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Viet Nam Restricts MSG Imports

Wednesday 16, 03 2016
HA NOI (VNS) — The Ministry of Industry and Trade will apply global safeguards in an emergency action to control increasing imports of monosodium glutamate to Việt Nam from March 25 this year.
Viet Nam Restricts MSG Imports

HA NOI (VNS) — The Ministry of Industry and Trade will apply global safeguards in an emergency action to control increasing imports of monosodium glutamate to Việt Nam from March 25 this year.

The monosodium glutamate will be taxed at nearly VNĐ4.4 million (US$197) per tonne, according to a report by the ministry’s Vietnam Competition Authority (VCA) on Monday.

The move is expected to create favourable conditions for domestic producers to overcome the serious damage caused by the increased import of monosodium glutamate in recent years.

Monosodium glutamate producer Vedan Việt Nam had requested the VCA to apply these protective measures on June 22, 2015.

In September, the Minister of Trade and Industry signed the decision on the issue. Questions related to the investigation were also sent to the relevant bodies.

According to Vedan, from 2012 to 2014, the import of monosodium glutamate to Việt Nam had sharply increased from countries such as China, Thailand and India. Of these, China took the lead, with 76 per cent of the total imports.
 

Viet Nam Restricts MSG Imports
Monosodium glutamate producer Vedan Viet Nam had requested the VCA to apply these protective measures on June 22, 2015. — Photo vietstock.vn

Statistics released by the VCA showed that the import of monosodium glutamate had doubled in 2012 and had increased by 172 per cent in 2013 and 441 per cent in 2014.

According to WTO regulations, the protective measures for imported monosodium glutamate must be removed in four years, with a reduction of 10 per cent per year. This timetable aims to ensure the domestic producers will have enough time to recoup their losses.

By March 25, 2020, the tax will be dropped to zero per cent, unless the protective measures are granted an extension. — VNS

Read more: 
Vietnam’s Textile Industry: Fail To Reach Target

Categories:
Financial News

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