Oilseeds and Products Annual

An Expert's View about Agriculture and Animal Husbandry in Vietnam

Last updated: 12 May 2011

In CY 2010, U.S. soybean meal exports to Vietnam reached a record 429 thousand metric tons (TMT), an increase of 146 percent over the previous year.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 5/5/2011 GAIN Report Number: VM1033 Vietnam Oilseeds and Products Annual New Crushing Plants Change Outlook for U.S. Soybean, SBM Exports to Vietnam Approved By: Justin Taylor Prepared By: Nguyen Huong and Julie MacCartee Report Highlights: In CY 2010, U.S. soybean meal exports to Vietnam reached a record 429 thousand metric tons (TMT), an increase of 146 percent over the previous year. Because of exceptional growth and an increased emphasis on quality within the feed industry, Post expects U.S. exports of soybean meal to reach another record in 2011. The first two commercial oilseed crushing facilities in Vietnam are expected to begin operation in the second and third quarters of 2011; this should lead to a decrease in the rate of soybean meal imports in the second half of 2011 and beyond. Accordingly, Post expects imports of full-fat soybeans to steadily increase in the next three to five years. Executive Summary: Vietnam?s oilseed production continued to fall well below demand from the food industry, the livestock and aquaculture feed sectors, and the vegetable oil industry. Although plans have been set to expand growing areas for major oilseed crops, Post doubts that production will increase as much as the Government of Vietnam desires due to the high input costs and generally low yields of oilseed crops in Vietnam. Imports of soybeans and soybean meal in 2010 rose significantly due to increased demand from the food processing, livestock, and aquaculture feed industries combined with a zero percent import tariff. Vietnam?s soybean imports reached a record 228 thousand metric tons (TMT) in 2010, a 24 percent increase over the previous year with 78 percent of total imported volume from the United States. Soybean meal imports remained high at 2.5 million metric tons (MMT). U.S. soybean meal exports to Vietnam in 2010 hit a record 429 TMT, an increase of 146 percent over the previous year. Post expects that soybean meal imports will begin to decline in the second half of 2011 due to the opening of the first oilseed crushing facilities in Vietnam. Post expects U.S. soybean meal imports to increase slightly in 2011 but decline in 2012 as more meal is produced locally. Accordingly, Post expects imports of full- fat soybeans to steadily increase in the next three to five years. Because the United States has a larger market share and competitive advantage in exports of soybeans compared to soybean meal within the Vietnamese market, Vietnam?s shift to importing more beans for local crushing is a positive development for U.S. trade. Vietnam imported an estimated 721 TMT of crude and refined vegetable oils of all types in 2010, a 14 percent increase over 2009, to meet growing local demand. Post expects this trend to continue in the next three to five years. Commodities: Oilseed, Soybean Production: Vietnam?s 2010 soybean production increased 39 percent over the previous year to 297 thousand metric tons (TMT), although the scale remains relatively small and continues to fall far short of domestic demand (Table 1). A significant expansion in crop area (about 35 percent) and greater efforts to improve yield contributed to higher output in 2010. However, this output still fell far below the 2010 target of 325 TMT, set by the Ministry of Agriculture and Rural Development (MARD), due to high production costs and Vietnam?s generally inferior soybean yields. The soybean has been cultivated for a very long time in Vietnam. A short-duration crop, the soybean is suitable for rotation and improving soil fertility. According to official government statistics, soybeans are grown in twenty eight provinces across the country, with approximately 70 percent cultivated in the north and 30 percent in the south. About 65 percent of Vietnam?s soybeans are grown in upland areas, mostly on low-fertility soil, and 35 percent in the lowlands of the Red River Delta. They are grown at various times of year in different areas of the country and may be incorporated as a spring, summer, or winter crop. Vietnamese scientists are conducting research on biotech and other modern soybean varieties with higher output levels and lower production costs. At present, MARD has approved three biotech crop types for field trials ? corn, cotton, and soybeans. Reportedly, many farmers are interested in growing Bt soybeans, but no companies are applying to implement Bt soybean field trials at this time. When a company does apply, the field trial period is expected to last for two or three years before final approval for commercialization is granted. Given the slow pace of the implementation process, it is doubtful that commercial production of any of biotech oilseed crops will begin in the near future in Vietnam. Table 1: Soybean production 2005 2006 2007 2008 2009 2010 2011 Crop area (thousand ha (tha)) 204.1 185.6 190.1 192.1 146.2 197.8 215* Crop yield (MT/ha) 1.43 1.39 1.45 1.39 1.46 1.50 1.63* Total production (TMT) 292.7 258.1 275.5 267.6 213.6 296.9 350* Source: General Statistics Office (GSO), *FAS estimates Graph 1: Vietnam?s soybean production Source: General Statistics Office (GSO), *2011-FAS estimates Consumption: Almost all domestically-produced soybeans are used to meet the growing domestic demand. Most of the soybeans produced in Vietnam, along with the high-quality imported soybeans, are used for human consumption. Major products include traditional non-fermented foods including tofu, soy milk, and soy flour for the food processing industry; lesser quantities are used for soy sauce, miso paste, and household-scale soybean oil production. Only a small portion of the soybeans produced in Vietnam are used for animal feed. Imports paint a different picture ? roughly three quarters of imported soybeans in 2010 went to animal feed and one quarter to human consumption. Several local feed mills have started using imported full-fat soybeans for their commercial feed production. In 2010, commercial feed production in Vietnam grew by more than 10 percent, in response to growing demand from the livestock sector. MARD estimates that the demand for locally- produced commercial feed will grow to 16,000 TMT by 2015 and 19,000 TMT by 2020. Furthermore, local demand for oil is growing, and the reduced tariff rate for soybeans (zero percent) makes crushing plants an attractive investment in Vietnam. In 2011, Vietnam?s first two soybean crushing facilities are scheduled to begin production. Construction of Bunge Vietnam's 3,000 MT per day capacity soybean crushing facility, within the Phu My port complex in the South, will be completed in May 2011 (See Photo 1). This facility will be capable of unloading ships that meet the size requirements to fit through the Panama Canal, known as ?Panamax? vessels. In the North, a 1,000 MT per day capacity crushing plant managed by the Quang Minh Group in Hung Yen province is expected to be completed in the third quarter of 2011 (See Photo 2). Accordingly, Post expects the demand for imported full-fat soybeans to be much higher in the coming years. Photo 2: Bunge Vietnam Crushing