugar-producing countries in the ASEAN region.

The mentioned application of tax also helped stabilize the sugar price in the country, so that farmers can stick with sugarcane, increase sugarcane cultivating area and productivity, creating a premise to raise sustainable competitiveness in future time, as well as creating more jobs for thousands of workers in local areas with sugar factories and factories supporting the sugar industry.