Oilseeds Annual Report in Vietnam

An Expert's View about Cereals, Leguminous Crops, Oil Seeds in Vietnam

Posted on: 14 Apr 2010

Vietnam’s soybean production continues to fall below expectations as high production costs, low yields and lack of commercial crushing capabilities retard growth. Vietnam’s primary oilseed crops are soybeans, peanut, sesame, copra, sunflower and rice bran.

Required Report - public distribution Date: 4/15/2009 GAIN Report Number: VM9033 Vietnam OILSEEDS Annual Report Approved By: Valerie Ralph Prepared By: Nguyen Thi Huong Report Highlights: Vietnam?s soybean production continues to fall below expectations as high production costs, low yields and lack of commercial crushing capabilities retard growth. Soybean imports increased 161% in 2008 as import tariff were reduced to zero and demand from the food processing sector soared. Soybean meal imports experienced a small decline in 2008 as credit tightened due to the global financial crisis. Imports should increase in 2009, however, as demand is strong and the financial situation continues to improve. Vegetable oil imports rose significantly in 2008 as tariff was reduced and demand continued to increase. Oil imports should continue to increase in 2009. Executive Summary: Vietnam?s primary oilseed crops are soybeans, peanut, sesame, copra, sunflower and rice bran. Current output levels fall well below demand, which is largely from the livestock and aquaculture sectors as well as the vegetable oil industry. Vietnam has plans to expand production areas for these crops, but it is doubtful output will increase much as input costs are high, yields are low, and Vietnam?s continued lack of commercial crushing capabilities remains a disincentive to increase output. Imports of soybeans and soybean meal have risen significantly over the last two or three years in response to much lower tariff rates and increased demand from the food processing, livestock and aquaculture feed sectors. Upon entry into WTO in 2007, Vietnam reduced import tariffs to 5%, with subsequent reductions to zero in 2008 for both soybean and soybean meal. Vietnam imported 139 tmt of soybeans in 2008, a 161% increase over the previous year. Soybean meal imports increased 55% in 2007 and even with a decline of just over 3% in 2008, imports still totaled 2,461 tmt. Soybean and soybean meal imports should continue to increase in 2009 as demand remains strong, though it may be tempered by the availability of credit as a result of the global financial crisis. Vegetable oil (crude and refined) imports for 2008 were an estimated 711 tmt, about 30 percent more than in 2007, spurred on by both lower tariffs and stronger demand from the oil processing and food manufacturing sectors. Vietnam imports mainly palm and soy oils from Malaysia, Indonesia and Singapore. Imports should continue to grow in 2009 in the face of continued strong demand. Commodities: Oilseed, Soybean Select Production: Vietnam?s soybean production continues to be small and falls far short of its needs. Local soybean production in 2008 was 268.4 thousand metric tons (tmt), which is almost 3 percent less than the previous year. Low yields and minimal expansion in the growing area are major contributing factors. The 2009 crop is expected to increase to 273 tmt in response to efforts to expand the growing area and improve yields. (Table 1 & PSD table 13) Table 1: Soybean production, 2002 - 2009 2002 2003 2004 2005 2006 2007 2008 2009 est. Crop area (thousand ha 158.6 165.6 183.8 204.1 185.6 190.1 191.7 195 ? tha) Crop yield (mt/ha) 1.27 1.33 1.34 1.43 1.39 1.45 1.40 1.45 Total production (tmt) 201 219.7 245.9 292.7 258.1 275.5 268.4 273 Source: General Statistics Office (GSO) and MARD The Ministry of Agriculture and Rural Development (MARD) has expansion targets for the growing area set at 220 