Vietnamese sugarcane growers can't decide the quality of sugarcane

Published 2022년 1월 21일

Tridge summary

The Vietnamese sugar industry is in decline due to a decrease in sugarcane cultivation areas, a reduction in factories, and a drop in sugar production, leading to a reliance on imports. The industry's decline is attributed to its low competitiveness, internal inefficiencies, and the ATIGA Agreement's reduced import tax rates, resulting in cheap imported sugar from Thailand. The industry's future sustainability is uncertain due to its inefficiency compared to other crops and the need to improve competitiveness in production and product processing. Research recommendations include government policies to ensure fair chain linkage and competition, improvement in production and product processing, and mechanisms to minimize unfair competition.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

To Xuan Phuc, a research expert from Forest Trends, said that Vietnam's sugar industry is currently decreasing sharply in size. Sugarcane growing area decreased from more than 274,000 ha in the 2016-2017 crop to nearly 151,000 ha at present. The number of farmers participating in sugarcane cultivation decreased from 219,500 households to 126,000 households; number of factories decreased from 38 to 29; Sugar production decreased from 1.24 million tons to 770,000 tons in the same period. Supply does not meet demand, requiring Vietnam to import a large amount of sugar every year to make up for the shortfall. Import volume is increasing: In 2020 import volume increased by nearly 340% compared to 2019. The recent decline of the sugar industry is attributed to the low competitiveness of the industry, especially since Vietnam's participation. ATIGA Agreement from 2019. Accordingly, the import tax rates for sugar products will be reduced to 0-5%. The tax rate is still insignificant, ...

Source: Danviet