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China undercuts local produce growers
Wholesale markets specialising in agricultural produce have increased imports of Chinese vegetables and fruits, which are cheaper than Vietnamese-grown produce.
The wholesale markets of Binh Dien, Hoc Mon and Tam Binh are importing hundreds of tonnes of vegetables and fruits a day, mostly from China.
At city markets and supermarkets, the retail price of Chinese garlic is being sold for VND40,000 a kg while the price of local garlic is VND49,000.
Chinese ginger sells for VND40,000 a kg while locally grown ginger is priced at VND45,000.
Nguyen Thi Nga, a trader at the Binh Dien Wholesale Market, said she had sold onions, carrots, potatoes and cauliflowers from both Viet Nam and China, but had switched to Chinese produce for more than one year because of cheaper prices.
Despite the transport fees from China to Viet Nam, the imports still are cheaper than locally grown produce.
Most Chinese vegetables and fruits are transported directly from ports to wholesale markets without being stocked at the ports' bonded warehouses, and thus have a lower fee, according to Nga.
The price of Chinese dried onions imported to Viet Nam via official import channels, which includes transport fees, for example, cost only VND3,400 a kg, equal to 8 per cent of the retail price sold at local markets, according to the Customs Sub-agency of Sai Gon Port Zone 1.
Nguyen Ba Dinh, Deputy Head of the Customs Sub-agency of Sai Gon Port Zone 1, said imported agricultural produce from China with certificates of origin have zero per cent tariff, under the ASEAN-China Free Trade Area Agreement.
Of US$99 million of vegetables and fruits imported in the first five months of the year, vegetables and fruits from China accounted for 40 per cent, according to the General Statistics Office.
About 75 per cent of Chinese vegetables and fruits are imported via border gates.
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