How is Vietnam's sugarcane after applying trade remedies against imported sugar from Thailand?

Published 2021년 12월 31일

Tridge summary

In 2020, Vietnam's implementation of the ASEAN Trade in Goods Agreement (ATIGA) led to a significant increase in sugar imports, particularly from Thailand, causing a surge in the sugar market and negatively impacting the domestic sugar industry. The influx of cheap imported sugar resulted in the closure of many sugar factories, job losses, and financial difficulties for farming households. The Vietnam Sugarcane Association reported that only 30 out of 41 sugar factories were in operation by 2010 due to these challenges. The situation was worsened by suspected dumping and subsidies from the Thai government. In response, Vietnam applied anti-dumping and anti-subsidy measures on Thai sugar, resulting in a 75% decrease in imports in March 2021. This move helped equalize the market and increase local sugar prices, improving the livelihoods of sugarcane farmers.

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Original content

Looking back at the time in 2020, Vietnam started implementing its commitments in the ASEAN Trade in Goods Agreement (ATIGA), the sugar import tax rate of 5% has caused the amount of sugar imported into Vietnam to increase rapidly. There was a time when Thai sugar dominated the market In 2020, sugar imports from Thailand reached nearly 1.5 million tons, an increase of 330 percent compared to 2019. Sugar imported from Thailand in large volume and cheap has caused affect the domestic industry. According to the Vietnam Sugar Association, before ATIGA implemented, Vietnam had 41 sugar factories. By 2010, there were only 30 factories in operation, 1 factory was forced to close, 17 factories suffered losses, about 3,300 workers lost their jobs and 93,225 farming households were affected due to the difficulties of the manufacturing industry. domestic sugar exports. The sugarcane growing area has also shrunk significantly because the income from sugarcane does not guarantee the livelihood ...

Source: Vinanet