Vietnam has taken a decisive step to protect its domestic sugar industry by imposing anti-dumping duties and retaliatory measures on sugarcane subsidies originating from Thailand. These measures are scheduled to be in effect from August 18, 2023, until June 15, 2026. The move comes as a response to the impact on productivity and local labor caused by an influx of Thai sugar imports.
The Ministry of Industry and Trade of Vietnam has confirmed that the anti-dumping and retaliatory duties will be levied on several prominent Thai companies, including the Mitr Phol Group, the largest sugar and bioenergy producer in Asia. Four affiliated companies of Mitr Phol Group will also be subjected to the imposed duties. Additionally, the Thai Roong Ruang Industry Group, the second-largest producer of refined sugar in Thailand, and five affiliated companies, including Caesar Nikou Group Limited, will be subject to these duties.
The range of anti-dumping duties varies, with the lowest rate set at 25.73% and the highest at 32.75%. In contrast, the highest anti-subsidy duty is established at 4.65%.This recent development builds upon Vietnam’s prior action, wherein anti-dumping duties and anti-subsidy duties on sugar cane imports from Thailand were initially implemented in June 2021. During that period, the tax rate was set at 47.64%, a figure that remained unchanged until August 2022. The Vietnamese Ministry of Industry and Trade has since maintained this tariff structure to address the ongoing challenges faced by the local sugar industry.
Vietnamese authorities have expressed grave concerns regarding the impact of Thai sugar imports on their domestic market. These imports have been deemed responsible for causing significant harm to local sugar production, resulting in the displacement of around 3,300 jobs and adversely affecting 93,225 farming households.
The move to impose anti-dumping and retaliatory duties reflects Vietnam’s commitment to safeguarding its domestic industries and mitigating the adverse effects of external factors. As trade dynamics continue to evolve, nations are increasingly adopting measures to strike a balance between global trade and the preservation of their own economic interests. The ongoing developments in the sugar industry underscore the intricate interplay between international trade policies and the well-being of local economies. The implications of Vietnam’s decision are anticipated to resonate throughout the region, influencing future trade dynamics and prompting discussions on the necessity of protective measures in the face of economic challenges.