Plant in Southern Vietnam Capacity: 3,000 MT per day Photo: Bunge Vietnam Photo 1: Quang Minh Group? Crushing Plant in Northern Vietnam Capacity: 1,000 MT per day Photo: Quang Minh Group Trade: Imports In 2010, Vietnam imported over 227,000 MT of soybeans, an enormous hike of 24 percent over the previous year. The import value in 2010 reached $106 million, nearly tying the record of $107 million set in 2008. Approximately 78 percent of Vietnam?s soybean imports come from the United States; the rest are sourced from Canada, China, Argentina, Uruguay, and other countries (Table 2). Recent import growth is due to strong demand from both the food and feed sectors. The total import volume of full-fat soybeans should increase to about 700 TMT in CY 2011 (MY 2010), based on our projection for the operation of Vietnam?s two new oilseed crushing plants in the second and third quarters of 2011. For CY 2012 (MY 2011) we expect imports to more than double to 1.5 MMT. Marketing efforts in Vietnam for U.S. soybeans and soybean meal are supported by the American Soybean Association ? International Marketing (ASA-IM) office in Hanoi. Table 2: Soybean imports by sources 2008 2009 2010 Quantity Value Quantity Value Quantity Value Country (MT) (thousand $) (MT) (thousand $) (MT) (thousand $) Total 138,853 107,257 183,886 84,706 227,651 106,469 Imports: USA 105,703 71,591 141,194 65,413 178,111 87,384 Canada 4,763 2,740 6,152 3,102 17,818 8,526 China 16,348 2,676 20,500 3,438 13,736 2,191 Argentina 8,176 4,172 3,711 1,907 13,263 5,971 Others 3,863 26,078 12,329 10,846 4,723 2,397 Source: General Customs Department, Global Trade Atlas, Post adjusted statistics Graph 2: Vietnam?s total soybean imports (2007-2010) Source: General Customs Department, Global Trade Atlas, Post adjusted statistics Ports Vietnam has three deep-water ports: 1) Phu My-Ba Ria Serece port and 2) Cai Mep Interflour port, both located on the Thi Vai River of Ba Ria, Vung Tau Province, Southern Vietnam (about 30 miles from Ho Chi Minh City); and 3) Cai Lan port in Quang Ninh Province on the Northeast coast. These ports can all handle large vessels (50,000+ tons). With its latest expansion in late 2010, the Cai Mep Interflour port should be capable of receiving Panamax-sized 75,000 DWT vessels, which will lower freight costs, thus making U.S. agricultural commodities (including soybeans) more competitive for shipment to Vietnam. According to Vietnam National Shipping Lines (Vinalines), the recently-opened Cai Mep International Terminal (CMIT) in Vung Tau province, near the major Interflour and Phu My ports, has purchased and received the first two of six Super Post-Panamax Ship-To-Shore (STS) quay cranes, designed to handle the largest vessels currently afloat (15,000 TEUs). CMIT is the first container terminal in Vietnam to cater to this size of container vessel. Additional features include 22 container bays and direct access to the newly dredged Cai Mep Terminal Channel, which has a minimum water depth of 14m. Shipping lines have shown interest in Southern Vietnam in recent months, with twelve vessels strings already offering direct liner services between Cai Mep and North America, EU, and the Mediterranean. Cai Lan International Container Terminal in northern Vietnam began construction in 2010 of a container terminal in Cai Lan, Quang Ninh province, with a total investment of US$155 million. Upon scheduled completion in June 2012, the terminal will be able to handle container vessels of 3,000-4,000 TEUs. Currently, soybeans imported to Vietnam are shipped by both containers and bulk vessels. However, according to local importers, the cost for containers is growing more expensive due to a shortage of container supplies in high seasons (quarters 2 and 4 in the year). In addition, the freight rate is considerably higher for container cargo than for bulk cargo. Thus, bulk import shipments of soybeans are likely more competitive and preferable for Vietnam. This logic holds as long as the crushing plants can find sustained demand for the soybean oil created by the crushing process, and keep their plants running at or near capacity. Prices Vietnam?s average import price for soybeans in 2010 was $472 per metric ton, about a 7 percent increase over 2009 ($442), but 18 percent lower than the 2008 price ($575) (Graph 3). Local traders forecast that soybean import prices will remain high due to strong demand in the world market, rising oil/gas prices, and higher ocean freight costs. Import prices for grade 2 full fat soybeans were $595, $610 and $585 per metric ton, CFR Hai Phong in January, February and March 2011, respectively. Graph 3: Vietnam?s average soybean import prices (2008-2010) Source: General Customs Department, Post adjusted statistics Import Tariffs: The tariff rate applied to soybeans (HS Code: 1201) imported from countries having Most Favored Nation (MFN) status with Vietnam is 0 percent / 5 percent VAT. Tariffs rates for other trade agreements are listed in Table 3. Table 3: Soybean import tariffs HS code De t tariffs (%) scription Impor VAT MFN AIFTA AANZFTA VJEPA AJCEP ACFTA AKFTA CEPT (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 1201 Soybeans, whether or not broken - Suitable for 1201.00.10 sowing 0 0 0 0 0 0 0 0 * *, 1201.00.90 - Other 0 4.5 5 4 5 5 5 0 5 Source: Ministry of Finance Notes: MFN: Most Favored Nation AIFTA: ASEAN-India Free Trade Agreement AANZFTA: ASEAN-Australia-New Zealand Free Trade Agreement VJEPA: Vietnam-Japan Economic Partnership Agreement AJCEP: ASEAN Japan Comprehension Economic Partnership ACFTA: ASEAN China Free Trade Agreement AKFTA: ASEAN Korea Free Trade Agreement CEPT: Common Effective Preferential Tariff VAT: Value Added Tax Table 4: Vietnam?s Production, Supply & Demand Table for Soybeans Oilseed, Soybean V /2010 2010/2011 2011/2012 ietnam 2009 Market Year Begin: Jan Market Year Begin: Jan Market Year Begin: Jan 2010 2011 2012 1000 HA, 1000 MT USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 0 198 0 215 235 Area Harvested 200 198 200 215 235 Beginning Stocks 13 13 28 28 28 Production 300 297 300 350 388 MY Imports 220 228 400 700 1,500 MY Imp. from U.S. 160 178 170 550 1,200 MY Imp. from EU 0 0 0 0 0 Total Supply 533 538 728 1,078 1,916 MY Exports 0 0 0 0 0 MY Exp. to EU 0 0 0 0 0 Crush 0 0 100 500 1,300 Food Use Dom. Cons. 350 355 345 370 400 Feed Waste Dom. Cons. 155 155 175 180 200 Total Dom. Cons. 505 510 620 1,050 1,900 Ending Stocks 28 28 108 28 16 Total Distribution 533 538 728 1,078 1,916 Source: General Customs Office, Global Trade Atlas, Post adjusted statistics Table 5: Vietnam?s Soybean Import Matrix Country Vietnam Commodity Soybeans Time Period Jan-Dec Units: MT Imports for: 2009 2010 U.S. 141,194 U.S. 178,111 Others Others China 20,500 Canada 17,818 Canada 6,152 China 13,736 Argentina 3,711 Argentina 13,263 Cambodia 2,360 Uruguay 1,899 American Samoa 1,379 Ukraine 884 India 1,088 Cambodia 810 Japan 550 Thailand 410 Myanmar (Burma) 374 Laos 242 Thailand 293 Taiwan 175 Laos 260 Japan 128 Total for Others 36,667 49,365 Others not Listed 6,025 175 Grand Total 183,886 227,651 Source: General Customs Office, Global Trade Atlas, Post adjusted statistics Commodities: Oilseed, Peanut Production: According to the General Statistics Office, Vietnam?s peanut production dropped by 4.9 percent in 2010 to 486 thousand metric tons (TMT), and the planted crop area decreased by 5.7 percent. Because peanuts can only be grown in specific soil conditions (sandy to light textured soils), Vietnam has only two main production areas: Nghe An in the North Central region (Nghe An, Thanh Hoa), the other in the South (Cu Chi, Long An, Tay Ninh). MARD indicates that in some provinces, farmers lacked motivation to expand production, as peanuts are less profitable compared with other crops. In 2011, Post expects production to increase 6 percent to 515 TMT because farmers will be planting better varieties, although the crop area is unlikely to expand back to 2009 levels (Table 6, Table 11). Table 6: Peanut production, 2008 - 2012 2008 2009* 2010* 2011 est.