The hope for sugar industry
According to the advocate of Ministry of Agriculture and Rural Development, developing this decree for domestic sugar cane industry strengthens competitive ability, the enteprises are operating in this industry feel enough confident in the context of integration is getting deeply and widely
Mr. Le Van Banh, bureau chief of Farm, Forest, Aquatic and Salt Work, noted: Besides the sugar smuggled to Vietnam estimated 400,000 to 500,000 ton per year, Viet – Lao Boundary Trade Aggreement signed with the best favour when the export tarrif is 0%, VAT is 0%, no technical barrel, no limit quantity, etc which are push high pressure for domestic sugarcane industry
According to Banh, not just with Lao, Vietnam is participating deeply and widely in the global manufacture cycle when ASEAN Economic Community (AEC) established. Many important free-trade agreements are negotiated, successfully be signed, sugarcane industry also is facing high pressure from integartion
Benefit for farmer
The decree proposal has 33 points and in general, it can be seen that the exist problems, the causes of difficulties that sugarcane industry is facing will be unleashed when the decree is officially applied.
The material price in each harvest season is determined by factories for a long time. In reality, because of geography condition, the cost of crops in provinces is different, let the province estimates the cost itself will help the farmer avoid loss. At the same time, according to mr. Banh, to create the market orientation mechanism “agreement between the seller and the buyer”, also eliminate scrampling for buying for a long time. The decree proposal, on the one hand, regulate strictly the material area of each factory, on the other hand, create the open mechanism when offering the option for farmers to select, negotiate and sign the contract with factory. However, when the factory does not have ability to buy from farmers, they have a right to sell cane for other factories.
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