Vietnam slaps anti-dumping duty on Thai sugar
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Vietnam has applied an anti-dumping and anti-subsidy duty of 33.88 percent on raw sugar from Thailand to protect domestic producers.
The Ministry of Industry and Trade said that although its preliminary investigation found Thai sugar exporters have a dumping margin of 48.88 percent, it decided to collect 15 percentage points less after taking into account the socio-economic impacts of the duty and the benefits of farmers, manufacturers, and consumers.
The ministry began its investigation in September last year upon requests by Vietnamese sugar producers who claimed they were being hurt by the low-priced Thai product.
Its data showed that Vietnam’s sugar imports from Thailand rose 330 percent from 2019 to 1.3 million tonnes last year.
This resulted in 3,300 people losing their jobs as many factories had to close and more than 93,200 farmers were affected.
The final decision on the duties will be determined in the second quarter this year.
Questions & Answers
Q.What is the primary reason Vietnam introduced this duty on Thai sugar?
What is the primary reason Vietnam introduced this duty on Thai sugar?
Vietnam applied the anti-dumping and anti-subsidy duty on raw sugar from Thailand to protect its domestic producers. Vietnamese sugar producers had claimed they were being hurt by the low-priced Thai product, prompting the investigation.
Q.How much did Thai sugar imports into Vietnam increase prior to this duty being imposed?
How much did Thai sugar imports into Vietnam increase prior to this duty being imposed?
Vietnam's sugar imports from Thailand significantly increased, rising by 330 percent from 2019 to reach 1.3 million tonnes last year. This substantial rise contributed to job losses and factory closures in Vietnam.
Q.Why did Vietnam decide on a lower duty than the initial dumping margin found?
Why did Vietnam decide on a lower duty than the initial dumping margin found?
Although the preliminary investigation found a dumping margin of 48.88 percent, Vietnam decided to collect 15 percentage points less. This reduction was made after considering the socio-economic impacts of the duty and the benefits for farmers, manufacturers, and consumers.
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