** 2012 est.** Crop area (tha) 255.4 245 231 245 250 Crop yield (MT/ha) 2.08 2.09 2.11 2.1 2.2 Total production (TMT) 530.5 510.9 485.7 514.5 550 Source: General Statistics Office (GSO), *MARD, **Post estimates Consumption: Post estimates that 475 TMT of peanuts were consumed domestically in Vietnam in 2010. The majority of peanuts are used in the snack and confectionery industries and a small amount are used in-shell for household consumption, extruded for cooking oil, or exported. Trade: Imports Vietnam regularly imports a small amount of peanuts, both in-shell and shelled. About 98 percent of total peanut imports come from China, India, and Laos. Due to demand from the snack food industry, Vietnam?s total peanut imports (in-shell equivalent) reached 4,988 MT in 2010, an increase of 57 percent over the previous year. Vietnam?s 2010 imports of shelled peanuts reached 3,300 MT, equivalent to 4,389 MT of in-shell peanuts, a 64 percent increase over the previous year (Table 8). Table 7: In-shell peanut imports by source Country 2008 2009 2010* Quantity Value Quantity Value Quantity Value (MT) (thousand $) (MT) (thousand $) (MT) (thousand $) Total in-shell peanut imports: 679 753 504 173 599 415 China 269 86 459 141 547 351 Indonesia 400.5 656 19 26 n/a n/a Other countries 9.5 11 26 6 52 64 Source: General Customs Department, *Global Trade Atlas * Note: In-shell peanuts: HS code 120210 Table 8: Shelled peanut imports by source Country 2008 2009 2010 Quantity Value Quantity Value Quantity Value (MT) (thousand $) (MT) (thousand $) (MT) (thousand $) Total shelled peanut imports converted into in-shell peanuts 1,147.8 510 2,674.6 1,106 4,389 1,372 Total shelled peanut imports 862 510 2,011 1,106 3,300 1,372 China 237 76 1,109 306 1,893 488 India 516 315 593 553 822 594 Laos n/a n/a 193 82 535 221 Other countries 109 119 116 165 50 69 Source: General Customs Department, * Note: Shelled peanuts: HS code 120220 and 200811 (excluding peanut butter); Conversion rate: 1.33 Exports In 2010, Vietnam exported a small quantity of in-shell and shelled peanuts, mainly to Thailand, Malaysia, Indonesia, Philippines, Taiwan, and China. Total exports of both in-shell and shelled peanuts dropped significantly in 2010 due to decreased demand (Table 9). Table 9: Vietnam?s peanut exports Year 2007 2008 2009* 2010* 2011** est. In-shell peanut exports (MT) 8,000 2,400 4,200 3,700 4,000 Shelled Peanut exports (MT) 36,800 30,000 20,500 13,100 13,000 Total converted into in-shell peanut exports (MT) 56,900 41,900 31,500 21,100 21,300 (conversion rate 1.33) Source: General Statistics Department, *Global Trade Atlas, **Post estimates Table 10: Peanut import tariffs HS De Import tariffs (%) scription VAT code MFN AIFTA AANZFTA VJEPA AJCEP ACFTA AKFTA CEPT (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 1202 Peanuts, not roasted or otherwise cooked, whether or not shelled or broken - - Suitable for 1202.10.10 sowing 0 0 0 0 0 0 0 0 * 1202.10.90 - - Other 10 8 10 7 6 5 5 0 *, 5 - Shelled, whether or not 1202.20.00 broken 10 8 10 7 6 5 5 0 *, 5 Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not 2008 containing added sugar or other sweetening matter or spirit, NESOI. - - - Roasted 2008.11.10 nuts 32 35 30 32.5 30 15 20 5 10 - - - Peanut 2008.11.20 butter 22 35 30 32.5 30 15 20 5 10 2008.11.90 - - - Other 24 35 30 32.5 30 15 20 5 10 Source: Ministry of Finance; Notes: VAT*: 0 percent Table 11: Vietnam?s Production, Supply & Demand Table for Peanuts Oilseed, Peanut V 009/2010 2010/2011 2011/2012 ietnam 2 Market Year Begin: Jan Market Year Begin: Jan Market Year Begin: Jan 1000 HA, 1000 MT 2010 2011 2012 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 0 244 0 245 250 Area Harvested 260 244 260 245 250 Beginning Stocks 33 33 36 8 8 Production 550 486 550 515 550 MY Imports 6 5 6 8 8 MY Imp. from U.S. 0 0 0 0 0 MY Imp. from EU 0 0 0 0 0 Total Supply 589 524 592 531 566 MY Exports 23 21 30 23 25 MY Exp. to EU 0 0 0 0 0 Crush 20 20 20 20 20 Food Use Dom. Cons. 510 475 510 480 510 Feed Waste Dom. Cons. 0 0 0 0 0 Total Dom. Cons. 530 495 530 500 530 Ending Stocks 36 8 32 8 11 Total Distribution 589 524 592 531 566 Source: General Customs Office, Global Trade Atlas, FAS estimates Table 12: Vietnam?s Peanut Import Matrix Country Vietnam Commodity Peanuts (in-shell basis) Time Period Jan-Dec Units: MT Imports for: 2009 2010 U.S. 0.08 U.S. 0 Others Others China 1,933 China 3,065 India 788 India 1,093 Laos 283 Laos 712 Russian Federation 51.2 Hong Kong 52 South Korea 49.4 Thailand 66.5 Thailand 28.4 Indonesia 19.4 Malaysia 19.0 Philippines 6.9 Total for Others 3,178 4,988 Others not Listed 0.13 Grand Total 3,178 4,988 Source: General Customs Office, Global Trade Atlas Table 13: Vietnam?s Peanut Export Matrix Country Vietnam Commodity Peanuts (in-shell basis) Time Period Jan-Dec Units: MT Imports for: 2009 2010 U.S. U.S. Others Others Indonesia 11,909 Thailand 12,279 Thailand 10,554 Indonesia 2,338 China 2,597 Malaysia 2,291 Malaysia 2,096 Taiwan 2,051 Taiwan 1,915 Philippines 1,349 Singapore 696 Canada 250 Philippines 469 Singapore 233 Ukraine 410 Ukraine 145 Russia 314 Russia 133 Total for Others 30,960 21,069 Others not Listed 505 66 Grand Total 31,465 21,135 Source: Global Trade Atlas Commodities: Meal, Soybean Production: Vietnam has historically produced a negligible amount of soybean meal due to a lack of commercial crushing facilities. Post estimates zero soybean meal production in 2010. However, the newly-built Bunge crushing plant (3,000 MT per day capacity) and Quang Minh Group crushing plant (1,000 MT per day capacity) are slated to begin operation in May 2011 and the 3rd quarter of 2011, respectively (See Commodities: Oilseed, Soybean - Photo 1 and Photo 2). Local soybean meal production could reach 120,000 MT in 2011 and is expected to increase significantly in the coming years. However, demand for soy oil serves as a potential limiting factor in meal production (See Commodities: Oil, Soybean). Consumption: According to the American Soybean Association office in Vietnam, about 70 percent of soybean meal goes to hog feed, 15 percent to poultry feed, 10 percent to aquaculture feed, and 5 percent to other uses. Trade: Imports Vietnam?s 2010 soybean meal imports reached a record of over 2.7 million metric tons (MMT), a 10.2 percent increase over 2009 due to surging demand from the feed industry. Vietnam?s large imports of soybean meal illustrate the shortage of protein sources in the country. Post expects imports of soybean meal in CY 2011 (MY 2010) to reach 2.55 MMT, slightly less than the 2010 figure, and in CY 2012 (MY 2011) to be about 2.00 MMT. In 2010, Argentina became the largest supplier of soybean meal to Vietnam for the first