13:14 | 19/03/2016 Trade
The Ministry of Industry and Trade will apply global safeguards in an emergency action to control increasing imports of monosodium glutamate to Vietnam from March 25 this year.
The monosodium glutamate will be taxed at nearly 4.4 million VND (197 USD) per tonne, according to a report by the ministry’s Vietnam Competition Authority (VCA) on March 14.
The move is expected to create favourable conditions for domestic producers to overcome the serious damage caused by the increased import of monosodium glutamate in recent years.
Monosodium glutamate producer Vedan Vietnam had requested the VCA to apply these protective measures on June 22, 2015.
In September, the Minister of Trade and Industry signed the decision on the issue. Questions related to the investigation were also sent to the relevant bodies.
According to Vedan, from 2012 to 2014, the import of monosodium glutamate to Vietnam had sharply increased from countries such as China, Thailand and India. Of these, China took the lead, with 76 percent of the total imports.
Statistics released by the VCA showed that the import of monosodium glutamate had doubled in 2012 and had increased by 172 percent in 2013 and 441 percent in 2014.
According to WTO regulations, the protective measures for imported monosodium glutamate must be removed in four years, with a reduction of 10 percent per year. This timetable aims to ensure the domestic producers will have enough time to recoup their losses.
By March 25, 2020, the tax will be dropped to zero percent, unless the protective measures are granted an extension./.