tha, with output increasing to 325 tmt by 2010. Production acreage is expected to expand to 300 tha by 2015 for an output of 500 tmt, and ultimately to 350 tha by 2020 with a production level of 650 tmt. It is doubtful these targets will be achieved, especially given prevailing low yields, high production costs, lack of commercial crushing capabilities and more competitively priced imports. Locally produced grade one soybeans (food grade) currently retails for VND 8,400 - 8,800/kg ($480-$503/mt) while imported U.S. food grade soybean is quoted at $430-$440/mt CFR Haiphong. Vietnam grows traditional soybean varieties with low yields and high input costs. Farmers are therefore less inclined to expand their production acreage. Production of GM soybeans, particularly Bt varieties, could reduce input costs and lead to higher output levels. Many farmers are reportedly interested in growing Bt soybeans, but the seeds are not yet legally available in Vietnam. While Vietnam approved the legal framework for biotechnology production in 2005 (Biosafety Decree No. 212) the implementing regulations have yet to be approved even after being reported to WTO in early 2008. A revision of Biosafety Decree 212 (VM5062) is currently underway and is expected to be approved by year?s end. Reportedly MARD will also soon approve its regulations to conduct field trials of biotech crops. Bt soybean is one of the four biotech crops (soybean, cotton, corn and flowers) Vietnam is interested in producing, and MARD is said to be eager to have its regulations for field trials approved so that trials may begin. Given the slowness of the approval process, it is doubtful that commercial biotech production of any of these crops will begin any time soon. The field trial period is expected to last for two years before approval for commercialization. Consumption: The bulk of locally produced soybeans goes into making soymilk beverages, tofu and soy sauce. Only a small portion of lower-quality full fat soybean is used for animal feed as Vietnam still has no large-scale industrial crushers. Vietnam has been exploring investment sources to help it build commercial crushing plants in different regions of the country, but no definite plans have yet been reached. The demand for soybeans in the food industry should continue to grow in 2009, and once commercial crushers are in place the huge animal and aquatic feed sectors will drive demand even further. Trade: Imports In 2007 Vietnam imported a small amount of full fat soybeans for the food and animal feed industries. However, in 2008, Vietnam?s soybean imports jumped to 139 tmt, increasing 161% over the previous year, in response to strong demand and reduction in the import tariff to zero percent. With soybeans enjoying the same tariff preference as soybean meal and relatively the same price, small manufacturers could now have the full benefit of the beans for both oil and feed meal. Vietnam imports soybeans from the United States, China, Argentina, Canada, the United Arab Emirates and American Samoa. U.S soybean exports to Vietnam have enjoyed remarkable growth in only a few years, going from merely 380 metric tons in 2004 to almost 106,000 metric tons in 2008 with a parallel increase in value from $121,000 to almost $72 million. In 2008 U.S. soybeans accounted for over 76% of Vietnam?s total soybean imports. The demand for soybeans for the food and feed industries remains relatively strong even with the current global economic and financial downturn. Post estimates Vietnam?s soybean imports for 2009 at around 150 tmt. Table 2: Soybean imports by source 2007 2008 Country Quantity ( Value Quantity ( Value MT) (thousand $) MT) (thousand $) Total Imports: 53,257 16,465 138,853 107,257 USA 23,607 8,926 105,703 71,591 China 16,318 2,630 16,348 2,676 Argentina 779 283 8,176 4,172 Canada 