News last update:7 Aug 2012

Vietnam: tax cut on animal feed

Deputy Minister of Finance, Do Hoang Anh Tuan, has signed an agreement to lower the import tax of some ingredients for animal food production.According to reports, the import tax on whey and whey powder has been cut from 10% - 2%, while soybean has been lowered from 2% to zero.

Relieve difficulties for farmers
The Deputy Minister's decision is in aid of solving some difficulties for farmers, following 20% - 50% increases in the price of animal feed ingredients in months recently. And also, the decision is aimed at strengthening the development of animal husbandry in Vietnam.

Imports – due to shortage
Vietnam is now being urged to import many ingredients for animal feed - this is due to a shortage of domestic supplies.

According to the Ministry of Agriculture and Rural Development's Animal Husbandry Department, almost 40 domestic feedstock-production enterprises for cattle, pigs, poultry and even fish have temporarily close down.

Hoang Kim Giao, director of the department, said growth in animal husbandry was only a weak 0.03% in the first half of the year.

"To reach the annual growth rate of 4% -5 % in the second half of the year, the industry must grow by at least 8% -10%," he stated.

It is expected that demand for these products should rise to 8% in the next 10 years.

The Ministry of Agriculture and Rural Development has been urging the Government to place animal-food products and ingredients on the list of essential commodities and reduce import tax to zero per cent.

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