Dong Thap Province’s market management authority confiscates smuggled sugar products - photo: DMS

Improvements in July

The decision was made after a careful and fair investigation and takes effect from August 18, 2023 until June 15, 2026.

According to a report by the Vietnam Sugar and Sugarcane Association (VSSA), in July 2023, although it increased, the price of Vietnamese sugar products remained lowest compared to that of products of the same kind in ATIGA (ASEAN Trade in Goods Agreement) sugar producing countries and China.

VSSA Chairman Nguyen Van Loc said that sometime in the past, low-price foreign-made sugar products flooded Vietnam, causing domestic sugar makers to buy fresh sugarcane at a price as high as the price of sugar products, and this made 16 Vietnam-based sugar factories close. The Ministry of Industry and Trade’s recent trade remedies have made the country-based sugar manufacturers feel at ease and reach a balanced situation, Loc said.

In the 2022-2023 crop, Vietnam achieved its dual goal of increasing and making its sugarcane purchasing prices equal to those in other countries in the region and at the same time keeping the lowest sugar prices. In the first seven months of 2023, sugarcane farmers had a bumper crop and sold sugarcane at good prices.

The sugarcane price in the 2022-2023 crop increased by 35 percent compared to three crops ago, Loc said.

Sugar production at the Son Duong Sugar and Sugarcane Joint Stock Company

Trade fraud control

Although the trade remedies have been applied, there remain concerns about smuggled sugar products. Loc assessed it is difficult to control sugar smuggling, as a number of legal loopholes are being exploited by individuals and organizations to commit trade frauds. The handling of confiscated smuggled sugar products remains inconsistent, while sugar smugglers are only subject to an administrative penalty, and the control of rock sugar packaging and production remains inefficient.

Through its Official Letter 52/CV-HHMD dated June 22, 2023, the VSSA has recently introduced to the Government its sugar smuggling control solutions, including destruction of all sugar products illegally imported from Thailand, stopping auction of smuggled Thai sugar products, application of anti-dumping and anti-subsidy taxes of 47.64 percent to sugar products illegally imported from Thailand, and inspection of rock sugar production and packaging, among others.