787 307 4,763 2,740 United Arab Emirates (UAE) 3,452 1,242 1,696 1,058 American Samoa 4,672 1,749 581 351 Uganda 1,191 420 n/a n/a India 1,393 412 n/a n/a Source: General Customs Department, Estimates from traders Currently, grade 2 soybean is quoted at $429 per metric ton CFR Haiphong. Import Tariffs The tax rate applied to soybeans imported from countries having Most Favored Nation (MFN) status with Vietnam (effective August 5, 2008): - Import duty rate: 0%. - Vat: 5% Production, Supply and Demand Data Statistics: Table 13: Vietnam?s Production, Supply & Demand Table for Soybeans 2007 2008 2009 Oilseed, Soybean 2006/2007 2007/2008 2008/2009 Vietnam Market Year Begin: Market Year Begin: Market Year Begin: (1000 HA)(1000 MT) Jan 2007 Jan 2008 Jan 2009 Annual Data New Annual Data New Annual Data New Post Displayed Post Displayed Post Displayed Data Data Data Official Post Official Post Official Post Area Planted 0 190 0 192 0 195 Area Harvested 210 190 280 192 280 195 Beginning Stocks 20 20 20 15 20 20 Production 309 276 410 268 410 273 MY Imports 74 53 110 139 120 150 MY Imp. from U.S. 4 24 5 106 5 115 MY Imp. from EU 0 0 0 0 0 0 Total Supply 403 349 540 422 550 443 MY Exports 0 0 0 0 0 0 MY Exp. to EU 0 0 0 0 0 0 Crush 0 0 0 0 0 0 Food Use Dom. Cons. 223 254 345 302 355 313 Feed Waste Dom. Cons. 160 80 175 100 175 110 Total Dom. Cons. 383 334 520 402 530 423 Ending Stocks 20 15 20 20 20 20 Total Distribution 403 349 540 422 550 443 CY Imports 74 53 110 139 120 105 CY Imp. from U.S. 4 24 5 106 5 115 CY Exports 0 0 0 0 0 0 CY Exp. to U.S. 0 0 0 0 0 0 Source: Estimates from traders, General Customs Office, FAS estimates Table 14: Vietnam?s Soybeans Import Matrix Country Vietnam Commodity Soybeans Time Period Jan-Dec Units: MT Imports for: 2007 2008 U.S. 23,607 U.S. 105,703 Others Others China 16,318 China 16,348 American Samoa 4,672 Argentina 8,176 United Arab Emirates 3,452 Canada 4,763 Uganda 1,191 United Arab Emirates 1,696 India 1,393 American Samoa 581 Canada 787 Singapore 575 Argentina 779 Thailand 412 Thailand 300 Japan 257 Cambodia 215 Malaysia 141 Malaysia 180 Taiwan 128 Total for Others 29,288 33,076 Others not Listed 362 74 Grand Total 53,257 138,853 Source: Estimates from traders, General Customs Office Commodities: Oilseed, Peanut Production: Production The Ministry of Agriculture and Rural Development (MARD) reports Vietnam?s 2008 peanut production at about 531 tmt; a 4% increase over 2007, and 14.7% increase over 2006 as a result of improved yields. Current average crop yield is 2.08 metric tons per hectare. The 2009 output is expected to increase 5.3% percent to 559 tmt due to anticipated higher yield from better varieties and some expansion in acreage. (Table 3 & PSD table 15) Primary peanut growing areas are concentrated in the north central coastal provinces of Thanh Hoa, Nghe An, Ha Tinh and also in Tay Ninh province in the southeast. Table 3: Peanut production, 2004 - 2009 2004 2005 2006 2007 2008 2009 est. Crop area (thousand ha ? tha) 263.7 269.9 246.7 254.6 255.4 260 Crop yield (mt/ha) 1.78 1.81 1.87 2 2.08 2.15 Total production (tmt) 469.4 489.3 462.5 510 530.5 559 Source: General Statistics Office (GSO) and MARD Consumption: Vietnam uses peanuts in the snack and confectionery industry for the most part, with only a very small amount being processed for household cooking oil. Per capita consumption of shelled peanut in 2008 was about at 5.83 kg., a 4.5% increase over the previous year. Trade: Imports Vietnam imports a small amount of peanuts in-shell, mainly for food consumption. Trade data indicate that in 2007 Vietnam imported 1,321 mt of in-shell peanut or the equivalent to 993 mt of shelled peanuts. Decreased demand in 2008 resulted in a 30 percent decline in imports, which totaled only 930 mt in-shell or 699 mt of shelled peanuts. Table 4: In-shell peanut imports