Fishery industry proposes to remove the import tax on soybean meal

On March 15, 2023, the Vietnam Association of Seafood Exporters and Producers (VASEP) sent Official Letter No. 24/CV-VASEP to the Ministry of Finance and the Ministry of Agriculture and Rural Development, proposing to reduce the import tax on soybean meal from 2% to 0% to support Vietnam's aquaculture industry.

According to VASEP, Vietnam's aquaculture industry has affirmed its position and importance over the past 20 years when not only making an outstanding contribution to the export turnover of agriculture but also creating millions of jobs for the seafood chain, making an essential contribution to the country's economic development and stabilizing social security in many provinces and cities. Of the US$11 billion in seafood export turnover in 2022, up to 62% is from aquaculture.

However, more and more impacts have caused the fishery industry to be significantly affected by the Covid-19 epidemic in recent years. The Russia-Ukraine conflict disrupted the raw materials supply chain and increased logistics costs and inflation. Especially the price of input materials for aquatic animal feed production rose to a record high and unstable, leading to high production costs of aqua feeds and products. 

Based on the submitted document No. 01/CV-HHTA dated February 20, 2023, of the Vietnam Animal Feed Association (VFA), sent to the Prime Minister and the Ministry of Finance, the Ministry of Agriculture and Rural Development as well as similar documents Letter of the Group of Large Enterprises in the feed industry sent to the Ministry of Finance, the Ministry of Agriculture and Rural Development and the Government Office on February 16, 2023, on the proposal to reduce the import tax on soybean meal from 2% to 0% to supporting Vietnam's animal feed and livestock industry, VASEP fully concurs and supports these proposals.

VASEP proposed the Ministry of Finance and the Ministry of Agriculture and Rural Development consider and reduce the import tax rate of soybean meal from 2% to 0%, to support the aqua feed industry in particular and feed and Vietnam's aquaculture industry continues to strengthen its position as one of the significant seafood producers and exporters in the world.