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Salt import question still unresolved
Many enterprises have asked for permission to import salt, which worries salt workers. Is Vietnam unable to produce enough salt for domestic consumption?
* A bitter harvest of salt
* MARD and MOIT argue over salt imports
Many firms want to import salt, mainly for use in food processing. HCM City Chemicals and Electric Materials has asked for permission to import 10,000 tons, the Green Energy Technology Company, over 50 tons. Other companies, including Ajinomoto Vietnam in Dong Nai province, Hoan Vu Vietnam in HCM City and Viet Tien Food Technology in HCM City have also asked for the permission to import salt.
The news immediately concerned salt workers, who cannot sell their products.
In fact, since Vietnam joined WTO, the country has not prohibited salt imports and can only install technical barriers to restrict them. Under current regulations, salt imports must obey Circular No. 23 (May 20, 2010), under which the Ministry of Industry and Trade, after estimating the volume of salt needed to be imported each year, will grant quotas to enterprises.
However, cooperation between relevant ministries in calculating the import volume has not gone smoothly. For example, in 2010, the Ministry of Agriculture and Rural Development (MARD) forecast that the domestic output of 1.1 million tons could meet domestic demand, but the Ministry of Industry and Trade (MOIT) still allowed the import of 260,000 tons of salt. Only when the salt price dropped dramatically, newspapers raised alarms over the price decline, and the Government ordered enterprises to buy salt to store, did MOIT put an end to the imports.
According to Ngo Tri Dung, under current regulations, not all kinds of salt are allowed. Mainly raw NaCl used in medical treatment, experiments, chemical industry and food processing is allowed and must meet technical requirements stipulated in legal documents.
Prior to June 2010, many enterprises wanted to import cheap salt products ($20-30 per ton) that contained impurities. However, since new legal documents stipulating the quality were issued, very few have asked for permission. In the last three months, only one company met customs requirements.
Market experts say it is not a surprise that many intend to import salt now. It is now the end of the salt crop and the price has been increasing. Firms want to import now to sell later, when prices increase further.
With the new laws, it will be impossible to import salt on a massive scale. Only high quality salt, priced at $80-90 per ton, can meet the technical requirements.
However, the legal documents stipulating the quality of imports only set temporary regulations and will become invalid after December 31, 2010. Industry experts want to prolong the technical barriers to protect domestic production and prevent massive imports.
Pham Thanh Bang, Deputy General Director of the Northern Food Corporation, commented that, though the salt imports would be inconsiderable, imports would still badly affect salt workers and plans to push salt prices up to ensure their profits. “If we can produce industrial salt, we should not allow industrial salt to be imported any more, except special kinds used in medical treatment and food processing,” he asserted.
vietnamnet, Tien phong
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