by source Country 2007 2008 Quantity (MT) Value (thousand $) Quantity (MT) Value (thousand $) Total Imports: 1,321 518 930 842 China 1,116 286 506 162 Indonesia 203 231 400 656 Japan 2.4 0.7 n/a n/a Malaysia n/a n/a 24 24 Source: Estimates from Traders, General Customs Department * Note: In-shell peanut HS code 120210 Vietnam?s imports of shelled peanut are quite small and are used exclusively for snack food consumption. In 2007 only 639 mt of shelled peanuts, the equivalent of 850 mt of in-shell peanuts, were imported. Imports in 2008 declined about 5% to 610 mt or 811 mt of in- shell peanuts; about 85% was imported from India. Table 5: Shelled peanut imports by source Country 2007 2008 Value (thousand Quantity Quantity (MT) $) (MT) Value (thousand $) Total Imports: 639 638 610 422 India 635 626 516 315 Thailand 2.3 9 2.4 9 Indonesia n/a n/a 60 28 North Korea n/a n/a 22 38 Australia n/a n/a 9 28 Other countries 1.9 3 0.6 4 Source: Estimates from Traders, General Customs Department Exports Vietnam exports a small quantity of shelled peanuts, mainly to China, Malaysia, Indonesia, Thailand and Taiwan. In 2008, Vietnam exported about 10 tmt of shelled peanuts to Thailand as well as 2 tmt to Malaysia, about 0.8 tmt to China and 0.5 tmt to Taiwan. Total exports of shelled peanuts fell about 18.5 percent in 2008 as demand waned. Table 6: Vietnam?s peanut exports Year 2002 2003 2004 2005 2006 2007 2008 2009 est. est. Shelled Peanut exports (thousand 4 46 54.7 16 36.8 30 40 metric tons ? 06.1 82. tmt 1) Converted into in-shell peanut exports (tmt) (conversion rate 141.1 109.6 61.2 72.8 21.3 48.9 39.9 53.2 1.33) Source: General Statistics Department, estimates from traders Import Tariffs The tax rate applied to peanuts imported from countries having Most Favored Nation (MFN) status with Vietnam: - Import duty rate: 0% for peanuts in-shell, suitable for sowing 10% for other peanuts shelled, whether or not broken - Vat: 5% Production, Supply and Demand Data Statistics: Table 15: Vietnam?s Production, Supply & Demand Table for Peanuts O 2007 2008 2009 ilseed, Peanut 2006/2007 2007/2008 2008/2009 Vietnam Market Year Begin: Jan 2007 Market Year Begin: Jan 2008 Market Year Begin: Jan 2009 (1000 HA)(1000 MT) Annual Data D N nual Data ew P Anost N nual Data ew P Anost New Post isplayed Displayed Displayed Official Post Data Official Post Data Official Post Data Area Planted 0 255 0 255 0 260 Area Harvested 250 255 250 255 250 260 Beginning Stocks 51 51 31 34 53 32 Production 465 510 490 531 500 559 MY Imports 9 2 4 2 4 2 MY Imp. from U.S. 0 0 0 0 0 0 MY Imp. from EU 0 0 0 0 0 0 Total Supply 525 563 525 567 557 593 MY Exports 59 49 30 40 30 53 MY Exp. to EU 0 2 0 2 0 2 Crush 155 20 165 20 175 20 Food Use Dom. Cons. 235 460 232 475 245 485 Feed Waste Dom. Cons. 45 0 45 0 45 0 Total Dom. Cons. 435 480 442 495 465 505 Ending Stocks 31 34 53 32 62 35 Total Distribution 525 563 525 567 557 593 CY Imports 9 2 4 2 4 2 CY Imp. from U.S. 0 0 0 0 0 0 CY Exports 59 49 30 40 30 53 CY Exp. to U.S. 0 0 0 0 0 0 Source: Estimates from traders, General Customs Office, FAS estimates Table 16: Vietnam?s Peanut Import Matrix Country Vietnam Commodity Peanuts Time Period Jan-Dec Units: MT Imports for: 2007 2008 U.S. 0.4 U.S. 0.2 Others Others China 1,115.5 I ndia 686 India 845 China 506 Indonesia 203.5 Indonesia 480 Korea (Democratic Thailand 3 Peoples Republic) 30 Japan 2 Malaysia 24 Taiwan 1 Australia 11 Thailand 3 Total for Others 2,170 1,740 Others not Listed 1 2 Grand Total 2,171.4 1,742.2 Source: Estimates from traders, General Customs Office Commodities: Meal, Soybean Production: Vietnam produces only a negligible amount of soybean meal as there are no commercial crushers. No official data is available for soybean meal production in Vietnam. Consumption:Vietnam has a huge demand for soybean meal to supply the