Vietnam to investigate against trade remedy evasion of sugar from Thailand

There are indications that cane sugar from Thailand was imported into Vietnam through a third country.

The Vietnamese Ministry of Industry and Trade (MoIT) will investigate the evasion of trade remedies of Thai cane sugar products, which are imported into Vietnam through Laos, Cambodia, Indonesia, Malaysia, and Myanmar.

The move was made after the ministry received the request of domestic enterprises for the investigation.

The domestic sugar producers and the Vietnam Sugarcane and Sugar Association (VSSA) showed evidence that Thai cane sugar products are subject to anti-dumping and countervailing duties are being diverted to the five ASEAN countries before being sent to Vietnam.

Previously, on June 16, the MoIT slapped anti-dumping of 42.99% and anti-subsidy duties of 4.65% for five years on sugar originating from Thailand. The duties are applied on imported sugarcane under HS codes 1701.13.00, 1701.14.00, 1701.99.10, 1701.99.90, 1702.90.91 with the aim to ensure a fair and competitive environment for Vietnam’s sugar industry. 

Since the country applied these measures to cane sugar products originating from Thailand, the sugar import from ASEAN countries, except Thailand, has increased sharply.

Statistics from the General Department of Vietnam Customs noted the volume of sugar imported from the five above-mentioned ASEAN countries had sharply risen from 107,600 tons in October 2020 to 527,200 tons in June 2021.

Meanwhile, the import volume from Thailand has decreased by nearly 38%, from 955,500 to 595,000 tons in the period.

According to regulations, after initiating an investigation, the MoIT will send an investigation questionnaire to relevant parties to collect information in order to analyze, evaluate and clarify allegations as well as investigate acts of evading anti-dumping and anti-subsidy measures.

The ministry will carry out verification of information provided by related parties before completing the official investigation conclusion on the case.