According to statistics, so far, the sugarcane plantation area around the country has reached 300,000 hectares, producing around 20 million tonnes of sugar.
Joining the TPP, the removal of the tariff barriers will help sugar enterprises to compete more fairly and benefit consumers. In addition, taking advantage of 0% export duties from 11 developed countries will help Vietnam’s sugarcane industry import modern machines for processing.
Meanwhile, sugar products from TPP member countries will be sold in Vietnam, including from Australia – the third largest sugar exporter in the world. Among TPP members, the price of sugar products in Vietnam is higher than others. Notably, Vietnam can produce only just over five tonnes of sugar per hectare of canes.
In addition to pressure from TPP countries, when the ASEAN Trade in Goods Agreement takes effect, the sugar import quota in South-East Asia will be removed and the Vietnamese sugarcane industry will have to compete with Thailand’s sugar that has become favoured by Vietnamese consumers in recent years.
According to the Deputy Director of the Department of Processing and Trade of Agricultural, Forestry, and Fishery Products and Salt Production, the domestic sugar industry will be protected at an appropriate extent through measures to maintain tariff quotas.
First, the TPP will help the Vietnamese economy to expand its export market, contributing to diversifying sugar export markets. The elimination of tariffs on products made of sugar will also increase opportunities for investment on deep processing as well as manufacturing products with high added value such as confectioneries and honey.
According to Chairman of the Board of Directors of Lam Son Sugarcane joint stock company Le Van Tam, when joining the TPP, enterprises should switch production methods from small to large scale, promote the mechanisation of production to increase productivity and quality, as well as reduce the price of products.
In addition, the businesses should focus on synchronous investment in modern equipment and the use of science and technology in production, ensuring sustainable links with farmers and implementing water-saving irrigation in order to increase crop yields.
The localities should encourage farmers to implement the ‘land consolidation’ campaign to form large-scale and concentrated sugarcane production areas, invest in production linkage models along the value chain to reduce costs, and improve economic efficiency.
It is necessary for local authorities to apply intensive farming techniques that are appropriate with each type of sugarcane seed, research and build irrigation systems for sugarcane fields depending on different areas.
The sugar mills need to continue to promote intensive investment projects to diversify products to meet the increasing demand of the market, and utilise by-products of sugar production to produce fertiliser, ethanol and electricity.
On the other hand, relevant agencies should review, build and supplement essential policies supporting enterprises links with farmers to implement ‘land consolidation’, promote mechanism and produce by-products.
| In the 2014-2015 crop, the price of white sugar (VAT included) ranged from VND11,000 to VND13,000 per kilogramme, and fell by around VND5,000-VND6,000 compared to the 2010-2011 crop, announced the Ministry of Agriculture and Rural Development. For the 2015-2016 crop, the sugar industry aims to produce 1.56 million tonnes of sugar, of which refined sugar is expected to reach 750,000 tonnes. |