time, taking market share from India. Argentina?s market share accounted for 42 percent in 2010, while India?s market share dropped to 29 percent in 2010 from 41 percent in 2009. This shift was due to several factors: Cheaper freight rates available from Argentina as ships sought to pick up back-haul cargos at reduced prices High prices for Indian meals in 2010 due to local demand Higher quality of Argentinean meals compared to Indian meals Hesitation to import Indian meals stemming from two pest/weevil infected shipments of corn and meal from India in late 2010 and early 2011 U.S. soybean meal exports to Vietnam in 2010 totaled an estimated 429 TMT, rising 147 percent over the year before. Although the U.S. market share in Vietnam is small, it increased to 16 percent in 2010 from 3.7 percent in 2008 and 7 percent in 2009 (Table 14). The quality of U.S. soybean meal is high, and U.S. meal is becoming more competitive as Vietnamese feed producers become more sophisticated. Local traders project that U.S. soybean meal will increase its market share again in CY 2011 due to U.S. marketing efforts and the feed industry?s desire for quality meal. Marketing efforts in Vietnam for U.S. soybean meal are supported by the American Soybean Association ? International Marketing (ASA-IM) office in Hanoi. Table 14: Soybean meal imports by source in the period 2006-2010 2006 2007 2008 2009 2010 S/N Total Imports: (TMT) 1,641 2,549 2,461 2,478 2,737 1 Argentina 541 731 415 983.8 1,137 2 India 922 1,563 1,751 1,014.6 804 3 USA 31 49 90 173.6 429 4 Brazil 59 42 73 69.5 273 5 China 0.5 46 47 171.2 45 6 UAE 32 66 32 3.3 1 7 Other countries 55.5 52 53 62 48 Source: Estimates from traders, General Customs Department, Post adjusted statistics The feed industry in Vietnam faces a number of hurdles in the years to come. The Government of Vietnam (GVN) decided to raise electricity prices 15.28 percent beginning March 1st, 2011. In addition, the prices of oil and gasoline have risen. The Vietnamese dong is under consistent pressure versus the U.S. dollar which causes imported feed ingredients to have high prices. Inflation has reached a critical level in Vietnam and the GVN is implementing a tightening credit policy resulting in tight bank loans and tight hard currency supply for many small and medium-sized feed mills. All these factors will contribute to higher production costs for animal feed in Vietnam. Furthermore, zoonotic disease outbreaks have also caused problems for the feed livestock industry. Outbreaks of Foot and Mouth Disease (FMD) and avian influenza (H5N1) have occurred in many provinces across the country, leading to a decreased demand for animal feed in the first three months of CY 2011. However, according to MARD, the livestock sector will recover and continue to develop in the second half of CY 2011. Post estimates that Vietnam will need about 12 MMT of industrial animal feed (about 20 percent soybean meal) for the livestock sector and 3 MMT of fish feed (15-20 percent soybean meal) for the aquaculture sector in total in 2011. Vietnam also imports a small volume of full fat soybean flour for both the food and feed industries, mainly from Malaysia, accounting for 98 percent of total imports (Table 15). Table 15: Soybean flour imports by sources 2008 2009 2010 C Quantity Value Quantity Value Quantity Value ountry (MT) (thousand (MT) (thousand $) (MT) (thousand $) $) Total 9,019 9,017 5,496 3,918 4,699 3,258 Imports: Malaysia 8,979 6,325 5,042 3,543 4,588 3,157 China 2 5.5 18 15 33 26 USA 2 4.8 38 29 27 29 Japan 14 2,667 11 18 21 30 Taiwan 12 7.3 0.2 0.3 15 9 South n/a n/a n/a n/a 15 7 Korea Thailand 10 7.2 363 290 n/a n/a Denmark n/a n/a 24 23 n/a n/a Source: General Customs Department; *Note: Soybean flour HS code: 1208 A small volume (5,802 MT) of soybean hulls (HS Code: 230250), mainly from Argentina, were also imported by Vietnam in 2010 to be used in the feed industry. Prices Vietnam?s average import price for soybean meal (SBM) in 2010 was $423 per metric ton, about 2 percent higher than the previous year ($415), but 6 percent lower than 2008 ($449) (Graph 4). Average import prices in 2010 were $448/MT for U.S. SBM, $426/MT for Indian SBM, and $407/MT for Argentinean SBM. Production costs in Argentina, including labor and land, are cheaper, bringing down the import price. As of late March, imported prices are quoted at around $465- $467/MT CFR Haiphong for U.S. SBM, $458-$460 for Argentinean SBM, and $441-$445 for Indian SBM. These prices have all decreased compared with the previous month. The feed industry in Vietnam will tend to use cheaper ingredients to lower production cost; most of the growth in feed demand is filled by less expensive products such as DDGS, copra meal, and canola meal. See Table 16 for a comparison of local prices of common feed ingredients in Vietnam. However, an increasingly large segment of the industry recognizes the value in using high-protein soybean meal, and will lean towards U.S. product when the Argentinean supply is difficult. Graph 4: Vietnam?s average soybean meal import prices (2008-2010) Source: General Customs Department, Post adjusted statistics Table 16: Local prices of major feed ingredients in Vietnam market Product Nov-10 Dec-10 Jan-11 Feb-11 Feed Stuffs VND/MT VND/MT VND/MT VND/MT Rice Bran 2 3,900,000.00 5,700,000 5,800,000 5,650,000 U.S. SBM 10,100,000.00 10,824,000 10,500,000 11,500,000 Argentina SBM 9,000,000 11,000,000 India SBM 8,600,000.00 9,810,000 9,700,000 10,300,000 Wheat bran 6,500,000.00 5,800,000 6,000,000 5,800,000 Rapeseed meal 5,760,000.00 6,218,100 6,250,000 6,410,000 Palm Kernel Meal 3,200,000.00 3,600,000 3,500,000 3,900,000 Source: Local traders, ASA-IM office in Vietnam; Exchange rate as of April 22, 2011: $1=VND20,925.00 Import Tariffs The tax rates applied to soybean meal, full fat soybean flour, and soybean hulls imported from countries having Most Favored Nation (MFN) status with Vietnam are: Import duty rate for soybean meal (HS code: 230400): 0 percent + VAT: 5 percent Import duty rate for soybean flour (HS code: 120810): 12 percent + VAT: 10 percent Import duty rate for soybean hulls (HS code: 230250): 12 percent + VAT: 10 percent Table 17: Meal import tariffs HS code ariffs (%) Description Import t VAT MFN AIFTA AANZFTA VJEPA AJCEP ACFTA AKFTA CEPT (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 1208 Flours and meals of oil seeds or oleaginous fruits, other than those of mustard. 1208.10.00 - Of soya beans 12 25 25 22 23 10 15 0 10 1208.90.00 - Other 25 25 25 24 23 10 15 0 10 Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere 2008 specified or included. - - - Roasted 2008.11.10 nuts 32 35 30 32.5 30 15 20 5 10 - - - Peanut 2008.11.20 butter 22 35 30 32.5 30 15 20 5 10 2008.11.90 - - - Other 24 35 30 32.5 30 15 20 5 10 Bran, sharps and other residues, whether or not in the form of pellets, derived from the 2302 sifting, milling or other working of cereals or of leguminous plants. - Of maize 2302.10.00 (corn) 0 8 10 7 6 5 5 0 5 2302.30.00 - Of wheat 0 8 10 4 5 5 5 5 5 - Of other 2302.40 cereals 2302.40.10 -- Of rice 0 9 10 7 6 5 5 0 5 2302.40.90 -- Of other 0 8 10 7 6 5 5 0 5 cereals - Of leguminous 2302.50.00 plants 0 8 10 7 6 5 5 0 5 Residues of starch manufacture and similar residues, beet-pulp, bagasse and other waste of sugar manufacture, brewing or distilling dregs and waste, whether or not in the form 2303 of pellets. 