Local sugar industry losing against imported products
Huge amounts of locally-produced sugar are stockpiled, while the land given to sugarcane growing plummets as imported and smuggled sugar proves more competitive.
According to Vietnam Sugar and Sugarcane Association, sugarcane cultivation decreased to 219 hectares during the 2016-2017 season, the lowest since 2010. Sugarcane fields are affected by saltwater intrusion and other impacts of climate changes in the Mekong Delta.
Hoang Anh Tuan, deputy director of the Ministry of Industry and Trade's Domestic Market Department, said Vietnam would have about 1.7 million tonnes of sugar this year, of which 280,000 tonnes was inventory from earlier this year and 119,000 tonnes of imported sugar.
However, while sugarcane prices are stable, sugar prices have plummeted because of smuggled sugar and competitions with imported products. As of August 15, sugar stored at member companies of Vietnam Sugar and Sugarcane Association reached 555,000 tonnes, about 350,000 tonnes higher compared to same period last year.
In 2018, when several tariff quotas will be lifted in accordance with the trade agreements, Tuan suggested improving technology to increase productivity and lowering sugar prices to compete with imported products.
During the 2017-2018 season, sugar companies in Vietnam signed contracts to invest in nearly 249 hectares of sugarcane. They are expected to harvest 15 million tonnes of sugarcane and 1.42 million tonnes of sugar.
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