23/08/2006
VietNamNet Bridge – As of September 1, some 40 key Cambodian agricultural products imported into Vietnam will have their duties removed.
Concerns have been raised over whether Cambodian agricultural produce will dominate the Vietnam market and threaten agriculture. Analysts, on one hand, said that this will be a big challenge to Vietnamese farmers, on the other hand, said that Cambodia’s products will cause no major threat to local agriculture.
Most of the fruit grown in the Cuu Long River Delta are consumed domestically. This means that Vietnamese farmers will have to share the market with Cambodian colleagues, once Cambodia-sourced products can be sold at lower prices due to the removal of duties.
However, as Deputy Minister of Trade Phan The Rue pointed out, the Government has thought carefully before deciding to axe duties on agricultural imports with no limit on quantity. The removal of taxes will also cover tobacco imports, but a quota scheme will be applied to limit imports of this product.
The import of Cambodian agricultural products be done via 17 border gates. Nguyen Minh Nhi, former An Giang Peoples’ Committee cannot see any challenge in allowing Cambodian products import, saying that no Cambodian product can be competitive in Vietnam.
“In the past, I have several times signed the decision to allow Cambodian rice to be imported to An Giang Province with no duties,” said Mr Nhi.
He said that Cambodian farmers would be able to sell rice and other products at higher prices in Vietnam than in Cambodia due to the bad distribution network in their country.
According to Mr Nhi, the biggest concern now is that Thai products will penetrate Vietnam’s market through Cambodia to take advantage of the removal of duties. Once Thai fruits and sugar products penetrate the domestic market, they would be a serious threat.
Thai sugar products, for example, are always cheaper than Vietnam-made product. While Thai farmers can yield 80 tonnes of sugar cane per hectare, Vietnamese farmers get 50 tonnes only.
(Source: TBKTVN)
Concerns have been raised over whether Cambodian agricultural produce will dominate the Vietnam market and threaten agriculture. Analysts, on one hand, said that this will be a big challenge to Vietnamese farmers, on the other hand, said that Cambodia’s products will cause no major threat to local agriculture.
Most of the fruit grown in the Cuu Long River Delta are consumed domestically. This means that Vietnamese farmers will have to share the market with Cambodian colleagues, once Cambodia-sourced products can be sold at lower prices due to the removal of duties.
However, as Deputy Minister of Trade Phan The Rue pointed out, the Government has thought carefully before deciding to axe duties on agricultural imports with no limit on quantity. The removal of taxes will also cover tobacco imports, but a quota scheme will be applied to limit imports of this product.
The import of Cambodian agricultural products be done via 17 border gates. Nguyen Minh Nhi, former An Giang Peoples’ Committee cannot see any challenge in allowing Cambodian products import, saying that no Cambodian product can be competitive in Vietnam.
“In the past, I have several times signed the decision to allow Cambodian rice to be imported to An Giang Province with no duties,” said Mr Nhi.
He said that Cambodian farmers would be able to sell rice and other products at higher prices in Vietnam than in Cambodia due to the bad distribution network in their country.
According to Mr Nhi, the biggest concern now is that Thai products will penetrate Vietnam’s market through Cambodia to take advantage of the removal of duties. Once Thai fruits and sugar products penetrate the domestic market, they would be a serious threat.
Thai sugar products, for example, are always cheaper than Vietnam-made product. While Thai farmers can yield 80 tonnes of sugar cane per hectare, Vietnamese farmers get 50 tonnes only.
(Source: TBKTVN)
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