2303.10 -Residues from starch manufacture and similar residues: - - Of manioc (cassava) or 2303.10.10 sago 0 8 10 7 6 5 5 0 5 2303.10.90 - - Other 0 7.5 10 4 5 5 5 0 5 - Beet-pulp, bagasse and other waste of sugar 2303.20.00 manufacture 0 8 10 7 6 5 5 0 5 - Brewing or distilling dregs 2303.30.00 and waste 0 8 10 4 5 5 5 0 5 Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of 2304.00.00 soya-bean oil. 0 4.5 0 0 0 0 0 0 5 Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of 2305.00.00 ground-nut oil. 0 4.5 0 0 0 0 0 0 5 Oil cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of vegetable fats or oils, other than those of heading 23.04 or 2306 23.05 - Of cotton 2306.10.00 seeds 0 4.5 0 0 0 0 0 0 5 2306.20.00 - Of linseed 0 4.5 0 0 0 0 0 0 5 - Of sunflower 2306.30.00 seeds 0 4.5 0 0 0 0 0 0 5 - - Of low erucic acid rape 2306.41.00 or colza seeds 0 4.5 0 0 0 0 0 5 5 2306.49.00 - - Other 0 4.5 0 0 0 0 0 5 5 - Of coconut or 2306.50.00 copra 0 4.5 0 0 0 0 0 0 5 - Of palm nuts 2306.60.00 or kernels 0 4.5 0 0 0 0 0 0 5 2306.90 - Of others -- Of maize 2306.90.20 (corn) germ 0 4.5 0 0 0 0 0 0 5 2306.90.90 - - Other 0 4.5 0 0 0 0 0 0 5 Wine lees; 2307.00.00 argol. 0 8 10 7 6 5 5 0 5 Vegetable materials and vegetable waste, residues and by- products, whether or not in the form of pellets, of a kind used in animal 2308.00.00 feeding, NESOI. 0 8 10 7 6 5 5 0 5 Source: Ministry of Finance; Notes: VAT*: 0 percent Table 18: Vietnam?s Production, Supply & Demand Table for Soybean Meal* Meal, Soybean V 09/2010 2010/2011 2011/2012 ietnam 20 Market Year Begin: Jan Market Year Begin: Jan Market Year Begin: Jan 1000 MT, PERCENT 2010 2011 2012 USDA Official New Post USDA Official New Post USDA Official New Post Crush 0 0 100 500 1,300 Extr. Rate, 999.9999 0 0 1 1 1 Beginning Stocks 43 43 43 41 31 Production 0 0 78 390 1,014 MY Imports 2,768 2,748 2,878 2,550 2,000 MY Imp. from U.S. 500 456 350 500 400 MY Imp. from EU 0 0 0 0 0 Total Supply 2,811 2,791 2,999 2,981 3,045 MY Exports 0 0 0 0 0 MY Exp. to EU 0 0 0 0 0 Industrial Dom. Cons. 0 0 0 0 0 Food Use Dom. Cons. 0 0 0 0 0 Feed Waste Dom. 2,768 2,750 2,956 2,950 3,000 Cons. Total Dom. Cons. 2,768 2,750 2,956 2,950 3,000 Ending Stocks 43 41 43 31 45 Total Distribution 2,811 2,791 2,999 2,981 3,045 Source: General Customs Office, FAS adjusted statistics; *Note: Soybean meal includes soybean meal and cake (HS Code: 230400); soy flour (HS Code: 120810); and soybean hulls (HS Code: 230250) Table 19: Vietnam?s Soybean Meal Import Matrix Country Vietnam Commodity Soybean meal Time Period Jan-Dec Units: MT Imports for: 2009 2010 U.S. 173,634 U.S. 429,160 Others Others India 1,014,655 Argentina 1,136,548 Argentina 983,815 India 803,890 China 171,171 Brazil 272,579 Brazil 69,549 China 44,596 Taiwan 20,764 Singapore 23,420 South Korea 18,861 Taiwan 17,624 Singapore 8,479 Malaysia 2,514 Japan 5,949 Thailand 1,060 United Arab Emirates 3,270 United Arab Emirates 1,015 Korea (DPRK) 1,939 American Samoa 1,000 Indonesia 1,765 Total for Others 2,298,278 2,304,246 Others not Listed 5,926 3,772 Grand Total 2,477,838 2,737,178 Source: General Customs Office, Post adjusted statistics Commodities: Meal, Copra Meal, Palm Kernel Meal, Rapeseed Trade: In 2010, Vietnam imported 1.19 MMT of other oilseed meals, valued at $233 million, a 12 percent increase over 2009 (Table 20). The tax rate applied to other oilseed meals imported from countries having Most Favored Nation (MFN) status with Vietnam remains 0 percent with a 5 percent VAT. Table 20: Other oilseed meal imports 2007-2010 2007 2008 2009 2010 Total import volume (TMT) 761 719 1,062 1,189 Total import value (million $) 108 157 179 233 Source: General Customs Department, Post adjusted statistics Table 21: Other oilseed meal imports per commodity in 2009-2010 2009 2010 HS Commodities Volume Value Volume Value (thousand Code (MT) (thousand (MT) $) $) Total other meals 178,833 1,189,370 233,147 imports 1,061,510 Other meals 77,490 611,861 117,900 2302 (wheat, rice bran) 480,885 4,613 5,803 2,279 2305 Peanut meal 11,937 2306 Other meals, of which 568,688 96,730 571,706 112,968 Palm Kernel meal 160,222 11,177 154,478 16,690 Copra meal 157,221 20,464 151,878 20,372 Canola meal 64,808 16,419 249,949 72,468 Tea seed meal 8,362 1,339 13,061 2,843 Cotton seed meal 288 107 n/a n/a Sunflower meal 55 20 424 270 Sesame meal n/a n/a 721 197 Guar meal 8,846 2,399 110 22 Other meals 168,886 44,805 1,085 106 Source: General Customs Department, Post adjusted statistics Commodities: Oil, Coconut Oil, Palm Kernel Oil, Soybean Production: Vietnam?s 2010 refined vegetable oil production was estimated by local producers at about 700 TMT for all oil types, a 19 percent increase over the previous year (Table 22). The vegetable oil industry continues to use both domestic (mainly sesame, peanut, and rice bran) and imported (mainly soy and palm) crude oils for its production. Local producers and traders project that domestic production will increase about 15 percent in 2011 to about 805 TMT, largely due to the opening and operation of two new industrial crushing facilities (See Commodities: Soybean- Photo 1 and Photo 2). On June 28th, 2010, the Ministry of Industry and Trade (MOIT) issued its Development Plan for Vietnam?s Vegetable Oil Industry up to 2020, and Vision to 2025. The plan states the following measureable objectives: In the period of 2011-2015, Vietnam will produce 1.138 MMT of refined oil of all types and 268 TMT of crude oil of all types. In the period of 2016-2020, Vietnam will produce 1.587 MMT of refined oil and 370 TMT of crude oil of all types. In the period of 2021-2025, Vietnam will produce 1.929 MMT of refined oil and 439 TMT of crude oil of all types. MOIT and MARD are charged with developing a master plan and policy for the production of oilseed crops such as soybean, peanut, sesame, etc. The GVN will encourage farmers to utilize new varieties (especially biotechnology varieties) for mass production to meet local demands. The Vietnam Vegetable Oil Industry Corporation (Vocarimex), the biggest vegetable oil producer in Vietnam, and its associated sub-companies and manufacturing facilities produce about 90 percent of the total domestic refined vegetable oil. Vocarimex has set the following goals: Produce 655 thousand metric tons of all types of vegetable oil in 2011. Produce 2 million metric tons of refined vegetable oil and 400 thousand metric tons of crude vegetable oil by 2020. Export about 60 thousand metric tons of all types of vegetable oil by 2020. Post is skeptical about Vietnam?s ability to become vegetable oil positive in just ten years and thus doubts that Vocarimex?s 2020 export goal will be met. Table 22: Refined vegetable oil production 2006 2007 2008 2009 2010* 2011* 2015** 2020** 2025** Total refined vegetable oils production (TMT) 415.6 535 592.4 588.5 700 805 1,138 1,587 1,929 State-owned 192.5 252.2 303.7 296.3 n/a n/a n/a n/a n/a Private companies 39.5 48.7 65 66.3 n/a n/a n/a n/a n/a Foreign-invested n/a n/a n/a n/a n/a firms 183.7 234.1 223.7 225.9 Source: General Statistic Office (GSO);*Estimates from local producers; **Ministry of Industry and Trade (MOIT) Graph 5: Vietnam?s refined vegetable oil production, 2000 ? 