Vietnam’s sugar industry needs protection from trade defense tax

Vietnam’s sugar industry needs protection from trade defense tax

After Vietnam joined the ASEAN Trade in Goods Agreement (ATIGA), officially abolishing the import tariff rate quota and reducing import tax to 5 percent for countries in the ASEAN for a year, the domestic sugar industry has a significant backward step.
Vi Thanh Sugar Refinery has to close due to a shortage of material sugarcane. (Photo: SGGP)

Unstableness of domestic sugar industry

Farmers in the Mekong Delta have started to harvest raw material sugarcane from the beginning of October. However, up to now, the remaining three factories in the region have not operated yet. Currently, farmers mainly sell sugarcane for traders to resell to sugarcane juice vendors. Ironically, both farmers who sell sugarcane early to benefit from high prices and those who have not harvested sugarcane yet want to give up sugarcane to switch to other crops.