booming animal and aquaculture feed industries. Since Vietnam produces virtually no soybean meal, this demand is filled almost exclusively by imported soybean meal. Trade: Imports Soybean meal is imported by both feed mills and trading companies. Soybean meal import has grown considerably since 2002 when total imports were 785 tmt. Vietnam imported a record 2,549 tmt of soybean meal in 2007, a 55% increase over the previous year. In 2008, soybean meal imports declined slightly (3.5%) to 2,461 tmt, partly due to credit difficulties as banks tightened or froze lending in the wake of the global economic and financial crises. It should also be noted that while soybean meal is favored for its high protein content, producers may substitute corn gluten meal and DDGS (Distillers Dried Grains) or other energy and protein components to the feed mix to offset higher input prices. India was by far the largest single supplier of soybean meal to Vietnam in 2007 and 2008, with Argentina a distant second. India provided 71% of Vietnam?s soybean meal imports in 2008, while Argentina supplied 17%. U.S. soybean meal exports to Vietnam in 2008 totaled an estimated 90 tmt, which though only a small share of the Vietnam market was 84% more than our exports in 2007. Vietnam?s animal feed manufacturers like U.S. soybean meal for its high quality and protein content, but they are highly price sensitive and will often opt for cheaper Indian and Argentinean meal as well as the shorter shipping time from India. Average import prices in 2008 were $502/mt for U.S. soybean meal; $483/mt for Argentina?s; and $427/mt for soybean meal from India. Table 7: Soybean meal imports by source 2005 2006 2007 2008 Total Imports: (tmt) 1,247 1,641 2,549 2,461 India 483 922 1,563 1,751 Argentina 575 541 731 415 Brazil 42 59 42 73 USA 18.6 31 49 90 China 0.7 0.5 46 47 UAE 101 32 66 32 Malaysia n/a n/a 15 11 Indonesia n/a n/a 11 8 Taiwan n/a n/a 11 8 Singapore n/a n/a 8 4 Japan n/a n/a 2 6 Canada n/a n/a 1 5 Philippines n/a n/a n/a 5 Source: Estimates from Traders, General Customs Department Vietnam?s soybean meal imports should continue to increase as demand from the growing animal feed and livestock industries as well as the huge aquaculture sector remains strong. There is also a definite trend of farmers moving away from homemade or backyard feed to commercial feed, which is seen as more nutritious. Compound feed is expected to account for up to 52 percent of Vietnam?s total feed production in 2009. Post estimates Vietnam?s 2009 soybean meal import at 2.6 million metric tons. Imported soybean meal is currently going for around $425/mt CFR Haiphong. See Table 17 below for soybean meal PS&D. Import Tariff - Import duty rate: 0% - VAT: 5% The Ministry of Agriculture and Rural Development (MARD) has solicited the government to reduce the VAT to 0% for all materials used in the animal and aquaculture feed industry so as to help reduce production cost. 1.4 OTHER OILSEEDS MEAL Vietnam also imported other oilseed meals like rapeseed meal, colza seed meal, coconut meal, canola meal, palm nut meal and peanut meal from sources like India, Malaysia, Indonesia, Philippines, China, UAE and the United States. In 2007, Vietnam?s other oilseed meal imports were 761 tmt, valued at over $108 million. The volume of Vietnam?s other oilseed meal imports declined 5.5 percent in 2008 to 719 tmt, valued at $157 million. Production, Supply and Demand Data Statistics: Table 17: Vietnam?s Production, Supply & Demand Table for Soybean Meal 2007 2008 2009 2006/2007 2007/2008 2008/2009 Meal, Soybean Market Year Begin: Market Year Market Year Vietnam Jan 2007 Begin: Jan 2008 Begin: (1000 HA)(1000 MT) Jan 2009 Annual Data New Post Annual Data New Post Annual Data New Displayed Displayed Displayed Post Official Post Data Official Post Data Official Post Data Crush 0 0 0 0 0 0 Extr. Rate, 999.9999 0. 