2025 Source: GSO; MOIT; Estimates from local producers Consumption: Local producers estimated Vietnam?s 2010 total vegetable oil consumption at 690 TMT (Table 23). Although no official data is available for vegetable oil consumption per capita, Post projects extremely strong growth in vegetable oil demand for the next 15 years due to the country?s growing economy (GDP increased 6.78 percent in 2010) and marketing campaigns by local oil producers recommending people use healthier vegetable oils instead of animal fats (Graph 6). Vietnam?s Industry Policy and Strategy Institute (IPSI) estimated local consumption per capita to be 7.3-8.3 kg per person in 2010. However, this level was far from the World Health Organization?s recommendation of 13.5 kg per capita per year. IPSI projects Vietnam?s per capita consumption will increase to 16.2-17.4 kg per person per year by 2015 and to 18.6 kg-19.9 kg per person per year by 2020. Most imported soybean and palm oil is currently for food use; only a small volume of imported oil is used in the industrial and cosmetic manufacturing sectors. In 2010, Vietnam?s total domestic consumption of soybean oil for food use was about 175 TMT. The figure for palm oil was 525 TMT. Post expects consumption to increase to 200 TMT for soybean oil and 560 TMT for palm oil in 2011. Table 23: Vietnam?s domestic vegetable oil consumption Unit 2005 2006 2007 2008 2009 2010* 2015* Total domestic vegetable oil consumption 1,000 MT 311.49 346.44 556.53 607.00 660.42 690 1,200 Per capita vegetable oil consumption Kg/person/year 3.75 4.12 6.54 7.04 7.6 7.8 14.5 Source: GSO; MOIT; IPSI; *Estimates from local producers Graph 6: Vietnam?s domestic vegetable oil consumption per capita Source: GSO, MOIT, IPSI; Estimates from local producers Trade: Imports of vegetable oils (both crude and refined) Vietnam?s vegetable oil industry continues to rely on imported crude and refined oil. In 2010, Vietnam imported an estimated 721 TMT of crude and refined vegetable oils of all types, a 15 percent increase over 2009, to meet the growing demand (Table 24). Total crude and refined palm oil imports accounted for almost 74 percent of total vegetable oil imports and increased 6 percent in 2010 to 533 TMT. Total crude and refined soy oil imports reached 185 TMT in 2010, a 51 percent increase over 2009, accounting for about 24 percent of imports. Only a tiny amount of other vegetable oils were imported. Post forecasts that total vegetable oil imports in 2011 will remain unchanged because locally crushed oil will fill the growth in local demand. The United States exports a small volume of various types of vegetable oils and fats, mainly soybean oil, to Vietnam (Table 25). U.S. exports decreased somewhat in 2010, likely due to a bumper soybean crop in Argentina, which made Argentinean soybean oil more price competitive. Ostensibly to control the country?s inflation rate, MOIT recently issued Decision 1380, dated March 25, 2011, which declared a list of commodities and products not encouraged to be imported into Vietnam. Post has issued a GAIN report explaining the situation (VM1029). The published list includes various types of refined vegetable oils. Post does not expect this to affect U.S. oil exports, since the United States mainly sends crude oil, not refined oil, to Vietnam. Table 24: Total vegetable oil imports 2008 2009 2010 Total vegetable oil imports (TMT) 711.2 631.6 721.5 Total Crude vegetable oil imports 328.2 313.5 345.1 Total Refined vegetable oil imports 383 318.1 376.4 Source: General Customs Department, GTA. Table 25: U.S. vegetable oil and fat exports to Vietnam 2007 2008 2009 2010 HS V Value Value alue olum V Value olum Volum Vo Vlum cod Products ousan (thousan (thousan (thousan e (MT) (th e (MT) e (MT) e (MT) e d $) d $) d $) d $) 150 Soybean n/a n/a 51,999 41,317 30,000 28,926 7 Oil n/a n/a Ground 150 nut oil, n/a n/a n/a n/a 13.6 15 0 0 8 Refined 150 2 0.7 3 9 Olive O 1.3 8 0.9 7 13.1 2il 151 Rape/Colz a n/a n/a n/a 0.8 3 0 0 4 a Oil n/ 151 Fixed Veg. 2.7 18 234.4 329 2,413 2,451 1,171 1,927 5 Fat and O 2il 151 Fats & oils 251.5 175 98 179 57.1 167 30.3 249 6 Hydrogen 151 745.3 1,005 662.5 655 66.4 76 85.5 85 7 Margarine Process Oil, 5.9 38 151 Animal/Ve 277.4 156 16.3 31 n/a n/a 8 g 54,56 31,29 Tota 1,012 44,051 31,228 l 1,298 1,362 1,201 3 3 Sources: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics (BICO report), GTA, General Customs Office. Imports of crude vegetable oil Vietnam?s total crude vegetable oil imports in 2010 were an estimated 345 TMT, about a 10 percent increase over the previous year (Table 26). Palm oil from Indonesia, Thailand, Malaysia and Cambodia accounted for about 62 percent of total crude vegetable oil imports. Soybean oil from United States, Argentina, Malaysia, Thailand and China accounted for much of the remaining crude vegetable oil imports. Only a tiny amount of rapeseed, sunflower, and olive crude oils were imported. Table 26: Crude vegetable oil imports Crude vegetable oil (TMT) 2007 2008 2009 2010 Total 274.6 328.2 313.5 345.1 Crude palm oil (TMT) 161 199 203 214 Crude Soybean oil (TMT) 114 129 106 131 Other crude vegetable oil 0.6 0.2 4.5 0.1 Sources: Estimates from traders, General Customs Office Imports of refined vegetable oil Vietnam?s refined vegetable oil imports for 2010 increased by 18 percent over the previous year (Table 27). Palm oil imports from Malaysia, Indonesia and other countries, accounted for about 85 percent of total refined vegetable oil. Soybean oil and other oils account for 15 percent of total refined vegetable oil imports in 2010. Table 27: Refined vegetable oil imports Crude vegetable oil (TMT) 2007 2008 2009 2010 Total 273.7 383 318.1 376.4 Refined palm oil 272 305 299 319 Refined Soybean oil 1.6 78 16 55 Other refined vegetable oil 0.14 0.1 3.1 2.4 Source: Estimates from traders, General Customs Office Import Tariff The most updated tax rates that apply to crude and refined vegetable oils imported from countries having Most Favored Nation (MFN) status with Vietnam are shown in the table below: Table 28: Import tariffs for vegetable oils Crude Oil Refined oil Import duty Soybean oil (HS code 1507) 5% 15% Peanut oil (HS code 1508) 5% 25% Olive oil (HS code 1509) 5% 22% Palm oil (HS code 1511) 5% 25% Sunflower oil (HS code 1512) 5% 15% Cottonseed oil (HS code 1512.21 and 1512.29) 5% 25% Copra oil (HS code 1513) 5% 25% Rapeseed oil (HS code 1514.11 and 1514.19) 5% 5% Rapeseed oil (HS code 1514.91) 5% n/a Rapeseed oil (HS code 1514.99) 5% 22% Other vegetable oil (HS code 1515.11and 1515.19 ) 5% 10% Corn seed oil (HS code 1515.21) 5% n/a Jojoba oil (HS code 1515.30) 5% 10% Sesame oil (HS code 1515.50) 5% 25% Tengkawang oil (HS code 1515.90) 5% 25% Other animal or vegetable oils (HS code 1516.10) 23% 23% Source: Ministry of Finance Tariff rates for AIFTA, AANZ FTA, VJEPA, AJCEP, ACFTA, AKFTA, and CEPT are listed in Appendix 1. Exports In 2010, according to MOIT, Vocarimex and its manufacturers exported about 32,000 metric tons of vegetable oil, mainly sesame and rice bran oils, with a total value of $33 million, to mainly Japan, China, Pakistan, Singapore, Malaysia, Australia, and Cambodia. According to MOIT?s Development Plan for Vietnam?s Vegetable Oil Industry up to 2020, and Vision to 2025, Vietnam hopes to export 50 TMT, 80 TMT and 100 TMT oil of all types in the in the periods of 2011-2015, 2016-2020 and 2021-2025, respectively. Table 29: Vietnam?s Production, Supply & Demand Table for Soybean Oil Oil, Soybean Vietnam 2009/2010 2010/2011 2011/2012 Market