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Why VN must still ask to pass the salt
Deputy general director of the Viet Nam National Salt Corporation (Visalco) Le Nguyen Chuong spoke with the Viet Nam Economic Times.
Vietnam has a very long coastline, but still has to import salt. Why is there such a paradox?
Previously, Vietnam produced 800,000 to 850,000 tonnes of salt a year, quite enough to satisfy demand. But now, it has to import 250,000 tonnes of clean salt a year for industrial use, because our own salt is not pure enough. This is because of poor production technology.
It is the first time in 50 years that Vietnam has not been able to meet local demand. Vietnam has great potential for producing salt, but several traditional salt fields, such as at Phan Thiet and Nghi Son, have been lost to industrial and urban zones and tourism sites.
Even the southern province of Binh Thuan is planning to convert its top producer, Ca Na salt field producing 50,000 tonnes a year, into an industrial zone. In other areas, salt farmers have found that salt production brings few profits and are therefore turning to aquaculture.
Much of the weather earlier this year was unfavourable for salt farming. Bad harvests followed long cold spells and rains. Though we know that importing salt is a paradox, we do it to stabilise the market.
How does salt importation affect salt farmers’ lives?
Previously, when the price of salt reached VND350 a kilogram, salt farmers were more than happy. Now they sell crude salt at VND1,400 per kg, netting a profit of more than VND1,000 per kg. Farmers with one fifth of a hectare of salt ponds can get yields of 120 to 140 tonnes a year. This is worth VND12-20 million (US$727-1212).
Salt prices in Vietnam are high compared to other regional countries. Even in land-locked Laos, salt prices are lower than in Vietnam. This is unacceptable. Some people oppose the State’s decision to allow salt imports because they think this will lower prices and negatively affect farmers’ lives.
But salt output in the South this year is expected to reach only 70 per cent of last year’s figure. In the South-Central region it is expected to be 50 per cent; in the Centre, 20-30 per cent, and the North, 50-60 per cent. This means total output will be 500,000 tonnes, 400,000 tonnes less than needed to satisfy domestic demand.
We hope farmers will come back to salt production when they find prices have increased. According to the Ministry of Agriculture and Rural Development, the State will allow 200,000 tonnes of salt to be imported each year to meet house-hold demands.
What measures can be taken to develop the salt sector?
Due to poor management of the salt industry, we need a separate authority to manage the sector and to predict supply and demand. So far, Visalco’s task has been salt trading, not managing the whole sector. This is why salt farmers have little capability of boosting production.
Income from salt producing is often unstable. Many salt households turned to shrimp farming to get higher income, but aquaculture is always risky. To attract more salt farmers, we should ensure their product is of good quality. When the salt supply exceeds the demand, the State should support Visalco in stockpiling it, so that it can be released according to market demand. This will stabilise the market.
The State should have specific plans for developing salt-production areas and the development of industrial and urban zones and the aquaculture sector. Local authorities should not convert salt farming areas for short-term profit. If Vietnam exploits its potential, it can harvest two million tonnes of salt a year.
VNN
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