0. 0. 0. 0. 0. Beginning Stocks 0 0 0 20 0 50 Production 0 0 0 0 0 0 MY Imports 2,273 2,549 2,400 2,461 2,550 2,550 MY Imp. from U.S. 30 49 30 90 30 100 MY Imp. from EU 0 0 0 0 0 0 Total Supply 2,273 2,549 2,400 2,481 2,550 2,600 MY Exports 0 0 0 0 0 0 MY Exp. to EU 0 0 0 0 0 0 Industrial Dom. Cons. 0 0 0 0 0 0 Food Use Dom. Cons. 0 0 0 0 0 0 Feed Waste Dom. Cons. 2,273 2,529 2,400 2,431 2,550 2,580 Total Dom. Cons. 2,273 2,529 2,400 2,431 2,550 2,580 Ending Stocks 0 20 0 50 0 20 Total Distribution 2,273 2,549 2,400 2,481 2,550 2,600 CY Imports 2,264 2,549 2,500 2,461 2,550 2,550 CY Imp. from U.S. 0 49 0 90 0 100 CY Exports 0 0 0 0 0 0 CY Exp. to U.S. 0 0 0 0 0 0 SME 2,273 2,529 2,400 2,431 2,550 2,580 Source: Estimates from traders, General Customs Office, FAS estimate Table 18: Vietnam?s Soybean Meal Import Matrix Country Vietnam Commodity Soybean meals Time Period Jan-Dec Units: MT Imports for: 2,007 2,008 U.S. 48,782 U.S. 90,116 Others Others India 1,562,865 India 1,750,719 Argentina 731,023 Argentina 415,284 United Arab Emirates 66,408 Brazil 72,730 China 46,134 China 47,354 Brazil 41,484 United Arab Emirates 32,096 Malaysia 15,510 Malaysia 10,656 Indonesia 11,116 Taiwan 8,164 Taiwan 10,520 Indonesia 8,048 Singapore 8,383 Japan 6,233 Antigua and Barbuda 2,700 Canada 5,072 Total for Others 2,496,143 2,356,356 Others not Listed 4,496 14,117 Grand Total 2,549,421 2,460,589 Source: Estimates from traders, General Customs Office Commodities: Oilseed, Soybean Production: OILS SECTION 1.5 VEGETABLE OIL INDUSTRY Production The vegetable oil industry uses both domestic (mainly sesame and peanut) and imported (mainly palm and soybean) crude oils for vegetable oil production. Although Vietnam has held plans for several years to have local oilseed crops supply up to 50% of its crude oil needs, continued lack of commercial crushing capabilities have thwarted this and much of the crude oil supply is still imported. Vietnam produced about 535 tmt of edible vegetable oil in 2007, an increase of almost 29 percent over the previous year. However, output in 2008 declined 1.2% to 528.6 tmt. Local producers and traders nevertheless expect production to increase about 10 percent in 2009 to about 581 tmt as demand remains strong and credit becomes more available. About 80 percent of Vietnam?s vegetable oil production is produced by the National Company for Vegetable Oils, Aromas & Domestics of Vietnam, (VOCARIMEX) a state-owned enterprise. Table 8: Refined vegetable oil production 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 est. est. Total refined vegetable oils production (tmt) 280.1 282.8 317.1 314.3 360.9 397.2 415.6 535 529 581 State-owned 82.2 101.4 130.1 158.3 164.3 168.3 192.5 n/a n/a n/a Private companies 26.1 26.5 33.2 19.2 33.9 39.8 39.5 n/a n/a n/a Foreign-invested firms 171.8 154.9 153.8 136.8 162.7 189.1 183.7 n/a n/a n/a Source: General Statistic Office, Local producers Graph 1: Vietnam?s vegetable oil production, 2000 - 2009 Source: General Statistics Office, estimates from traders Consumption: Although no official per capita consumption data is available, the industry estimates current per capita vegetable oil consumption at 5.0 kg/year, with an annual increase rate of about 12-15 percent. This falls well below the World Health Organization?s (WHO) annual per capita recommended level of 13.5 kg. Vietnam?s total domestic consumption of soybean oil for food use was about 207 tmt in 2008; (see table 19) and for palm oil it was 500 tmt for (see table 22). Levels should increase to 220 tmt for soybean oil and 550 tmt for palm oil in 2009. Trade: Imports of vegetable oils Vietnam?s vegetable oil industry must rely on imported crude oil because of Vietnam?s limited capacity for expelling sesame and peanuts and continued lack of industrial crushers. In 