Year Begin: Jan Market Year Begin: Jan Market Year Begin: Jan 1000 MT, PERCENT 2010 2011 2012 USDA Official New Post USDA Official New Post USDA Official New Post Crush 0 0 100 500 1,300 Extr. Rate, 999.9999 0 0 0 0 0 Beginning Stocks 0 0 4 10 49 Production 0 0 18 90 234 MY Imports 135 186 156 150 50 MY Imp. from U.S. 12 12 10 10 5 MY Imp. from EU 0 0 0 0 0 Total Supply 135 186 178 250 333 MY Exports 0 0 0 0 0 MY Exp. to EU 0 0 0 0 0 Industrial Dom. Cons. 1 1 1 1 1 Food Use Dom. Cons. 130 175 168 200 240 Feed Waste Dom. 0 0 0 0 0 Cons. Total Dom. Cons. 131 176 169 201 241 Ending Stocks 4 10 9 49 92 Total Distribution 135 186 178 250 333 Source: Estimates from traders, General Customs Office, FAS adjusted data Table 30: Vietnam?s Crude Soy Oil Import Matrix Country Vietnam Commodity Crude Soy oil Time Period Jan-Dec Units: MT Imports for: 2009 2010 U.S. 34,000 U.S. 30,000 Others Others Thailand 32,116 Argentina 58,989 Argentina 21,750 Thailand 21,292 Brazil 12,000 Malaysia 13,921 Malaysia 5,835 China 5,882 Total for Others 71,701 100,084 Others not Listed 1 1,006 Grand Total 105,702 131,090 Source: General Customs Office, FAS adjusted data Table 31: Vietnam?s Refined Soy Oil Import Matrix Country Vietnam Commodity Refined Soy oil Time Period Jan-Dec Units: MT Imports for: 2009 2010 U.S. 1.57 U.S. 1 Others Others Malaysia 12,877 Singapore 38,044 Singapore 3,191 Malaysia 16,612 Taiwan 50 Thailand 215 Thailand 30 Canada 50 Taiwan 23 Total for Others 16,148 54,944 Others not Listed 4.17 11 Grand Total 16,154 54,956 Source: General Customs Office, FAS adjusted data Table 32: Vietnam?s Production, Supply & Demand Table for Palm Oil Oil, Palm Vietnam 2009/2010 2010/2011 2011/2012 Market Year Begin: Market Year Begin: Market Year Begin: 1000 HA, 1000 TREES, 1000 Jan 2010 Jan 2011 Jan 2012 MT USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 0 0 0 0 0 Area Harvested 0 0 0 0 0 Trees 0 0 0 0 0 Beginning Stocks 9 9 9 7 12 Production 0 0 0 0 0 MY Imports 529 533 550 570 570 MY Imp. from U.S. 0 0 0 0 0 MY Imp. from EU 0 0 0 0 0 Total Supply 538 542 559 577 582 MY Exports 0 10 0 15 15 MY Exp. to EU 0 0 0 0 0 Industrial Dom. Cons. 0 0 0 0 0 Food Use Dom. Cons. 529 525 550 550 560 Feed Waste Dom. Cons. 0 0 0 0 Total Dom. Cons. 529 525 550 550 560 Ending Stocks 9 7 9 12 7 Total Distribution 538 542 559 577 582 Source: Estimates from producers, General Customs Office, FAS adjusted data Table 33: Vietnam?s Crude Palm Oil Import Matrix Country Vietnam Commodity Crude Palm oil Time Period Jan-Dec Units: MT Imports for: 2009 2010 U.S. 0 U.S. 0 Others Others Indonesia 161,743 Indonesia 170,159 Malaysia 26,021 Malaysia 36,465 Thailand 11,789 Thailand 6,997 India 2,700 Cambodia 350 Japan 895 Total for Others 203,149 213,971 Others not Listed - Grand Total 203,149 213,971 Source: General Customs Office, FAS adjusted data Table 34: Vietnam?s Refined Palm Oil Import Matrix Country Vietnam Commodity Refined Palm oil Time Period Jan-Dec Units: MT Imports for: 2009 2010 U.S. 0 U.S. 0 Others Others Malaysia 261,190 Malaysia 307,865 Indonesia 36,245 Indonesia 10,500 India 546 Japan 604 Singapore 358 Thailand 73 Thailand 117 South Korea 31 Maldives 62 South Korea 14 Total for Others 298,531 319,072 Others not Listed 8 - Grand Total 298,539 319,072 Source: General Customs Office, FAS adjusted data Appendix 1 Table 28: Import tariffs for vegetable oils HS code Descriptio Import tariffs (%) VA n MFN A T T IFTA AANZFT A VJEPA AJCEP ACFTA AKFTA CEP (11 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) ) 1507 Soybean oils and its fractions, whether or not refined, but not chemically modified - Crude oil, whether or not 1507.10.00 degummed 5 4.5 5 4 5 5 5 3 10 1507.90 - Others: - - Fractions of unrefined soya-bean 1507.90.10 oil 5 4.5 5 4 5 5 5 3 10 - - Refined 1507.90.20 oil 15 26 25 24 23 15 15 5 10 1507.90.90 - - Other 15 26 30 24 23 15 20 5 10 1508 Groundnut oils and its fractions, whether or not refined, but not chemically modified 1508.10.00 - Crude oil 5 8 5 4 5 5 5 0 10 1508.90 - Others: - - Fractions of unrefined ground-nut oil - - - Fractions of unrefined ground-nut oil in solid forms, but not chemically 1508.90.11 modified 5 15 5 4 5 5 5 0 10 1508.90.19 - - - Other 5 15 5 4 5 5 5 0 10 - - Refined oil - - - Fractions of refined ground-nut oil in solid forms, but not chemically 1508.90.21 modified 25 25 25 24 23 15 15 5 10 1508.90.29 - - - Other 25 25 25 24 23 15 15 5 10 - - Others: - - - Fractions of ground- nut oil in solid forms, but not chemically 1508.90.91 modified 25 25 30 24 23 15 20 5 10 1508.90.99 - - - Other 25 25 30 24 23 15 20 5 10 1509 Olive oils and its fractions, whether or not refined, but not chemically modified 1509.10 - Crude oil - - In packing of net weight not exceeding 1509.10.10 30 kg 5 4.5 5 4 5 5 5 0 10 1509.10.90 - - Others: 5 4.5 5 4 5 5 5 0 10 1509.90 - Others: - - Fractions of unrefined olive oil: - - - In packing of net weight not exceeding 1509.90.11 30 kg 5 15 5 4 5 5 5 0 10 1509.90.19 - - - Other 5 15 5 4 5 5 5 0 10 - - Refined oil: - - - In packing of net weight not exceeding 1509.90.21 30 kg 22 25 25 24 23 15 15 5 10 1509.90.29 - - - Other 22 25 25 24 23 15 15 5 10 - - Others: - - - In packing of net weight not exceeding 1509.90.91 30 kg 22 25 30 24 23 15 20 5 10 1509.90.99 - - - Other 22 25 30 24 23 15 20 5 10 Other oils and their fractions, obtained solely from olives, whether or not refined, but not chemically 1510 modified, including blends of these oils or fractions with oils or fractions of heading 1509. 1510.00.10 - Crude oil 5 4.5 5 4 5 5 5 0 10 - Others: - - Fractions of 1510.00.91 unrefined 5 15 5 4 5 5 5 0 10 oil - - Refined 1510.00.92 oil 25 25 25 22 23 15 15 5 10 1510.00.99 - - Other 25 25 30 24 23 15 20 5 10 1511 Palm oils and its fractions, whether or not refined, but not chemically modified. 1511.10.00 - Crude oil 5 4.5 5 4 5 5 5 3 10 1511.90 - Others: - - Fractions of unrefined oils, but not chemically 1511.90.10 modified 5 25 25 22 23 12.5 17.5 5 10 1511.90.90 - - Other 25 25 25 22 23 12.5 17.5 5 10 Sunflower seed, safflower or cotton seed oils and fractions thereof, whether or not refined, but not 1512 chemically modified. -Sunflower seed, safflower oils and their fractions - - Crude 1512.11.00 oil 5 4.5 5 4 5 5 5 0 10 1512.19 - - Other - - - Fractions of unrefined sunflower- seed or safflower 1512.19.10 oils 5 15 5 4 5 5 5 0 10 - - - 1512.19.20 Refined oil 15 25 25 24 23 15 15 5 10 1512.19.90 - - - Other 25 25 30 24 23 15 20 5 10 -Cotton seed oils and its fractions - - Crude oil, whether or not gossypol has been 1512.21.00 removed 5 8 5 4 5 5 5 0 10 1512.29 - - Other - - - Fractions of unrefined cotton-seed 1512.29.10 oil 5 8 5 4 5 5 5 0 10 1512.29.20 - - - 25 25 30 24 23 15 20 5 10 Refined oil 1512.29.90 - - - Other 25 25 30 24 23 15 20 5 10 Coconut (Copra) oils, palm kernel or babasu oil and fractions thereof, whether or not refined, but 1513 not chemically modified. - Coconut (Copra) oil and its fractions - - Crude 1513.11.00 oil 5 8 5 4 5 5 5 3 10 1513.19 - - Other - - - Fractions of unrefined 1513.19.10 coconut oil 5 15 5 4 5 5 5 0 10 - - - 1513.19.20 Refined oil 25 25 25 24 23 15 15 5 10 1513.19.90 - - - Other 25 25 30 22 23 15 20 5 10 -Palm kernel or babasu oils and their fractions - - Crude 1513.21.00 oil 5 8 5 4 5 5 5 0 10 1513.29 - - Other - - - Fractions of unrefined palm kernel and babassu oils - - - - Fractions of unrefined palm