The document proposes solutions to support the Vietnamese sugar industry by encouraging exports and stabilizing domestic prices through a 100% interest subsidy from banks for enterprises storing sugar for export, aiming to alleviate difficulties in production and business operations and protect workers' income.
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LETTER
OF THE MINISTRY OF FINANCE NUMBER 342/TC-TCDN DATED JANUARY 11, 2001
REGARDING BALANCING SUPPLY AND DEMAND FOR SUGAR
CROP YEAR 2000-2001
Respected, Office of the Government
After studying the proposal of the Ministry of Agriculture and Rural Development in Document No. 4162/BNN-KH dated November 30, 2000 regarding balancing supply and demand for sugar crop year 2000-2001, the Ministry of Finance has the following comments:
In 2000, enterprises exported nearly 200,000 tons but still had a stock of 60,000 tons. According to the assessment of the Ministry of Agriculture and Rural Development, the sugar production for crop year 2000-2001 nationwide reached close to one million tons, equivalent to that of crop year 1999-2000. Therefore, the sugar output exceeded domestic consumption demand by approximately 200,000 tons.
Due to low world sugar prices last year and higher production than domestic consumption needs, domestic selling prices have decreased on average about 30% compared to previous years. Recently, the State has implemented various measures to support (adjusting loan periods, interest rates, financial assistance), but the situation of production and business in the sugar industry remains difficult; current selling prices are lower than production costs, causing continued losses for sugar factories. These losses significantly impact income and employment for hundreds of thousands of workers involved in sugarcane cultivation and laborers at sugar factories.
Vietnamese sugar products are processed agricultural goods that lack competitiveness compared to other countries in the export market. To encourage enterprises to seek export markets for sugar, create incentives for domestic consumption, gradually increase domestic prices, stabilize production, and develop the sugarcane industry, the Ministry of Finance recommends that the Prime Minister consider supporting 100% interest on bank loans for enterprises to reserve 100,000 tons of sugar for export over a three-month period; the total support amount is approximately 11.5 billion VND, sourced from the export support fund.
We request the Office of the Government to compile and submit this proposal to the Prime Minister for consideration and decision.
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