Tariffs being cut to zero under the ASEAN Trade in Goods Agreement (ATIGA) from January 1 this year and the COVID-19 pandemic have made for a tough year for the sugar industry, heard an online seminar held by Nhân Dân (People) e-newspaper on Wednesday.
Sugar firms have asked authorities to properly analyse the implications of the implementation of the ASEAN Trade in Goods Agreement (ATIGA) on farmers, workers and enterprises.
The domestic sugar industry should restructure all stages of its production process towards diversifying products to improve competitiveness, according to the Ministry of Agriculture and Rural Development.
Low consumption, high inventory and continuously plunging prices mean tough times for domestic sugar mills, said chairman of the Việt Nam Sugarcane and Sugar Association (VSSA) Phạm Quốc Doanh.
The sugarcane sector is facing record-low prices despite an increase of 500,000 tonnes of output over last year, leading to high inventory levels, according to the Việt Nam Sugar and Sugarcane Association (VSSA).
The Ministry of Industry and Trade (MoIT) will hold bids on the right to use duty quota to import 94,000 tonnes of sugar this year.
A group of sugar producers has asked for Government intervention as the industry struggles to compete with corn syrup imports.
The capacity of the Vietnamese sugarcane industry is expected to improve with a co-operation deal between the Việt Nam Sugar Association (VSSA) and Coca-Cola Beverages Việt Nam Co Ltd.