2008 Vietnam imported an estimated 711 tmt of crude and refined vegetable oils of all types, which is an increase of 29.7 percent over 2007. Table 9: Total vegetable oil imports Vegetable oils including refined oil and crude o est. il (thousand 2005 2006 2007 2008 metric tons) Total imports 380 425 548 711 Of which VOCARIMEX?s imports 350 390 510 520 Other companies? imports 30 35 38 191 Source: Estimates from traders Imports of crude vegetable oil Vietnam?s total crude vegetable oil imports increased almost 20 percent over the previous year in 2008 to an estimated 328.2 tmt. Palm oil from Indonesia, Malaysia and Thailand accounted for about 61 percent of total crude vegetable oil imports. Soybean oil from Argentina, Malaysia, Thailand and China accounted for much of the remaining crude vegetable oil import. Only a tiny amount of rapeseed, sunflower and olive crude oils were imported. A reduction in the import tariff rate for crude oil from 5 to 2 percent helped spur the increase in crude vegetable oil imports, which are mainly used in the food industry with a very small amount used in the industrial and cosmetic manufacturing sectors. Table 10: Crude vegetable oil imports Crude vegetable oil 2008 2009 est. (thousand metric ton 2007 s) Total 274.6 328.2 365.5 Crude palm oil 161 199 230 Crude Soybean oil 114 129 135 Other crude vegetable oil 0.6 0.2 0.5 Source: Estimates from traders, General Customs Department Imports of refined vegetable oil Vietnam?s refined vegetable oil imports for 2008 increased 40 over the previous year, as demand soared, spurred on by a drop in the tariff rate from 30 to 20 percent. Palm oil accounted for about 80 percent of total refined vegetable oil. Malaysia provided about 67 percent, while Indonesia supplied 32 percent. Soybean oil accounted for 20 percent of refined vegetable oil imports in 2008 and also increased dramatically over the 2007 volume. Table 11: Refined vegetable oil imports Crude vegetable oil (thousand me 2007 2008 2009 est. tric tons) Total 273.7 383 435.2 Refined palm oil 272 305 350 Refined Soybean oil 1.6 78 85 Other refined vegetable oil 0.14 0.1 0.2 Source: Estimates from traders, General Customs Office Import Tariff The current tax rate applied to crude and refined vegetable oils imported from countries having Most Favored Nation (MFN) status with Vietnam: Table 12: Import tariffs for vegetable oils Crude Oil Refined oil Import duty for soybean oil (HS code 1507) 3% 20% for peanut oil (HS code 1508) 2% 20% for olive oil (HS code 1509) 2% 20% for palm oil (HS code 1511) 2% 20% for sunflower oil (HS code 1512) 3% 20% For cottonseed oil (HS code 1512.21 and 1512.29 3% 25% for copra oil (HS code 1513) 2% 20% for rape oil (HS code 1514.11 and 1514.19) 2% 5% for rape oil (HS code 1514.91 and 1514.99) 2% 20% For other vegetable oil (HS code 1515) 3% 20% Source: Ministry of Finance The import tax applied to concentrated palm stearin is 20%. Exports Vietnam exports only a small quantity of edible oils (mainly sesame and rice bran oils) to Taiwan, Japan, China and the Middle East. Total exports for 2008 had an estimated value of $29 million. Production, Supply and Demand Data Statistics: Table 19: Vietnam?s Production, Supply & Demand Table for Soybean Oil 2007 2008 2009 Oil, Soybean 2007/2008 2008/2009 2009/2010 Vietnam Market Year Begin: Jan Ma Market Year Begin: Jan rket Year Begin: Jan 2008 (1000 HA)(1000 MT) 2007 2009 Annual Data Annual Data Annual Data D New Post st isplayed D New Poisplayed D New Post isplayed Data Data Data Crush 0 0 0 0 0 0 0 0 Extr. Rate, 999.9999 0. 0. 0. 0. 0. 0. 0. 