kernel and babassu oil in solid form, but not chemically 1513.29.11 modified 5 15 5 4 5 5 5 0 10 1513.29.19 - - - - Other 5 15 5 4 5 5 5 0 10 - - - Refined oil - - - - Fractions of refined palm kernel and babassu oil in solid form, but not 1513.29.21 chemically 25 25 30 22 23 15 20 5 10 modified 1513.29.29 - - - - Other 25 25 30 22 23 15 20 5 10 - - - Others: - - - - Fractions of palm kernel and babassu oil in solid form, but not chemically 1513.29.91 modified 25 25 30 24 23 15 20 5 10 1513.29.99 - - - - Other 25 25 30 24 23 15 20 5 10 Rape, colza or mustard oils and fractions thereof, whether or not refined, but not chemically 1514 modified. -Low erucic acid rapeseed or colza oil and its fractions - - Crude 1514.11.00 oil 5 4.5 5 4 5 5 5 3 10 1514.19 - - Other - - - Fractions of unrefined 1514.19.10 oil 5 4.5 5 4 5 5 5 0 10 - - - 1514.19.20 Refined oil 5 4.5 25 4 5 5 5 5 10 1514.19.90 - - - Other 5 4.5 30 4 5 5 5 5 10 - Other: - - Crude 1514.91 oil - - - Rape or colza oil and its 1514.91.10 fractions 5 15 5 4 5 5 5 5 10 1514.91.90 - - - Other 5 15 5 4 5 5 5 5 10 1514.99 - - Others: - - - Fractions of unrefined 1514.99.10 oil 5 15 5 4 5 5 5 0 10 - - - 1514.99.20 Refined oil 22 25 25 24 23 15 15 5 10 - - - Other: - - - - Rape or colza oil and its 1514.99.91 fractions 22 25 30 24 23 15 20 5 10 1514.99.99 - - - - Other 22 25 30 24 23 15 20 5 10 Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, 1515 but not chemically modified. -Linseed oil and its fractions - - Crude 1515.11.00 oil 5 8 5 4 5 5 5 0 10 1515.19.00 - - Other 10 15 10 7 6 5 5 5 10 -Maize (corn) oil and its fractions - - Crude 1515.21.00 oil 5 8 5 4 5 5 5 0 10 1515.29 - - Other: - - - Fractions of unrefined maize (corn) oil - - - - Fractions of unrefined maize (corn) oil in solid form, but not chemically 1515.29.11 modified 5 8 5 4 5 5 5 0 10 1515.29.19 - - - - Other 5 8 5 4 5 5 5 0 10 - - - Other: - - - - Fractions of oil in solid form, but not chemically 1515.29.91 modified 20 35 30 32.5 30 15 20 5 10 1515.29.99 - - - - Other 20 35 30 32.5 30 15 20 5 10 - Castor oil and its 1515.30 fractions - - Crude 1515.30.10 oil 5 8 5 4 5 5 5 0 10 1515.30.90 - - Other 10 15 10 7 6 5 5 0 10 - Sesame oil and its 1515.50 fractions - - Crude 1515.50.10 oil 5 9 5 4 5 5 5 0 10 - - Fractions of unrefined 1515.50.20 sesame oil 5 9 5 4 5 5 5 0 10 1515.50.90 - - Other 25 42.5 30 41 38 15 20 5 10 1515.90 - Other: - - Tengkawan g oil - - - Crude 1515.90.11 oil 5 8 5 4 5 5 5 0 10 - - - Fractions of unrefined 1515.90.12 oil 5 8 5 4 5 5 5 0 10 1515.90.19 - - - Other 25 35 30 32.5 30 15 20 5 10 - - Other: - - - Crude 1515.90.91 oil 5 8 5 4 5 5 5 0 10 - - - Fractions of unrefined 1515.90.92 oil 5 8 5 4 5 5 5 0 10 1515.90.99 - - - Other: - - - - 1515.90.99. Refined 10 Tung oil 10 15 10 7 6 5 5 5 10 1515.90.99. 90 - - - - Other 25 25 25 24 23 15 15 5 10 Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated interesterified, 1516 re-esterified or, elaidinised, whether or not refined, but not further prepared. 1516.10 - Animal or vegetable fats and oils and their fractions: - - In packings of 10 kg net weight or 1516.10.10 more 23 25 25 24 23 15 15 5 10 1516.10.90 - - Other 23 25 25 24 23 15 15 5 10 1516.20 - Vegetable fats and oils and their fractions: -- Re-esterified fats and oil and its fractions - - - Of 1516.20.11 soya bean 22 25 25 24 23 15 15 5 10 - - - Of palm oil, 1516.20.12 crude 25 25 25 24 23 15 15 5 10 - - - Of palm oil, excluding 1516.20.13 crude 25 25 25 24 23 15 15 5 10 - - - Of 1516.20.14 coconut 25 25 25 24 23 15 15 5 10 - - - Of palm kernel 1516.20.15 oil 25 25 25 24 23 15 15 5 10 - - - Of 1516.20.16 peanuts 25 25 25 24 23 15 15 5 10 - - - Of 1516.20.17 linseeds 25 25 25 24 23 15 15 5 10 - - - Of 1516.20.18 olives 25 25 25 24 23 15 15 5 10 - - - Of 1516.20.19 others 25 25 25 24 23 15 15 5 10 - - Hydrogenated fats in flakes, in packages - - - Of palm oil, soybean oil, peanut oil or 1516.20.21 coconut oil 25 25 25 24 23 15 15 5 10 - - - Of 1516.20.22 linseed oil 25 25 25 24 23 15 15 5 10 - - - Of 1516.20.23 olives 25 25 25 24 23 15 15 5 10 1516.20.29 - - - Other 25 25 25 24 23 15 15 5 10 - - Refined, bleached and deodorized (RBD) stearin 1516.20.30 palm oil 25 25 25 24 23 15 15 5 10 - - Hydrogenat ed refined, bleached and deodorized palm kernel olein or 1516.20.40 stearin 25 25 25 24 23 15 15 5 10 - - Palm kernel stearin, crude, iodized index not 1516.20.50 over 48 25 25 25 24 23 15 15 5 10 - - Palm kernel stearin, 1516.20.60 crude 25 25 25 24 23 15 15 5 10 - - Refined, bleached and deodorized palm kernel stearin, iodized index not 1516.20.70 over 48 25 25 25 24 23 15 15 5 10 - - Other 1516.20.80 palm kernel 25 25 25 24 23 15 15 5 10 stearin, iodized index not over 48 -- Others: 25 25 25 24 23 15 15 5 10 - - - Of palm oil, peanut oil or coconut 1516.20.91 oil 25 25 25 24 23 15 15 5 10 - - - Of 1516.20.92 linseeds 25 25 25 24 23 15 15 5 10 - - - Of 1516.20.93 olives 25 25 25 24 23 15 15 5 10 - - - Of 1516.20.99 others 25 25 25 24 23 15 15 5 10 Margarine, edible mixtures or preparations of animal or vegetable fat or oils or of fractions of 1517 different fats or oils of this Chapter, other than edible fats or oils or their fractions of heading 1516 . - Margarine, excluding liquid 1517.10.00 Margarine 20 20 25 20 19 15 15 5 10 1517.90 - Others: - - Imitation 32. 1517.90.10 ghee 30 35 30 5 30 15 20 5 10 - 32. - Liquid 1517.90.20 margarine 28 35 30 5 30 15 20 5 10 - - Mould release 32. 1517.90.30 preparation 30 35 30 5 30 15 20 5 10 - - Imitation lard; shortening - - - 1517.90.43 Shortening 20 27.5 25 22 23 10 15 5 10 - - - Imitation lard 32. 1517.90.44 preparation 28 35 30 5 30 15 20 5 10 - - Mixtures or preparations of vegetable fat or oils and its fractions: - - - Solid mixtures 32. or 1517.90.50 preparations 30 35 30 5 30 15 20 5 10 - - - Liquid mixtures or preparations: - - - - In which ground-nu 32.t 1517.90.61 oil 30 35 30 5 30 15 20 5 10 predominate s - - - - In which palm oil predom 32.inate 1517.90.62 s 30 35 30 5 30 15 20 0 10 - - - - In which palm kernel oil predominate 32. 1517.90.63 s, crude 30 35 30 5 30 15 20 5 10 - - - - In which refined, bleached and deodorized (RBD) palm kernel oil predominate 32. 1517.90.64 s 30 35 30 5 30 15 20 5 10 - - - - In which crude palm kernel olein predominate 32. 1517.90.65 s 30 35 30 5 30 15 20 5 10 - - - - In which refined, bleached and deodorised (RBD) palm kernel olein predominate 32. 1517.90.66 s 30 35 30 5 30 15 20 5 10 - - - - In which soya bean oil predom 32.inate 1517.90.67 s 30 35 30 5 30 15 20 5 10 - - - - In which illipenut oil predominate 32. 1517.90.68 s 30 35 30 5 30 15 20 5 10 32. 1517.90.69 - - - - Other 30 35 30 5 30 15 20 5 10 32. 1517.90.90 - - Other 30 35 30 5 30 15 20 5 10 Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurised, blown, polymerised by heat in cacuum or in inert gas, or otherwise chemically modified, excluding those of heading 15.16; inedible mixtures or preparations of animals or vegetable fats or oils or of 1518 fractions of different fats or oils of this Chapter, elsewhere specified or not included. - Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurised, blown, polymerised by heat in cacuum or in inert gas, or otherwise chemically modified, excluding those of heading 15.16; - - Animal 1518.00.12 fats and oils 5 4.5 5 4 5 5 5 0 10 - - Peanut,
Posted: 11 May 2011, last updated 12 May 2011

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