|Viet Nam continues tax on imported vegetable oils as growing imports have affected local producers. — Photo baohaiquan.vn
HA NOI (VNS) — Viet Nam will continue to take protective measures against imported vegetables oil because growing imports are affecting domestic production, the industry and trade ministry (MoIT) said.
Under a recent decision by the MoIT, imported refined soya oil and refined palm oil with the trade codes of 1507.90.90, 1511.90.91, 1511.90.92 and 1511.90.99 would be taxed at three per cent until next May.
The rate will be reduced to two per cent from May 8, 2016, to May 7, 2017, and to zero per cent after May 8, 2017.
Protective measures will be implemented in line with current regulations on such measures against imports and other related regulations.
The MoIT said a rapid increase in vegetable oil imports in Viet Nam had led to sharp falls in domestic enterprises' market share, turnover and profits, negatively affecting the enterprises.
In 2012, Viet Nam imported more than 568,000 tonnes of vegetable oil. The figure increased by 5.3 per cent in 2013.
Last year, the country imported nearly 666,600 tonnes of vegetable oil, a 11.3 per cent increase over 2013.
While imports jumped from 5.3 per cent in 2013 to 11.3 per cent in 2014, the growth of domestic sales plummeted from 42 per cent in 2013 to 11.3 per cent in 2014.
On May 8 last year, the country applied four per cent duty on imported vegetable oil to protect domestic oil producers. The rate took effect through May 6 this year.
Meanwhile, the average amount of cooking oil consumed by the Vietnamese people is expected to touch 16kg per year by 2020, the General Statistics Office said. The figure is expected to reach 18.5kg per person by 2025.
In 2014, the average was 9.55kg per year, lower than the world figure of 13.5 kg, the office said.
It attributed the increase in consumption to the rising demand for export and the development of the food processing industry.
Cai Lan Oils and Fats Industries Company led in terms of cooking oil turnover in 2014, accounting for 37.3 per cent of the country's market share.
The office said an estimated 680,000 tonnes of palm oil and 240,000 tonnes of soybean oil would be consumed during the 2014-15 period. — VNS