Rubbing salt into the wound

There is not yet suitable answer for the lack of industrial salt delaying chemical projects in Vietnam.

This is despite the fact that chemical manufacturing firms are crying out for industrial salt and asking for imports.

Le Van Hung, director of Southern Basic Chemical Company, said his company needed 80,0000 industrial salt tonnes for its produce.

Hung added that because of the shortage, his company delayed many projects such as the project to raise its capacity to meet Lam Dongaluminum-bauxitecomplex project.

In June this year, the Ministry of Industry and Trade was not supported by the Ministry of Agriculture and Rural Development (MARD) for the plan to import 50,000 tonnes of industrial salt.

Last year, the two ministries as well local chemical firms and salt firms sat together to discuss domestic salt demand for 2011. At that meeting, domestic salt firms said they could only supply 70,000-75,000 industrial salt in maximum in 2011, far from the estimated domestic demand of more than 260,000 tonnes.

Based on this forecast, the MoIT agreed to grant import quota of around 102,000 tonnes of industrial salt across this year.

Dao Trung Tuyen, general director of Viet Tri Chemical Joint Stock Company – one of the largest chemical firms in Vietnam, said: “We really want to buy industrial salt in the domestic market, the problem is that there is no availability of the material for us.”

The MoIT’s Chemical Department said in a meeting between MoIT and MARD on July 13 that it wanted to know about the actual supply of domestic salt producers before making decision on additional industrial salt import quota. But, no salt firm took part in this meeting.

Under Vietnam’s World Trade Organization commitments, the country is able to maintain an import quota system for several agricultural products including salt, sugar and eggs.

Vietnam has for many years imported industrial salt as local suppliers cannot satisfy both quantity and quality. In 2008, the country for the first time imported edible salt for households.

According to MARD, until 2015 local salt farms can satisfy the domestic demand for both industrial and edible salt. – VIR

Tags:

Posted by VBN on Jul 17 2011. Filed under Agriculture. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

You must be logged in to post a comment Login

Stay informed everyday

Subscribe to free RSS and email updates from Vietnam Business News

Subscribe via Email Subscribe in a Reader Follow us on Twitter Connect on Facebook

RSS China Business News

  • Copper up, but demand jitters cap gains
  • Gold prices fall 1 percent, silver was down 0.5 percent at $41.40 an ounce
  • Gold price in Hong Kong opens at 17,440 HK dollars per tael on Wednesday
  • Gold sheds 3 pc in choppiest day in two weeks
  • Appliance retailers eye shopping fest to boost sales
  • Stock break four-day losing streak
  • Swedish auto maker Saab files for bankruptcy protection
  • Chinese tourists to Sri Lanka almost double

Sponsored

Looking for an overseas forex broker?