Trade remedies help recover sugar industry

The Ministry of Industry and Trade has recently issued decisions extending, for an additional five years, the application of anti-dumping and countervailing measures on certain sugar products originating in Thailand. At the same time, it has extended anti-circumvention trade remedy measures on certain imported sugar products from five ASEAN countries: Cambodia, Malaysia, Myanmar, Laos, and Indonesia.

These decisions were made largely because the trade remedy measures implemented over the past five years have delivered positive results for Vietnam’s sugar industry and for domestic sugarcane farmers.

Trade remedies help revive Vietnam’s sugar industry

On June 15, 2021, the Ministry of Industry and Trade issued a decision imposing anti-dumping and countervailing measures on certain sugar products originating from Thailand.

More than a year later, on August 1, 2022, the ministry issued another decision applying anti-circumvention trade remedy measures to sugar products imported from five ASEAN countries: Cambodia, Malaysia, Myanmar, Laos and Indonesia.

On June 13, 2025, the ministry launched a sunset review of these anti-dumping and countervailing measures.

According to the Trade Remedies Authority of Viet Nam, based on an investigation conducted in accordance with Vietnam’s Law on Foreign Trade Management and the rules of the World Trade Organization, the measures have generated significant benefits for both sugarcane growers and Vietnam’s sugar industry over the past five years.

The trade remedies have substantially reduced the volume of dumped and subsidized sugar imports. Imports from Thailand fell sharply from 924,000 tonnes to just 82,000 tonnes in the 2022/2023 crop year. Although imports increased to 274,000 tonnes in the 2024/2025 crop year due to lower Thai sugar prices, the volume remained far below pre-measure levels.

Domestic sugar production has steadily recovered and maintained sustainable growth. In the 2024/2025 crop year, Vietnam’s sugar output exceeded 1.2 million tonnes, 1.7 times the 2020/2021 level, enabling the industry to meet domestic demand effectively. Industry revenue and profit recovered to 1.63 times and 2.49 times their 2020/2021 levels, respectively.

Many sugarcane-growing areas that had previously been abandoned have been restored, particularly in economically disadvantaged regions where sugarcane remains one of the most profitable crops. Harvested sugarcane area increased by nearly 50%, from 128,666 hectares in the 2020/2021 crop year to 192,660 hectares in 2024/2025. Sugarcane production almost doubled during the same period, rising from 6.74 million tonnes to 12.43 million tonnes.

Supported by the effectiveness of these trade remedy measures, sugar mills have actively invested in improving sugarcane productivity and quality. Average yields increased from 60.7 tonnes per hectare in the 2020/2021 crop year to 73.3 tonnes per hectare in 2024/2025. Meanwhile, the Commercial Cane Sugar (CCS) index has remained stable at around 10%.

Growing confidence among sugarcane farmers has encouraged them to reinvest in new varieties, adopt advanced cultivation techniques, and expand mechanization, as reflected in the significant increase in productivity. This has helped maintain approximately 193,000 hectares of agricultural land under sugarcane cultivation and preserve the production, processing, and marketing value chain across many localities.

According to the Trade Remedies Authority of Viet Nam, trade remedy measures have also contributed positively to social welfare and rural development in numerous provinces nationwide.

The number of sugarcane-growing households increased from an estimated 151,000 in the 2020/2021 crop year to 225,000 in the 2024/2025 crop year. Most of these households belong to ethnic minority communities and economically disadvantaged groups.

In addition, farmers’ incomes have become more stable as sugar mills have introduced policies guaranteeing higher sugarcane purchase prices and providing support through improved seed varieties and advanced financing.

Risks of removing trade remedy measures

The investigating authority has found clear evidence indicating that Vietnam’s domestic sugar industry could suffer renewed injury if the current trade remedy measures were terminated.

Specifically, the investigation determined that the products under review were being dumped and subsidized during the review period. There is also a likelihood that dumping and subsidization would continue or recur if the anti-dumping and countervailing measures were removed.

The impact of imported sugar on Vietnam’s sugar industry has shown signs of increasing again over the past two crop years as sugar prices in Thailand have fallen. Without trade remedy measures, significant price disparities could emerge, potentially leading to price suppression and price undercutting in the domestic market.

Although Vietnam’s sugar industry has partially recovered, its economic indicators remain highly sensitive to fluctuations in imports. The industry could face substantial injury if anti-dumping measures were discontinued.

Based on these findings, the investigating authority concluded that there is a strong likelihood that the imported products under review would resume dumping and continue receiving subsidies, causing injury to the domestic industry should the anti-dumping and countervailing measures lapse.

According to Dr. Cao Anh Duong, statistics from the Viet Nam Sugarcane and Sugar Association show that domestic sugarcane and sugar production reached its highest level in the past decade during the 2017/2018 crop year, with 15.43 million tonnes of sugarcane and 1.477 million tonnes of sugar produced.

Subsequently, under mounting pressure from sugar imports from Thailand, production declined sharply, reaching a low of 6.739 million tonnes of sugarcane and 690,000 tonnes of sugar in the 2020/2021 crop year.

Following the introduction of trade remedy measures, the industry has steadily recovered. By the 2024/2025 crop year, production had rebounded to 12.429 million tonnes of sugarcane and 1.266 million tonnes of sugar.

In 2024, Viet Nam ranked 19th among the world's sugar-producing countries.