Business
A salty subject
  • | dtinews.vn | March 10, 2010 08:46 AM

The Ministry of Industry and Trade granted quotas allowing local companies to import a total of 170,000 tonnes of salt into Vietnam however, according to the Ministry of Agriculture and Rural Development, Vietnam is not short on salt.

According to a salt industry official, this serves only as a backup plan in case the domestic consumer demand is not met. Vietnam needs to be able to balance the import amount and the time of import depending on the salt market nationwide. The decision to import or not also depends on the country’s trade, import and export policy.

Sea salt is being harvested in Hai Ha Commune, Tinh Gia District, Thanh Hoa Province. (Photo: Viet Tung)

Vietnam has been importing salt for more than 10 years. The largest amount of salt being imported into Vietnam was 500,000 tonnes in the year 2000. From 2003 to 2007, the average amount of salt imported was about 200,000 tonnes and all was used for industry. In 2008, besides the usual annual import of industrial salt, the Ministry of Agriculture and Rural Development, for the first time, issued a quota allowing 40,000 tonnes of daily salt to be imported as a result of a salt shortage that took place during that year. Most imported salt comes from India, Australia and Pakistan.

However, the Ministry of Industry and Trade’s decision to import, right after Tet, a large quantity of salt when not knowing the salt production outcomes for this year, has sparked disapproval among the general public.

Purchasing salt at the beginning of the lunar year for good luck has long been a tradition of Vietnam, but the ministry’s decision, without giving any consideration to the salt production situation and local salt prices, is thought to bring about disappointment and a big concern for salt farmers.

According to statistics, local salt production was still be able to meet the country’s demands. In particular, the total area of salt was 14,476 hectares in 2009. This number increased by almost 16% in area, but reduced by 5% in volume compared to the previous year, resulting in a production of only 800,000 tonnes of salt in 2008 due to a bad harvest year and many farmers quitting their vocation.

However, in 2009, more than 200,000 tonnes of salt were imported from overseas to sufficiently meet the domestic consumer demand of the country. It is therefore unlikely that the country is going to see a shortage in salt this year.

Moreover, from mid 2009, local salt prices have significantly dropped and are now currently at their lowest. Salt prices in central Vietnam reduced to VND 500 – 700 per kilogram (2 – 3 cents USD) for the high-quality type, while it used to be VND 2,000 per kilogram (10 cents USD). Industrial salt prices fluctuate from VND 900 – 1,000 per kilogram (5 cents USD) due to farmers lack of capability to produce this type of salt.

Vietnam’s salt production is still done manually; therefore, local salt’s quality is not as high as imported salt that had been manufactured with technology. In addition, world salt prices are dropping to about 30 – 40 USD per ton and cost only about VND 800 per kilogram (4 cents USD) to import into the country. This is lower than domestic salt prices, thus making it a better option to choose from for local salt distribution companies.

An officer in the salt industry said the Ministry of Industry and Trade must carefully consider all aspects in before deciding to grant quotas for local companies to import salt. Importing large quantities of salt while the local supply of salt is still sufficient will imbalance supply and demand, thus causing local salt prices to drop and threaten the salt industry which has already been fragile.

However, the quota had already been granted and it is now up to the local companies whether to import or not. The salt season for 2010 is just beginning.

Vietnam has 120 communes that are involved in the nation’s salt production and about 250,000 salt workers in those farms.

According to scientists, each person needs 4-5kg of salt per year, so Vietnam needs around 400,000 tonnes of daily salt per year. The total demand for salt is around 1 million tonnes per year.

 


Leave your comment on this story