Vietnam Sugar Market

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  • Topic: Sugar, Sugarcane, Sucrose
  • Pages : 182 (44685 words )
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  • Published : May 6, 2013
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Vietnam sugar program
Where next?

Prepared for the World Bank

Centre for International Economics Canberra & Sydney December 2001

The Centre for International Economics is a private economic research agency that provides professional, independent and timely analysis of international and domestic events and policies. The CIE’s professional staff arrange, undertake and publish commissioned economic research and analysis for industry, corporations, governments, international agencies and individuals. Its focus is on international events and policies that affect us all. The CIE is fully self–supporting and is funded by its commissioned studies, economic consultations provided and sales of publications. The CIE is based in Canberra and has an office in Sydney.

© Centre for International Economics 2003 This work is copyright. Persons wishing to reproduce this material should contact the Centre for International Economics at one of the following addresses. Canberra Centre for International Economics Ian Potter House, Cnr Marcus Clarke Street & Edinburgh Avenue Canberra ACT GPO Box 2203 Canberra ACT Australia 2601 Telephone +61 2 6248 6699 Facsimile +61 2 6247 7484 Email cie@intecon.com.au Website www.intecon.com.au Sydney Centre for International Economics Level 8, 50 Margaret Street Sydney NSW GPO Box 397 Sydney NSW Australia 1043 Telephone +61 2 9262 6655 Facsimile +61 2 9262 6651 Email ciesyd@intecon.com.au Website www.intecon.com.au

iii

Contents

Preface Summary
Concerns about the industry’s international competitiveness Better policies could deliver higher productivity Vietnamese policy makers must choose Policy changes to realise the productivity potential and international competitiveness of the industry

vii viii
viii x xiv xv

1

Why this study?
Investment in the sugar industry has been rapid and large Questions are emerging about sugar’s competitiveness Objective Our approach

1
1 2 2 3

2

The main structural elements of the industry
The industry is distributed widely throughout the country Mill sizes vary considerably Consumption can be segmented by product, buyer and region Patterns of production, consumption and imports

5
5 8 10 10

3

Policies affecting the sugar industry
The one-million-tonne sugar program Objectives of the program Instruments of the policy

15
16 16 18

4

Effects of policy
Economic effects of trade policies Economic effects of government controls over milling Economic effects of subsidies Strong market intervention discourages efficient investment

31
31 33 37 37

VIETNAM

SUGAR

PROGRAM

iv
CONTENTS

5

Economic performance
Competitiveness of sugar production Sugar’s contribution to the Vietnam economy

40
40 54

6

Future competitiveness
Future consumption growth The impact of subsidies on the industry and wider economy The impact of trade restrictions on the industry and economy The impact of higher productivity on the industry and economy Emerging principles

62
62 64 68 72 82

7

Policy challenges
Policies to realise the productivity potential of the industry Choosing the high--subsidy option

84
85 95

APPENDICES A Organisations consulted as part of this project B Model of the Vietnamese sugar industry C Comments and responses to the seminar on this report References Boxes, charts and tables 2.1 2.2 2.3 2.4 2.5 2.6 2.7 4.1 4.2 4.3 4.4 5.1 Sectors and regions represented in the model Vietnam — sugar mills Average annual cane crush for varying sized mills Distribution of production Sugarcane production growth has been strongest in the Centre Per person and total consumption of sugar products Growth in production, consumption and imports Economic impacts of trade restrictions There are distinct economies of scale in milling Economic impacts of small mills and high costs Economic impacts of subsidies International benchmarks

97 98 99 105 119

6 7 9 11 12 13 14 32 34 38 39 42

VIETNAM

SUGAR...
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