Viet Nam continues tax on imported vegetable oils as growing imports have affected local producers. — Photo baohaiquan.vn

HA NOI (Biz Hub) – Viet Nam will continue to take protective measures against imported vegetable oil as growing imports have affected domestic production, the industry and trade ministry (MIT) said.

Under a recent decision by the MIT, imported refined soya oil and refined palm oil with the trade codes of 1507.90.90, 1511.90.91, 1511.90.92 and 1511.90.99 would be taxed at three per cent from May 8, 2015 to May 7, 2016.

The rate will be reduced to two per cent from May 8, 2016 to May 7, 2017 and to zero per cent after May 8, 2017.

Protective measures will be implemented in line with current regulations on such measures against imports and other related regulations.

The MIT said a rapid increase in vegetable oil imports in Viet Nam had led to sharp falls in domestic enterprises' market share, turnover and profits, negatively affecting the enterprises.

In 2012, Viet Nam imported more than 568,000 tonnes of vegetable oil. The figure increased by 5.3 per cent in 2013.

Last year, the country imported nearly 666,600 tonnes of vegetable oil, a 11.3 per cent increase over 2013.

While imports jumped from 5.3 per cent in 2013 to 11.3 per cent in 2014, the growth of domestic sales plummeted from 42 per cent in 2013 to 11.3 per cent in 2014.

On May 8 last year, the country applied four per cent duty on imported vegetable oil to protect domestic oil producers. The rate took effect through May 6 this year. — VNS