0. Beginning Stocks 0 0 0 0 5 6 5 6 Production 0 0 0 0 0 0 0 0 MY Imports 75 115 116 80 207 207 220 220 MY Imp. from U.S. 0 0 0 0 0 0 0 0 MY Imp. from EU 0 0 0 0 0 0 0 0 Total Supply 75 115 116 80 212 213 225 226 MY Exports 0 0 0 0 0 0 0 0 MY Exp. to EU 0 0 0 0 0 0 0 0 Industrial Dom. Cons. 0 0 0 0 0 0 0 0 Food Use Dom. Cons. 75 110 110 80 207 207 220 220 Feed Waste Dom. Cons. 0 0 0 0 0 0 0 0 Total Dom. Cons. 75 110 110 80 207 207 220 220 Ending Stocks 0 5 6 0 5 6 5 6 Total Distribution 75 115 116 80 212 213 225 226 CY Imports 75 131 116 80 207 207 220 220 CY Imp. from U.S. 0 0 0 0 0 0 0 0 CY Exports 0 0 116 0 0 0 0 0 CY Exp. to U.S. 0 0 0 0 0 0 0 0 Source: Estimates from traders, General Customs Office, FAS estimate Table 20: Vietnam?s Crude Soy Oil Import Matrix Country Vietnam Commodity Crude Soy oil Time Period Jan-Dec Units: MT Imports for: 2007 2008 U.S. 0 U.S. - Others Others Argentina 66,695 A rgentina 47,656 Malaysia 32,097 M alaysia 38,469 Brazil 8,006 C hina 27,379 Thailand 5,010 T hailand 15,076 China 1,951 T aiwan 20 United Arab Emirates 498 Taiwan 119 Singapore 32 South Korea 16 Total for Others 114,424 128,600 Others not Listed 2 - Grand Total 114,426 128,600 Source: Estimates from traders, General Customs Office Table 21: Vietnam?s Refined Soy Oil Import Matrix Country Vietnam Commodity Refined Soy oil Time Period Jan-Dec Units: MT Imports for: 2007 2008 U.S. 0 U.S. 21 Others Others Malaysia 1,182 M alaysia 77,339 Singapore 397 S ingapore 376 Thailand 25 T hailand 151 Japan 1 J apan 31 Taiwan 1 T aiwan 8 South Korea 2 Total for Others 1,606 77,907 Others not Listed 1 - Grand Total 1,607 77,928 Source: Estimates from traders, General Customs Office Table 22: Vietnam?s Production, Supply & Demand Table for Palm Oil 2006 2007 2008 Oil, Palm 2006/2007 2007/2008 2008/2009 Vietnam Ma Market Year Begin: Jan Market Year Begin: Jan rket Year Begin: Jan 2007 (1000 HA)(1000 MT) 2008 2009 Annual Data New Post Annual Data New Post Annual Data New Post Displayed Data Displayed Data Displayed Data Area Planted 0 0 0 0 0 0 Area Harvested 0 0 0 0 0 0 Trees 0 0 0 0 0 0 Beginning Stocks 23 23 37 21 40 20 Production 0 0 0 0 0 0 MY Imports 440 433 575 504 650 580 MY Imp. from U.S. 0 0 0 0 0 0 MY Imp. from EU 0 0 0 0 0 0 Total Supply 463 456 612 525 690 600 MY Exports 6 5 5 5 5 7 MY Exp. to EU 0 0 0 0 0 0 Industrial Dom. Cons. 0 0 0 0 0 0 Food Use Dom. Cons. 420 430 567 500 640 550 Feed Waste Dom. Cons. 0 0 0 0 0 0 Total Dom. Cons. 420 430 567 500 640 550 Ending Stocks 37 21 40 20 45 43 Total Distribution 463 456 612 525 690 600 CY Imports 384 433 410 504 410 580 CY Imp. from U.S. 0 0 0 0 0 0 CY Exports 0 0 0 0 0 0 CY Exp. to U.S. 0 0 0 0 0 0 Source: Estimates from traders, General Customs Office, FAS estimate Table 23: Vietnam?s Crude Palm Oil Import Matrix Country Vietnam Commodity Crude Palm oil Time Period Jan-Dec Units: MT Imports for: 2007 2008 U.S. 0 U.S. 0 Others Others Indonesia 79,710 I ndonesia 130,165 Malaysia 37,972 T hailand 44,884 Thailand 43,393 M alaysia 20,219 India 3,498 China 40 Total for Others 161,075 198,806 Others not Listed - Grand Total 161,075 198,806 Source: Estimates from traders, General Customs Office Table 24: Vietnam?s Refined Palm Oil Import Matrix Country Vietnam Commodity Refined Palm oil Time Period Jan-Dec Units: MT Imports for: 2007 2008 U.S. 0 U.S. 0 Others Others Malaysia 197,577 M alaysia 203,189 Indonesia 67,920 I ndonesia 98,063 Japan 3,309 J apan 3,225 Singapore 1,804 S ingapore 653 China 1,500 S outh Korea 7 Thailand 22 South Korea 21 Total for Others 272,174 305,137 Others not Listed - Grand Total 272,174 305,137 Source: Estimates from traders, General Customs Office
Posted: 14 April 2010

See more from Cereals, Leguminous Crops, Oil Seeds in Vietnam

Expert Views    
Grain and Feed Annual in Vietnam   By Foreign Agricultural Service
Grain and Feed Annual 2011   By Foreign Agricultural Service
Grain and Feed Annual 2012   By Foreign Agricultural Service
Vietnam Grain and Feed Annual 2009 in Vietnam   By Foreign Agricultural Service
Oilseeds and Products Annual   By Foreign Agricultural Service