Import tariffs to rise in Vietnam

The Ministry of Finance has published a circular saying tariffs on among others maize, corn, soybeans and powdered fish will rise between 5 to 15%.

 

The decision aims to reduce Vietnam’s dependence on the raw materials for making animal feed, which makes up 70% of the total products sold – and, hopefully, also boost the production of local raw materials.

 

The Vietnam Animal Feed Association’s chairman, Le Ba Lich, said the rise in costs would cause the prices of food and other goods to rise.

 

"I think it’s such an unreasonable and unacceptable decision. Farmers will be the first victims of the upcoming price hike," Lich said. "The ministry should consult us before promulgating the decision," he said.

 

At present, the price of animal feed has increased between 10 to 15 per cent compared to last year. Chicken feed has gone up by VND3,500 to VND5,200 per kilo and pig feed by VND6,900 per kilo.

 

Lich, said there could be another price hike in the early months of next year as animal feed factories would be forced to increase their prices or face the risk of bankruptcy.

 

He said the association would propose reducing import tariffs to zero to assure farmers did not lose.