The dominance of smuggled sugar in the domestic market has been challenging for local sugar factories and impacting farmers’ incomes, according to the Vietnam Sugarcane and Sugar Association (VSSA), reported Vietnam News.
Provincial market management agencies have reported ongoing sugar smuggling into Vietnam, with notable violations in June and July. On June 28, authorities in the southern province of Long An seized approximately 3.5 tonnes of smuggled sugar. Later, on July 31, a household business in Biên Hoà City, Đồng Nai Province, was found with 60 bags of smuggled sugar. Similarly, 40 bags of refined sugar, weighing two tonnes, were discovered at a facility in HCM City, where the owner failed to provide invoices or documentation proving the origin and quality of the goods.
According to VSSA, the total sugar supply reached nearly 1.34 million tonnes in the past seven months compared to 1.3 million for the whole year of 2023, when the oversupply was also recorded. By the end of July, around 60 percent of the sugar produced for the 2023-24 crop was stockpiled in factory warehouses. The association predicted that the combination of high official sugar imports from ASEAN countries, smuggled sugar from the southwest border, and weak demand would lead to an oversupply in the local market, forcing sugar factories to stockpile further in the remaining months of the year.
The association warned of potential market disruption if the surplus continues, which might force domestic producers to lower prices below production costs to remain competitive or reduce payments to sugarcane farmers. Industry experts noted that imported sugar often had an advantage due to its lower prices. A merchant at Tân Hiệp Market in Biên Hòa City reported that customers preferred imported sugar for bulk purchases, despite minimal differences in quality between imported and domestic products.
A representative from a local sugar company mentioned that their firm has been expanding sales through popular e-commerce platforms like Lazada, Tiki, Sendo, and Shopee. While Vietnamese consumers still favor domestic sugar, it is essential for producers to introduce new product lines and lower prices to compete effectively with imported sugar.
